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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Hertford | LSE:HIG | London | Ordinary Share | GB00B29KF658 | 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% | 1.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMHIG
RNS Number : 8083P
Hertford International Group PLC
31 March 2009
31 March 2009
Hertford International Group Plc
("Hertford", the "Company" or the "Group")
Results for the 15 months ended 31 December 2008
Hertford (ticker: HIG.L), an AIM listed financial services company, is pleased
to announce its results for the 15 months ended 31 December 2008.
Highlights:
* Product range developed that reflects current consumer demand
* GBP2,250,000 of new finance raised through the issue of convertible loan notes
Post period end:
* Completion of the acquisition of Cheque Exchange Limited from Provident
Financial
* Launch of new 'Eclipse' pre-paid debit card in February 2009
* GBP1,365,050 of additional finance raised
Commenting on the results, Chairman Paul Marks said: "The focus of our
management team during the period under review was on stabilising and
positioning the Company to ensure that full advantage can be extracted from the
significant, potential growth opportunities now available to us.
Having completed the acquisition of CEL and made strong progress against our
strategy of securing distribution as a priority, the Board feels that the Group
is well positioned to provide a relevant and diversified range of products and
services that genuinely reflect the current difficult times that consumers are
facing.
The Directors remain committed to evaluating value enhancing acquisitions, joint
ventures and business to business relationships and will continue to explore
suitable opportunities as they arise."
For further information contact:
Hertford International Group Plc
Paul Marks Non-Executive Chairman Tel: +44 (0) 20 3178 4440
Paul Seakens Company Secretary
Arbuthnot Securities
Katie Shelton
Tel: +44 (0) 207 012 2000
Nick Tulloch
Tavistock CommunicationsTel: +44 (0) 20 7920 3150
Jeremy Carey
Matt Ridsdale
HERTFORD INTERNATIONAL GROUP PLC
CHAIRMAN'S STATEMENT
I am pleased to report the results of Hertford International Plc, for the
fifteen month period ended 31 December 2008. These results mark the end of a
very important, busy and challenging fifteen months and signal the beginning of
a new and exciting growth phase for the Group.
The focus of our management team during the period under review was on
stabilising and positioning the Company to ensure that full advantage can be
extracted from the significant, potential growth opportunities now available to
us. As a consequence, the period was relatively inactive in terms of trading.
With the Group now successfully positioned and with key strategic progress
achieved the immediate priority of the Company is to deliver revenue growth
through recent and future acquisitions, product innovation and by increasing the
value of our customer relationships.
As we are all aware, 2008 as a whole, saw unprecedented uncertainty across the
financial services industry. The Banking sector, particularly in Europe and the
United States, has undergone dramatic change and the relationship between banks
and consumers is being reassessed. The Board believes that these changes will
broaden the base of potential customers for Hertford's suite of products and
there is already growing awareness and demand for services such as cheque
cashing and pre-paid debit cards.
Against this backdrop, the Board has used its extensive experience to secure low
cost distribution, develop a product range that reflects current consumer demand
in these difficult times and to maximise the value per transaction. These
developments have been achieved in conjunction with a reduction in overheads and
other costs.
Summary of Financial Statements
As outlined above, the Company's first period of trading activity remained
fairly inactive. This is reflected in the operating results of the Company.
Turnover for the year was GBP144,270 and, after direct expenses, a gross loss of
GBP64,871. With administrative expenses and exceptional items totalling
GBP1,963,884, the operating loss totalled GBP2,028,755. Net finance costs after
investment income were GBP24,619, creating a total loss for the period of
GBP2,053,374, equivalent to a 5.5 pence loss per share. No dividend is being
recommended.
Balance Sheet and Cash Flow
The current net asset position of the Group is GBP200,975, with total net assets
of GBP442,526. During the year, the Company raised a total of GBP2,250,000 of
new finance through the issue of convertible loan notes, of which GBP550,000 was
drawn down. In addition and as outlined in post balance sheet events, further
new finance was raised in the form of new issued share capital (GBP865,000) and
convertible loan notes (GBP500,000). The additional finance is being used to
fund an acquisition completed in January 2009, together with securing sufficient
working capital to secure the medium-term plans of the Company.
Pre-Paid Debit Cards
The pre-paid debit card market is growing strongly and is and will remain a core
part of the Group's business going forward. There are currently 2.3 million
prepaid cards in issue in the UK and this number is expected to rise to 7
million by 2010.
As reported in our interim results statement, a positive decision was taken to
further invest in our range of pre-paid debit cards and to establish a strong
and relevant distribution network before dedicating cash resources to marketing.
The result of this approach is reflected in the Financial Review above however,
we expect to reap the rewards of this approach in the medium-term.
In February 2009, post the period end, Hertford announced the launch of its new
pre-paid card product, which, vitally, is delivering a near 100% acceptance of
UK resident online applicants. This compares very favourably to an industry
average of less than 25%.
The card is designed for everyday spending and can be used wherever MasterCard
is accepted, which is estimated to be around 25 million locations worldwide.
Following the mobile phone model, the eclipse card is available on a pay monthly
or pay-as-you-go pricing plan, allowing users to minimise their ongoing costs.
Cash can be loaded onto the card at over 40,000 locations throughout the UK
including the Post Office and PayPoint retail outlets. The cards can also be
loaded via bank transfer, salary payments and standard debit and credit cards.
In addition to being targeted at those people who have limited access to the
traditional banking system, the eclipse card has a broad market appeal for other
applications such as secure online shopping and budget control.
Unlike most other pre-paid cards, the eclipse card is easy to obtain, even by
those recently arrived in the country. This availability is made possible
through the offer of a limited-spend card, created for those who do not at
present have a sufficient electronic footprint in the UK. This facility ensures
that all applicants are accepted. Cardholders of the limited eclipse card have
the opportunity to upgrade to an unlimited card at a later date, subject to
identity verification. In such instances the limited restrictions are lifted,
though the card itself will not need to be exchanged. The eclipse card complies
with all regulatory and anti-money laundering standards.
A number of value-added services will be available to owners of the eclipse card
in order to improve customer satisfaction and loyalty. Services include cashback
shopping and discount vouchers through the lovecashback.com portal both of which
allow users to make material savings when shopping online. In addition, a
low-cost international calling service is on course to be launched in Quarter
two of 2009.
Cheque Cashing and Money Remittance
Post the period end in January 2009, Hertford announced the completion of the
acquisition of Cheque Exchange Limited ("CEL"), a profitable nationwide cheque
cashing and money remittance business, from Provident Financial Plc for a total
cost to the Company of GBP2,902,000 to be satisfied in cash. Given the
unprecedented market conditions, we were delighted to secure underwriting from
existing supportive shareholders which enabled us to finance the purchase.
