Brady plc Preliminary Results (8038T)

Share Name	Share Symbol	Market	Type	Share ISIN	Share Description
Brady Plc	LSE:BRY	London	Ordinary Share	GB00B0188P35	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%	18.20	17.40	19.00				0.00	01:00:00

Industry Sector	Turnover	Profit	EPS - Basic	PE Ratio	Market Cap
	0	0		N/A	0

Brady (LSE:BRY)
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From May 2019 to May 2024

TIDMBRY

RNS Number : 8038T

Brady plc

25 March 2019

Brady plc ("Brady" or the "Group")

PRELIMINARY RESULTS

For the year ended 31 December 2018

Brady plc (BRY.L), a global provider of trading, risk management and settlement solutions to the energy and commodities sectors, is pleased to announce its unaudited preliminary results for the year ended 31 December 2018.

Financial Highlights

   --      Adjusted EBITDA* GBP2.6 million (2017: GBP0.3 million loss) 
   --      Revenues up 4% to GBP23.2 million (2017: GBP22.2 million) 
   --      Gross profit up by 15% to GBP13.9 million 
   --      Cash costs reduced by GBP1.1 million 
   --      Net cash inflow from operations GBP0.9 million (2017: GBP0.1 million outflow) 
   --      Net cash at 31 December 2018 GBP4.6 million (2017: 4.1 million)

Operational Highlights

   --      Focus on existing customer engagement and delivery on key milestones

-- Significant product progress: CTRM fast start, tolling module, Elhub project live, I-SEM delivered

   --      Carmen Carey appointed CEO with effect from 18 February 2019 
   --      Improved staff engagement through a series of internal initiatives

-- Completion of Recycling business disposal, receiving net cash proceeds in year of GBP2.9 million

Financial Summary

 
                                                         Unaudited 
                                             Unaudited    restated 
                                                  2018       2017* 
                                               GBP'000     GBP'000 
                                          ------------  ---------- 
 Revenues - continuing                          23,157      22,215 
 
 EBITDA before exceptional costs (1)             2,628       (307) 
 
 Operating loss after exceptional costs 
  (2)                                          (1,102)     (6,950) 
 Operating loss before exceptional 
  costs (2)                                      (828)     (4,509) 
 
 Loss after tax and exceptional costs 
  - continuing                                 (1,808)     (6,845) 
 
 Basic loss per share (in pence)                (2.49)     (10.52) 
 Adjusted earnings/(loss) per share 
  (in pence) (3)                                  0.01      (5.67) 
 
 Cash                                            4,627       4,089

*restated for changes in accounting policies (see note 12)

(1) EBITDA before exceptional costs comprises operating loss before share based payments, depreciation, amortisation and exceptional costs

(2) The majority of exceptional items incurred in 2018 relates to professional fees incurred pertaining to the appeal against the Norwegian tax assessment. In the prior year, exceptional costs primarily related to the functional transformation of the Group

(3) Adjusted earnings per share is based on earnings excluding exceptional items, acquired intangible asset amortisation charges and share based payment charges and at a consistent normalised tax rate assumed to be 15%

Outlook

We have an outstanding team led by our recently appointed CEO, an impressive portfolio of customers world-wide and our products continue to be recognised as market-leading. Our committed revenues for the year to December 2019 are approximately GBP18 million with cash on the balance sheet of GBP4.6 million at 31 December 2018. Implementation of the plan set out in the last two annual reports remains on track as we leverage the foundations we have established to deliver high quality customer relationships and growth in line with commitments made to our employees, customers and shareholders. Going into 2019, we look to the future with confidence.

Carmen Carey, CEO, said,

"I am delighted to join Brady as CEO and look forward to leading the team as we look ahead to 2019 and beyond. We have exceptional people and world-class customers, providing us with a strong foundation for high quality customer relationships, growth and innovation".

For further information please contact:

 
 Brady plc 
  Carmen Carey, CEO 
  Martin Thorneycroft, CFO              Telephone: +44 (0)1223 479479 
 
 Cenkos Securities plc                  Telephone: +44 (0)20 7397 
  Mark Connelly                         8900 
 
 
 Newgate Communications Bob Huxford     Telephone: +44 (0)20 3757 
  Ian Silvera                           6767

About Brady

Brady plc (BRY.L) is the largest European-headquartered provider of trading and risk management software to the global commodity and energy markets. Brady combines fully integrated and complete solutions supporting the entire commodity trading operation, from capture of financial and physical trading, through risk management, handling of physical operations, back office financials and treasury settlement, for energy, refined and unrefined, soft commodities and agriculturals.

