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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Cantono | LSE:CTNO | London | Ordinary Share | GB00B236KQ44 | 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% | 0.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMCTNO RNS Number : 0250O Cantono PLC 27 February 2009 CANTONO PLC INTERIMS RESULTS 27 February 2009 CANTONO PLC Interim Results for the Six Months ended 30 November 2008 Highlights * Group operating loss for continuing activities of GBP1.03m (2007: loss of GBP1.01m); * Group operating loss for the period of GBP2.6M (2007: loss of GBP2.26M); * Successful fundraising in Dec 2008 of GBP2M before expenses. CHAIRMAN'S STATEMENT Overview The transformation of Cantono plc continues, the disposal of the Managed Services businesses and assets was approved by shareholders on 15 December 2008, and the business is now totally focused on co-location services in the Data Centre market. Financial Review The sale of the Managed Services Business is classified under IFRS5 as a disposal group held for sale and disclosed under Note 2 as a discontinued activity, and therefore the results of the Managed Services Business are shown separately from the Data Centre's (now described as the main activity of the Group) performance in the Income Statement for the current half year period. In the first six months the Group produced a very similar operating loss to last year GBP1.29M, (2007: GBP1.06M). The loss before tax was GBP1.03M, marginally higher by GBP17k compared to last year. The Group's consolidated cash position as at 30 November 2008 was GBP216k, compared to GBP5.2M last year, although the Group completed a successful fundraising in December 2008 of GBP2M convertible loan notes and GBP0.03k in equity. The Managed Services Business was sold to Xploite plc and approved by shareholders on 15 December 2008, the total consideration was GBP3M of which GBP1.9M was paid immediately, used to complete work on the Data Centre. The remaining GBP1.1M (less a provision for redundancy costs post transaction) was deferred until 15 March 2009. Operational Review The Data Centre facility, near Fareham, became operational in September 2008. In November we ran three "open days" for local businesses, potential business partners and IBM. Feedback from these events was very positive and consequently we have developed a strong pipeline of sales opportunities. Whilst the current economic climate is challenging, demand for co-location facilities, especially those that can deliver higher levels of power per sq metre is holding up whilst supply is still constrained. The facility in Fareham is one of the few Data Centres in the South of England that can provide a cost effective supply of energy for high powered computing and is therefore ideally positioned to take advantage of this market demand. The financial dynamics of a Data Centre business are very different from a Managed Services business. One of the key differences is that growing a Data Centre business is capital intensive whereas growing a Managed Services business is much more reliant on recruiting and retaining qualified technical personnel. In our case this means that with the investment made to date in the infrastructure of our Data Centre we have the opportunity to close an element of incremental business from our growing sales pipeline with very little additional capital investment and no additional investment in personnel. Adding our existing revenues to this potential revenue means that we have a good view on future cash flow. On the other hand as we close more business we will eventually need access to further capital to build out the facility to deliver these new services. Outlook The Board are aware that the performance of the share price has been extremely disappointing, and the current stock market turmoil has seen the Company's current market capitalisation fall to a value that is dissociated from the inherent value of the business. The Board recently sent out a circular seeking approval to delist the company from the AIM market. An General Meeting arranged on 25 February to vote on this subject has been adjourned until 9 March in order for the Board to discuss in further detail with a number of shareholders the merits of this action. In the meantime the Board continue to look at the best alternative options to maximise shareholder value. Mike Northall Chairman 27 February 2008 Consolidated Income Statement (unaudited) +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | Half Year | | Half Year | | Year | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | 30-Nov | | 30-Nov | | 31-May | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | 2008 | | 2007 | | 2008 | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | Notes | Unaudited | | Restated | | Restated | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | GBP | | GBP | | GBP | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Revenue | | - | | - | | - | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Cost of sales | | - | | - | | - | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Gross profit | | - | | - | | - | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Administrative expenses | | 1,022,044 | | 1,066,453 | | 2,402,982 | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Operating loss | | (1,022,044) | | (1,066,453) | | (2,402,982) | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Finance income | | 26,179 | | 68,214 | | 