CEL provides Hertford with an established operational infrastructure, a sales
force, and positive cash-flow. It also presents the opportunity to reduce the
cost of some currently outsourced services and will enable the Company to
acquire a distribution network of over 750 retail agency outlets which will be
utilised to sell existing and other planned Hertford products and services
including our pre-paid debit cards which have already been integrated in our
suite of products.
Under the terms of the CEL acquisition agreement, Hertford will also be the sole
provider of door-to-door cheque cashing services to Provident's near 1.7 million
customers. A pilot scheme is being run and, at the time of reporting, is showing
encouraging results. This work is in-line with our stated objective of accessing
attractive distribution opportunities and, whilst still at an early stage, the
directors believe it could be of considerable potential value.
We had previously announced our intention to acquire, alongside the purchase of
CEL, a foreign exchange business. In light of the existing market conditions
however, the Board decided not to proceed with the deal believing that
distribution, in the current market, should take precedent.
Current Trading and Outlook
Having completed the acquisition of CEL and made strong progress against our
strategy of securing distribution as a priority, the Board feels that the Group
is well positioned to provide a relevant and diversified range of products and
services that genuinely reflect the current difficult times that consumers are
facing.
The Directors remain committed to evaluating value enhancing acquisitions, joint
ventures and business to business relationships and will continue to explore
suitable opportunities as they arise. In light of this, the Company will
consistently review all additional and replacement financing options available
to it in order to ensure that the Group is optimally funded to take advantage of
future corporate opportunities and has sufficient cash to execute its strategy.
I would like to thank all of the staff for their efforts during the period and
our shareholders for their support. Despite challenging market conditions, the
Board remain confident of delivering against its stated goals.
Paul Marks, Chairman
30 March 2009
HERTFORD INTERNATIONAL GROUP PLC
CONSOLIDATED INCOME STATEMENT
+----------------------------+-------+--------+----------------+----+--------------+
| |Notes | | 15 months to | | 14 months to |
| | | | 31 | | 30 September |
| | | | December 2008 | | 2007 |
+----------------------------+-------+--------+----------------+----+--------------+
| | | | GBP | | GBP |
+----------------------------+-------+--------+----------------+----+--------------+
| Continuing operations | | | | | |
+----------------------------+-------+--------+----------------+----+--------------+
| Revenue | | | 144,270 | | - |
+----------------------------+-------+--------+----------------+----+--------------+
| Cost of sales | | | (209,141) | | - |
+----------------------------+-------+--------+----------------+----+--------------+
| Gross profit | | | (64,871) | | - |
+----------------------------+-------+--------+----------------+----+--------------+
| Administrative expenses | | | (1,712,014) | | - |
+----------------------------+-------+--------+----------------+----+--------------+
| Exceptional costs | 5 | | (251,870) | | - |
+----------------------------+-------+--------+----------------+----+--------------+
| Operating loss | 4 | | (2,028,755) | | - |
+----------------------------+-------+--------+----------------+----+--------------+
| Investment income | 6 | | 28,195 | | - |
+----------------------------+-------+--------+----------------+----+--------------+
| Finance costs | 7 | | (52,814) | | - |
+----------------------------+-------+--------+----------------+----+--------------+
| Loss before taxation | | | (2,053,374) | | - |
+----------------------------+-------+--------+----------------+----+--------------+
| Taxation | 10 | | - | | - |
+----------------------------+-------+--------+----------------+----+--------------+
| Loss for the financial | | | (2,053,374) | | - |
| period | | | | | |
+----------------------------+-------+--------+----------------+----+--------------+
| | | | | | |
+----------------------------+-------+--------+----------------+----+--------------+
| Loss per share - basic and | 11 | | (5.5p) | | - |
| | | | | | |
| diluted | | | | | |
+----------------------------+-------+--------+----------------+----+--------------+
| |
+----------------------------------------------------------------------------------+
| | | | | | |
+----------------------------+-------+--------+----------------+----+--------------+
HERTFORD INTERNATIONAL GROUP PLC
CONSOLIDATED BALANCE SHEET
+----------------------------+-------+--------+-------------+-------+------------+
| | | | As at | | As at |
| | | | 31 | | 30 |
| | | | December | | September |
| | | | 2008 | | 2007 |
+----------------------------+-------+--------+-------------+-------+------------+
| | | | GBP | | GBP |
+----------------------------+-------+--------+-------------+-------+------------+
| Non-current assets | | | | | |
+----------------------------+-------+--------+-------------+-------+------------+
| Property, plant and | | 12 | 86,922 | | - |
| equipment | | | | | |
+----------------------------+-------+--------+-------------+-------+------------+
| Intangible fixed assets | | 14 | 1,386,872 | | - |
+----------------------------+-------+--------+-------------+-------+------------+
| | | | 1,473,794 | | - |
+----------------------------+-------+--------+-------------+-------+------------+
| | | | | | |
+----------------------------+-------+--------+-------------+-------+------------+
| Current assets | | | | | |
+----------------------------+-------+--------+-------------+-------+------------+
| Inventories | | 16 | 59,339 | | - |
+----------------------------+-------+--------+-------------+-------+------------+
| Trade and other | | 17 | 553,167 | | 0.02 |
| receivables | | | | | |
+----------------------------+-------+--------+-------------+-------+------------+
| Cash and cash equivalents | | 18 | 192,096 | | - |
+----------------------------+-------+--------+-------------+-------+------------+
| | | | 804,602 | | 0.02 |
+----------------------------+-------+--------+-------------+-------+------------+
| | | | | | |
+----------------------------+-------+--------+-------------+-------+------------+
| Current liabilities | | | | | |
+----------------------------+-------+--------+-------------+-------+------------+
| Trade and other payables | | 19 | (603,627) | | - |
+----------------------------+-------+--------+-------------+-------+------------+
| | | | | | |
+----------------------------+-------+--------+-------------+-------+------------+
| Net current assets | | | 200,975 | | - |
+----------------------------+-------+--------+-------------+-------+------------+
| | | | | | |
+----------------------------+-------+--------+-------------+-------+------------+
| Non-current liabilities | | | | | |
+----------------------------+-------+--------+-------------+-------+------------+
| Non-current borrowings | | 20 | (1,232,243) | | - |
+----------------------------+-------+--------+-------------+-------+------------+
| | | | | | |
+----------------------------+-------+--------+-------------+-------+------------+
| Net assets | | | 442,526 | | 0.02 |
+----------------------------+-------+--------+-------------+-------+------------+
| | | | | | |
+----------------------------+-------+--------+-------------+-------+------------+
| Equity | | | | | |
+----------------------------+-------+--------+-------------+-------+------------+
| Share capital | | 21 | 426,750 | | 0.02 |
+----------------------------+-------+--------+-------------+-------+------------+
| Share premium | | | 1,902,850 | | - |
+----------------------------+-------+--------+-------------+-------+------------+
| Retained earnings | | | (1,887,074) | | - |
+----------------------------+-------+--------+-------------+-------+------------+
| Equity attributable to | | | 442,526 | | 0.02 |
