We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Eleksen Grp | LSE:ELG | London | Ordinary Share | GB00B12GJ944 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 9.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
Premium
RNS Number:0405V
Eleksen Group PLC
18 April 2007
ELEKSEN GROUP plc
("Eleksen" or the "Company")
First Year Results See Strong Sales Growth, Unit Cost Reduction, Development of
Key Customer Relationships and Fundraising. Outlook Encouraging.
18th April 2007
Eleksen Group plc, which makes smart fabrics that can be used to control
electronic devices such as smart phones and MP3 players, today reported its
first annual results following the Company's admission to AIM in May last year.
The results show 167% sales growth over the previous year, with the number of
units delivered increasing to 368,970, over three times that achieved during the
previous year.
Financial Highlights
*Turnover #3.5 million
*Turnover up by 167% over same period 2005
*Operating loss #4.2m, including reverse takeover costs, in line with
expectations
*Unit cost reduction programme achieved helping drive volume growth
*Launch of Fabric Bluetooth Keyboard - 50,000 units delivered in Q4
*Convertible Loan note raises #1.68m gross and a further #4m gross after
the year end
Operational Highlights
*Successful development of production capability
*Increasing repeat business from existing customers. Development of
customer relationships including:
+ *Belkin: a major Apple iPod accessory supplier
+ *Goodhope Bags: US distributor of Bluetooth Keyboard
+ *Microsoft: Sideshow product to run under Vista
+ *Bagir: suit provider to Marks & Spencer
+ *Zegna: fashion designer
*Development of Ultra Mobile PC fabric keyboard prototype for Intel and
Microsoft
*Resource development with staff levels up from 21 to 35
*Appointment of Chief Technical Officer to the Executive team
Commenting on the results Robin Shephard, Chief Executive, said:
"This is a good start to our life on the public markets, which fully supports
the confidence in the business we expressed when we came to AIM in May. Strong
growth in our prime market, the US, underpins the Company's ability to now enter
further markets. We have made positive progress in the Company's strategic
development. We are investing in people and product development to underpin the
Group's long term growth. In the immediate future, commercial expansion is a
priority, in order to manage the sales pipeline. We have seen good customer wins
in the year and we are encouraged by the developments with Belkin, a major Apple
iPod accessory supplier, Bagir, for its iPod enabled fashion suit and
Ermenegildo Zegna for its high end fashion brand together with other positive
market making discussions. Today's announcement from Intel about our work for
them in developing a UMPC fabric keyboard is further proof of the development of
our relationships with major global players.
" Recent important developments this month are the opening of offices in San
Francisco and in Hong Kong. San Francisco offers the ability to further
strengthen our success in the US, our principal market, while a presence in Hong
Kong will help us support our customers manufacturing needs while giving us
access to potentially attractive OEM (Original Equipment Manufacturer) and ODM
(Original Design Manufacturer) partners in the region."
"We are very encouraged by the outlook for the business. With a strong senior
management team in place and the recent fundraising completed, Eleksen is well
placed to successfully commercialise its leadership in the smart fabrics market.
We expect to see both a significant broadening of our customer base in the
wearables market and for Eleksen to build its presence in the mobile device
market, following the strong finish for the Bluetooth keyboard in 2006
ENDS
Enquiries:
Eleksen Group plc 08700 727 272
Robin Shephard (Chief Executive Officer)
Ted Bechman (Finance Director)
Cubitt Consulting 020 7367 5100
Michael Henman/Allison Reid
About Eleksen
Eleksen's core technology, ElekTex(R), enables fabric to be programmed, creating
touch sensitive controls for a wide range of electronic devices.
Eleksen's initial focus is on wearables, such as soft MP3 controllers integrated
into outdoor jackets, rucksacks and suits; and on soft, fabric keyboards for
smartphones and PDAs. A wide range of other applications may exist including
solutions for the toy, industrial, military, automotive and healthcare markets.
Further information on the Group is available at www.eleksen.com
CHAIRMAN'S STATEMENT
The listing on the London Stock Exchange in May was one among many highlights
for the business during 2006, along with a 167% increase in Revenue, with
368,970 units shipped during the year. The Company also completed a (Convertible
debt) fundraising shortly after the year end, raising a total of #5.68 million
(including #1.68 million raised during the year), providing us with an excellent
platform for further growth in 2007.
