Final Results

RNS Number:9596U
INVU, Inc. (S)
17 April 2007


17 April 2007

                                    Invu Inc

             Preliminary Results for the Year Ended 31 January 2007

Invu Inc, the document management software provider, announces its preliminary
results for the year ended 31 January 2007.


Financial Highlights
     
*    Revenues up 36% to #6.49m

*    Recognised recurring revenues from InvuCare increased by 27% to #1.19m
     (2006: #0.94m)

*    Operating margins now 30% (2006:24%)

*    Net Profit increased 67% to #2.02m

*    Basic Earnings per share up 66% to 2.01p

                                                                     Year ended                  Year ended
                                                                    31 Jan 2007                 31 Jan 2006

Turnover                                                                 #6.49m                      #4.78m
Operating Profit                                                         #1.93m                      #1.16m
Net Profit                                                               #2.02m                      #1.21m
Basic Earnings per Share                                                  2.01p                       1.21p
Diluted Earnings Per Share                                                1.98p                       1.19p



Operational Highlights
     
*    Launch of Series 6 (.NET) version of Invu document management, endorsed by 
     agreements with Sage and Panasonic and accreditation by ICAEW

*    InvuCare renewal rate of 82% (2006: 81%)

*    Software sold to 970 new sites (2006: 720) and new end users included
     Birmingham International Airport, Siemens Financial Services, The Shore 
     Capital Group Plc and Chelsea F.C.

*    16,418 new seats installed (2006: 14,068)

*    40 new accredited resellers recruited (2006: 25)

*    Increase in repeat sales to 324 existing sites (2006: 185) which
     included Persimmon Homes, Collins Stewart and Close Credit Management


Daniel Goldman, Non Executive Chairman of Invu, said:

"I am pleased to announce another set of record results with strong increases in
both revenues and profits.  We have extended our high quality partner base and
reseller channel, which has resulted in an increase in customers, revenues and
brand awareness.  Furthermore our high InvuCare renewal rate of 82% validates
the further investments into customer service and our successful "Invu Promise"
initiative.  Our success in 2006 in addition to the new opportunities which
arise from the release of Series 6 give me continued confidence in the Company's
prospects and ability to outperform."

David Morgan, Chief Executive, said:

"2006 has been a pivotal year for the company. Many man years of investment in
Series 6 came to fruition with its successful launch. I am particularly pleased
that this was achieved without any hiatus in growth in sales and profits. This
is a testament to the plans we executed, together with the skill and commitment
of the staff at Invu. We now have a technology platform that presents us with
opportunities for new routes to new markets, which will underpin strong growth
in the future."


Enquiries:

 Invu Inc                                                        01604 859893
 Daniel Goldman, Non Executive Chairman
 David Morgan, CEO
 John Agostini, CFO

 Financial Dynamics                                              020 7831 3113
 Juliet Clarke
 Hannah Sloane



About Invu

Invu (LSE, AIM, Symbol; NVUK) develops, markets and sells software (under the
brand name of Invu) for the electronic management of all types of information
and documents, such as forms, correspondence, literature, faxes, e-mail,
technical drawings, electronic files and web pages. Invu targets the
small-to-medium size enterprise ('SME') market and individual
departments of larger organisations with a range of products which the Directors
believe strongly adhere to Invu's brand values of ease of use, high
quality and price performance. Founded in 1997 and based in Northampton, Invu
has 56 employees and operates in the UK, Ireland, The Netherlands, South East
Asia, Australia, the United States of America and Nigeria. It raised over #3.5
million following its flotation on the AIM stock market in January 2004. Invu
's products have been sold to nearly 3000 customers, representing
approximately 54,500 licensed users. Invu has a proven reseller business model
and has established a network of more than 130 Value Added Resellers, 10 of
which are in Benelux.

Invu is a Microsoft Gold Certified Partner and a member of the Business
Application Software Developers Association (BASDA). Its version 5.4 and Series
6 software have been accredited by the Institute of Chartered Accountants in
England & Wales (ICAEW). In January 2006 Invu became the first EDM ISV to join
SAP's portfolio and is certified for integration with SAP Business One.
In September 2006, the Invu Series 6 product was selected by Sage to be marketed
by them into the Professional Adviser market in the UK.

For further information on how Invu can benefit your business, please contact us
on [phone], or email us at [e-mail]. Alternatively visit our
website at www.invu.net.