| equity holders of the | | | | | |
| parent | | | | | |
+----------------------------+-------+--------+-------------+-------+------------+
| | | | | | |
+----------------------------+-------+--------+-------------+-------+------------+
HERTFORD INTERNATIONAL GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
+---+---------------------------+--------+-------+-------------+-------+------------+
| | | | 15 months | | 14 months |
| | | | to | | to |
| | | | 31 | | 30 |
| | | | December | | September |
| | | | 2008 | | 2007 |
+-------------------------------+--------+-------+-------------+-------+------------+
| | | | GBP | | GBP |
+-------------------------------+--------+-------+-------------+-------+------------+
| Cash flows from operating | | | | | |
| activities | | | | | |
+-------------------------------+--------+-------+-------------+-------+------------+
| Loss before taxation | | | (2,053,374) | | - |
+-------------------------------+--------+-------+-------------+-------+------------+
| Adjustments for : | | | | | |
+-------------------------------+--------+-------+-------------+-------+------------+
| | Depreciation | | | 31,728 | | - |
+---+---------------------------+--------+-------+-------------+-------+------------+
| | Profit on disposal of | | | (25,410) | | - |
| | fixed assets | | | | | |
+---+---------------------------+--------+-------+-------------+-------+------------+
| | Investment income | | | (28,195) | | - |
+---+---------------------------+--------+-------+-------------+-------+------------+
| | Interest expense | | | 52,814 | | - |
+---+---------------------------+--------+-------+-------------+-------+------------+
| | Share based payment | | 166,300 | | - |
+---+------------------------------------+-------+-------------+-------+------------+
| | Increase in trade and other | | (414,019) | | - |
| | receivables | | | | |
+---+------------------------------------+-------+-------------+-------+------------+
| | Decrease in inventories | | | 23,343 | | - |
+---+---------------------------+--------+-------+-------------+-------+------------+
| | Increase in trade and other | | 80,245 | | - |
| | payables | | | | |
+---+------------------------------------+-------+-------------+-------+------------+
| Cash used in operations | | | (2,166,568) | | - |
+-------------------------------+--------+-------+-------------+-------+------------+
| Interest paid | | | (52,814) | | - |
+-------------------------------+--------+-------+-------------+-------+------------+
| Net cash used in operating | | | (2,219,382) | | - |
| activities | | | | | |
+-------------------------------+--------+-------+-------------+-------+------------+
| | | | | | |
+-------------------------------+--------+-------+-------------+-------+------------+
| Cash flows from investing | | | | | |
| activities | | | | | |
+-------------------------------+--------+-------+-------------+-------+------------+
| Acquisition of subsidiaries, net of | | 83,961 | | - |
| cash acquired | | | | |
+----------------------------------------+-------+-------------+-------+------------+
| Interest received | | 28,195 | | - |
+----------------------------------------+-------+-------------+-------+------------+
| Purchase of intangible assets | | (21,982) | | - |
+----------------------------------------+-------+-------------+-------+------------+
| Purchase of property, plant and | | (10,376) | | - |
| equipment | | | | |
+----------------------------------------+-------+-------------+-------+------------+
| Proceeds from sale of property, plant | | 25,410 | | - |
| and equipment | | | | |
+----------------------------------------+-------+-------------+-------+------------+
| Net cash used in investing | | | 105,208 | | - |
| activities | | | | | |
+-------------------------------+--------+-------+-------------+-------+------------+
| | | | | | |
+-------------------------------+--------+-------+-------------+-------+------------+
| Cash flows from financing | | | | | |
| activities | | | | | |
+-------------------------------+--------+-------+-------------+-------+------------+
| Net new long term loans | | | 303,270 | | - |
| received | | | | | |
+-------------------------------+--------+-------+-------------+-------+------------+
| Issue of shares | | | 2,003,000 | | - |
+-------------------------------+--------+-------+-------------+-------+------------+
| Net cash from financing | | | 2,306,270 | | - |
| activities | | | | | |
+-------------------------------+--------+-------+-------------+-------+------------+
| | | | | | |
+-------------------------------+--------+-------+-------------+-------+------------+
| Net increase in cash and cash | | 192,096 | | - |
| equivalents | | | | |
+----------------------------------------+-------+-------------+-------+------------+
| Cash and cash equivalents at beginning | | - | | - |
| of period | | | | |
+----------------------------------------+-------+-------------+-------+------------+
| Cash and cash equivalents at end of | | 192,096 | | - |
| period | | | | |
+---+---------------------------+--------+-------+-------------+-------+------------+
HERTFORD INTERNATIONAL GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
1 Accounting policies
Basis of preparation:
The consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRSs) as adopted by the European
Union, and with those parts of the Companies Act 1985 applicable to companies
reporting under IFRS. The financial statements have been prepared on the
historical cost basis.
The preparation of financial statements in conformity with generally accepted
accounting principles requires the use of estimates and assumptions that effect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Although these estimates are based on management's' best
knowledge of the amount, events or actions, actual results ultimately may differ
from those of estimates.
IFRS transition:
The Group's results for the period ended 31 December 2008 are the first results
to be reported under IFRS. The Group's date of transition to IFRS is 12 July
2006 and the adoption date is 1 October 2007.
Basis of consolidation:
The consolidated financial statements incorporate the results of the Company and
its subsidiary undertakings as at 31 December 2008 and exclude all intra-group
transactions and balances. The results of subsidiary undertakings are included
from the date of acquisition. The results of subsidiary undertakings disposed of
are included up to the date of disposal.
Goodwill:
Goodwill represents any excess of the cost of acquisition over the fair value of
the identifiable assets and liabilities acquired. Goodwill is tested annually
for impairment and is carried at cost less accumulated impairment losses.
Property, plant and equipment
Property, plant and equipment are stated at cost net of accumulated depreciation
and any provision for impairment. Depreciation is provided at rates calculated
to write off the cost, less an estimated residual value, of the assets over
their estimated useful lives at the following rates:
Web site development 25% straight line
Office equipment 25% straight line
Motor vehicles 25% straight line
Inventories
Inventories are valued at the lower of cost and net realisable value.
Leased assets
Rentals under operating leases are charged to the income statement on a
straight-line basis over the lease term. All of the Group's current leases are
operating leases.
Foreign currency
Foreign currency transactions are recorded at the rate of exchange at the time
of the transaction. Monetary assets and liabilities denominated in foreign
currencies at the balance sheet date are reported at the rates of exchange
prevailing at that date. Exchange differences arising on the retranslation of
unsettled monetary assets and liabilities are recognised immediately in the
income statement.
Financial instruments
Financial assets and liabilities are recognised at fair value in the Group's
balance sheet when the Group becomes a party to the contractual provisions of
the instrument.
The Group classifies its financial instruments into loans and receivables
(comprising cash and trade receivables) and other liabilities (comprising loan
notes and trade payables).