Brady has over 30 years' expertise in the commodity markets with some 200 customers worldwide, who depend on Brady's software solutions to deliver vital business transactions across their global operations. Brady clients include many of the world's largest financial institutions, trading companies, miners, refiners and producers, tier one banks and a large number of London Metal Exchange (LME) Category 1 and 2 clearing members and many leading European energy generators, traders and consumers.

For further information visit: www.bradyplc.com

Brady plc: Twitter/Facebook/LinkedIn

Chairman's statement

The strategy and plan agreed by the Board at the end of 2016 has not changed. In 2017, we completed much of the work urgently needed to restructure the company and establish the foundations for execution and growth. In 2018, we continued to focus on delivery against our agreed plan, including our commitments to our employees and delivering to our base of blue-chip customers, resulting in a high-quality revenue stream with a high level of recurring earnings to our shareholders. Execution against new customer acquisition has been secondary to our focus on resourcing and delivering against existing customer commitments.

Strategic progress

In my report last year, we set out our priorities for the year ended 31 December 2018 and we delivered progress against those items as follows:

Deliver a customer centric experience to the market

The account management team had a strong year. The improved dialogue and relationships with our customers resulted in the team exceeding their targets for value added and revenue. None of this would have been possible without the engineering teams making substantial progress in the delivery of several long-term customer projects. We are engaging with customers and industry experts to validate customer and market perspectives as we prioritise our future developments and innovation roadmap.

Re-establish our technology and product leadership

We continued to extend our product capabilities. We released our new fast start version of CTRM that allows customers to start trading in a number of commodities markets using an off the shelf product. We also released an upgrade of our tolling module, supporting our CTRM product expansion. We defined a refactored version of our credit risk product and delivered key market change updates to our ETRM products. The progress we are making is being recognised by the wider market with Brady being featured on the front cover of CIO magazine and back to number one in metals trading software in ComTech Advisory's annual survey.

Create simplicity and efficiency in our organisation

We followed the restructuring of 2017 with the definition and implementation of common processes across the business. Our business enablement team has delivered new and improved back office systems, improved management reporting across a suite of KPI's, and additional leadership and job specific training.

Create a high-performance culture and company.

We completed an internal consultation process to determine our values and principles. The revised Brady values are innovation, trust and collaboration. Now, our task is to bring these values to life in everything we do. A core component of our trust value is our continued commitment to act on the results of the employee surveys. We completed two during the year, both with strong participation and positive progression. One of the actions coming out of the 2017 survey was our commitment to support the professional growth of our managers throughout the organisation. In line with this, we currently have 35 managers going through a comprehensive leadership program, called the Ripple Effect.

Financial performance

Our revenues for the year ended 31 December 2018 were GBP23.2 million and adjusted EBITDA before one-off exceptional items was GBP2.6 million. This is a significant turnaround from 2017 when we showed revenue of GBP22.2 million and an adjusted EBITDA loss of GBP0.3 million. Recurring revenues increased by 2% to GBP16 million.

Our operating loss before exceptional items was GBP0.8 million for the continuing business compared with a loss of GBP4.5 million in 2017. This year we incurred non-recurring costs of GBP0.3 million, compared to GBP2.4 million in 2017.

We start 2019 with committed recurring revenues and contracted development and services revenues of approximately GBP18 million and cash on hand of GBP4.6 million.

Summary and outlook

I would like to thank all Brady employees for their continued quality work during the year which enabled us to deliver on our commitments to our customers and our shareholders. Looking ahead to 2019, our strategic direction remains focused on:

   --      delivering a best in class customer-centric experience; 
   --      new customer acquisition; 
   --      product alignment; and

-- increasing employee satisfaction through consistent, open engagement whilst ensuring transparency and alignment throughout the organisation.

We have an outstanding team led by our recently appointed CEO, an impressive portfolio of customers world-wide and our products continue to be recognised as market-leading. Our committed revenues are approximately GBP18 million with cash on the balance sheet of GBP4.6 million at 31 December 2018. The plan set out in the last two annual reports remains the same as we leverage the foundations we have established to deliver high quality customer relationships and growth in line with commitments made to our employees, customers and shareholders.