CHAIRMAN'S STATEMENT

In addition to further significant growth in both profits and turnover, the
Group has achieved several key goals during the year. These have included new
product development and a move towards more strategic partnering with other
technology vendors in the SME market.

Turnover rose 36% year on year to #6.49m (2006: #4.78m). This growth, with
continued high gross margins, enabled the Group to record a net profit of
#2.02m, 31% of turnover. Trading continues to be strong from both new and
existing sites. InvuCare revenues (annual maintenance contracts) have risen by
27% to #1.19m (2006: #0.94m) and deferred revenues have increased to #1.02m
(2006: #0.93m). We have maintained the renewal rate at a very high 82% (2006:
81%). This is testament to our customers' reliance on Invu and our further
investment into customer service through the "Invu Promise. " Invu now has the
highest accreditation awarded by the Help Desk Institute.

Extensive on-line marketing tools were developed and introduced for use by the
partner channel resulting in an increase in prospects and product
demonstrations. We have grown our sales team from 19 to 24 to support this
growing pipeline through the channel. We successfully managed the transition
period within our development resource as we brought the new Series 6 product to
its final stages of development whilst continuing to support Version 5.4,
without creating any significant hiatus in sales revenues during the year. As
awareness of the benefits of document management technology increases, our
relationships with mature partners who have broad access to the SME market
remain an important part of our plans to quickly grow our user base, hereby
increasing awareness of Invu's brand. This was evidenced by our agreement with
Sage in H2.

In 2006 we focused our attention on completing the development and launch of
Series 6, our brand new .NET version of Invu. There have been a number of
endorsements of this new version including significant agreements with Sage and
Panasonic. Although still in its infancy, the Sage deal provides access to their
significant base of accountancy practices. In addition, Invu became the only
vendor of document management software to be accredited by the Institute of
Chartered Accountants of England & Wales for two products, with the
accreditation of Invu Series 6. This accreditation along with the agreement with
Sage solidifies our position within this crucial market sector, and in January
2007, Invu received the accolade of "most dominant supplier" (of document 
management software) in the ICAEW report "IT in Accountancy Practices". The 
Panasonic distribution agreement for Holland also promises to greatly expand 
Invu's commercial reach within that territory.

Series 6 has stimulated a great deal of interest in our existing base and
elsewhere in the market. Developed on the .NET platform, it gives us flexibility
to extend the products into new markets, whilst integrating with new and next
generation third party products. Our new workflow product provides wide ranging
automation of our customers' business processes, and is able to work with 
existing legacy systems, giving customers a rapid return on investment with
minimal business disruption.

The continued growth in the number of high quality partners achieving
significant sales revenues, together with the new opportunities arising from the
release of Series 6, give us confidence in the Group's ability to
generate significant, repeatable and profitable revenues in the future.

The Board maintains its focus on continuing to expand Invu's marketing
and sales reach still further and enriching the product offering, and expects
once more to demonstrate significant growth in all of the key areas of our
business this year. There remains a strong second half weighting to the
business.

On behalf of the Group, I would like once again to thank our employees,
accredited partners, shareholders and advisors, without whom none of this
success is possible. I look forward to yet another very exciting year.


Daniel Goldman
Non Executive Chairman


CHIEF EXECUTIVE'S REPORT


Introduction

I am pleased to report that the Group continues to show strong growth in its
customers, revenues and most importantly, the awareness of its brand in the
market. There is clear evidence of increasing demand for Invu software from
certain vertical markets and this is reflected by increasing levels of repeat
business, growing referrals, and shorter lead times from prospect to sale.

All of the key performance indicators have shown strong improvement during the
period. At the year end the Group had 132 accredited resellers (2006: 125)
supporting 2,973 sites (2006: 2,003), representing 54,574 licences in total
(2006: 38,156). The increase in sites and licences is reflected by the increase
in turnover. The slight increase in resellers reflects the Group's
continued drive for quality rather than quantity whereby non-performing partners
are replaced by stronger partners. We have improved our development of newly
recruited partners, with a better, more formalised management structure to
measure progress and increase the opportunity for partners to be successful.