Trade and other receivables
Trade and other receivables do not carry any interest and are stated at their
nominal value unadjusted to reflect discounting for the time value of cash flows
recoverable and are reduced by appropriate allowances for estimated
irrecoverable amounts.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and deposits which are readily
convertible to known amounts of cash and which are subject to insignificant risk
of changes in value and have an original maturity of three months or less at
acquisition. Bank overdrafts are included within current liabilities unless
there is a right of offset with cash balances.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. An equity instrument is
any contract that evidences a residual interest in the assets of the group after
deducting all of its liabilities.
Trade and other payables
Trade payables are not interest bearing and are stated at their nominal value.
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received,
net of direct issue costs.
Share based payments
Share options awarded to employees are measured at fair value at grant date
using the Black-Scholes model. Inputs to the model are based on management's
best estimates of appropriate volatility, discount rate and share price growth.
The fair value is expensed on a straight-line basis over the vesting period,
based on an estimate of the number of options that will eventually vest.
Cash-settled share based payment transactions result in the recognition of a
liability at its current fair value.
2 Financial risk management
The Group is exposed through its operations to one or more of the following
financial risks that arise from its use of financial instruments. A risk
management programme has been established to protect the Group against the
potential adverse effects of these financial risks.
Credit risk
Due to limited invoiced sales up to 31 December 2008, the Group is not exposed
to significant credit risk. Trade debtors at 31 December 2008 amounted to
GBP1,996.
Liquidity risk
Liquidity risk arises from the Group's management of working capital and finance
charges. It is the risk that the Group will encounter difficulty in meeting its
financial obligations as they fall due. The liquidity risk is managed centrally
by the finance function. Budgets are set and are agreed by the Board. As at 31
December 2008, the Group had cash and cash equivalents amounting to GBP192,096.
Interest rate risk
The Group's external borrowings at 31 December 2008 comprise a loan bearing
interest at 2% p.a. above the Barclays London term deposit rate. The Group has
not sought to fix interest on this borrowing, as the Board considers the
exposure to interest rate risk acceptable. The Group's external borrowings also
comprise a loan bearing interest at a fixed rate of 10% p.a.
Foreign currency risk
The Group has no significant foreign currency risk.
3 Segment Reporting
The Group's turnover and operating loss for the period are derived wholly from
the company's principal activity, prepaid debit card services. The directors do
not consider that there are any distinguishable geographical or business
segments for reporting purposes.
4 Operating loss
+--+--------------------------------------+-----+------------+------+------------+
| | | 15 months | | 14 months |
| | | to | | to |
| | | 31 | | 30 |
| | | December | | September |
| | | 2008 | | 2007 |
+-----------------------------------------+-----+------------+------+------------+
| | | GBP | | GBP |
+-----------------------------------------+-----+------------+------+------------+
| The operating loss was stated after | | | | |
| charging: | | | | |
+-----------------------------------------+-----+------------+------+------------+
| Depreciation | | 31,728 | | - |
+-----------------------------------------+-----+------------+------+------------+
| Auditors remuneration: | | | | |
+-----------------------------------------+-----+------------+------+------------+
| -| fees payable to the group's auditor | | 10,000 | | - |
| | for the audit of the group's annual | | | | |
| | accounts | | | | |
+--+--------------------------------------+-----+------------+------+------------+
| -| non audit fees relating to tax | | 7,597 | | - |
| | services | | | | |
+--+--------------------------------------+-----+------------+------+------------+
| -| non audit fees relating to due | | 21,539 | | - |
| | diligence services | | | | |
+--+--------------------------------------+-----+------------+------+------------+
In addition to the above, the Group's auditor received fees amounting to
GBP52,631 for services as reporting accountant in relation to the Company's
admission to AIM in December 2007. These fees were included in the subsidiary's
accounts for the period ended 30 September 2007 and subsequently have been
included in goodwill on consolidation following acquisition of the subsidiary in
November 2007.
5 Exceptional costs
+----------------------------------------+-----+------------+------+------------+
| | | 15 months | | 14 months |
| | | to | | to |
| | | 31 | | 30 |
| | | December | | September |
| | | 2008 | | 2007 |
+----------------------------------------+-----+------------+------+------------+
| | | GBP | | GBP |
+----------------------------------------+-----+------------+------+------------+
| Expenses incurred relating to AIM | | 251,870 | | - |
| admission and raising of funds in | | | | |
| December 2007 | | | | |
+----------------------------------------+-----+------------+------+------------+
| | | | | |
+----------------------------------------+-----+------------+------+------------+
6 Investment income
+----------------------------------------+-----+------------+------+------------+
| | | 15 months | | 14 months |
| | | to | | to |
| | | 31 | | 30 |
| | | December | | September |
| | | 2008 | | 2007 |
+----------------------------------------+-----+------------+------+------------+
| | | GBP | | GBP |
+----------------------------------------+-----+------------+------+------------+
| Interest on short term bank deposits | | 28,195 | | - |
+----------------------------------------+-----+------------+------+------------+
7Finance costs
+----------------------------------------+-----+------------+------+------------+
| | | 15 months | | 14 months |
| | | to | | to |
| | | 31 | | 30 |
| | | December | | September |
| | | 2008 | | 2007 |
+----------------------------------------+-----+------------+------+------------+
| | | GBP | | GBP |
+----------------------------------------+-----+------------+------+------------+
| Interest on borrowings | | 52,814 | | - |
+----------------------------------------+-----+------------+------+------------+
8 Information regarding directors and employees
+----------------------------------------+-----+------------+------+------------+
| | | 15 months | | 14 months |
| | | to | | to |
| | | 31 | | 30 |
| | | December | | September |
| | | 2008 | | 2007 |
+----------------------------------------+-----+------------+------+------------+
| | | No. | | No. |
+----------------------------------------+-----+------------+------+------------+
| The average number of persons | | | | |
| (including directors) employed by the | | | | |
| group during the period was: | | | | |
+----------------------------------------+-----+------------+------+------------+
| Management and administration | | 14 | | - |
+----------------------------------------+-----+------------+------+------------+
| | | | | |
+----------------------------------------+-----+------------+------+------------+
| | | GBP | | GBP |
+----------------------------------------+-----+------------+------+------------+
| Aggregate employees costs (including | | | | |
| directors) were: | | | | |
+----------------------------------------+-----+------------+------+------------+
| Wages and salaries | | 682,371 | | - |
+----------------------------------------+-----+------------+------+------------+
| Social security costs | | 72,938 | | - |
+----------------------------------------+-----+------------+------+------------+
| Share based payments | | 166,300 | | - |
+----------------------------------------+-----+------------+------+------------+
| | | 921,609 | | - |
+----------------------------------------+-----+------------+------+------------+
| | | | | |
+----------------------------------------+-----+------------+------+------------+
9 Directors' remuneration
+----------------------------------------+-----+------------+------+------------+
| | | 15 months | | 14 months |
| | | to | | to |
| | | 31 | | 30 |
| | | December | | September |
| | | 2008 | | 2007 |