In the period since September 2016 when I became Executive Chairman at Brady, we have achieved a huge amount of change. The business has evolved positively in terms of product value proposition, customer satisfaction and employee engagement. The people within Brady made these changes and our progress possible. As I step back from being Executive Chairman to Non-Executive Chairman and Carmen becomes CEO, the Board and I can look to the future of the Brady with confidence.

Ian Jenks

Executive Chairman

Operating review

Our customers and market

The focus in 2018 was reconnecting with our customers. Teams across Brady played a significant role in ensuring we delivered key customer projects during the year. The Account Management team secured multiple licence renewals and project upgrades, and we increased our presence in the market through thought leadership and market engagement.

We launched our new branding, which has been well received by customers, our team and the market. We were featured in the CIO magazine series as leaders in the Top 10 ETRM solutions providers (in July 2018) and again in November 2018 featured as leaders in the Top 10 ERM publication. In addition, Brady were once again recognized as the leaders in metals by ComTech Advisory in their biennial vendor perception report.

Our products

Throughout 2018, we executed the stated product strategy for the commodities and energy markets.

In the commodities product portfolio, we implemented concentrates functionality including a new end-to-end tolling process. In terms of features enhancements, we added automatic creation of inter-company transactions, processes for single content concentrates, more granularity in the content of concentrates (multiple moistures) and pricing functionality.

Other enhancements delivered focused on the contract management components and functionality to support the introduction of the new LME ferrous contracts.

For the energy markets, we launched the Elhub project which provides support for over 3 million energy meters in the Norwegian power market, added the regulation module for electronic activation of RK and delivered I-SEM for the Irish energy market.

In terms of market regulation, we implemented functionality to support GDPR, support of the German/Austrian market split and enhanced our connectors and adaptors to various exchanges including NASDAQ for German futures, ICE FIX adapter, EEX pricing structure changes, a Danish adaptor for the power market and changes to the French power market formats. New instruments have been added including green certificates, structured deal and OMIP gas futures. Finally, we added functionality for spot bidding that automates the submission into EPEX power auctions.

Looking to the future, we have initiated the design phase of the new limits management module. This component will be designed for deployment across Brady's product portfolio across commodities and energy products.

Our people

The focus for 2018 was to build strong, united foundations for our culture and people approach, ensuring consistency and effective leadership in alignment with our values of trust, innovation and collaboration.

A key deliverable in our people agenda was our Employee Handbook celebrating Brady's rich heritage, introducing new team members to the business, establishing common ground for long-serving employees and ensuring we all understand who we are as a business and how we get things done.

We implemented a self-service HR system providing all team members with a common platform to collaborate regarding performance and professional growth.

We invested in our commitment to transparent and capable leadership through the launch of a bespoke values-led professional growth program for our people leaders across the business with the objective to deliver a superlative leadership experience to our teams and employees.

We are excited and optimistic to see the Brady culture evolve in 2019. We will continue to build on the high-quality contributions of all team members in 2018 and focus on their professional growth as well as initiatives that promote our values such as employee nominated recognition for employees delivering our values in exceptional ways through our Sally Marshall Awards in honour of late long-term team member.

Ian Jenks

Executive Chairman

Financial review

Group trading performance

Revenue mix

The revenue composition is summarised in the tables below:

 
                                     2018                                 2017 
                              GBP million          % of total      GBP million     % of total 
==========================  =============  ==================  ===============  ============= 
 Recurring revenues                  16.0                 69%             15.7            71% 
 Services and development 
  revenues                            3.8                 16%              4.2            19% 
 Licence revenues                     3.4                 15%              2.3            10% 
==========================  =============  ==================  ===============  ============= 
 Total revenues                      23.2                100%             22.2           100% 
==========================  =============  ==================  ===============  =============

2018's revenue performance was driven by a focus on servicing our existing client base and achieving revenue recognition milestones on several long-term implementations. Revenue within the businesses (Energy and Commodities products) increased in total to GBP23.2 million, an increase of 4%. Recurring revenues comprised 69% (2017: 71%) of our total revenues. This slight decrease in overall percentage was as a result of the increase in licence revenue in the year on customer implementations as revenue recognition milestones were achieved. Net customer churn, being the annual revenue lost less annual revenue gained, was GBP0.2 million (2017: GBP(0.4) million). Services and development revenues at GBP3.8 million, were down GBP0.4 million on 2017, reflecting the lower level of new business in the year.