The OEM agreement with Sage was a vindication of our Series 6 product platform
and a great compliment to our development and technical teams.  Series 6 is
built on state of the art Microsoft technologies and should underpin our revenue
streams for years to come. Whilst Series 6 experienced some delays in delivery
last year, I am pleased that we have a modern, feature rich product that sets
new standards in the market. This gives Invu the opportunity to explore other
OEM opportunities, and to satisfy the requirements of larger companies within
the SME sector during the course of 2007 and beyond.


Financial Performance

Turnover for the period was #6.49m (2006: #4.78m), an increase of 36% on the
prior year. Recognised recurring revenues from InvuCare increased to #1.19m in
the year ended 31 January 2007 from #0.94m in the previous year, with total
deferred revenue at #1.02m (2006: #0.93m).

Gross profit margin increased slightly to 95.4% of turnover (2006: 94.2%), which
is well in excess of our internal benchmark of 92%, and reflected minor changes
in product mix.

Technical and support expenditure, which includes un-capitalised research and
development, was #0.64m for the year (2006: #0.71m). Development expenditure of
#0.28m (2006: #Nil) was capitalised during the year. This expenditure related
wholly to final development work undertaken on Invu Series 6 for the period from
point of commercial feasibility to the release date of each component of the
product, in accordance with UK GAAP. The company has always adopted a policy of
writing off research and development costs as and when they occur since the time
lag between commercial feasibility and commercial launch had been virtually
simultaneous. However, the time scale between commercial feasibility and release
date of the Series 6 product precluded this treatment. The launch of Series 6 in
the .NET environment and the architecture embedded therein provides the Group
with a wealth of exciting development opportunities to be exploited over the
next few years. The Group plans to increase its commitment to an active
development programme, covering upgrades of core products and further product
innovations. It remains the Group's policy to direct research and
development according to the needs of the market, and to ensure that every new
product adheres to our core brand values of ease of use, high quality and price
performance.

Sales and marketing expenditure increased by 27% to #1.58m (2006: #1.24m), or
24% of turnover (2006: 26%).  This reflects the Group's requirement to
invest in sales and marketing in order to increase both turnover and brand
recognition. The bulk of this increase reflects a larger sales team and focused
PR and marketing programmes for our partners.  The Group plans to significantly
expand the investment in sales and marketing in order to exploit the new
opportunities in the market.

The adoption of FRS 20 in relation to share options has required a restatement
of the 2006 comparative results with an additional charge for that year of
#0.07m. This charge has not previously been included in forecasts produced by
the company and market analysts. General and administrative expenses (excluding
exchange gains) were #2.03m during the period compared with #1.41m (28% of
turnover) as restated for the previous year. However, the current year includes
a bad debt write off amounting to #0.38m. Without this the general and
administrative expenses would be #1.65m (25% of turnover), indicating an
underlying increase of 17% over the previous year. This reflects the recent
expansion into significantly larger premises and the continued investment in the
administrative infrastructure in terms of personnel and systems.

Profit before tax this year amounted to #1.98m (restated 2006: #1.18m)
representing an increase of 68%.

The net profit after tax amounted to #2.02m (restated 2006: #1.21m), giving
earnings per share of 2.01p (restated 2006: 1.21p). This represents earnings per
share growth of 66%. Prudent tax planning has resulted in the group not
incurring any corporation tax liability. On the contrary, a deferred tax credit
has arisen of #0.03m.

The Group's balance sheet has been strengthened considerably by the net
profit for the year, showing shareholders funds increasing by 61% to #5.64m
(2006: #3.50m).

Debtor days have fallen to 96 days (2006: 106 days).  This has been helped by
the appointment of a full time credit controller during the year. However, in
addition to close fiscal and management controls from Invu, the Group will
continue its policy of extending credit terms in order to enable new and
potentially successful partners to expand their Invu businesses.

During the year, the Group received erroneous refunds from the Dutch tax
authorities amounting to #0.93m. At 31 January 2007 this sum was included in
creditors falling due within 12 months and also in the cash balance held within
current assets. In order to gain a meaningful comparison this refund figure has
been ignored when calculating current assets and trade creditors. Trade
creditors (excluding accruals, deferred revenue and repayable tax refund) of
#1.2m (2006: #1.00m) were covered 6.3 times (2006: 5.4 times) by current assets
(excluding the cash relating to the repayable tax refund).

The Group remains virtually debt free and is therefore effectively ungeared as
at 31 January 2007.

Taking into account the ongoing investment in the business, the Board will not
be recommending the payment of a dividend.