74,931 | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Finance costs | | (33,883) | | (14,105) | | (74,932) | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Loss before tax | | (1,029,748) | | (1,012,344) | | (2,402,983) | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Tax expense | | - | | - | | 241,046 | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Loss for the period from | | (1,029,748) | | (1,012,344) | | (2,161,937) | | continuing operations | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Loss for the period from | 2 | (1,570,284) | | (1,244,905) | | (5,623,507) | | discontinued operations | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Loss for the financial | | (2,600,032) | | (2,257,249) | | (7,785,444) | | period | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | attributable to : | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | equity holders of the | | (2,600,032) | | (2,257,249) | | (7,785,444) | | parent | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Earnings per share | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | - basic and diluted - | | (3.80)p | | (3.49)p | | (8.00)p | | continuing | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Earnings per share | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | - basic and diluted - | | (5.80)p | | (4.29)p | | (20.80)p | | discontinuing | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ Consolidated Balance Sheet (unaudited) +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | Half Year | | Half Year | | Year | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | 30-Nov | | 30-Nov | | 31-May | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | 2008 | | 2007 | | 2008 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | Notes | Unaudited | | Unaudited | | Audited | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | GBP | | GBP | | GBP | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | ASSETS | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Non-current assets | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Property, plant and | | 3,968,387 | | 1,279,848 | | 4,289,671 | | equipment | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Goodwill | | - | | 3,046,748 | | 1,103,273 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Other intangible assets | | - | | 4,001,978 | | 2,296,338 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | 3,968,387 | | 8,328,574 | | 7,689,282 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Current assets | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Stocks | | - | | - | | 39,870 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Tax receivable | | 27,168 | | - | | 241,046 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Trade and other receivables | | 71,114 | | 1,790,328 | | 2,475,360 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Cash and cash equivalents | | 216,277 | | 5,743,797 | | 2,559,546 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | 314,559 | | 7,534,125 | | 5,315,822 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Non-current assets | 2 | 4,657,270 | | - | | - | | classified as held for sale | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Total Assets | | 8,940,216 | | 15,862,699 | | 13,005,104 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | LIABILITIES | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Non-current liabilities | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Deferred tax | | - | | 710,371 | | 426,016 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | - | | 710,371 | | 426,016 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Current liabilities | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Bank overdrafts | | - | | 540,650 | | - | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Interest bearing loans and | | 204,043 | | 161,961 | | 506,719 | | borrowings | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Trade and other payables | | 2,244,757 | | 1,483,209 | | 4,966,620 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Accruals and deferred | | 360,852 | | 1,827,695 | | 1,500,439 | | income | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | 2,809,652 | | 4,013,515 | | 6,973,778 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Liabilities directly | 2 | 3,110,467 | | - | | - | | associated with non-current | | | | | | | | assets classified as held | | | | | | | | for sale | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Total liabilities | | 5,920,119 | | 4,723,886 | | 7,399,794 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Net assets | | 3,020,097 | | 11,138,813 | | 5,605,310 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | EQUITY | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Share capital | | 9,890,554 | | 9,881,837 | | 9,881,837 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Share premium | | 18,941,554 | | 18,935,452 | | 18,935,452 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Retained earnings | | (25,812,011) | | (17,678,476) | | (23,211,979) | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | Total equity attributable | | 3,020,097 | | 11,138,813 | | 5,605,310 | | to equity holders of the | | | | | | | | parent | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | | | | | | +-----------------------------+-------+--------------+---+--------------+---+--------------+ | | | 3,020,097 | | 11,138,813 | | 5,605,310 | +-----------------------------+-------+--------------+---+--------------+---+--------------+ Consolidated Cash Flow Statement (unaudited) +-----------------------------+-------+--------------+---+-------------+---+-------------+ | | | Half Year | | Half Year | | Year | | | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | | | 30-Nov | | 30-Nov | | 31-May | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | | | 2008 | | 2007 | | 2008 | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | | | Unaudited | | Unaudited | | Audited | | | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Consolidated Cash Flow | | | | | | | | Statement (unaudited) | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | | | GBP | | GBP | | GBP | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Cash flows from operating | | | | | | | | activities | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Loss for the period | | (2,600,032) | | (2,257,249) | | (7,785,444) | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Adjustments for: | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Impairment of intangible | | - | | - | | 3,505,318 | | assets | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Amortisation of intangible | | 634,740 | | 446,508 | | 1,183,029 | | assets | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Depreciation of tangible | | 369,594 | | 325,606 | | 693,817 | | assets | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Disposal of fixed assets | | - | | - | | (4,622) | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Equity settled share-based | | - | | 565,279 | | 565,279 | | payment expenses | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Net finance charge | | 7,704 | | 169,634 | | 344,122 | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Tax charge for the year | | (124,649) | | (198,452) | | (764,430) | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | | | (1,712,643) | | (948,674) | | (2,262,931) | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | (Increase)/decrease in | | 1,290,498 | | (840,272) | | (1,525,304) | | trade and other receivables | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | (Increase)/decrease in | | 19,708 | | 7,214 | | (32,656) | | stock | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | (Decrease)/increase in | | (1,465,587) | | (2,211,968) | | 712,429 | | trade and other payables | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | | | (1,868,024) | | (3,993,700) | | (3,108,462) | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Interest paid | | (33,883) | | (237,848) | | (419,053) | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Tax received | | 213,878 | | - | | - | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Net cash from operating | | (1,688,029) | | (4,231,548) | | (3,527,515) | | activities | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Cash flows from investing | | | | | | | | activities | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Proceeds from sale of | | - | | - | | 16,750 | | property, plant and | | | | | | | | equipment | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Interest received | | 26,179 | | 68,214 | | 74,933 | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Acquisition of intellectual | | - | | - | | (359,000) | | property | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Acquisition of property, | | (548,049) | | (302,935) | | (3,400,423) | | plant and equipment | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Net cash from investing | | (521,870) | | (234,721) | | (3,667,740) | | activities | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Cash flows from financing | | | | | | | | activities | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Proceeds from the issue of | | 14,819 | | 10,618,500 | | 10,618,494 | | share capital | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Payment of transaction | | - | | (516,803) | | (516,803) | | costs | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Proceeds from new loan | | - | | - | | 200,000 | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Repayment of borrowings | | (25,142) | | (156,292) | | (206,333) | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Payment of finance lease | | (123,047) | | (17,555) | | (82,124) | | liabilities | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Net cash from financing | | (133,370) | | 9,927,850 | | 10,013,234 | | activities | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Net increase in cash and | | (2,343,269) | | 5,461,581 | | 2,817,979 | | cash equivalents | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Cash and cash equivalents | | 2,559,546 | | (258,433) | | (258,433) | | at 1 June | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | Cash and cash equivalents | | 216,277 | | 5,203,148 | | 2,559,546 | | at period end | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+--------------+---+-------------+---+-------------+ Consolidated Statement of Recognised Income and Expense For the half year ended 30 November 2008 +-----------------------------+-----------+------------+--------------+--------------+--------------+ | | Share | Share | Retained | Total | Total | | | Capital | premium | earnings | | Equity | +-----------------------------+-----------+------------+--------------+--------------+--------------+ | | | | | | | +-----------------------------+-----------+------------+--------------+--------------+--------------+ | Equity at 1 June 2007 | 7,758,136 | 10,957,455 | (15,986,502) | 