Gross margin

The overall gross margin before exceptional items for the continuing business increased to 60% (2017: 56%) as a result of increased efficiencies in delivering customer contractual obligations and an increase in licence revenues as a result of renewals and the achievement of revenue recognition milestones on several customer implementations.

Profitability

Adjusted EBITDA (earnings before interest, tax, share option costs, depreciation, amortisation) before exceptional items increased to GBP2.6 million (2017: loss of GBP0.3 million). The improvement in adjusted EBITDA is driven by an increase in revenue of GBP0.9 million, an improvement in efficiency of GBP1.1 million and a higher level of capitalised development of GBP0.9 million as we continue to invest in our products. The improvement in efficiencies were as a result of the re-organisation in 2017.

Operating loss before exceptional items and tax decreased to a loss of GBP0.8 million (2017: GBP4.5 million loss). Loss after exceptional items and tax decreased to GBP1.8 million (2017: GBP6.8 million loss) for the continuing business.

Research and development expenditure

Total research and development spend for the continuing business amounted to GBP7.0 million (2017: GBP7.5 million). Of this, GBP4.1 million was expensed (2017: GBP5.4 million) and GBP2.9 million (2017: GBP2.1 million) was capitalised. This was a year of substantially increased investment in Strategic Software Development (SSD). During the year notable developments were made to the concentrates product and a new tolling module in our commodities trading and risk platform. Significant new functionality was also added to our energy trading and risk management platform.

Capitalised development, which is referred to internally within Brady as SSD, represents large strategic developments of significant new modules or functionality. These projects are selected and approved by the Board as part of the business planning and budget process. The largest single capitalised project in 2018 was GBP0.5 million (2017: GBP0.5 million) in respect of the tolling module for the Fintrade product. This allows a customer to process tolling contracts for raw materials and expands our product offering to the commodity trading market. SSD for 2019 is expected to be approximately GBP3 million.

Foreign exchange rates

Foreign exchange rates used to translate the balance sheets of our subsidiaries at 31 December have strengthened against Sterling between 2017 and 2018. However, the average exchange rates used to translate the income statements of our subsidiaries have weakened against sterling. Compared to the 2017 average rates the 2018 average rates for the US dollar, Norwegian Krone and Swiss franc all weakened against sterling by 4%, 2% and 3% respectively. The impact of this for the continuing business was to decrease both revenue and costs by GBP0.3 million respectively.

Exceptional items and disposal of the Recycling business

The exceptional items comprise:

-- GBP0.2 million of professional fees pertaining to the appeal against the Norwegian tax assessment and GBP0.1 million of costs in respect of one-off recruitment for a new chief executive and legal costs pertaining to an employee dispute.

Disposal of the Recycling business

The Recycling business was disposed of on 25 January 2018 and has therefore been accounted for as a disposal group. Its financial performance for the year ended 31 December 2018 has been brought into the consolidated income statement as a single line. The income statement in 2017 includes an adjustment to write down the net assets to its disposal carrying value. The analysis of performance for 2018 and 2017 is shown below:

 
                                                      2018       2017 
                                                   GBP'000    GBP'000 
-------------------------------------------     ----------  --------- 
 Revenue                                               273      4,220 
 Cost of revenues                                    (105)    (1,960) 
----------------------------------------------  ----------  --------- 
 Gross profit                                          168      2,260 
 Operating expenses                                  (132)    (2,198) 
----------------------------------------------  ----------  --------- 
 Operating profit before adjustments 
  to write down carrying value of 
  net assets                                            36         62 
----------------------------------------------  ----------  --------- 
 Analysed as: 
 Gross profit                                          168      2,260 
 Operating expenses                                  (115)    (1,877) 
----------------------------------------------  ----------  --------- 
 Adjusted EBITDA before adjustments 
  to write down carrying value of 
  net assets                                            53        383 
 Depreciation                                          (3)       (48) 
 Amortisation of acquired intangible 
  assets                                               (5)       (84) 
 Amortisation of other intangible 
  assets                                               (9)      (189) 
----------------------------------------------  ----------  --------- 
 Operating profit before adjustments 
  to write down carrying value of 
  net assets                                            36         62 
----------------------------------------------  ----------  --------- 
 Adjustments to write down net assets 
  to carrying value at disposal                          -    (1,906) 
----------------------------------------------  ----------  --------- 
 Operating profit/(loss) after adjustments 
  to write down carrying value of 
  net assets                                            36    (1,844) 
 Tax expense                                             -      (190) 
 Adjustment to deferred tax                              -        112 
 Profit/(loss) from discontinued 
  operations                                            36    (1,922) 
----------------------------------------------  ----------  ---------

The loss on disposal of the Recycling business was GBP0.3 million. Cash received on 25 January 2018 amounted to GBP3.7 million with the balance of GBP1.0 million to be paid in July 2019.