+----------------------------------------+-----+------------+------+------------+
| | | GBP | | GBP |
+----------------------------------------+-----+------------+------+------------+
| Directors' remuneration during the | | | | |
| period was: | | | | |
+----------------------------------------+-----+------------+------+------------+
| Emoluments | | 284,014 | | - |
+----------------------------------------+-----+------------+------+------------+
| Compensation for loss of office | | 30,000 | | - |
+----------------------------------------+-----+------------+------+------------+
| | | 314,014 | | - |
+----------------------------------------+-----+------------+------+------------+
| | | | | |
+----------------------------------------+-----+------------+------+------------+
| Highest paid director's remuneration; | | | | |
+----------------------------------------+-----+------------+------+------------+
| Emoluments | | 81,731 | | - |
+----------------------------------------+-----+------------+------+------------+
10 Taxation
+----------------------------------------+-----+-------------+------+------------+
| | | 15 months | | 14 months |
| | | to | | to |
| | | 31 | | 30 |
| | | December | | September |
| | | 2008 | | 2007 |
+----------------------------------------+-----+-------------+------+------------+
| | | GBP | | GBP |
+----------------------------------------+-----+-------------+------+------------+
| UK corporation tax in respect of | | - | | - |
| current period | | | | |
+----------------------------------------+-----+-------------+------+------------+
| | | | | |
+----------------------------------------+-----+-------------+------+------------+
| The tax charge for the period can be | | | | |
| reconciled to the loss for the period | | | | |
| as follows: | | | | |
+----------------------------------------+-----+-------------+------+------------+
| Loss before taxation | | (2,053,374) | | - |
+----------------------------------------+-----+-------------+------+------------+
| | | | | |
+----------------------------------------+-----+-------------+------+------------+
| Tax on loss at standard rate of 28% | | (574,945) | | - |
+----------------------------------------+-----+-------------+------+------------+
| Effect of: | | | | |
+----------------------------------------+-----+-------------+------+------------+
| Non-deductible expenses | | 110,892 | | - |
+----------------------------------------+-----+-------------+------+------------+
| Depreciation in excess of capital | | 8,618 | | - |
| allowances | | | | |
+----------------------------------------+-----+-------------+------+------------+
| Tax losses carried forward | | 455,435 | | - |
+----------------------------------------+-----+-------------+------+------------+
| Current tax charge | | - | | - |
+----------------------------------------+-----+-------------+------+------------+
11Loss per share
+----------------------------------------+-----+-------------+------+------------+
| The basic loss per share is calculated by dividing the loss attributable to |
| equity shareholders by the weighted average number of shares in issue in the |
| year. In calculating the diluted earnings per share, outstanding share |
| options warrants and convertible loans are taken into account where the |
| impact is dilutive. |
+--------------------------------------------------------------------------------+
| | | | | |
+----------------------------------------+-----+-------------+------+------------+
| | | 15 months | | 14 months |
| | | to | | to |
| | | 31 | | 30 |
| | | December | | September |
| | | 2008 | | 2007 |
+----------------------------------------+-----+-------------+------+------------+
| | | GBP | | GBP |
+----------------------------------------+-----+-------------+------+------------+
| Basic: | | | | |
+----------------------------------------+-----+-------------+------+------------+
| Loss for the financial period | | (2,053,374) | | - |
+----------------------------------------+-----+-------------+------+------------+
| Weighted average number of share in | | 37,224,749 | | - |
| issue | | | | |
+----------------------------------------+-----+-------------+------+------------+
| Basic loss per share | | (5.5p) | | - |
+----------------------------------------+-----+-------------+------+------------+
| | | | | |
+----------------------------------------+-----+-------------+------+------------+
| Fully Diluted: | | | | |
+----------------------------------------+-----+-------------+------+------------+
| Loss for the financial period | | (2,053,374) | | |
+----------------------------------------+-----+-------------+------+------------+
| Add back interest charge on | | 38,026 | | |
| convertible loans, net of tax | | | | |
+----------------------------------------+-----+-------------+------+------------+
| Fully diluted loss for the financial | | (2,015,348) | | |
| period | | | | |
+----------------------------------------+-----+-------------+------+------------+
| | | | | |
+----------------------------------------+-----+-------------+------+------------+
| Weighted average number of share in | | 37,224,749 | | |
| issue | | | | |
+----------------------------------------+-----+-------------+------+------------+
| Dilutive effect of: | | | | |
+----------------------------------------+-----+-------------+------+------------+
| - convertible loan agreements and | | 4,118,708 | | |
| warrants | | | | |
+----------------------------------------+-----+-------------+------+------------+
| - share options | | 652,315 | | |
+----------------------------------------+-----+-------------+------+------------+
| | | 41,995,772 | | - |
+----------------------------------------+-----+-------------+------+------------+
| | | | | |
+----------------------------------------+-----+-------------+------+------------+
| Fully diluted loss per share | | (5.5p) | | - |
+----------------------------------------+-----+-------------+------+------------+
| |
+--------------------------------------------------------------------------------+
| The fully diluted loss per share is the same as the basic loss per share. It |
| is not reduced as a result of dilution. |
+--------------------------------------------------------------------------------+
| | | | | |
+----------------------------------------+-----+-------------+------+------------+
12 Property, plant and equipment
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| Group | | Web | | Motor | | Office | | Total |
| | | site | | vehicles | | equipment | | |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| | | GBP | | GBP | | GBP | | GBP |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| Cost | | | | | | | | |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| At 1 October 2007 | | - | | - | | - | | - |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| On acquisition of | | 97,480 | | 25,410 | | 24,419 | | 147,309 |
| subsidiary | | | | | | | | |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| Addition | | 7,848 | | - | | 2,528 | | 10,376 |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| Disposals | | - | | (25,410) | | - | | (25,410) |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| At 31 December 2008 | | 105,328 | | - | | 26,947 | | 132,275 |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| Accumulated depreciation | | | | | | | | |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| At 1 October 2007 | | - | | - | | - | | - |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| On acquisition of | | 11,828 | | 25,410 | | 1,797 | | 39,035 |
| subsidiary | | | | | | | | |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| Charge for the period | | 25,784 | | - | | 5,944 | | 31,728 |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| Eliminated on disposals | | - | | (25,410) | | - | | (25,410) |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| At 31 December 2008 | | 37,612 | | - | | 7,741 | | 45,353 |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| Net book value | | | | | | | | |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| At 31 December 2008 | | 67,716 | | - | | 19,206 | | 86,922 |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| At 30 September 2007 | | - | | - | | - | | - |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
13 Investment in subsidiaries
+----------------------------+--+--------+----+----------+--+----------+--+----------+
| | | | | | | | | Company |
+----------------------------+--+--------+----+----------+--+----------+--+----------+
| Cost | | | | | | | | GBP |
+----------------------------+--+--------+----+----------+--+----------+--+----------+