Key market wins for Eleksen during the year were in the Smart Fabric Market for
iPod enabled garments, predominantly sold within the USA. We also began volume
production for a second sector of the consumer electronics market with the
launch, at the January 2006 Consumer Electronics Show, of Eleksen's Bluetooth
Keyboard, the first of a line of data-entry products that will exploit the
company's leading smart-fabric technology. The first volume shipments were
delivered in the final quarter of the year.
Results
For the year to 31 December 2006, the group recorded 167% growth in revenues,
from #1,308,218 (2005) to #3,498,353 (2006). All of this growth is attributable
to Eleksen, as the AIM shell company that we acquired did not trade.
Losses grew from #2,730,136 (2005) to #4,030,107 (2006), driven in large part by
investment in personnel, whose number has increased to support this growing
business, and in part by the expense of achieving the AIM listing.
While sales growth was encouraging, the timing of future revenue development, as
we announced on March 16th, is difficult to forecast. Eleksen must cement its
leadership of the smart-fabric market by growing significantly its volume and
revenue. Only through significant growth can ElekTex permeate the consumer
market as a reliable and cost-effective choice. Through these same revenues lies
the profitability that should sustain Eleksen in the longer run. In addition we
expect further Tier-1 brands to adopt ElekTex during the current year and I look
forward to announcing such an engagement in due course.
None of this would be possible without talented staff. I am pleased to have this
opportunity publicly to thank them for their dedication throughout this
challenging period of growth.
Professor Peter Denyer
Chairman
OPERATING REVIEW
Introduction
There is a major transformation happening in the consumer electronics market and
specifically in the multi-purpose mobile device market. The iconic iPod has led
a revolution which has seen consumers demanding products that satisfy their
life-style requirements, rather than just offering functionality. We now see the
global giants fighting for a market segment in which consumers will be offered a
platform that answers their communication, gaming and entertainment needs, all
from one device.
There are challenges in achieving this. While most of the larger Original
Equipment Manufacturers (OEMs) are following a similar route in driving towards
a device that is handheld and screen based, there are a wider range of options
on the data input side. Eleksen's technology, ElekTex, uses electro-conductive,
touch sensitive textiles to enable users to control electronics devices by
pressing a fabric sensor to provide a solution which can deliver multi-purpose,
mobile and flexible input platforms.
Our market strategy therefore has been built around the ability of our
technology to meet this need. We have:
*Created consumer awareness and demand by producing ElekTex enabled
products and taking them directly to market
*Developed ElekTex components which can be embedded for:
+ *Bespoke applications for customers to build and market products
+ *Standard solutions, providing customers with opportunities to enhance
their brand through enabled apparel
The first approach is reflected in the development, production and sale of the
Eleksen Bluetooth fabric keyboard. The product is ready for customer branding,
as required, and thereafter for retail distribution.
The second approach is reflected in our partnerships with Microsoft, Intel and
Belkin. Eleksen handled all of the fabric design development and sourcing which
was then embedded as a component into partners' final products.
The third approach has seen Eleksen taking a market leading position in the
wearable electronics market, through the provision of standard component product
which can be easily integrated into apparel. Fashion leaders like Zegna, Spyder
and O'Neill have all recognised the opportunity that incorporating ElekTex will
mean in differentiating their proposition and bringing value to their customers.
Our Business
ElekTex uses electro-conductive, touch sensitive textiles to enable users to
control electronics devices by pressing a fabric sensor imbedded, for example,
in the sleeve of a jacket. Eleksen's business model sees innovative product
design and development creating strong market pull, resulting in Eleksen's
technology ElekTex becoming established at the heart of product development
roadmaps of major consumer electronic manufacturing organisations.
The Company, based at Pinewood studios in Buckinghamshire, grew to 35 full time
employees, by the year end, and expanded its operations in the US and in Asia.
The company continues to invest in research and development to develop the core
technology, which it also protects through the further enhancement of its
current portfolio of 39 patents. A further 37 patents have been applied for.
Markets
Eleksen's initial market is in consumer electronics, with specific focus on
mobile devices and on the smart fabric markets for wearable technology.
Worldwide, the mobile device market is seeing rapid expansion and development.
Devices manufacturers are increasing functionality with more applications housed
on a single device. Mass market adoption of a single device that provides all
entertainment and communication needs is closer to reality. Devices are also
becoming smaller. Eleksen's technology offers control of electronic devices from
products with fabric-like properties. This provides the customer with a platform
for providing a portable, multifunctional solution which can be branded and
produced in almost any colour or shape or size.