2,729,089 | 2,729,089 | +-----------------------------+-----------+------------+--------------+--------------+--------------+ | | | | | | | +-----------------------------+-----------+------------+--------------+--------------+--------------+ | Loss for the period | - | - | (2,257,250) | (2,257,250) | (2,257,250) | +-----------------------------+-----------+------------+--------------+--------------+--------------+ | Issue of shares | 2,123,701 | 7,977,997 | - | 10,101,698 | 10,101,698 | +-----------------------------+-----------+------------+--------------+--------------+--------------+ | Share based payments | - | - | 565,276 | 565,276 | 565,276 | +-----------------------------+-----------+------------+--------------+--------------+--------------+ | Equity at 30 November 2007 | 9,881,837 | 18,935,452 | (17,678,476) | 11,138,813 | 11,138,813 | +-----------------------------+-----------+------------+--------------+--------------+--------------+ | | | | | | | +-----------------------------+-----------+------------+--------------+--------------+--------------+ | Loss for the period | - | - | (5,533,503) | (5,533,503) | (5,533,503) | +-----------------------------+-----------+------------+--------------+--------------+--------------+ | | | | | | | +-----------------------------+-----------+------------+--------------+--------------+--------------+ | Equity at 31 May 2007 | 9,881,837 | 18,935,452 | (23,211,979) | 5,605,310 | 5,605,310 | +-----------------------------+-----------+------------+--------------+--------------+--------------+ | | | | | | | +-----------------------------+-----------+------------+--------------+--------------+--------------+ | Loss for the period | - | - | (2,600,032) | (2,600,032) | (2,600,032) | +-----------------------------+-----------+------------+--------------+--------------+--------------+ | Issue of shares | 8,717 | 6,102 | - | 14,819 | 14,819 | +-----------------------------+-----------+------------+--------------+--------------+--------------+ | | | | | | | +-----------------------------+-----------+------------+--------------+--------------+--------------+ | Equity at 30 November 2008 | 9,890,554 | 18,941,554 | (25,812,011) | 3,020,097 | 3,020,097 | +-----------------------------+-----------+------------+--------------+--------------+--------------+ Notes 1. Basis of preparation The financial information in these interim results has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively Adopted IFRSs). The principal accounting policies used in preparing the interim results are those the group expects to apply in its financial statements for the year ending 31 May 2009 and are unchanged from those disclosed in the group's Annual Report for the year ended 31 May 2008. The financial information for the six months ended 30 November 2007 and the six months ended 30 November 2008 is unaudited and does not constitute the group's statutory financial statements for those periods. The comparative financial information for the full year ended 31 May 2008 has, however, been derived from the audited statutory financial statements for that period. A copy of those statutory financial statements has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not contain a statement under section 237(2)-(3) of the Companies Act 1985, but did make reference to an emphasis of matter - Going concern, at the time of issuing the audited financial statements. Following the sale of the managed services business, and the issue of the loan stock in December 2008, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and for this reason they continue to adopt the going concern basis in preparing the financial statements. The interim financial statements do not include all of the information required for full annual financial statements and do not comply with all the disclosures in IAS 34 'Interim Financial Reporting'. Accordingly, whilst the interim statements have been prepared in accordance with IFRS as endorsed by the EU, they cannot be construed as being in full compliance with IFRS. 2. Discontinued operation On 27 November 2008 the company announced its intention to dispose of Managed Services Business and this disposal completed on 15 December 2008. Accordingly at 30 November 2008 the Managed Services Business is classified under IFRS5 as a disposal group held for sale and the assets and liabilities of this disposal group are shown separately on the balance sheet. The results of the Managed Services Business are shown separately in the Income Statement for the current half year period (comparatives are restated), and consist of : +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | Half Year | | Half Year | | Year | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | 30-Nov | | 30-Nov | | 31-May | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | 2008 | | 2007 | | 2008 | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | Unaudited | | Restated | | Restated | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Revenue | | 2,841,332 | | 4,259,249 | | 8,534,079 | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Cost of sales | | (623,164) | | (1,316,691) | | (4,071,724) | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Gross profit | | 2,218,168 | | 2,942,558 | | 4,462,355 | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Share based payments | | - | | 565,276 | | 565,279 | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Impairment of goodwill and | | - | | - | | 3,505,318 | | other