IMPACT HOLDINGS (UK) PLC - Preliminary results for the year ended 31 March 2015

Press Release 3^rd August 2015

Impact Holdings (UK) plc
("Impact" or "The Group")

Preliminary results for the year ended 31^st March 2015

Impact Holdings (UK) plc (AIM: IHUK), the specialist lender, announces its preliminary results for the year ended 31^st March 2015.

Financial Highlights

• Group’s pre-tax profit of £252,669 (2014: profit £97,088)
• Earnings per share 10.0p (2014: 3.7p)
• Further reduced exposure to external debt providers
• Cash and cash equivalents of £1.6 million (2014: £0.7 million)
• Net assets of £5.84 million (2014: £5.58 million)

Commenting on the results Roger Barlow, non-executive Chairman said “These are pleasing results given the ongoing complex and long running litigation we are engaged in. We continue to de-risk the business and reduce our exposure to external debt providers. At the year end cash reserves had risen to £1.6m.”

For further information:

Impact Holdings (UK) plc.

Paul Davies Chief Executive Officer   Tel: [phone]
www.impactholdings.net

Zeus Capital

Nick Cowles/Andrew Jones              Tel [phone]

Tel: [phone]

Notes to the Editor:

Impact Holdings (UK) plc through its individual subsidiaries provides financial outsourcing and ancillary services to the legal profession.

In addition Impact will fund other opportunities where debt instruments or debentures provide the primary security and there are opportunities for short term bespoke funding where serviceability precludes larger lenders from entering this area.

Impact is regulated by the Office of Fair Trading through which it is licensed to lend under the Consumer Credit Act 1974.

The financial information detailed below has been extracted from the Annual Report and Accounts for the year ended 31st March 2015, which are available from Zeus Capital, 82 King Street, Manchester, M2 4WQ and on the Company’s website (http://www.impactholdings.net/).

CHAIRMAN’S STATEMENT     

INTRODUCTION

We have previously advised that as a consequence of the ongoing credit crisis and new economic environment in which we operate, it has been necessary to seek out additional revenue streams for the group.

THE BOARD

The Board remains committed to adhering to strong Corporate Governance and operating within a framework of prudent controls which ensures the future risks of the business are controlled and managed.
 

STRATEGY

The development of the strategic direction of the business has continued in this financial year with a further reduction in our exposure to third party funders. This peaked at £10.0m in March 2010 and now stands at £1.2m as at 31 March 2015.

OUTLOOK

The group remains focused on providing services to the legal and business sectors. The Board of Directors is committed to the future growth opportunities earmarked and continues to develop this strategy which will provide the foundation for controlled growth, increased profitability over time and enhanced shareholder value.

The dedication and commitment of all staff to re-align the business is a credit as they have collectively worked with commitment and resilience to deliver this performance.

I should like to place on record my appreciation for the efforts of the executive, management and staff during the year. I also appreciate the enthusiasm and support of my fellow directors and thank them for their continued encouragement and counsel.

DIVIDEND

No dividend will be declared for the year.

Roger Barlow

Non-executive Chairman

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2015

						Year		Year
						ended		Ended
						31/03/2015		31/03/2014
						£		£
Revenue						1,988,087		1,740,529
Cost of sales						(467,606)		(1,307,442)
Gross profit						1,520,481		433,087
Exceptional operating expenses					-		(1,904,412)
Operating expenses					(1,267,812)	(1,267,812)	(1,513,615)	(3,418,027)
Operating profit/(loss)						252,669		(2,984,940)
Exceptional interest receivable and similar income						-		3,082,028
Profit for the year from operations before tax						252,669		97,088
Tax						(10,904)		-
Profit for the year attributable to the owners of the parent						263,573		97,088
Earnings per share (pence) Basic Diluted						10.0p 8.3p		3.7p 3.2p

Other than as disclosed in the consolidated Income Statement and the Consolidated Statement of Changes in Equity there are no further gains or losses. Accordingly, no separate statement of Other Comprehensive Income has been presented.

All activities are considered to be continuing.

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2015

		2015	2014
		£	£
Non-current assets
Goodwill		421,766	421,766
Property, plant and equipment		882,397	918,580
Deferred taxation		181,074	170,195
		1,485,237	1,510,541
Current assets
Trade and other receivables including amounts falling due after more than one year		4,451,612	5,973,186
Cash and cash equivalents		1,604,945	692,685
		6,056,557	6,665,871
Total assets		7,541,794	8,176,412

   

Equity and liabilities
Share capital	1,311,201	1,311,201
Shares held by Employee Benefit Trust	(45,070)	(45,070)
Retained earnings	4,574,218	4,310,645
Issued capital and reserves attributable to parent	5,840,349	5,576 776
Trade and other payables due after more than one year	481,782	540,335
Trade and other payables due in less than one year	1,219,663	2,059,301
Total equity and liabilities	7,541,794	8,176,412

These financial statements were approved by the board on 31 July 2015.

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2015

			2015	2014
			£	£
Operating activities
Cash generated by operations			1,278,528	456,145
Net cash generated by operating activities			1,278,528	456,145
Investing activities
Interest received			25	25
Purchases of property, plant and equipment			(783)	(34,914)
Net cash used in investing activities			(758)	(34,889)
Financing activities
Loan incepted Loan repaid Net decrease in other amounts owed to lending institutions			- - (365,510)	500,000 (500,000) (418,813)
Net cash outflow from financing activities			(365,510)	(418,813)
Net increase in cash and cash equivalents			912,260	2,443
Cash and cash equivalents at 1 April			692,685	690,242
Cash and cash equivalents at 31 March			1,604,945	692,685

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2015

			Share capital	Share premium	Shares held by	Share options	Profit and loss account	Total
					EBT
			£	£	£	£	£	£
Balance as at 31 March 2013			6,411,201	5,125,291	(45,070)	-	(6,051,083)	5,440,339
Net profit for the year			-	-	-	-	97,088	97,088
Share premium reduction			-	(5,125,291)	-	-	5,125,291	-
Cancellation of ordinary B shares			(5,100,000)	-	-	-	5,100,000	-
Share options			-	-	-	39,349	-	39,349
Balance as at 31 March 2014			1,311,201	-	(45,070)	39,349	4,271,296	5,576,776
Net profit for the year			-	-	-	-	263,573	263,573
Balance as at 31 March 2015			1,311,201	-	(45,070)	39,349	4,534,869	5,840,349

Notes

1. The financial information set out in this announcement does not constitute the group’s financial statements (as defined by s434 of the Companies Act 2006) for the year ended 31st March 2015. The results for the year ended 31st March 2015 are extracted from the Annual Report of Impact Holdings (UK) plc, on which the auditors have issued an unqualified report which includes an emphasis of matter.
2. Pursuant to AIM Rule 20 copies of the Annual Report may be downloaded from the company’s web site www.impactholdings.netand will be posted to shareholders shortly. Further copies will be available from Zeus Capital, 82 King Street, Manchester, M2 4WQ.
3. The Annual General Meeting will be held at the Company’s registered office, 7500 Daresbury Park, Daresbury, Warrington WA4 4BS on 22^nd September 2015 at 8.45am.

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