Eleksen has rapidly taken a leadership position in the smart fabric market
place. 2006 saw the scaling of the Eleksen offering from market trials to full
retail consumer volumes and ElekTex technology has now been integrated in a wide
variety of apparel from ski jackets to rucksacks.
While the interactive apparel market has been driven by the iPod, there is
growing awareness that this modern icon is only part of a larger opportunity.
Other strong consumer brands like Motorola, Sony Ericsson, Nokia, LG and Samsung
are also actively involved in the emerging portable music segment, creating
equivalent interactive apparel market opportunities.
This convergence has provided the opportunity for Eleksen to grow its business
horizontally within the wearable technology market, attracting the attention of
many brand partners such as Microsoft, iPod, Bagir and Belkin looking to enter
the interactive apparel market. For these customers additional advantages exist
through co-branding opportunities offered by consumer electronic music device
manufacturers.
While the USA will continue to remain the most important market for the company,
markets in the Far East and EMEA (Europe, Middle East and Africa) are attractive
and we are actively involved in seeking to penetrate these markets.
Products
Eleksen's product strategy is focused on designing and developing solutions that
drive sales of the core Eleksen technology. In the wearables segment, the
product strategy is focused at developing a small set of standard sensors for
consumer wearables and providing a range of electronics which can control a wide
variety of portable entertainment and communications products. This means it is
simple for Eleksen's customers to meet their end consumers' requirements,
through enabled apparel. So, for example, a single set of controls installed in
a suit jacket would mean that the user could control any of a range of MP3
players.
In the portable entertainment and communications accessories market design, look
and feel are key elements of product differentiation. While functions may be
similar, design needs to be customised to meet the requirements of a particular
product. To enable this, Eleksen is developing a set of finished reference
designs that customers can license.
Mobile computing peripheral products are focused largely on solutions which
enhance and complement the functionality and style of mobile platforms. Product
development in this area is focused almost exclusively on reference design
creation with robust and innovative solutions for data input, such as fabric
keyboards, at its core. In an environment where products are becoming smaller,
portability is critical, a key feature of Eleksen's solution.
The mobile device market products in 2006 saw Eleksen's offering to the market
maturing significantly, growing from 3,000 units in the first half of the year
to over 50,000 units shipped in the second half . This growth was based around
the ElekTex Bluetooth keyboard, a finished product supplied by Eleksen into the
consumer market channels in the USA.
The Bluetooth Wireless keyboard represents Eleksen's entry into the finished
products market. Designed to be adopted by OEMs for use with their platforms the
keyboard has attracted attention from some of the most important target
customers.
Eleksen also developed a data input device for the UMPC (Ultra-Mobile Personal
Computer) platform. This product, which offers the dual functionality of a full
size Qwerty keyboard and fabric, brandable carry case, will enable the Eleksen
mobile device offerings to grow in 2007. Providing new interface solutions to
OEMs is a core goal for Eleksen.
Dividend
The directors are seeking to achieve capital growth for shareholders and
accordingly the Board does not currently envisage paying a dividend in the short
term. However, as and when sufficient distributable reserves become available,
the directors will review dividend policy.
Outlook
The opening of offices in San Francisco and in Hong Kong are important
developments for us. San Francisco offers the ability to further strengthen our
success in what is our major market while a presence in Hong Kong will help us
support our customers manufacturing needs while giving us access to potentially
attractive OEM (Original Equipment Manufacturer) and ODM (Original Design
Manufacturer) partners in the region.
We are very encouraged by the outlook for the business. With a strong senior
management team in place and the fundraising completed, Eleksen is well placed
to successfully commercialise its leadership in the smart fabrics market. We
expect to see both a significant broadening of our customer base in the
wearables market and for Eleksen to build its presence in the mobile device
market, following the strong finish for the Bluetooth keyboard in 2006
Robin Shephard
Chief Executive Officer
Ted Bechman
Chief Financial Officer
ELEKSEN GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2006
As restated
Year Year
ended ended
31 December 31 December
2006 2005
#'000 #'000
Turnover 3,498 1,308
Cost of sales (2,607) (967)
__________ __________
Gross profit 891 341
Administrative expenses (5,115) (3,166)
Other operating income - 75
__________ __________
Operating loss (4,224) (2,750)
Operating loss before exceptional items (3,481) (2,750)
Exceptional goodwill impairment (743) -
Other interest receivable and similar income 32 25
Interest payable and similar charges (26) (5)
__________ __________
Loss on ordinary activities before taxation (4,218) (2,730)
Tax on loss on ordinary activities 188 -
__________ __________
Loss for the year (4,030) (2,730)
__________ __________
Loss per share
Basic and diluted Note 3 (9.84)p (7.21)p
All amounts relate to continuing activities.