Income tax

The overall tax charge for the year was GBP0.7 million (2017: GBP0.1 million credit). The charge in 2018 was higher due to the improvement in the Group's overall profitability. The ongoing transfer pricing tax issue in Norway which relates to an alleged transfer of intellectual property from Norway to the UK in 2011 and 2012 following the acquisitions of Viz Risk Management AS and Navita AS, for which the Group has provided GBP2.1 million as at 31 December 2018, has seen some further developments. The tax authorities have issued a decision which the Group does not agree with, and following professional advice has appealed this decision since the year end.

Subsequent to the year end, the Group has received (net) tax invoices amounting to GBP2.6 million for the period 2011 to 2017, for which the Group has provided GBP1.6 million. The maximum exposure is an additional GBP1.0 million on top of the provision made of GBP2.1 million. The Group has also agreed with the Norwegian tax authorities a deferred payment plan. If the appeal is upheld then any tax paid in excess of the determined amount will be refunded. Having regard to the professional advice received, the GBP2.1 million provision made remains management's best estimate of the likely outcome.

Earnings and dividends

After including the exceptional charges, the loss after tax on continuing operations decreased to a loss of GBP1.8 million (2017: GBP6.8 million loss).

The weighted average number of shares in issue increased to 83.4 million (2017: 83.3 million). Basic and diluted loss per share was 2.49 pence per share (2017: loss per share of 10.52 pence). Adjusted earnings per share, as calculated by market analysts, adjusted to exclude share-based payments, amortisation of acquired intangible assets, exceptional items and, assuming a consistent normalised tax rate of 15%, was 0.01 pence profit per share (2017: 5.67 pence loss per share).

The Board does not propose a dividend for the year.

Share issues

No share options (2017: 285,000) held under the Company's share option schemes were exercised in 2018. Proceeds from the exercise of share options were therefore GBPnil (2017: GBP190,000).

Treasury shares

The total number of ordinary shares held in treasury during the year remained at 4,306 (2017: 4,306).

Consolidated Statement of Financial Position

The Group continues to retain a strong balance sheet with significant cash reserves.

Non-current assets

Goodwill increased to GBP15.8 million from GBP15.7 million due to movement foreign exchange.

Acquired software decreased to GBP2.3 million from GBP3.2 million and acquired customer relationships decreased to GBP1.0 million from GBP1.3 million as a result of amortisation during the year.

The Group capitalised GBP2.9 million (2017: GBP2.1 million) of expenditure in relation to Strategic Software Development programmes. The Group has a continued commitment of enhancing and expanding its offerings and taking its technology forward. The bulk of expenditure incurred during the year on research and development was, however, expensed as incurred. The book value of capitalised development costs increased to GBP6.8 million (2017: GBP5.5 million) reflecting the increased investment in new product functionality.

Current assets

Other current assets, which mainly comprises prepayments and other receivables, decreased from GBP1.5 million in 2017 to GBP1.1 million in 2018. Included within GBP0.4 million (2017: GBP0.5 million) of contract assets are amounts recoverable on contracts and contract fulfilment cost. Amounts recoverable on contracts arises principally on consulting and professional services revenue, which is typically invoiced in the month following provision of the service. Trade and other receivables increased to GBP4.2 million (2017: GBP2.8 million), Included within trade receivables is deferred consideration of GBP0.9 million due for the sale of the Group's Recycling business on 25 January 2018.

Current liabilities

Trade and other payables decreased to GBP5.3 million (2017: GBP5.4 million). Contract liabilities, which comprises deferred income, decreased to GBP6.4 million (2017: GBP7.8 million). Deferred income arises principally as a consequence of payments received in advance of revenue recognition.

Cash and cash flow

Operating cash generation was GBP0.9 million (2017: GBP(0.1) million).

The Group had investment outflows of GBP0.4 million (2017: GBP2.8 million), as spending on intangible assets increased to GBP3.0 million (2017: GBP2.5 million) in 2018, offset by net proceeds of GBP2.9 million from the sale of the Recycling business.