| At 1 October 2007 | | | | | | | | - |
+----------------------------+--+--------+----+----------+--+----------+--+----------+
| Addition | | | | | | | | 326,600 |
+----------------------------+--+--------+----+----------+--+----------+--+----------+
| At 31 December 2008 | | | | | | | | 326,600 |
+----------------------------+--+--------+----+----------+--+----------+--+----------+
| | | | | | |
+----------------------------+--+--------+---------------+-------------+-------------+
| The following were | | | Country of | Proportion | Principal |
| subsidiaries at the end of | | | incorporation | of | activities |
| the period: | | | | ownership | |
| | | | | interest | |
+----------------------------+--+--------+---------------+-------------+-------------+
| Crewcard Network Limited | | | UK | 100% | Prepaid |
| | | | | | debit cards |
+----------------------------+--+--------+---------------+-------------+-------------+
| Crewcall Network Limited | | | UK | 100% | Dormant |
+----------------------------+--+--------+---------------+-------------+-------------+
| Acquirestar Limited | | | UK | 100% | Dormant |
+----------------------------+--+--------+----+----------+--+----------+--+----------+
13 Investment in subsidiaries (continued)
+----------------------------+--+--------+-------------+------------+------------+
| During the period, the Group acquired Crewcard Network Limited. The fair |
| value of assets acquired and liabilities assumed were as follows: |
+--------------------------------------------------------------------------------+
| | | | GBP | | |
+----------------------------+--+--------+-------------+------------+------------+
| Property, plant and | | | 108,274 | | |
| equipment | | | | | |
+----------------------------+--+--------+-------------+------------+------------+
| Trade and other | | | 139,148 | | |
| receivables | | | | | |
+----------------------------+--+--------+-------------+------------+------------+
| Inventories | | | 82,682 | | |
+----------------------------+--+--------+-------------+------------+------------+
| Cash | | | 83,961 | | |
+----------------------------+--+--------+-------------+------------+------------+
| Trade payables | | | (523,382) | | |
+----------------------------+--+--------+-------------+------------+------------+
| Long term debt | | | (928,973) | | |
+----------------------------+--+--------+-------------+------------+------------+
| Total net liabilities | | | (1,038,290) | | |
+----------------------------+--+--------+-------------+------------+------------+
| Goodwill | | | 1,364,890 | | |
+----------------------------+--+--------+-------------+------------+------------+
| Fair value of shares | | | 326,600 | | |
| issued as consideration | | | | | |
+----------------------------+--+--------+-------------+------------+------------+
14 Intangible fixed assets
+---------------------------+-------+--+--------+--+----------+--+-----------+--+-----------+
| | Development costs | Trademarks | | Goodwill | | Group |
+---------------------------+-------------------+-------------+--+-----------+--+-----------+
| | | | | | | | | GBP |
+---------------------------+----------+--------+--+----------+--+-----------+--+-----------+
| Cost | | | | | | | | |
+---------------------------+----------+--------+--+----------+--+-----------+--+-----------+
| At 1 October 2007 | | - | | - | | - | | - |
+---------------------------+----------+--------+--+----------+--+-----------+--+-----------+
| Additions | 16,500 | | 5,482 | | - | | 21,982 |
+--------------------------------------+--------+--+----------+--+-----------+--+-----------+
| Recognised on acquisition of | - | | - | | 1,364,890 | | 1,364,890 |
| subsidiary | | | | | | | |
+--------------------------------------+--------+--+----------+--+-----------+--+-----------+
| At 31 December 2008 | | 16,500 | | 5,482 | | 1,364,890 | | 1,386,872 |
+-----------------------------------+--+--------+--+----------+--+-----------+--+-----------+
| | | | | | | | | |
+-----------------------------------+--+--------+--+----------+--+-----------+--+-----------+
| There are no recognised impairment losses at 31 December 2008. Goodwill is allocated |
| entirely to Crewcard Network Limited, this being the sole operating segment during the |
| period. |
+---------------------------+-------+--+--------+--+----------+--+-----------+--+-----------+
15 Deferred taxation
+--------------------------------------------------------------------------+
| The actual and potential liabilities to deferred tax are nil. Due to the |
| availability of tax losses, subject to agreement with H M Revenue and |
| Customs, there is an estimated potential deferred tax asset in the |
| region of GBP844,000 that has not been recognised in these accounts. No |
| deferred tax asset has been recognised due to the uncertainty over |
| making sufficient profits in the future. |
+--------------------------------------------------------------------------+
16 Inventories
+----------------------------+--+--------+--+----------+--+----------+--+----------+
| | | Group | | Group | | Company | | Company |
+----------------------------+--+--------+--+----------+--+----------+--+----------+
| | | 2008 | | 2007 | | 2008 | | 2007 |
+----------------------------+--+--------+--+----------+--+----------+--+----------+
| | | GBP | | GBP | | GBP | | GBP |
+----------------------------+--+--------+--+----------+--+----------+--+----------+
| Finished goods | | 59,339 | | - | | - | | - |
+----------------------------+--+--------+--+----------+--+----------+--+----------+
| | | | | | | | | |
+----------------------------+--+--------+--+----------+--+----------+--+----------+
| Inventories comprise stocks of prepaid debit cards. |
+----------------------------+--+--------+--+----------+--+----------+--+----------+
17 Trade and other receivables
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| | | Group | | Group | | Company | | Company |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| | | 2008 | | 2007 | | 2008 | | 2007 |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| | | GBP | | GBP | | GBP | | GBP |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| Trade debtors | | 1,996 | | - | | - | | - |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| Loans to group | | - | | - | | 3,235,243 | | - |
| undertakings | | | | | | | | |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| Other debtors | | 150,000 | | 0.02 | | - | | 0.02 |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| Prepayments | | 401,171 | | - | | - | | - |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| | | 553,167 | | 0.02 | | 3,235,243 | | 0.02 |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| | | | | | | | | |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
| Loans to group undertakings are unlikely to be repayable within one year. |
+----------------------------+--+---------+--+----------+--+-----------+--+----------+
18 Cash and cash equivalents
+----------------------------+--+---------+--+----------+--+----------+--+----------+
| | | Group | | Group | | Company | | Company |
+----------------------------+--+---------+--+----------+--+----------+--+----------+
| | | 2008 | | 2007 | | 2008 | | 2007 |
+----------------------------+--+---------+--+----------+--+----------+--+----------+
| | | GBP | | GBP | | GBP | | GBP |
+----------------------------+--+---------+--+----------+--+----------+--+----------+
| Cash at bank and in hand | | 192,096 | | - | | - | | - |
+----------------------------+--+---------+--+----------+--+----------+--+----------+
19 Trade and other payables
+----------------------------+--+---------+--+----------+--+----------+--+----------+
| | | Group | | Group | | Company | | Company |
+----------------------------+--+---------+--+----------+--+----------+--+----------+
| | | 2008 | | 2007 | | 2008 | | 2007 |
+----------------------------+--+---------+--+----------+--+----------+--+----------+
| | | GBP | | GBP | | GBP | | GBP |
+----------------------------+--+---------+--+----------+--+----------+--+----------+
| Trade creditors | | 133,894 | | - | | - | | - |
+----------------------------+--+---------+--+----------+--+----------+--+----------+
| Other taxation and social | | 23,703 | | - | | - | | - |
| security costs | | | | | | | | |
+----------------------------+--+---------+--+----------+--+----------+--+----------+
| Accruals | | 446,030 | | - | | - | | - |
+----------------------------+--+---------+--+----------+--+----------+--+----------+
| | | 603,627 | | - | | - | | - |
+----------------------------+--+---------+--+----------+--+----------+--+----------+