ELEKSEN GROUP PLC
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31 DECEMBER 2006
As restated
2006 2005
#'000 #'000
Loss for the financial year (4,030) (2,730)
Foreign exchange differences on consolidation 10 -
__________ __________
Total recognised gains and losses for the financial year (4,020) (2,730)
__________
Prior year adjustment
- Share-based payment 10
- Consolidation of losses from Eleksen Inc (note 2.1) 67
__________
Total gains and losses recognised since last financial statements (3,943)
__________
ELEKSEN GROUP PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2006
As restated
31 December 31 December
2006 2005
#'000 #'000 #'000 #'000
Fixed assets
Intangible assets 169 140
Tangible assets 65 48
__________ __________
234 188
Current assets
Stocks 510 126
Debtors 1,607 1,164
Cash at bank and in hand 1,148 2,721
__________ __________
3,265 4,011
Creditors: amounts falling due
within one year (2,143) (1,196)
__________ __________
Net current assets 1,122 2,815
Creditors: amounts falling due
after one year (1,471) -
__________ __________
Net (liabilities)/assets (115) 3,003
__________ __________
Called up share capital 2,047 1,894
Share premium account 494 -
Reverse acquisition reserve 15,381 15,189
Other reserves 77 4
Profit and loss account (18,114) (14,084)
__________ __________
Shareholders' funds (115) 3,003
__________ __________
The financial statements were approved by the Board and, authorised for issue, on
17 April 2007.
ELEKSEN GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD 1 JANUARY TO 31 DECEMBER 2006
Year Year
ended ended
31 December 31 December
2006 2005
#'000 #'000
Net cash outflow from operating activities (3,086) (3,026)
Returns on investments and servicing of finance 30 20
Taxation 188 -
Capital expenditure and servicing of finance (185) (170)
Acquisitions and disposals (408) -
__________ __________
Net cash outflow before management of liquid
resources and financing (3,461) (3,176)
Financing 1,888 5,688
__________ __________
(Decrease)/increase in cash in the year (1,573) 2,512
__________ __________
ELEKSEN GROUP PLC
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD 1 JANUARY TO 31 DECEMBER 2006
Reconciliation of operating loss to net cash outflow 2006 2005
from operating activities
#'000 #'000
Operating loss (4,224) (2,750)
Depreciation of tangible assets 61 22
Amortisation of intangible assets 78 110
Impairment of goodwill 743 -
Loss on disposal of fixed assets 14 -
Introduction of Bora Communications plc's debtors 581 -
Introduction of Bora Communications plc's creditors (474) -
(Increase)/decrease in stocks (384) (62)
(Increase)/decrease in debtors (443) (885)
(Decrease)/increase in creditors within one year 947 529
Loss on foreign exchange translation 10 -
Share based payment charge 5 10
__________ __________
Net cash outflow from operating activities (3,086) (3,026)
__________ __________
Returns on investment and servicing of finance
Interest received 32 25
Interest paid (2) (5)
__________ __________
30 20
__________ __________
Taxation
Refund of R&D tax credit 188 -
__________ __________
188 -
__________ __________
Capital expenditure and financial investment
Payments to acquire intangible assets (120) (100)
Payments to acquire tangible assets (65) (70)
__________ __________
(185) (170)
__________ __________
Acquisitions and disposals
Reverse acquisition of legal parent undertaking (865) -
Cash acquired with acquisition 457 -
__________ __________
(408) -
__________ __________
ELEKSEN GROUP PLC
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT (CONTINUED)
FOR THE PERIOD 1 JANUARY TO 31 DECEMBER 2006
2006 2005
#'000 #'000
Financing
Issue of ordinary share capital Eleksen Ltd 359 5,688
Expenses paid in connection with share issue (19) -
Exercise of share options 45 -
Issue of convertible loan notes 1,682 -
Expenses paid in connection with loan notes (179) -
__________ __________
1,888 5,688
__________ __________
ELEKSEN GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2006
1 Extracts from Annual Report & Accounts
The financial information shown for the years ended 31 December 2006 and 2005
set out above does not constitute statutory accounts but is derived from those
accounts. The results have been prepared using accounting policies consistent
with those used in the preparation of the statutory accounts. The financial
information contained in this announcement does not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985.