Operations


Trading

During the past year we have seen further improvements in all areas of the
business. Total sites grew to nearly 3,000 and total seats are now more than
54,000. During the period the Group sold software to 970 new sites (2006: 720)
installing a total of 16,418 new seats (2006: 14,068). This represents increases
of 35% and 17% respectively, which with the higher InvuCare revenues has, in
turn, driven revenue growth of 36%.

The Group has accredited 40 new resellers and our reseller base has also
continued to grow existing sites through the selling of extra licenses and new
products. In all, some 324 sites (2006: 185) made repeat orders during the year.

InvuCare recurring revenue represents a significant proportion of invoiced
sales, although the Group's revenue recognition policy means that a high
percentage is deferred to the following year.  At 31 January 2007 the value of
deferred InvuCare revenues had increased to #0.71m (2006: #0.53m). Recognised
InvuCare represented 18% (2006: 20%) of the Group's revenues. This fall
is entirely due to management's decision to reduce the price of InvuCare
charged to both resellers and end users in order to offer a more competitively
priced maintenance package. To partly offset this, the price of the Invu
software range was increased by an average of 5%.


Sales and Marketing

During the year we invested in an innovative marketing extranet for our partner
channel. This gives online access to case studies, white papers, branded
mailers, marketing templates and a whole range of other materials designed for
easy download and production. This gives new and existing partners the ability
to quickly deliver consistent and up to date marketing messages to their own
customer base and new sales prospects, increasing lead generation and sales
opportunities. This has been an extremely successful initiative.

As a result of these initiatives, the Group continued to attract some high
profile end users such as Birmingham International Airport, British Standards
Institute, Close Private Bank, Siemens Financial Services, The Shore Capital
Group Plc, Iron Mountain, Thomas Pink Ltd and Chelsea F.C.

Even more pronounced was the growth in repeat sales, with some 324 existing
sites placing additional orders. These included Persimmon Homes, Towergate
Partnership, Collins Stewart, Bourneville Village Trust, Drive Assist and Close
Credit Management. Encouragingly, a number of new end users placed repeat orders
within weeks of first order. The Group's key vertical markets still
include financial services, accountants, legal, construction, education and
logistics. However increased brand awareness has enabled expansion into
manufacturing, housing associations, healthcare and recruitment. The delivery of
Series 6 ensures that The Group can maintain this expansion into many other
market segments in the future.


Partnerships

The agreement with Sage was important in a number of ways. Firstly, it has given
Invu the opportunity to access the Sage accountancy customer base which numbers
over 14,000.  After a slow start, much of this customer base has been prospected
by Sage and as a result we have added 33 sites.  Secondly, Invu has benefited
from greater market awareness of its brand. Thirdly, Sage chose Invu as its
product of choice from many other international and UK vendors. Lastly, firms of
accountants are influencers within their own client base, and are in an ideal
position to recommend Invu software to a wider group. In January 2007 Invu
received the accolade of "most dominant supplier" (of document management 
software) in the ICAEW report "IT in Accountancy Practices" and therefore, we 
look forward to this viral marketing having a positive effect in 2007.


Reseller Channel

The reseller recruitment programme continues to be successful.  Many of our
existing resellers in the UK have performed very strongly this year,
experiencing rapid growth. Linden House received the first "Invu Centre of
Excellence" award, by passing a series of stringent criteria. A number of other
partners have now passed or are in the process of following suit. This
commitment to technical expertise coupled with adherence to strong customer
service principles in the channel has been a success throughout the year. 
Panasonic in the Netherlands has taken on distribution responsibilities in the
Multi Function Device channel and invested heavily in their Invu activities. As
a result we experienced a strong surge of sales from them in H2.


Overseas Markets

As a result of the Panasonic distribution agreement, we experienced a strong
surge of sales from Holland in H2  which once again represents 10% of Group
revenues and has grown at a faster rate than the UK during the last year.

We have appointed partners covering several Asian territories and Australia and
we appointed our first  USA reseller during the period. After a slow start,
principally due to delays in delivery of Series 6, a growing pipeline of sales
prospects is appearing. Small orders are forthcoming, particularly from
Malaysia, and we received our first order from Australia.  The Company continues
to invest cautiously in these markets.