intangible assets | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Amortization of intangible | | 1,004,334 | | 970,567 | | 1,876,847 | | and tangible assets | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Other administrative | | 2,908,767 | | 2,626,329 | | 4,308,747 | | expenses | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Administrative expenses | | 3,913,101 | | 4,162,172 | | 10,256,191 | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Operating loss | | (1,694,933) | | (1,219,614) | | (5,793,836) | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Finance income | | - | | - | | - | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Finance costs | | - | | (223,743) | | (353,055) | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Loss before tax | | (1,694,933) | | (1,443,357) | | (6,146,891) | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Tax expense | | 124,649 | | 198,452 | | 523,384 | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Loss for the period from | | (1,570,284) | | (1,244,905) | | (5,623,507) | | discontinued operations | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ The net assets relating to the Managed Service Business amounted to GBP1.5M at 30 November 2008, including goodwill of GBP1.1 m. Movements in working capital balances arising from ongoing trading in the period from 1 December up to completion will be taken into account together with costs associated with the disposal in determining the expected net gain on disposal. No separate segmental information is provided as the continuing operations of the group essentially comprise one business activity of Data Centre operations, as shown in the Income Statement. Cashflow information relating to the discontinued operations is summarised as follows: +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | Half Year | | Half Year | | Year | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | 30-Nov | | 30-Nov | | 31-May | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | 2008 | | 2007 | | 2008 | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | Unaudited | | Restated | | Restated | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | | | | | | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Operating activities | | (1,051,099) | | (2,211,449) | | (408,908) | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Investing activities | | (28,896) | | (302,935) | | (568,999) | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | Financing activities | | (93,481) | | (173,847) | | (88,458) | +-----------------------------+-------+-------------+---+-------------+---+-------------+ | | | (1,173,476) | | (2,688,231) | | (1,066,365) | +-----------------------------+-------+-------------+---+-------------+---+-------------+ 3. Dividend No interim dividend has been proposed. 4. Taxation +-----------------------------+-------+------------+---+------------+---+------------+ | | | Half Year | | Half Year | | Year | +-----------------------------+-------+------------+---+------------+---+------------+ | | | 30-Nov | | 30-Nov | | 31-May | +-----------------------------+-------+------------+---+------------+---+------------+ | | | 2008 | | 2007 | | 2008 | +-----------------------------+-------+------------+---+------------+---+------------+ | | | Unaudited | | Restated | | Restated | +-----------------------------+-------+------------+---+------------+---+------------+ | | | | | | | | +-----------------------------+-------+------------+---+------------+---+------------+ | Current tax credit/(charge) | | | | | | | +-----------------------------+-------+------------+---+------------+---+------------+ | Current year (R and D tax | | - | | - | | 241,046 | | credit) | | | | | | | +-----------------------------+-------+------------+---+------------+---+------------+ | Deferred tax credit | | 124,649 | | 198,452 | | 523,384 | | (discontinued activities) | | | | | | | | on Intangible assets | | | | | | | +-----------------------------+-------+------------+---+------------+---+------------+ | Total tax in income | | 124,649 | | 198,452 | | 764,430 | | statement | | | | | | | +-----------------------------+-------+------------+---+------------+---+------------+ | | | | | | | | +-----------------------------+-------+------------+---+------------+---+------------+ 5. Share capital On 31 July 2008 the company allotted 43,589 ordinary shares, at a price of 34 pence per share, with a nominal value of 20 pence each in settlement of an outstanding loan relating to the purchase of NSA Solutions Limited in 2006. 6. Post balance sheet events In addition to the completion of the Managed Services Business Disposal as referred to above, the company initiated the following fundraising in December 2008. The fundraising comprise of the following two elements: * Convertible Loan Notes GBP1.279M "A" 2011 Convertible Loan notes; and GBP0.721M "B" 2013 Loan notes * Equity 966,667 new ordinary shares of 1p at an issue price of 3p per share 7. Distribution of interim report This interim report is being posted to all shareholders and will be available on application to the Company's registered office and from the Company's website www.cantono.com. Cantono PLC Eamus Halpin, Chief Executive 01895 444 420 Brewin Dolphin Investment Banking Neil Baldwin, Director 0845 270 8612 This information is provided by RNS The company news service from the London Stock Exchange END IR EAAAXAADNEFE
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