20 Non current borrowings
+------+--------------------------+--+-----------+--+----------+--+-----------+--+----------+
| | | Group | | Group | | Company | | Company |
+---------------------------------+--+-----------+--+----------+--+-----------+--+----------+
| | | 2008 | | 2007 | | 2008 | | 2007 |
+---------------------------------+--+-----------+--+----------+--+-----------+--+----------+
| | | GBP | | GBP | | GBP | | GBP |
+---------------------------------+--+-----------+--+----------+--+-----------+--+----------+
| Convertible loans | | 1,232,243 | | - | | 1,232,243 | | - |
+---------------------------------+--+-----------+--+----------+--+-----------+--+----------+
| | | | | | | | | |
+---------------------------------+--+-----------+--+----------+--+-----------+--+----------+
| Convertible loans at 31 December 2008 are owed to Dexapoint United Corporation, a |
| shareholder. |
+-------------------------------------------------------------------------------------------+
| Convertible loans comprise: |
+-------------------------------------------------------------------------------------------+
| | |
+------+------------------------------------------------------------------------------------+
| (i) | GBP682,243 unsecured loan repayable on 31 December 2010 or earlier at the |
| | discretion of the company. The loan bears interest at 2 per cent above the |
| | Barclays London term deposit rate. The lender may convert the loan at any time |
| | into Ordinary shares at the rate of 5 shares for every GBP1 of the loan still |
| | outstanding. |
+------+------------------------------------------------------------------------------------+
| | |
+------+------------------------------------------------------------------------------------+
|(ii) | GBP550,000 unsecured loan repayable as to GBP111,111 on 31 July 2010, GBP111,111 |
| | on 31 December 2010, GBP222,222 on 31 July 2011 and the balance on 31 December |
| | 2011. The loan bears interest at 10% per annum. The lender may convert the |
| | outstanding amount of the loan at any time into Ordinary shares at the following |
| | prices: |
+------+------------------------------------------------------------------------------------+
| | - for conversions up to 31 December 2009 | 13p per share |
+------+----------------------------------------------------------+-------------------------+
| | - for conversions between 1 January and 31 | 15p per share |
| | December 2010 | |
+------+----------------------------------------------------------+-------------------------+
| | - for conversions between 1 January and 31 | 17p per share |
| | December 2011 | |
+------+--------------------------+--+-----------+--+----------+--+-----------+--+----------+
21 Share capital
+--------------------------------------------+-------------+--------+-------------+
| | 2008 | | 2007 |
+--------------------------------------------+-------------+--------+-------------+
| | GBP | | GBP |
+--------------------------------------------+-------------+--------+-------------+
| Authorised: | | | |
+--------------------------------------------+-------------+--------+-------------+
| 10,000,000,000 Ordinary shares of 1p each | 100,000,000 | | 100,000,000 |
+--------------------------------------------+-------------+--------+-------------+
| | | | |
+--------------------------------------------+-------------+--------+-------------+
| Issued share capital: | | | GBP |
+--------------------------------------------+-------------+--------+-------------+
| 42,675,000 (2007: 2) Ordinary shares of 1p | 426,750 | | 0.02 |
+--------------------------------------------+-------------+--------+-------------+
| | | | |
+--------------------------------------------+-------------+--------+-------------+
| On 21 November 2007, 32,659,998 Ordinary shares were issued as |
| consideration for the acquisition of the whole of the issued share capital |
| of Crewcard Network Limited. On 18 December 2007, 10,000,000 Ordinary |
| shares were issued for a total consideration of GBP2,000,000. On 12 March |
| 2008, 15,000 Ordinary shares were issued for a total consideration of |
| GBP3,000. |
+---------------------------------------------------------------------------------+
| |
+---------------------------------------------------------------------------------+
| As at 31 December 2008, unexercised warrants, options and loan conversion |
| rights had been granted over 21,774,736 Ordinary shares. As at 20 March |
| 2009 (the latest date that the Company has been notified of substantial |
| shareholdings), the maximum number of shares that could be issued under |
| these agreements is 14,420,257. |
+--------------------------------------------+-------------+--------+-------------+
22 Share based payments
+-----------------------------+-----------+----------+------+-----------+----------+
| The Group operates two share option schemes for directors and other employees, |
| an EMI Share Option Scheme and an Unapproved Share Option Scheme. Under both |
| schemes: |
| (a)No payment is required for the grant of an option. |
| (b)Options are granted with an exercise price equal to the market value of the |
| shares on the date of grant. |
| (c)Options are exercisable in two halves on the first and second anniversaries |
| of the date of grant. |
| (d)Options lapse on ceasing to be an employee or otherwise 10 years after the |
| date of grant. |
| |
+----------------------------------------------------------------------------------+
| | As at 31 December | | As at 30 September |
| | 2008 | | 2007 |
+-----------------------------+----------------------+------+----------------------+
| | | Weighted | | | Weighted |
| | | average | | | average |
| | | exercise | | | exercise |
| | | price | | | price |
+-----------------------------+-----------+----------+------+-----------+----------+
| | Number | GBP | | Number | GBP |
+-----------------------------+-----------+----------+------+-----------+----------+
| Outstanding at the | - | - | | - | - |
| beginning of the period | | | | | |
+-----------------------------+-----------+----------+------+-----------+----------+
| Granted during the period | 7,050,000 | 0.20 | | - | - |
+-----------------------------+-----------+----------+------+-----------+----------+
| Outstanding at the end of | 7,050,000 | 0.20 | | - | - |
| the period | | | | | |
+-----------------------------+-----------+----------+------+-----------+----------+
22 Share based payments (continued)
+---------------------------------------+------+--------+--------+------+------------+
| Of the total number of options outstanding at 30 December 2008, none had vested |
| and were exercisable at the end of the period. |
| The weighted average fair value of each option granted during the period to 31 |
| December 2008 was GBP0.0396. |
| The following information is relevant in determining the fair value of the options |
| granted during the period to 31 December 2008: |
+------------------------------------------------------------------------------------+
| Option pricing model used | | Black-Scholes |
+---------------------------------------+---------------+----------------------------+
| Weighted average share price at grant | | GBP0.20 |
| date | | |
+---------------------------------------+---------------+----------------------------+
| Weighted average exercise price | | GBP0.20 |
+---------------------------------------+---------------+----------------------------+
| Expected volatility | | 40% |
+---------------------------------------+---------------+----------------------------+
| Expected life (years) | | 2 |
+---------------------------------------+---------------+----------------------------+
| Risk free interest rate | | 0.7% |
+---------------------------------------+---------------+----------------------------+
| | | | | |
+---------------------------------------+------+-----------------+------+------------+
| | | 15 months to | | 14 months |
| | | 31 December | | to |
| | | 2008 | | 30 |
| | | | | September |
| | | | | 2007 |
+---------------------------------------+------+-----------------+------+------------+
| | | GBP | | GBP |
+---------------------------------------+------+-----------------+------+------------+
| Total expense recognised from share | | 166,300 | | - |
| based payment transactions | | | | |
+---------------------------------------+------+--------+--------+------+------------+
23 Transition to IFRS
Analysis of the financial statements for the period ended 30 September 2007,
which were prepared under UK GAAP, shows that no adjustments are required to
equity or profit as a result of the transition to IFRS.