Support - The Invu Promise

We have continued to build on the "Invu Promise" this year. This is a commitment
to the delivery of the highest possible level of customer support. From on-going
dialogue with our end users, examination level accreditation of Invu Engineers
in the reseller channel, through to customer surveys and random quality control
telephone calls, we have achieved a growing reputation for service in our
industry. We have achieved Help Desk Institute (HDI) Gold Standard this year. We
are convinced that this has led to increased sales and InvuCare renewals, and we
will continue to invest in this area. Supporting and developing the Invu Promise
remains a key element in building further value into the Invu brand within the
SME and wider market.


Product Development

Series 6 experienced a number of disappointing delays during the year. We have
been determined to deliver a robust product to our customers, and to that end,
we held back the launch until we were satisfied with the quality of the product.
By the year end, we had over 60 Series 6 customers and I am pleased to report
that the product launch has been a success.

The Group recognises that research and development is a core function and one of
the keys to creating long term shareholder value. As such we have undertaken a
significant review of the R&D group carried out by a third party consultant. We
are now at a stage of initial implementation based on the findings and would
expect this to improve further the quality and capacity of the group going
forward.


Outlook

This year has seen positive developments in all areas of the business and the
new financial year has started very strongly. We will continue to invest and
support our partner channel. We shall provide increased functionality in the
Series 6 platform to enable our partners to address the broadest range of
customer requirements.

In the UK our focus will be directed towards execution of our channel strategy
in order to strengthen and defend our position as the leading provider of
document management software in the UK SME market. At the same time we will
compliment this with other initiatives developing new revenue streams, based on
cautious international expansion and more strategic tie-ups with other
technology vendors.  We have appointed a senior executive to exploit such
opportunities. We have dialogues in progress with a number of large IT
organisations, and hope to establish agreements this year which will help us
significantly extend our market reach.

As always, we are customer focused and market led and we view our customer base
as a major asset.  It is our intention to invest further, in order to strengthen
this commitment to customer service and support. The staff at Invu strive to
provide their customers with the best possible products and service. This is at
the root of our successful growth and we fully expect this to be continued in
2007/8.


David Morgan
Chief Executive Officer


CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31 JANUARY 2007

                                                         Note                         2007          2006
                                                                                     #'000         #'000
                                                                                                Restated

Turnover                                                                             6,487         4,775

Cost of sales                                                                        (302)         (275)

Gross profit                                                                         6,185         4,500

Distribution costs                                                                   (336)         (279)

Administrative expenses                                                            (3,917)       (3,065)

Operating profit                                                                     1,932         1,156

Net interest                                                                            51            24

Profit on ordinary activities before taxation                                        1,983         1,180

Tax on profit on ordinary activities                                                    33            26

Profit for the year transferred to reserves                                          2,016         1,206

Earnings per share
Basic                                                      2                         2.01p         1.21p
Diluted                                                    2                         1.98p         1.19p




CONSOLIDATED BALANCE SHEET AT 31 JANUARY 2007

                                                    Note                       2007                      2006
                                                                 #'000        #'000        #'000        #'000
                                                                                        Restated     Restated
Fixed assets
Intangible assets                                                  266                         -
Tangible assets                                                    274                       176

                                                                                540                       176

Current assets
Stock                                                              220                       138
Debtors                                                          6,200                     4,467
Cash at bank and in hand                                         2,168                       830

                                                                 8,588                     5,435

Creditors: amounts falling due
within one year                                                (3,459)                   (2,092)

Net current assets                                                            5,129                     3,343

Total assets less current liabilities                                         5,669                     3,519

Creditors: amounts falling due
after more than one year                                                       (28)                      (13)

Net assets                                                                    5,641                     3,506

Capital and reserves
Called up share capital                                                           -                         -
Share premium account                                                         6,289                     6,275
Profit and loss account                                                       (845)                   (2,855)
Stock option reserve                                                            197                        86

Shareholders' funds                          3                        5,641                     3,506




CONSOLIDATED CASHFLOW STATEMENT

FOR THE YEAR ENDED 31 JANUARY 2007

                                                          Note                 2007          2006
                                                                              #'000         #'000

Net cash inflow/(outflow) from operating activities         4                 1,712           (2)

Returns on investments and servicing of finance
Interest paid                                                                     -           (4)
Interest received                                                                54            29
Hire purchase interest paid                                                     (3)           (1)

Net cash inflow from returns on investments
and servicing of finance                                                         51            24

Capital expenditure                                                           (415)          (76)
Purchase of tangible fixed assets                                                 1             -
Sale of tangible fixed assets
                                                                              (414)          (76)
Net cash outflow from capital expenditure

Financing                                                                        14             6
Issue of shares                                                                   -           (5)
Repayments of borrowings                                                       (25)          (11)
Capital element of hire purchase payments
                                                                               (11)          (10)
Net cash outflow from financing
                                                                              1,338          (64)
Increase/(decrease) in cash                                 5



NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2007

     
1    BASIS OF PREPARATION

The financial statements have been prepared under the historical cost convention
and in accordance with applicable United Kingdom accounting standards.