The financial information for the year ended 31 December 2005 has been extracted
from the statutory accounts for that year. These accounts have been filed with
the Registrar of Companies and contain an unqualified audit report. The
financial information for the year ended 31 December 2006 has been extracted
from the statutory accounts for that year which contain an unqualified auditor
report but have not yet been filed at Companies House. Copies of this
announcement are available at the registered offices of the Company (Pinewood
Studios, Pinewood Road, Iver Heath, Bucks, SL0 0NH, United Kingdom) and at the
offices of the Company's nominated advisors, Panmure Gordon. (Moorgate Hall, 155
Moorgate, London, EC2M 6XB) for a period of 14 days from the date hereof.
Further copies of this announcement can be downloaded from the website
www.eleksen.com or by applications to The Company Secretary, Eleksen Group plc,
Pinewood Studios, Pinewood Road, Iver Heath, Bucks, SL0 0NH, United Kingdom.
2 Accounting policies
2.1 Accounting convention
The financial statements have been prepared under the historic cost convention
and are in accordance with applicable accounting standards, with the exception
of accounting for the reverse take over of Bora Communications plc details of
which are set out below.
The figures for the year ended 31 December 2005 are based on the statutory
accounts of Eleksen Limited, which have been filed with the Registrar of
Companies but have been restated to take into account the changes required under
FRS 20 'Share based payments' and also to include the Company's US based
subsidiary Eleksen Inc. which had been excluded from 2005 as the Company and
its subsidiary comprised a small sized group and took the available exemption
provided by section 248 of the Companies Act 1985.
The restatement to include Eleksen Inc impacted the comparatives for 2005 by
reducing debtors by #67,000, turnover by #1,000 and increasing administrative
expenses by #66,000.
2.2 Changes to accounting policies
FRS 20 'Share based payment'
The Group has adopted FRS 20 which is obligatory for periods commencing on or
after 1 January 2006.
In order to conform to the requirements of FRS 20 'Share based payment', share
options that have been granted to employees have been recognised as an expense
as part of employee remuneration. The cost is spread over the vesting period
and has been calculated using the Monte-Carlo valuation model.
In accordance with the transitional provisions of FRS 20, the standard was
applied retrospectively to all grants of equity instruments after 7 November
2002 that were unvested as of 1 January 2005 and to liabilities for share-based
transactions existing at 1 January 2006.
The effect on the comparatives of this change in accounting policy is that
administrative expenses have increased by #9,187 for the year ended 31 December
2005, the comparatives have been restated for this reduction in net assets. A
charge for the year ended 31 December 2006 of #5,096 has been recognised.
FRS 25 'Financial instruments: disclosure and presentation'
The Group has adopted FRS 25 which is obligatory for periods commencing on or
after 1 January 2006.
In accordance with FRS 25, debt convertible into a fixed number ofordinary
shares is a compound financial instrument. The instrument comprises a liability
and equity component and must be presented separately on the balance sheet.
The adoption of FRS 25 has had no effect on the comparatives.
2.3 Basis of consolidation and presentation of financial information
On 3 May 2006 the Company, then named Bora Communications Plc, became the legal
parent of Eleksen Limited. Due to the relative values of the companies, the
former Eleksen Limited shareholders became the majority shareholders with 93% of
the enlarged share capital. Further, the Company's continuing operations and
executive management were those of Eleksen Limited. Accordingly, the substance
of the combination was that Eleksen Limited acquired Bora Communications Plc in
a reverse acquisition. As part of the business combination Bora Communications
Plc changed its name to Eleksen Group Plc on 2 May 2006.
Under the requirements of the Companies Act 1985 it would normally be necessary
for the Company's consolidated accounts to follow the legal form of the
business combination. In that case the pre-combination results would be those of
Bora Communications Plc. The results of Eleksen Limited would then be brought
into the Group from 3 May 2006. However, this would portray the combination as
an acquisition of Eleksen Limited by Bora Communications Plc and would, in the
opinion of the Directors, fail to give a true and fair view of the substance of
the business combination. Accordingly, the Directors have adopted reverse
acquisition accounting as the basis of consolidation in order to give a true and
fair view.