24 Related party transactions
+------+---------------------------+----------------+------------+-------------+
| (i) | Share options granted to persons who served as director during the |
| | period are as follows: |
+------+-----------------------------------------------------------------------+
| | | | | |
+------+---------------------------+----------------+------------+-------------+
| | | Grant date | Exercise | Number at |
| | | | price | 31 December |
| | | | | 2008 |
+------+---------------------------+----------------+------------+-------------+
| | P Marks | 27 November | 20p | 250,000 |
| | | 2007 | | |
+------+---------------------------+----------------+------------+-------------+
| | P Marks | 15 May 2008 | 20p | 350,000 |
+------+---------------------------+----------------+------------+-------------+
| | R Fancourt | 27 November | 20p | 1,000,000 |
| | | 2007 | | |
+------+---------------------------+----------------+------------+-------------+
| | A Lubin | 27 November | 20p | 1,500,000 |
| | | 2007 | | |
+------+---------------------------+----------------+------------+-------------+
| | D Mifsud | 27 November | 20p | 250,000 |
| | | 2007 | | |
+------+---------------------------+----------------+------------+-------------+
| | P Seakens | 24 April 2008 | 20p | 600,000 |
+------+---------------------------+----------------+------------+-------------+
| | L Findlay | 24 April 2008 | 20p | 2,500,000 |
+------+---------------------------+----------------+------------+-------------+
| | | | | 6,450,000 |
+------+---------------------------+----------------+------------+-------------+
+-------+--------------------------------------------------------------------+
| | In respect of options granted to D Mifsud, the earliest exercise |
| | date is 12 months after the date of grant. In respect of options |
| | granted to the other directors mentioned above, one half are |
| | exercisable 12 months after the date of grant and one half are |
| | exercisable 24 months after the date of grant. No share options |
| | were exercised during the period. |
+-------+--------------------------------------------------------------------+
| | |
+-------+--------------------------------------------------------------------+
| (ii) | On 18 December 2007, the Company paid GBP40,000 and issued |
| | warrants for the allotment of 400,000 Ordinary shares to Dexapoint |
| | United Corporation ("Dexapoint"), a shareholder, in return for |
| | underwriting the placing of 10,000,000 new shares in December |
| | 2007. The warrants are exercisable at 20p per Ordinary share at |
| | any time during a period of five years from 24 December 2008. |
+-------+--------------------------------------------------------------------+
| | |
+-------+--------------------------------------------------------------------+
| (iii) | On 18 December 2007, the company issued warrants for the allotment |
| | of 2,322,433 Ordinary shares to Dexapoint in return for the grant |
| | of a long-term loan of GBP928,973 to the company. As at 31 |
| | December 2008, the number of warrants had reduced to 1,712,628 in |
| | line with a reduction in the outstanding loan. The warrants are |
| | exercisable at 20p per Ordinary share at any time during the five |
| | year period from 24 December 2008. |
+-------+--------------------------------------------------------------------+
| | |
+-------+--------------------------------------------------------------------+
| (iv) | On 19 November 2008, in return for the grant of a GBP1,000,000 |
| | loan facility, the company issued warrants to Dexapoint for the |
| | allotment of (a) 500,000 Ordinary shares at a price of 20p per |
| | share, (b) 1,666,667 Ordinary shares at a price of 15p per share, |
| | and (c) one Ordinary share for every four Ordinary shares |
| | converted pursuant to the loan agreement at a price of 15p per |
| | share, but limited to a maximum of 1,923,077 shares. |
+-------+--------------------------------------------------------------------+
| | |
+-------+--------------------------------------------------------------------+
| (v) | On 19 November 2008, in return for the grant of a further |
| | GBP1,250,000 loan facility, the company issued warrants to |
| | Dexapoint for the allotment of (a) 500,000 Ordinary shares at a |
| | price of 20p per share, (b) 2,083,333 Ordinary shares at a price |
| | of 15p per share, and (c) one Ordinary share for every four |
| | Ordinary shares converted pursuant to the loan agreement at a |
| | price of 15p per share, but limited to a maximum of 2,403,846 |
| | shares. |
+-------+--------------------------------------------------------------------+
| | |
+-------+--------------------------------------------------------------------+
| (vi) | During the period to 31 December 2008, the company incurred costs |
| | of GBP97,590 from Aspirant Limited for consultancy services |
| | provided. Aspirant Limited is controlled by Paul Marks, a |
| | director. |
+-------+--------------------------------------------------------------------+
| | |
+-------+--------------------------------------------------------------------+
| (vii) | During the period to 31 December 2008, the company incurred costs |
| | of GBP54,850 from Countermand Limited for consultancy services |
| | provided. Countermand Limited is controlled by Paul Seakens, a |
| | director. |
+-------+--------------------------------------------------------------------+
25 Post balance sheet events
+------+--------------------------------------------------------------------+
| (i) | On 30 January 2009, the Company purchased 100% of the issued share |
| | capital of Cheque Exchange Limited. The total cost to the Company |
| | is GBP2,902,000 to be satisfied in cash by instalments. The |
| | Company is funding the purchase partly by way of a fresh issue of |
| | Ordinary shares (see below) and partly through drawing down on new |
| | convertible loan agreements granted before 31 December 2008. |
+------+--------------------------------------------------------------------+
| | |
+------+--------------------------------------------------------------------+
| (ii) | On 30 January 2009, the company issued 5,767,000 Ordinary shares |
| | of 1p each for a total consideration of GBP865,050. |
+------+--------------------------------------------------------------------+
26 Ultimate controlling party
The directors of the Company do not consider any one party to exercise ultimate
control over the Group.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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