The principal accounting policies of the group are unchanged from the previous
year, with the exception that the Group is required to comply with the
requirements of FRS 20 Share based payments for the year ended 31 January 2007.
The introduction of FRS 20 has resulted in an increase in overheads of #111,000
for the year ended 31 January 2007 (2006 - #68,000), representing the expense of
equity settled share based payments for the year.  An associated deferred tax
credit of #33,000 (2006 - #26,000) has also been recognised.

     
2    EARNINGS PER SHARE
                                                                                       2007          2006
                                                                                      #'000         #'000
                                                                                                 Restated
Basic earnings per share
Profit for the financial year                                                         2,016         1,206


                                                                                       2007          2006
                                                                                     Number        Number

Weighted average number of common shares in issue during the year               100,078,968   100,009,123

Basic earnings per share                                                              2.01p         1.21p

Diluted earnings per share                                                            1.98p         1.19p


The basic earnings per share is based on the profit after taxation of #2,015,662
(2006 Restated: #1,205,608) and on the weighted average number of shares in
issue during the year of 100,078,968 (2006: 100,009,123).  The diluted earnings
per share is based on a diluted average number of shares of 101,813,548 (2006:
101,337,900), the dilution resulting from share options.

     
3    RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS 

The group                                                                              2007         2006
                                                                                      #'000        #'000
                                                                                                Restated

Profit for the year                                                                   2,016        1,206
Exchange differences                                                                    (6)         (14)

                                                                                      2,010        1,192

Cost of share options                                                                   111           68
Issue of shares in year                                                                  14            6

Net increase in shareholders' funds                                                   2,135        1,266

Opening shareholders funds as previously stated                                       3,480        2,240

Prior year adjustment                                                                    26            -

Opening shareholders funds as restated                                                3,506        2,240

Shareholders funds at 31 January 2007                                                 5,641        3,506


     
4    NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES
                                                                                       2007         2006
                                                                                      #'000        #'000
                                                                                                Restated

Operating profit                                                                      1,932        1,156
Depreciation and amortisation                                                           107           76
(Profit) on sale of fixed assets                                                        (1)            -
(Increase)/decrease in stock                                                           (82)           13
(Increase) in debtors                                                               (1,700)      (1,763)
Increase in creditors                                                                 1,352          462
Employee share option scheme costs                                                      111           68
Exchange differences                                                                    (7)         (14)

Net cash inflow/(outflow) from operating activities                                   1,712          (2)

     
5    RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
                                                                                       2007         2006
                                                                                      #'000        #'000

(Increase)/decrease in cash in the year                                               1,338         (64)
Net cash outflow from financing                                                           -            5
Net cash outflow from hire purchase contracts                                            25           11

Change in net funds from cash flows                                                   1,363         (48)
Inception of hire purchase contracts                                                   (56)         (24)

Movement in net funds in the year                                                     1,307         (72)
Net funds at 1 February 2006                                                            813          885

Net funds at 31 January 2007                                                          2,120          813

     
6    ANALYSIS OF CHANGES IN NET FUNDS

                                                    At     Cash flow     Inception of               At
                                            1 February                        Finance       31 January
                                                  2006                         leases             2007
                                                 #'000         #'000            #'000            #'000

Cash at bank and in hand                           830         1,338                -            2,168
Hire purchase contracts                           (17)            25             (56)             (48)

                                                   813         1,363             (56)            2,120


     
7    PUBLICATION OF NON-STATUTORY ACCOUNTS

The consolidated profit and loss account, consolidated balance sheet,
consolidated cash flow statement and associated notes are unaudited and have
been extracted from the group's financial statements. These financial
statements have not yet been delivered to the Registrar, nor have the auditors
reported on them.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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