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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Otium Ventures | LSE:OTV | London | Ordinary Share | GB00B29KF658 | ORD 0.1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1.25 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMOTV RNS Number : 6978O Otium Ventures PLC 02 July 2010 OTIUM VENTURES PLC (formerly Hertford International Group Plc) (the "Company") Final Results and Restoration of Trading Results for the year ended 31 December 2009 Otium Ventures Plc (formerly Hertford International Group Plc (previous ticker: HIG.L; ticker, from 2 July 2010: OTV ), an AIM listed financial services company, is pleased to announce its results for the year ended 31 December 2009. Highlights: · Gross profit of GBP481,848 for the year · Operating Loss of GBP3,468,926 after administrative expenses of GBP2,738,869 and exceptional items of GBP1,211,905 · Loss before taxation of GBP3,625,220 Post Year End: · Approval by shareholders and creditors of a Company Voluntary Arrangement (CVA) paying creditors two pence in the pound. · Liquidation of Crewcard Network subsidiary and disposal of majority shareholding in Crewcall Network subsidiary. Commenting on the results, Chairman Len Russell said: "Otium Ventures Plc is now a clean vehicle, which intends to acquire or invest in assets in the leisure, gaming and betting sectors, where its expertise in financial services and payment systems may be of value." Following approval by shareholders of change of name, the Company's ticker will change to OTV and the new Company name, Otium Ventures Plc, will be effective on AIM from 8.00 a.m. on 2 July 2010. In conjunction with this change, the Company's website at which the information required by Rule 26 of the AIM Rules for Companies will change to www.otiumventures.com, with effect from today. Copies of the Report and Accounts are today being distributed to shareholders and are available from: www.otiumventures.com Restoration to trading on AIM The restoration to trading on AIM of the Company's shares, following the temporary suspension announced earlier today, is expected to occur at 08:00a.m., today, Friday 2nd July 2010. Enquiries: Alex Lubin / Paul Seakens tel: 020 3005 9924 Otium Ventures Plc (formerly Hertford International Group Plc) Nick Tulloch tel: 020 7012 2000 Arbuthnot Securities CHAIRMAN'S STATEMENT Introduction During the year Hertford International Group Plc, now renamed Otium Ventures Plc ("The Company"), acquired Cheque Exchange Limited (CEL) a subsidiary of Provident Financial Plc, a provider of cheque cashing and money remittance services. This acquisition involved a cash payment in a number of tranches of which the second was due by the end of July 2009. Due to market conditions and the effect of the recession on demand for prepaid debit cards and cheque cashing facilities the Company was unable to raise finance to complete the acquisition. As a result of this CEL was returned to Provident ownership. In view of the economic backdrop the Company decided to withdraw directly from the direct provision of pre-paid debit cards and its subsidiary Crewcard Network Limited was placed into liquidation. However the Company remains active in the prepaid debit cards market via a joint venture with Prepaid Financial Solutions. This will ensure a share of revenue should the pre-paid debit card market develop in the way the Company expected them to. In light of the above the board undertook a restructuring of the Company's activities and with the support of its primary lender proposed a Company Voluntary Arrangement ("CVA"), which was approved by shareholders and creditors on the 12th May 2010 after the end of the year covered by these accounts. Lewis Findlay and Adam Dougall resigned from the board during this year and Paul Marks resigned in April 2010 all as part of the restructuring of the business. The CVA leaves the company virtually debt free excepting for the remaining sums due to its primary lender. This lender has indicated, subject to certain conditions being met, it will swap the remaining debt into equity upon completion of a transaction. Summary of Financial Statements Our turnover for the year was GBP840,275 and after direct expenses we report a gross profit of GBP481,848. With administrative expenses and exceptional items totalling GBP3,950,774, the reported operating loss for the year of GBP3,625,220 largely represents a discontinued activity. Our net finance costs after investment income were GBP156,294 creating a total loss for the Year of GBP3,625,220, equivalent to a 7.6 pence loss per share. No dividend is being recommended. Balance Sheet & Cash Flow The net current liability position of the Group was GBP567,644 with total net liabilities of GBP2,317,644. During the year the company raised a total of GBP1,365,050 being GBP865,050 through the issuance of shares and GBP500,000 through the increase of Convertible Loan Note Facilities. The Directors have secured an undertaking from Palmdale Investments Inc to provide the working capital requirements the Company needs to secure the medium-term plans of the Company. Current Trading & Outlook Otium Ventures Plc is now a clean vehicle, which intends to acquire or invest in assets in the leisure, gaming and betting sectors where its expertise in financial services and payment systems may be of value. In addition it may be able to utilise its existing tax losses. Len Russell Chairman 1 July 2010 DIRECTORS' REPORT The directors present their report and the audited financial statements for the year ended 31 December 2009. Principal activities The company was previously a provider of alternative financial services, however, following disposal of its subsidiaries and the approval of shareholders at a meeting on 12 May 2010, the company is now adopting an investing policy pursuant to AIM Rule 15. Business review A review of the business and future developments is contained in The Chairman's Statement. Principal risks and uncertainties As the Group is currently inactive the principal financial risks are limited only to liquidity risk at this time. Details of these are provided in note 2 to the financial statement. Results and dividends The results for the year are set out in the consolidated income statements. The directors do not recommend the payment of a dividend. Post balance sheet events 1. On 17th February 2010 Crewcard Network Limited, a wholly owned subsidiary of the company, was placed into creditors voluntary liquidation. 2. On 15th May 2010 a proposal by the Directors to place the company into a Voluntary Arrangement was accepted by creditors and shareholders. The proposal will result in a payment to creditors of two pence in the pound. 3. On 12th May 2010 shareholders voted in favour of a change of name for the company from Hertford International Group Plc to Otium Ventures Plc. Companies House effected the change of name on 22 June 2010. 4. On 10th March 2010 the company disposed of a 55% share in Crewcall Network Limited, previously a wholly owned subsidiary, for GBP1. Also on the 19th March 2010 the company disposed of Crewcall Telecoms Limited, also a wholly owned subsidiary, for the sum of GBP1. 