In invoking the true and fair override, the Directors note that reverse
acquisition accounting is allowed under International Financial Reporting
Standard 3 and that the Urgent Issues Task Force of the UK's Accounting
Standards Board considered the subject under UK GAAP and concluded that there
are instances where it is right and proper to invoke the true and fair override
in such a way.
As a consequence of applying reverse acquisition accounting, the results for the
year ended 31 December 2006 comprise the results of Eleksen Limited for the
year ended 31 December 2006 plus those of Bora Communications plc from 3 May
2006, the date of the reverse acquisition, to 31 December 2006. The comparative
figures are those of Eleksen Limited for the year ended 31 December 2005
adjusted to reflect the consolidation of Eleksen Inc. and a FRS 20 share based
payment charge.
Goodwill amounting to #743,000 arose on the difference between the fair value of
Bora Communications Plc and the fair value of its net assets at the date of
reverse acquisition. Full provision for impairment against the goodwill arising
has been made in the year ended 31 December 2006 because Bora Communications Plc
had no continuing business and therefore the goodwill had no intrinsic value.
Goodwill of #6,237,000, as calculated below, would have arisen if the takeover
was accounted for under a normal acquisition instead of a reverse acquisition.
#'000
Consideration paid 18,941
Acquisition costs 556
Fair value of net assets acquired (13,260)
__________
Goodwill under normal acquisition 6,237
__________
ELEKSEN GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2006
The effect on the consolidated financial statements of adopting reverse
acquisition accounting, rather than following the legal form, are widespread.
However the principal effects on the composition of the reserves at 31
December 2006.
Reverse acquisition accounting Reverse Normal Impact of
Accounting Acquisition Reverse
Accounting Accounting Acquisition
(as disclosed) Accounting
#'000 #'000 #'000
Called up share capital 2,047 2,047 -
Share premium account 494 494 -
Reverse acquisition reserve 15,381 - 15,381
Merger reserve - 17,047 (17,047)
Other reserves 77 77 -
Profit and loss reserve (18,114) (17,669) (445)
__________ __________ __________
(115) 1,996 (2,111)
__________ __________ __________
3 Earnings per share
Earnings per ordinary share have been calculated using the weighted average
number of shares in issue during the relevant financial periods.
As restated
2006 2005
#'000 #'000
Reconciliation of earnings:
-----------------------------
Earnings used for calculation of basic (4,030) (2,730)
and diluted EPS
__________ __________
As restated
2006 2005
Number Number
Reconciliation of denominator:
--------------------------------
Shares used for calculation of basic EPS 40,948,170 37,881,113
Convertible loan 4,205,000 -
Warrants 983,500 142,500
Exercise of options 5,353,915 5,022,041
__________ __________
Shares used for calculation of diluted EPS 51,490,585 43,045,654
__________ __________
ELEKSEN GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2006
4 Share capital 2006 2005 2006 2005
Number Number # #
Authorised
Ordinary shares of 5p 57,150,000 - 2,857,500 -
each
__________ __________ __________ __________
57,150,000 - 2,857,500 -
__________ __________ __________ __________
2006 2005 2006 2005
Number Number # #
Allotted, called up and
fully paid
Ordinary shares of 5p 40,948,170 - 2,047,409 -
each
__________ __________ __________ __________
40,948,170 - 2,047,409 -
__________ __________ __________ __________
Prior to the acquisition of Eleksen Limited, Bora Communications plc had an
issued share capital of 2,850,000 ordinary 5p shares.
On 3rd May 2006, Bora Communications Plc (the Company) acquired the entire share
capital of Eleksen Limited by way of issuing 37,881,113 new ordinary shares and a
share consolidation of one new ordinary share of 5p each for every five ordinary
shares of 1p each.
The consolidated shares represented approximately 93 per cent of the enlarged
share capital and, in view of the size of Eleksen Limited relative to the
Company, the acquisition constituted a reverse takeover of Bora Communications
Plc under the AIM rules.
As a consequence of applying reverse acquisition accounting (see note 1.3) the
Group share capital for the comparative periods has been presented as #1,894,056
to reflect the shares issued in exchange for the share capital of Eleksen
Limited.
On 11th June 2006, the Company issued 217,057 new ordinary 5p shares in respect
of the exercise of share options.