Cash in hand at 31 December 2018 was GBP4.6 million (2017: GBP4.4 million).

At 31 December 2018, the Group had an unutilised bank overdraft facility of GBP0.5 million. In March 2019, this was increased to GBP1.0 million to cover short-term working capital requirements. The facility reduces to GBP0.5 million on 1 August 2019 and then increases back to GBP1.0 million from 16 October 2019 until 15 January 2020 and decreases to GBP0.5 million from 16 January 2020, in line with the Group's seasonal working capital cycle.

Martin Thorneycroft

Chief Financial Officer

Consolidated income statement

For the year ended 31 December 2018

 
                                     Unaudited                                  Restated* 
                                        Before      Unaudited                      Before      Restated* 
                                   exceptional    Exceptional                 exceptional    Exceptional 
                                         items          items    Unaudited          items          items     Restated* 
                                          2018           2018         2018           2017           2017          2017 
                          Notes        GBP'000        GBP'000      GBP'000        GBP'000        GBP'000       GBP'000 
=====================  ========  =============  =============  ===========  =============  =============  ============ 
 Revenue from 
  contracts 
  with customers              4         23,157              -       23,157         22,215              -        22,215 
 Cost of revenues                      (9,250)              -      (9,250)        (9,852)          (267)      (10,119) 
=====================  ========  =============  =============  ===========  =============  =============  ============ 
 Gross profit                           13,907              -       13,907         12,363          (267)        12,096 
 Operating expenses         5.1       (14,480)          (274)     (14,754)       (16,738)        (1,634)      (18,372) 
 Net impairment 
  losses 
  on financial and 
  contract 
  assets                                 (255)              -        (255)          (134)          (540)         (674) 
=====================  ========  =============  =============  ===========  =============  =============  ============

 Operating loss                          (828)          (274)      (1,102)        (4,509)        (2,441)       (6,950) 
=====================  ========  =============  =============  ===========  =============  =============  ============ 
 Analysed as: 
 Gross profit                           13,907              -       13,907         12,363          (267)        12,096 
 Other operating 
  expenses                            (11,279)          (274)     (11,553)       (12,670)        (2,174)      (14,844) 
=====================  ========  =============  =============  ===========  =============  =============  ============ 
 Adjusted EBITDA                         2,628          (274)        2,354          (307)        (2,441)       (2,748) 
 Share based payment 
  credit/(charge)                          137              -          137            (9)              -           (9) 
 Depreciation               5.1          (367)              -        (367)          (298)              -         (298) 
 Amortisation of 
  acquired 
  intangible assets         5.1        (1,283)              -      (1,283)        (1,559)              -       (1,559) 
 Amortisation of 
  other 
  intangible assets         5.1        (1,943)              -      (1,943)        (2,336)              -       (2,336) 
 Operating loss                          (828)          (274)      (1,102)        (4,509)        (2,441)       (6,950) 
                       ========  =============  =============  ===========  =============  ============= 
 Net finance expense                      (42)              -         (42)           (22)              -          (22) 
=====================  ========  =============  =============  ===========  =============  =============  ============ 
 Loss before tax                         (870)          (274)      (1,144)        (4,531)        (2,441)       (6,972) 
 Income tax 
  (expense)/ 
  credit                      6          (664)              -        (664)            127              -           127 
=====================  ========  =============  =============  ===========  =============  =============  ============ 
 Loss for the year 
  from 
  continuing 
  operations                           (1,534)          (274)      (1,808)        (4,404)        (2,441)       (6,845) 
=====================  ========  =============  =============  ===========  =============  =============  ============ 
 Loss from 
  discontinued 
  operations                             (271)              -        (271)        (1,922)              -       (1,922) 
=====================  ========  =============  =============  ===========  =============  =============  ============ 
 Loss for the year                     (1,805)          (274)      (2,079)        (6,326)        (2,441)       (8,767) 
---------------------  --------  -------------  -------------  -----------  -------------  -------------  ------------ 
 
 
 Loss per share attributable to the equity shareholders 
  of the Parent Company (pence) 
 Basic                      7.1                                    (2.49p)                                    (10.52p) 
 Diluted                    7.1                                    (2.49p)                                    (10.52p) 
=====================  ========  =============  =============  ===========  =============  =============  ============

* See note 12 for details regarding the restatements for changes in accounting policies.