5. On 20th May 2010 the company appointed Len Russell as a non-executive director and chairman. Capital structure Details of the company's share capital, including shares issued in the year, are shown in note 21 to the financial statements. INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OTIUM VENTURES PLC We have audited the financial statements of Otium Ventures plc for the year ended 31 December 2009 which comprise the consolidated income statement, the consolidated and parent company balance sheets, the consolidated cash flow statement, the group and parent company statements of changes in equity and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union. Respective responsibilities of directors and auditors As explained more fully in the statement of directors' responsibilities set out on page 7, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group's and the parent company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. Qualified opinion on financial statements arising from limitation in audit scope During the year under review, the company acquired 100% of the issued shares of Cheque Exchange Limited from Provident Financial plc. As explained in note 13 to the financial statements, before the end of the financial year, control of Cheque Exchange Limited was transferred from the company back to Provident Financial plc with the result that during our audit we were unable to obtain full access to the accounting records of Cheque Exchange Limited. Our audit was limited because we were unable to audit a significant proportion of the consolidated income statement deriving from the income, cost of sales and administrative expenses of Cheque Exchange Limited. Given that Cheque Exchange Limited was not a member of the group at the end of the financial year and its assets and liabilities have not been included in the consolidated balance sheet, our audit of the consolidated balance sheet was not limited in scope. Except for the financial effects of such adjustments, if any, as might have been determined to be necessary had we been able to satisfy ourselves as to the amounts included in the consolidated income statement deriving from Cheque Exchange Limited, in our opinion the financial statements: - give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2009 and of the group's loss for the year then ended; - have been properly prepared in accordance with IFRSs as adopted by the European Union; and - have been prepared in accordance with the requirements of the Companies Act 2006 and, as regards the group financial statements, Article 4 of the IAS Regulation. Emphasis of matter - Going concern In forming our opinion on the financial statements, we have considered the adequacy of the disclosure made in note 1 to the financial statements concerning the company's ability to continue as a going concern. At 31 December 2009 the group's current liabilities exceeded its total assets by GBP567,644. The company entered a Company Voluntary Arrangement on 12 May 2010 reducing its liabilities at that date by 98%. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the group's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the group was unable to continue as a going concern. Opinion on other matters prescribed by the Companies Act 2006 In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements. Matters on which we are required to report by exception In respect solely of the limitation on our audit work relating to the accounting records of Cheque Exchange Limited, described above: - we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and - we were unable to determine whether adequate accounting records had been kept. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration are not made. Andrew Seton (Senior Statutory Auditor) for and on behalf of Clarkson Hyde LLP, Chartered Accountants and Statutory Auditor 70 Conduit Street London W1S 2GF Date 1st July 2010 CONSOLIDATED INCOME STATEMENT +-----------------------+-------+------+-------------+-----+-------------+ | |Notes | | Year to | | 15 | | | | | 31 | | months | | | | | December | | to | | | | | 2009 | | 31 | | | | | | | December | | | | | | | 2008 | +-----------------------+-------+------+-------------+-----+-------------+ | | | | GBP | | GBP | +-----------------------+-------+------+-------------+-----+-------------+ | Discontinued | | | | | | | Operations | | | | | | +-----------------------+-------+------+-------------+-----+-------------+ | Revenue | | | 840,275 | | 144,270 | +-----------------------+-------+------+-------------+-----+-------------+ | Cost of sales | | | (358,427) | | (209,141) | +-----------------------+-------+------+-------------+-----+-------------+ | Gross profit | | | 481,848 | | (64,871) | +-----------------------+-------+------+-------------+-----+-------------+ | Administrative | | | (2,738,869) | | (1,712,014) | | expenses | | | | | | +-----------------------+-------+------+-------------+-----+-------------+ | Exceptional costs | 5 | | (1,211,905) | | (251,870) | +-----------------------+-------+------+-------------+-----+-------------+ | Operating loss | 4 | | (3,468,926) | | (2,028,755) | +-----------------------+-------+------+-------------+-----+-------------+ | Investment income | 6 | | - | | 28,195 | +-----------------------+-------+------+-------------+-----+-------------+ | Finance costs | 7 | | (156,294) | | (52,814) | +-----------------------+-------+------+-------------+-----+-------------+ | Loss before taxation | | | (3,625,220) | | (2,053,374) | +-----------------------+-------+------+-------------+-----+-------------+ | Taxation | 10 | | - | | - | +-----------------------+-------+------+-------------+-----+-------------+ | Loss for the | | | (3,625,220) | | (2,053,374) | | financial year | | | | | | +-----------------------+-------+------+-------------+-----+-------------+ | | | | | | | +-----------------------+-------+------+-------------+-----+-------------+ | Loss per share - | 11 | | (7.6p) | | (5.5p) | | basic and diluted | | | | | | +-----------------------+-------+------+-------------+-----+-------------+ The company has elected to take the exemption under section 408 of the Companies Act 2006 not to present the parent company profit and loss account. The loss for the parent company for the year was GBP5,259,869 (2008: GBP166,300). CONSOLIDATED BALANCE SHEET +-----------------------+-----+------+-------------+-----+-------------+ | | | | As at | | As at | | | | | 31 | | 31 | | | | | December | | December | | | | | 2009 | | 2008 | +-----------------------+-----+------+-------------+-----+-------------+ | | | | GBP | | GBP | +-----------------------+-----+------+-------------+-----+-------------+ | Non current assets | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Property, plant and | | 12 | - | | 86,922 | | equipment | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Intangible fixed | | 14 | - | | 1,386,872 | | assets | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | | | | - | | 1,473,794 | +-----------------------+-----+------+-------------+-----+-------------+ | | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Current assets | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Inventories | | 16 | - | | 59,339 | +-----------------------+-----+------+-------------+-----+-------------+ | Trade and other | | 17 | 6,539 | | 553,167 | | receivables | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Cash and cash | | 18 | 9,632 | | 192,096 | | equivalents | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | | | | 16,171 | | 804,602 | +-----------------------+-----+------+-------------+-----+-------------+ | | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Current liabilities | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Trade and other | | 19 | (583,815) | | (603,627) | | payables | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Net current | | | (567,644) | | 200,975 | | (liabilities)/assets | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Non-current | | | | | | | liabilities | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Non-current | | 20 | (1,750,000) | | (1,232,243) | | borrowings | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Net assets | | | (2,317,644) | | 442,526 | +-----------------------+-----+------+-------------+-----+-------------+ | | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Equity | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Share capital | | 21 | 484,420 | | 426,750 | +-----------------------+-----+------+-------------+-----+-------------+ | Share premium | | | 2,710,230 | | 1,902,850 | +-----------------------+-----+------+-------------+-----+-------------+ | Retained earnings | | | (5,512,294) | | (1,887,074) | +-----------------------+-----+------+-------------+-----+-------------+ | Equity attributable | | | (2,317,644) | | 442,526 | | to equity holders of | | | | | | | the parent | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Approved by the Board | | | | | | | on 1 July 2010 and | | | | | | | signed on its behalf | | | | | | | by | | | | | | | Paul Seakens | | | | | | | Director | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ COMPANY BALANCE SHEET +-----------------------+-----+------+-------------+-----+-------------+ | | | | As at | | As at | | | | | 31 | | 31 | | | | | December | | December | | | | | 2009 | | 2008 | +-----------------------+-----+------+-------------+-----+-------------+ | | | | GBP | | GBP | +-----------------------+-----+------+-------------+-----+-------------+ | Non current assets | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Investment in | | 13 | - | | 326,600 | | subsidiaries | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Current assets | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Trade and other | | 17 | 6,537 | | 3,235,243 | | receivables | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Cash and cash | | 18 | 8,623 | | - | | equivalents | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | | | | 15,160 | | 3,235,243 | +-----------------------+-----+------+-------------+-----+-------------+ | | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Current Liabilities | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Trade and other | | | (330,380) | | - | | payables | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Net current | | | (315,220) | | 3,235,243 | | (liabilities)/assets | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | | | | | | | | | | | | | | | | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Non-current | | | | | | | liabilities | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Non-current | | 20 | (1,750,000) | | (1,232,243) | | borrowings | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Net assets | | | (2,065,220) | | 2,329,600 | +-----------------------+-----+------+-------------+-----+-------------+ | | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Equity | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Share capital | | 21 | 484,420 | | 426,750 | +-----------------------+-----+------+-------------+-----+-------------+ | Share premium | | | 2,710,230 | | 1,902,850 | +-----------------------+-----+------+-------------+-----+-------------+ | Retained earnings | | | (5,259,870) | | - | +-----------------------+-----+------+-------------+-----+-------------+ | Equity shareholders' | | | (2,065,220) | | 2,329,600 | | funds | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Approved by the Board | | | | | | | on 1 July 2010 and | | | | | | | signed on its behalf | | | | | | | by Paul Seakens | | | | | | | Director | | | | | | | | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ | Company Number: | | | | | | | 05874310 | | | | | | +-----------------------+-----+------+-------------+-----+-------------+ CONSOLIDATED CASH FLOW STATEMENT +--+---------------------------+-+------+----+-------------+-----+-------------+ | | | | Year to | | 15 | | | | | 31 | | months | | | | | December | | to | | | | | 2009 | | 31 | | | | | | | December | | | | | | | 2008 | +------------------------------+--------+----+-------------+-----+-------------+ | | | | GBP | | GBP | +------------------------------+--------+----+-------------+-----+-------------+ | Cash flows from operating | | | | | | | activities | | | | | | +------------------------------+--------+----+-------------+-----+-------------+ | Loss before taxation | | | (3,625,220) | | (2,053,374) | +------------------------------+--------+----+-------------+-----+-------------+ | Adjustments for : | | | | | | +------------------------------+--------+----+-------------+-----+-------------+ | | Depreciation | | | 215,312 | | 31,728 | +--+---------------------------+--------+----+-------------+-----+-------------+ | | Amortisation | | | 1,566,189 | | - | +--+---------------------------+--------+----+-------------+-----+-------------+ | | Profit on disposal of | | | (119,217) | | (25,410) | | | investment | | | | | | +--+---------------------------+--------+----+-------------+-----+-------------+ | | Investment income | | | - | | (28,195) | +--+---------------------------+--------+----+-------------+-----+-------------+ | | Interest expense | | | 156,294 | | 52,814 | +--+---------------------------+--------+----+-------------+-----+-------------+ | | Share based payment | | - | | 166,300 | +--+------------------------------------+----+-------------+-----+-------------+ | | Decrease/(increase) in trade and | | 489,080 | | (414,019) | | | other receivables | | | | | +--+------------------------------------+----+-------------+-----+-------------+ | | Decrease in inventories | | | 59,339 | | 23,343 | +--+---------------------------+--------+----+-------------+-----+-------------+ | | Increase in trade and other | | (19,812) | | 80,245 | | | payables | | | | | +--+------------------------------------+----+-------------+-----+-------------+ | Cash used in operations | | | (1,278,035) | | (2,166,568) | +--------------------------------+------+----+-------------+-----+-------------+ | Interest paid | | | (156,294) | | (52,814) | +--------------------------------+------+----+-------------+-----+-------------+ | Net cash used in operating | | | (1,434,329) | | (2,219,382) | | activities | | | | | | +--------------------------------+------+----+-------------+-----+-------------+ | | | | | | | +--------------------------------+------+----+-------------+-----+-------------+ | Cash flows from investing | | | | | | | activities | | | | | | +--------------------------------+------+----+-------------+-----+-------------+ | Acquisition of subsidiaries, net of | | (642,000) | | 83,961 | | cash acquired | | | | | +---------------------------------------+----+-------------+-----+-------------+ | Interest received | | - | | 28,195 | +---------------------------------------+----+-------------+-----+-------------+ | Purchase of intangible assets | | - | | (21,982) | +---------------------------------------+----+-------------+-----+-------------+ | Purchase of property, plant and | | (96,942) | | (10,376) | | equipment | | | | | +---------------------------------------+----+-------------+-----+-------------+ | Proceeds from sale of property, plant | | - | | 25,410 | | and equipment | | | | | +---------------------------------------+----+-------------+-----+-------------+ | Net cash used in investing | | | (738,942) | | 105,208 | | activities | | | | | | +------------------------------+--------+----+-------------+-----+-------------+ | | | | | | | +------------------------------+--------+----+-------------+-----+-------------+ | Cash flows from financing | | | | | | | activities | | | | | | +------------------------------+--------+----+-------------+-----+-------------+ | Net new long term loans | | | 1,125,757 | | 303,270 | | received | | | | | | +------------------------------+--------+----+-------------+-----+-------------+ | Issue of shares | | | 865,050 | | 2,003,000 | +------------------------------+--------+----+-------------+-----+-------------+ | Net cash from financing | | | 1,990,807 | | 2,306,270 | | activities | | | | | | +------------------------------+--------+----+-------------+-----+-------------+ | | | | | | | +------------------------------+--------+----+-------------+-----+-------------+ | Net (decrease)/increase in cash and | | (182,464) | | 192,096 | | cash equivalents | | | | | +---------------------------------------+----+-------------+-----+-------------+ | Cash and cash equivalents at | | 192,096 | | - | | beginning of the year | | | | | +---------------------------------------+----+-------------+-----+-------------+ | Cash and cash equivalents at end of | | 9,632 | | 192,096 | | the year | | | | | +---------------------------------------+----+-------------+-----+-------------+ | | | | | | | | | +--+---------------------------+-+------+----+-------------+-----+-------------+ STATEMENTS OF CHANGES IN EQUITY GROUP +-----------------------+----------+-------------+---------+-----------+-------------+ | | | Retained | Share | Share | Total | | | | earnings | capital | premium | | +-----------------------+----------+-------------+---------+-----------+-------------+ | | | GBP | GBP | GBP | GBP | +-----------------------+----------+-------------+---------+-----------+-------------+ | As at 31 December | | (1,887,074) | 426,750 | 1,902,850 | 442,526 | | 2008 | | | | | | +-----------------------+----------+-------------+---------+-----------+-------------+ | Ordinary shares | | - | 57,670 | 807,380 | 865,050 | | issued in the year | | | | | | +-----------------------+----------+-------------+---------+-----------+-------------+ | Loss for the year | | (3,625,220) | - | - | (3,625,220) | +-----------------------+----------+-------------+---------+-----------+-------------+ | As at 31 December | | (5,512,294) | 484,420 | 2,710,230 | (2,317,644) | | 2009 | | | | | | +-----------------------+----------+-------------+---------+-----------+-------------+ | | | | | | | +-----------------------+----------+-------------+---------+-----------+-------------+ COMPANY +-----------------------+----------+-------------+---------+-----------+-------------+ | | | Retained | Share | Share | Total | | | | earnings | capital | premium | | +-----------------------+----------+-------------+---------+-----------+-------------+ | | | GBP | GBP | GBP | GBP | +-----------------------+----------+-------------+---------+-----------+-------------+ | As at 31 December | | - | 426,750 | 1,902,850 | 2,329,600 | | 2008 | | | | | | +-----------------------+----------+-------------+---------+-----------+-------------+ | Loss for the year | | (5,259,870) | - | - | (5,259,870) | +-----------------------+----------+-------------+---------+-----------+-------------+ | Ordinary shares | | - | 57,670 | 807,380 | 865,050 | | issued in the year | | | | | | +-----------------------+----------+-------------+---------+-----------+-------------+ | As at 31 December | | (5,259,870) | 484,420 | | (2,065,220) | | 2009 | | | | 2,710,230 | | | | | | | | | +-----------------------+----------+-------------+---------+-----------+-------------+ | | | | | | | +-----------------------+----------+-------------+---------+-----------+-------------+ 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 2006 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 year. Although these estimates are based on managements' best knowledge of the amount, events or actions, actual results ultimately may differ from those of estimates. Going concern: The Group incurred a loss after tax of GBP3,625,220 during the year ended 31 December 2009. The directors have prepared trading and cash flow forecasts for the Group for the year to 30 June 2011. After the end of the year, the company and its creditors agreed a voluntary arrangement to cap the company's liabilities at the rate of 2p in the Pound. At the date of approval of these financial statements, the voluntary arrangement had not yet been concluded. Also, the directors are confident that the principal lender, Palmdale Investments Inc, will continue to provide financial support to the company for the foreseeable future. As a result the directors believe that the company will continue in operational existence and that it is therefore appropriate to prepare these financial statements on the going concern basis. Basis of consolidation: The consolidated financial statements incorporate the results of the Company and its subsidiary undertakings as at 31 December 2009 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 | +-----------------------+------------------------------------------+ Patents Patents are valued at cost less accumulated amortisation. Amortisation is calculated to write off the cost in equal annual instalments over their estimated useful lives. Development costs Development expenditure is written off in the year in which it is incurred unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit. 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 2009, the Group is not exposed to significant credit risk. Trade debtors at 31 December 2009 amounted to GBP1,118. 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 2009, the Group had cash and cash equivalents amounting to GBP9,632. Interest rate risk The Group's external borrowings at 31 December 2009 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 year are derived wholly from the company's principal activity, alternative financial services, and were generated wholly within the United Kingdom. The directors do not consider that there are any distinguishable geographical or business segments for reporting purposes. 4. Operating loss +----------+--------------------------------+--+----------+----+----------+ | | | Year to | | 15 | | | | | | months | | | | 31 | | to | | | | December | | 31 | | | | 2009 | | December | | | | | | 2008 | +-------------------------------------------+--+----------+----+----------+ | | | GBP | | GBP | +-------------------------------------------+--+----------+----+----------+ | The operating loss was stated after | | | | | | charging: | | | | | +-------------------------------------------+--+----------+----+----------+ | Depreciation | | 215,312 | | 31,728 | +-------------------------------------------+--+----------+----+----------+ | Auditors remuneration: | | | | | +-------------------------------------------+--+----------+----+----------+ | - | fees payable to the group's | | 8,500 | | 10,000 | | | auditor for the audit of the | | | | | | | group's annual accounts | | | | | +----------+--------------------------------+--+----------+----+----------+ | - | non audit fees relating to tax | | 5,253 | | 7,597 | | | services | | | | | +----------+--------------------------------+--+----------+----+----------+ | - | non audit fees relating to due | | - | | 21,539 | | | diligence services | | | | | +----------+--------------------------------+--+----------+----+----------+ 5. Exceptional costs +----------------------------------+--+-----------+----+----------+ | | | Year to | | 15 | | | | | | months | | | | 31 | | to | | | | December | | 31 | | | | 2009 | | December | | | | | | 2008 | +----------------------------------+--+-----------+----+----------+ | | | GBP | | GBP | +----------------------------------+--+-----------+----+----------+ | Amortisation of goodwill | | 1,364,890 | | - | | relating to Crewcard Network Ltd | | | | | +----------------------------------+--+-----------+----+----------+ | Profit on disposal of investment | | (119,217) | | - | | in Cheque Exchange Ltd | | | | | +----------------------------------+--+-----------+----+----------+ | Recovery of VAT previously | | (77,440) | | - | | charged to administrative | | | | | | expenses | | | | | +----------------------------------+--+-----------+----+----------+ | Write down of stock held by | | 26,460 | | - | | Crewcall Network Ltd | | | | | +----------------------------------+--+-----------+----+----------+ | Loss on disposal of debt to | | 17,212 | | - | | Cheque Exchange Ltd | | | | | +----------------------------------+--+-----------+----+----------+ | Expenses incurred relating to | | - | | 251,870 | | AIM admission and raising of | | | | | | funds in December 2007 | | | | | +----------------------------------+--+-----------+----+----------+ | | | 1,211,905 | | 251,870 | +----------------------------------+--+-----------+----+----------+ 6. Investment income +----------------------------------+--+----------+----+----------+ | | | Year to | | 15 | | | | | | months | | | | 31 | | to | | | | December | | 31 | | | | 2009 | | December | | | | | | 2008 | +----------------------------------+--+----------+----+----------+ | | | GBP | | GBP | +----------------------------------+--+----------+----+----------+ | Interest on short term bank | | - | | 28,195 | | deposits | | | | | +----------------------------------+--+----------+----+----------+ 7. Finance costs +----------------------------------+--+----------+----+----------+ | | | Year to | | 15 | | | | | | months | | | | 31 | | to | | | | December | | 31 | | | | 2009 | | December | | | | | | 2008 | +----------------------------------+--+----------+----+----------+ | | | GBP | | GBP | +----------------------------------+--+----------+----+----------+ | Interest on borrowings | | 156,294 | | 52,814 | +----------------------------------+--+----------+----+----------+ 8. Information regarding directors and employees +----------------------------------+--+-----------+----+----------+ | | | Year to | | 15 | | | | | | months | | | | 31 | | to | | | | December | | 31 | | | | 2009 | | December | | | | | | 2008 | +----------------------------------+--+-----------+----+----------+ | | | No. | | No. | +----------------------------------+--+-----------+----+----------+ | The average number of persons | | | | | | (including directors) employed | | | | | | by the group during the year | | | | | | was: | | | | | +----------------------------------+--+-----------+----+----------+ | Management and administration | | 12 | | 14 | +----------------------------------+--+-----------+----+----------+ | | | | | | +----------------------------------+--+-----------+----+----------+ | | | GBP | | GBP | +----------------------------------+--+-----------+----+----------+ | Aggregate employee costs | | | | | | (including directors) were: | | | | | +----------------------------------+--+-----------+----+----------+ | Wages and salaries | | 1,170,056 | | 682,371 | +----------------------------------+--+-----------+----+----------+ | Social security costs | | 131,068 | | 72,938 | +----------------------------------+--+-----------+----+----------+ | Share based payments | | - | | 166,300 | +----------------------------------+--+-----------+----+----------+ | | | 1,301,124 | | 921,609 | +----------------------------------+--+-----------+----+----------+ | | | | | | +----------------------------------+--+-----------+----+----------+ 9. Directors' remuneration +----------------------------------+--+----------+----+----------+ | | | Year to | | 15 | | | | | | months | | | | 31 | | to | | | | December | | 31 | | | | 2009 | | December | | | | | | 2008 | +----------------------------------+--+----------+----+----------+ | | | GBP | | GBP | +----------------------------------+--+----------+----+----------+ | Directors' remuneration during | | | | | | the year was: | | | | | +----------------------------------+--+----------+----+----------+ | Emoluments | | 328,950 | | 284,014 | +----------------------------------+--+----------+----+----------+ | Compensation for loss of office | | 77,705 | | 30,000 | +----------------------------------+--+----------+----+----------+ | | | 406,655 | | 314,014 | +----------------------------------+--+----------+----+----------+ | Highest paid director's | | | | | | remuneration; | | | | | +----------------------------------+--+----------+----+----------+ | Emoluments | | 120,000 | | 81,731 | +----------------------------------+--+----------+----+----------+ 10. Taxation +----------------------------------+--+-------------+----+-------------+ | | | Year to | | 15 | | | | | | months | | | | 31 | | to | | | | December | | 31 | | | | 2009 | | December | | | | | | 2008 | +----------------------------------+--+-------------+----+-------------+ | | | GBP | | GBP | +----------------------------------+--+-------------+----+-------------+ | UK corporation tax in respect of | | - | | - | | current year | | | | | +----------------------------------+--+-------------+----+-------------+ | | | | | | +----------------------------------+--+-------------+----+-------------+ | The tax charge for the year can | | | | | | be reconciled to the loss for | | | | | | the year as follows: | | | | | +----------------------------------+--+-------------+----+-------------+ | Loss before taxation | | (3,625,220) | | (2,053,374) | +----------------------------------+--+-------------+----+-------------+ | | | | | | +----------------------------------+--+-------------+----+-------------+ | Tax on loss at standard rate of | | (1,015,061) | | (574,945) | | 28% | | | | | +----------------------------------+--+-------------+----+-------------+ | Effect of: | | | | | +----------------------------------+--+-------------+----+-------------+ | Non-deductible expenses | | 36,994 | | 110,892 | +----------------------------------+--+-------------+----+-------------+ | Depreciation in excess of | | 10,000 | | 8,618 | | capital allowances | | | | | +----------------------------------+--+-------------+----+-------------+ | Tax losses carried forward | | 968,067 | | 455,435 | +----------------------------------+--+-------------+----+-------------+ | Current tax charge | | - | | - | +----------------------------------+--+-------------+----+-------------+ 11. Loss 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. | +----------------------------------------------------------------------+ | | | | | | +----------------------------------+--+-------------+----+-------------+ | | | Year to | | 15 | | | | | | months | | | | 31 | | to | | | | December | | 31 | | | | 2009 | | December | | | | | | 2008 | +----------------------------------+--+-------------+----+-------------+ | | | GBP | | GBP | +----------------------------------+--+-------------+----+-------------+ | Basic: | | | | | +----------------------------------+--+-------------+----+-------------+ | Loss for the financial year | | (3,625,220) | | (2,053,374) | +----------------------------------+--+-------------+----+-------------+ | Weighted average number of share | | 48,015,400 | | 37,224,749 | | in issue | | | | | +----------------------------------+--+-------------+----+-------------+ | Basic loss per share | | (7.6p) | | (5.5p) | +----------------------------------+--+-------------+----+-------------+ | | | | | | +----------------------------------+--+-------------+----+-------------+ | Fully Diluted: | | | | | +----------------------------------+--+-------------+----+-------------+ | Loss for the financial year | | (3,625,220) | | (2,053,374) | +----------------------------------+--+-------------+----+-------------+ | Add back interest charge on | | 128,274 | | 38,026 | | convertible loans, net of tax | | | | | +----------------------------------+--+-------------+----+-------------+ | Fully diluted loss for the | | (3,496,946) | | (2,015,348) | | financial year | | | | | +----------------------------------+--+-------------+----+-------------+ | | | | | | +----------------------------------+--+-------------+----+-------------+ | Weighted average number of share | | 48,015,400 | | 37,224,749 | | in issue | | | | | +----------------------------------+--+-------------+----+-------------+ | Dilutive effect of: | | | | | +----------------------------------+--+-------------+----+-------------+ | - convertible loan agreements | | - | | 4,118,708 | | and warrants | | | | | +----------------------------------+--+-------------+----+-------------+ | - share options | | - | | 652,315 | +----------------------------------+--+-------------+----+-------------+ | | | 48,015,400 | | 41,995,772 | +----------------------------------+--+-------------+----+-------------+ | | | | | | +----------------------------------+--+-------------+----+-------------+ | Fully diluted loss per share | | (7.6p) | | (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 January 2009 | | 105,328 | | - | | 26,947 | | 132,275 | +-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+ | On acquisition of | | - | | 116,402 | | 342,332 | | 458,734 | | subsidiary | | | | | | | | | +-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+ | Addition | | 76,028 | | - | | 20,914 | | 96,942 | +-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+ | Disposals | | - | | (17,554) | | - | | (17,554) | +-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+ | On disposal of | | - | | (98,848) | | (363,246) | | (462,094) | | subsidiary | | | | | | | | | +-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+ | At 31 December 2009 | | 181,356 | | - | | 26,947 | | 208,303 | +-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+ | Accumulated | | | | | | | | | | depreciation | | | | | | | | | +-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+ | At 1 January 2009 | | 37,612 | | - | | 7,741 | | 45,353 | +-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+ | On acquisition of | | - | | 73,353 | | 267,778 | | 341,131 | | subsidiary | | | | | | | | | +-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+ | Charge for the year | | 143,744 | | 10,362 | | 61,206 | | 215,312 | +-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+ | On disposal of | | - | | (83,715) | | (309,778) | | (393,493) | | subsidiary | | | | | | | | | +-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+ | At 31 December 2009 | | 181,356 | | - | | 26,947 | | 208,303 | +-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+ | Net book value | | | | | | | | | +-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+ | At 31 December 2009 | | - | | - | | - | | - | +-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+ | At 31 December 2008 | | 67,716 | | - | | 19,206 | | 86,922 | +-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+ 13. Investment in subsidiaries +-----------------------+----------+------+----------+-------+----------+-------+----------+-------------+ | | | | | | | | | Company | +-----------------------+----------+------+----------+-------+----------+-------+----------+-------------+ | Cost | | | | | | | | GBP | +-----------------------+----------+------+----------+-------+----------+-------+----------+-------------+ | At 1 January 2009 | | | | | | | | 326,600 | +-----------------------+----------+------+----------+-------+----------+-------+----------+-------------+ | Addition | | | | | | | | 2,294,000 | +-----------------------+----------+------+----------+-------+----------+-------+----------+-------------+ | Disposal | | | | | | | | (2,294,000) | +-----------------------+----------+------+----------+-------+----------+-------+----------+-------------+ | Provision for Write | | | | | | | | (326,600) | | Down | | | | | | | | | +-----------------------+----------+------+----------+-------+----------+-------+----------+-------------+ | At 31 December 2009 | | | | | | | | - | +-----------------------+----------+------+----------+-------+----------+-------+----------+-------------+ | | | | | | | +-----------------------+----------+------+------------------+------------------+------------------------+ | The following were | | | Country of | Proportion of | Principal | | subsidiaries at the | | | incorporation | owned interest | activities | | end of the year: | | | | | | +-----------------------+----------+------+------------------+------------------+------------------------+ | Crewcard Network | | | UK | 100% | Prepaid Debit | | Limited | | | | | Cards | +-----------------------+----------+------+------------------+------------------+------------------------+ | Crewcall Network | | | UK | 100% | International | | Limited | | | | | Telephony | +-----------------------+----------+------+------------------+------------------+------------------------+ | Acquirestar Limited | | | UK | 100% | Dormant | +-----------------------+----------+------+------------------+------------------+------------------------+ | | | As the Company was unable to make the second instalment for the purchase of Cheque Exchange | | Limited from Provident Financial Plc in July 2009, ownership of Cheque Exchange Limited reverted | | back to Provident Financial Plc at 31 October 2009. | +-----------------------+----------+------+----------+-------+----------+-------+----------+-------------+ +-----------------------+----------+------+-----------+---------+---------+ | During the year, the group acquired Cheque Exchange Limited. The fair | | value of assets acquired and liabilities assumed were as follows: | +-------------------------------------------------------------------------+ | | | | GBP | | | +-----------------------+----------+------+-----------+---------+---------+ | Property, plant and | | | 110,377 | | | | equipment | | | | | | +-----------------------+----------+------+-----------+---------+---------+ | Trade and other | | | 653,928 | | | | receivables | | | | | | +-----------------------+----------+------+-----------+---------+---------+ | Inventories | | | - | | | +-----------------------+----------+------+-----------+---------+---------+ | Cash | | | (35,451) | | | +-----------------------+----------+------+-----------+---------+---------+ | Trade payables | | | (800,257) | | | +-----------------------+----------+------+-----------+---------+---------+ | Long term debt | | | - | | | +-----------------------+----------+------+-----------+---------+---------+ | Total net liabilities | | | (71,403) | | | +-----------------------+----------+------+-----------+---------+---------+ | Goodwill | | | 2,365,403 | | | +-----------------------+----------+------+-----------+---------+---------+ | Fair value of cash | | | 2,294,000 | | | | consideration | | | | | | +-----------------------+----------+------+-----------+---------+---------+ 14. Intangible fixed assets +----------------------+------+-----------+----------+---------+----------+-------------+----------+-------------+ | | Development | Trademarks | | Goodwill | | Group | | | costs | | | | | | +----------------------+------------------+--------------------+----------+-------------+----------+-------------+ | | | | | | | | | GBP | +----------------------+------+-----------+----------+---------+----------+-------------+----------+-------------+ | Cost | | | | | | | | | +----------------------+------+-----------+----------+---------+----------+-------------+----------+-------------+ | At 1 January 2009 | | 16,500 | | 5,482 | | 1,364,890 | | 1,386,872 | +----------------------+------+-----------+----------+---------+----------+-------------+----------+-------------+ | Additions | | - | | - | | 2,365,403 | | 2,365,403 | +----------------------+------+-----------+----------+---------+----------+-------------+----------+-------------+ | Disposals | | - | | - | | (2,365,403) | | (2,365,403) | +----------------------+------+-----------+----------+---------+----------+-------------+----------+-------------+ | Impairment | | (16,500) | | (5,482) | | (1,364,890) | | (1,386,872) | +----------------------+------+-----------+----------+---------+----------+-------------+----------+-------------+ | At 31 December 2009 | | - | | - | | - | | - | +----------------------+------+-----------+----------+---------+----------+-------------+----------+-------------+ 15. Deferred taxation +-------------------------------------------------------------------+ | The actual and potential liabilities to deferred taxation are | | GBPnil (2008: GBPnil) as a result of both significant trading | | losses having been incurred and uncertainty as to when the | | company might make sufficient profits in the future. | +-------------------------------------------------------------------+ 16. Inventories +-----------------------+----------+-------+----------+--------+----------+---------+----------+---------+ | | | Group | | Group | | Company | | Company | +-----------------------+----------+-------+----------+--------+----------+---------+----------+---------+ | | | 2009 | | 2008 | | 2009 | | 2008 | +-----------------------+----------+-------+----------+--------+----------+---------+----------+---------+ | | | GBP | | GBP | | GBP | | GBP | +-----------------------+----------+-------+----------+--------+----------+---------+----------+---------+ | Finished goods | | - | | 59,339 | | - | | - | +-----------------------+----------+-------+----------+--------+----------+---------+----------+---------+ | | | | | | | | | | +-----------------------+----------+-------+----------+--------+----------+---------+----------+---------+ | | +-----------------------+----------+-------+----------+--------+----------+---------+----------+---------+ 17. Trade and other receivables +-----------------------+----------+-------+----------+---------+----------+---------+----------+-----------+ | | | Group | | Group | | Company | | Company | +-----------------------+----------+-------+----------+---------+----------+---------+----------+-----------+ | | | 2009 | | 2008 | | 2009 | | 2008 | +-----------------------+----------+-------+----------+---------+----------+---------+----------+-----------+ | | | GBP | | GBP | | GBP | | GBP | +-----------------------+----------+-------+----------+---------+----------+---------+----------+-----------+ | Trade debtors | | 1,118 | | 1,996 | | 1,118 | | - | +-----------------------+----------+-------+----------+---------+----------+---------+----------+-----------+ | Loans to group | | - | | - | | - | | 3,235,243 | | undertakings | | | | | | | | | +-----------------------+----------+-------+----------+---------+----------+---------+----------+-----------+ | Other debtors | | - | | 150,000 | | - | | - | +-----------------------+----------+-------+----------+---------+----------+---------+----------+-----------+ | Prepayments | | 5,421 | | 401,171 | | 5,420 | | - | +-----------------------+----------+-------+----------+---------+----------+---------+----------+-----------+ | | | 6,539 | | 553,167 | | 6,538 | | 3,235,243 | +-----------------------+----------+-------+----------+---------+----------+---------+----------+-----------+ 18. Cash and cash equivalents +-----------------------+----------+-------+----------+---------+----------+---------+----------+---------+ | | | Group | | Group | | Company | | Company | +-----------------------+----------+-------+----------+---------+----------+---------+----------+---------+ | | | 2009 | | 2008 | | 2009 | | 2008 | +-----------------------+----------+-------+----------+---------+----------+---------+----------+---------+ | | | GBP | | GBP | | GBP | | GBP | +-----------------------+----------+-------+----------+---------+----------+---------+----------+---------+ | Cash at bank and in | | 9,632 | | 192,096 | | 8,623 | | - | | hand | | | | | | | | | +-----------------------+----------+-------+----------+---------+----------+---------+----------+---------+ 19. Trade and other payables +-----------------------+----------+---------+----------+---------+----------+---------+----------+---------+ | | | Group | | Group | | Company | | Company | +-----------------------+----------+---------+----------+---------+----------+---------+----------+---------+ | | | 2009 | | 2008 | | 2009 | | 2008 | +-----------------------+----------+---------+----------+---------+----------+---------+----------+---------+ | | | GBP | | GBP | | GBP | | GBP | +-----------------------+----------+---------+----------+---------+----------+---------+----------+---------+ | Trade creditors | | 222,536 | | 133,894 | | 93,747 | | - | +-----------------------+----------+---------+----------+---------+----------+---------+----------+---------+ | Other taxation and | | 313,673 | | 23,703 | | 190,098 | | - | | social security costs | | | | | | | | | +-----------------------+----------+---------+----------+---------+----------+---------+----------+---------+ | Accruals | | 47,606 | | 446,030 | | 46,535 | | - | +-----------------------+----------+---------+----------+---------+----------+---------+----------+---------+ | | | 583,815 | | 603,627 | | 330,380 | | - | +-----------------------+----------+---------+----------+---------+----------+---------+----------+---------+ 20. Non current borrowings +---------------------+----------+-----------+----------+-----------+----------+-----------+----------+-----------+ | | | Group | | Group | | Company | | Company | +---------------------+----------+-----------+----------+-----------+----------+-----------+----------+-----------+ | | | 2009 | | 2008 | | 2009 | | 2008 | +---------------------+----------+-----------+----------+-----------+----------+-----------+----------+-----------+ | | | GBP | | GBP | | GBP | | GBP | +---------------------+----------+-----------+----------+-----------+----------+-----------+----------+-----------+ | Other Loans | | 1,750,000 | | - | | 1,750,000 | | - | +---------------------+----------+-----------+----------+-----------+----------+-----------+----------+-----------+ | Convertible Loans | | - | | 1,232,243 | | - | | 1,232,243 | +---------------------+----------+-----------+----------+-----------+----------+-----------+----------+-----------+ | Total Loans | | 1,750,000 | | 1,232,243 | | 1,750,000 | | 1,232,243 | +---------------------+----------+-----------+----------+-----------+----------+-----------+----------+-----------+ | | | | | | | | | | +---------------------+----------+-----------+----------+-----------+----------+-----------+----------+-----------+ | Loans at 31 December 2009 are owed to Palmdale Investments Inc. The loan is secured by means of | | floating charge over the assets of the company. The loan is repayable by 31 March 2011. If | | the loan is not repaid at this date then the loan plus a premium equal to 100% of the loan | | value must be paid by 30 September 2012. In addition, if the loan is not repaid at 30 September | | 2012 a Penalty Charge of 5% per month thereafter will be charged. An Arrangement Fee of 10% of | | the principal amount is also due on repayment of the loan. The loan bears interest at 10% per | | annum however interest payments are off-set against the potential premium payable. | +---------------------+----------+-----------+----------+-----------+----------+-----------+----------+-----------+ 21. Share capital +---------------------------------------+-------------+------+-------------+ | | 2009 | | 2008 | +---------------------------------------+-------------+------+-------------+ | | GBP | | GBP | +---------------------------------------+-------------+------+-------------+ | Authorised: | | | | +---------------------------------------+-------------+------+-------------+ | 10,000,000,000 Ordinary