ELEKSEN GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2006
5 Statement of movements on reserves
Share premium Reverse
account acquisition
reserve Other reserves Profit and loss
(see below) account
#'000 #'000 #'000 #'000
Group
Balance at 1 January 2006 - 15,189 (6) (14,074)
Prior period FRS 20 - - 10 (10)
adjustment
__________ __________ __________ __________
As at 1 January 2006 restated - 15,189 4 (14,084)
Loss for the period - - - (4,030)
Reverse acquisition capital 494 192 - -
adjustment
FRS 20 share based payment - - (8) -
Foreign exchange currency - - 10 -
translation reserve
Convertible loan and warrants - - 71 -
issued
__________ __________ __________ __________
Balance at 31 December 2006 494 15,381 77 (18,114)
__________ __________ __________ __________
Other reserves
Equity based payment reserve 2
ESOP reserve (6)
Convertible loan equity 18
Warrant reserve 53
Foreign currency translation reserve 10
__________
77
__________
6 Reconciliation of movements in shareholders' funds
Group Group Company Company
2006 2005 2006 2005
#'000 #'000 #'000 #'000
Loss for the financial period (4,030) (2,730) (17) (57)
Proceeds from issue of shares - 5,687 1,904 637
Capital adjustments for reverse 839 - - -
acquisition accounting
Movement on equity based (8) 10 - -
payment reserve
Convertible loan and warrants 71 - 71 -
issued
Foreign exchange currency 10 - - -
translation reserve
ESOP reserve rolled over - - (6) -
__________ __________ __________ __________
Net (decrease)/increase in (3,118) 2,967 1,952 580
shareholders' funds
Opening shareholders' funds 3,003 36 580 -
restated
__________ __________ __________ __________
Closing shareholders' funds (115) 3,003 2,532 580
__________ __________ __________ __________
ELEKSEN GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2006
7 Share options
Certain employees held options to subscribe for shares in the Company at prices ranging
from #0.15 to #10.00. The number of share options, the periods in which they were
granted and the periods in which they may be exercised are set out below. These schemes
are all equity-settled based share remuneration schemes for employees.
Eleksen Group plc EMI Share Option Scheme
-------------------------------------------
Date of Exercise Exercise 2005 Exercised (Lapsed)/ Converted 2006
grant price (#) period number number Granted (1) number
number
'000 '000 '000 '000 '000
22 January 01 2.21 2001-2011 3 3 - - -
25 May 01 2.21 2001-2011 1 1 - - -
15 April 02 10.00 2002-2012 3 - (3) - -
14 January 04 0.15 2004-2014 58 58 - - -
19 March 04 0.15 2004-2014 28 28 - - -
31 January 05 0.15 2005-2015 158 158 - - -
9 December 05 0.78 2005-2015 108 - - 534 642
9 December 05 0.78 (2) 272 - - 1,354 1,626
28 December 06 0.40 (3) - - 822 - 822
Unapproved option scheme
--------------------------
Date of Exercise Exercise 2005 number Exercised Granted Converted 2006
grant price period number number (1) Number
(#)
'000 '000 '000 '000 '000
31 January 05 0.15 2005-2015 40 - - 199 239
1 March 05 0.15 2005-2015 40 - - 199 239
3 May 05 0.15 2005-2015 40 - - 199 239
9 December 05 0.78 2005-2015 10 - - 50 60
9 December 05 0.78 (2) 56 - - 279 335
28 December 06 0.40 (3) - - 1,152 - 1,152
(1) Options As part of the Reverse Take Over of Eleksen Group plc, share options in
Eleksen Limited were rolled over into the new parent company. Each #0.01 Ordinary
Eleksen Limited share became 5.971 #0.05 Ordinary Eleksen Group plc shares.
(2) Options can be exercised at any date when a number of performance criteria have been
met.
(3) Options vest in equal instalments over a 3 year period
Financial Statements
Copies of these Financial Statements are available from the Company at its
registered office at Pinewood Studios, Pinewood Road, Iver Heath, Bucks, SL0 0NH
and will be posted to shareholders on May 4, 2007.
Annual General Meeting
The AGM will be held on June 7, 2007 at the registered office of the company (
Pinewood Studios, Pinewood Road, Iver Heath, Bucks, SL0 0NH ).
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR IRMLTMMJBBMR
1 Year Eleksen Chart |
1 Month Eleksen Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