shares of 1p | 100,000,000 | | 100,000,000 | | each | | | | +---------------------------------------+-------------+------+-------------+ | | | | | +---------------------------------------+-------------+------+-------------+ | Issued share capital: | | | GBP | +---------------------------------------+-------------+------+-------------+ | 48,442,000 (2008: 42,675,000) | 484,420 | | 426,750 | | Ordinary shares of 1p | | | | +---------------------------------------+-------------+------+-------------+ | | | | | +---------------------------------------+-------------+------+-------------+ | On 29 January 2009, 5,767,000 ordinary shares were issued for | | a total consideration of GBP865,050 in order to assist with | | the funding of the acquisition of Cheque Exchange Limited. | +--------------------------------------------------------------------------+ | | +--------------------------------------------------------------------------+ | As at 31 December 2009,unexercised warrants, options and loan | | conversion rights totalling 8,193,200 had been granted over | | Ordinary shares. | +---------------------------------------+-------------+------+-------------+ 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 | | As at 31 | | | December 2009 | | December 2008 | +------------------------+----------------------+--+----------------------+ | | | Weighted | | | Weighted | | | | average | | | average | | | | exercise | | | exercise | | | | price | | | price | +------------------------+-----------+----------+--+-----------+----------+ | | Number | GBP | | Number | GBP | +------------------------+-----------+----------+--+-----------+----------+ | Outstanding at the | 7,050,000 | 0.20 | | - | - | | beginning of the year | | | | | | +------------------------+-----------+----------+--+-----------+----------+ | Lapsed during the year | 400,000 | 0.20 | | - | - | +------------------------+-----------+----------+--+-----------+----------+ | Granted during the | 500,000 | 0.15 | | 7,050,000 | 0.20 | | year | | | | | | +------------------------+-----------+----------+--+-----------+----------+ | Outstanding at the end | 7,150,000 | 0.20 | | 7,050,000 | 0.20 | | of the year | | | | | | +------------------------+-----------+----------+--+-----------+----------+ +---------------------------------+----+-----+------+----+---------------+ | Of the total number of options outstanding at 31 December 2009, | | 5,325,000 had vested and were exercisable at the end of the year. | | | | The weighted average fair value of each option granted during the | | year to 31 December 2009 was GBP0.0396. | | | | The following information is relevant in determining the fair value | | of the options granted during the year to 31 December 2009: | +------------------------------------------------------------------------+ | Option pricing model used | | Black-Scholes | +---------------------------------+----------+---------------------------+ | Weighted average share price at | | GBP0.20 | | grant date | | | +---------------------------------+----------+---------------------------+ | Weighted average exercise price | | GBP0.20 | +---------------------------------+----------+---------------------------+ | Expected volatility | | 40% | +---------------------------------+----------+---------------------------+ | Expected life (years) | | 2 | +---------------------------------+----------+---------------------------+ | Risk free interest rate | | 0.7% | +---------------------------------+----------+---------------------------+ | | | | | | +---------------------------------+----+------------+----+---------------+ | | | Year to | | 15 months to | | | | 31December | | 31 December | | | | 2009 | | 2008 | +---------------------------------+----+------------+----+---------------+ | | | GBP | | GBP | +---------------------------------+----+------------+----+---------------+ | Total expense recognised from | | - | | 166,300 | | share based payment | | | | | | transactions | | | | | +---------------------------------+----+------------+----+---------------+ | | +------------------------------------------------------------------------+ | As a result of the cessation of trading activities by the group in | | the year, the directors consider that share options outstanding at | | the end of the year are unlikely to be exercised and therefore no | | share based payments expense has been recognised for the year. | +------------------------------------------------------------------------+ | | | | | | | +---------------------------------+----+-----+------+----+---------------+ 22. Related party transactions +-------+----------------------+-------------+----------+----------+ | (i) | Share options granted to persons who served as director | | | during the year are as follows: | +-------+----------------------------------------------------------+ | | | | | | +-------+----------------------+-------------+----------+----------+ | | | Grant date |Exercise | At 31 | | | | | price | December | | | | | | 2009 | +-------+----------------------+-------------+----------+----------+ | | A Dougall | 11 May 2009 | 15p | 500,000 | +-------+----------------------+-------------+----------+----------+ | | | | | 500,000 | +-------+----------------------+-------------+----------+----------+ | | | +-------+----------------------------------------------------------+ | (ii) | During the year to 31 December 2009, the company | | | incurred costs of GBP77,050 from Aspirant Limited for | | | consultancy services provided. Aspirant Limited is | | | controlled by Paul Marks, a director. | +-------+----------------------------------------------------------+ | | | +-------+----------------------------------------------------------+ | (iii) | During the year loan interest amounting to GBP98,816 | | | was paid to Dexapoint United Corporation, a shareholder | +-------+----------------------------------------------------------+ | | | +-------+----------------------------------------------------------+ | (iv) | During the year to 31 December 2009, the company | | | incurred costs of GBP66,616 from Countermand Limited | | | for consultancy services provided. Countermand Limited | | | is controlled by Paul Seakens, a director. | +-------+----------------------+-------------+----------+----------+ 23. Post balance sheet events +-------+-----------------------------------------------------------+ | (i) | On 17th February 2010 Crewcard Network Limited, a wholly | | | owned subsidiary of the company, was placed into | | | creditors voluntary liquidation. | | | | +-------+-----------------------------------------------------------+ | (ii) | On 15th May 2010 a proposal by the Directors to place the | | | company into a Voluntary Arrangement was accepted by | | | creditors and shareholders. The proposal will result in | | | a payment to creditors of two pence in the pound. | | | | +-------+-----------------------------------------------------------+ | (iii) | On 12th May 2010 shareholders voted in favour of a change | | | of name for the company from Hertford International Group | | | Plc to Otium Ventures Plc. Companies House effected the | | | change of name on 22nd June 2010. | | | | +-------+-----------------------------------------------------------+ | (iv) | On 10th March 2010 the company disposed of a 55% share in | | | Crewcall Network Limited, previously a wholly owned | | | subsidiary for GBP1. Also on the 19th March 2010 the | | | company disposed of Crewcall Telecoms Limited also a | | | wholly owned subsidiary for the sum of GBP1. | | | | +-------+-----------------------------------------------------------+ 24. 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 FR BRGDRBGGBGGB
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