We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Resources In | LSE:RIIG | London | Ordinary Share | GB0006158686 | 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% | 0.21 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMRIIG
RNS Number : 5198D
Resources In Insurance Group PLC
17 May 2012
17 May 2012
RESOURCES IN INSURANCE GROUP PLC
("RiIG", the "Group" or the "Company")
FINAL RESULTS
The Board of RiIG, a leading provider of claims management and consultancy solutions to the UK insurance profession, is pleased to announce today its Final Results for the financial year to 31(st) December 2011.
HIGHLIGHTS
-- Revenue increased by 43.7% to GBP3.06m (2010: GBP2.13m);
-- Losses in the period narrowed by 77.6% from loss GBP402,343 (2010) to a loss GBP90,060 (2011);
-- Operating divisions returned an operating contribution of GBP0.703m before group costs (2010: GBP0.300m), up by 134%;
-- RiIG's profit generated on operations amounted to GBP80,385 before non recurring costs expended in the continued drive to change the shape of the business;
-- Client base continues to expand and RiIG now counts amongst its clients eight of the top insurance companies; and
-- Strong trends in the business reaffirm the management team's focus on driving the business units forward.
Commenting on the Results, Executive Chairman John French said:
"The period under review has been encouraging in terms of continued progress in the overall recovery of the Group and one where our desktop claims management and implant solution iteam in particular has continued to produce strong results and greater awareness within the insurance profession.
"RiIG has seen a marked change since the restructuring of the business and Board. The Group's offerings are well received and highly valued by the market place. The Group counts amongst its clients eight of the top insurance companies. RiIG's business units are well positioned to capitalise on its ability to react quickly to client needs and the Group continues to expand its client base.
"With the broader range of services now available to the insurance profession and the plan to move into other related activities such as training during the coming year should provide the opportunity for continued growth."
For further information:
Resources in Insurance Group plc John French, Executive Chairman www.riig.co.uk Nominated Adviser/and Joint Broker +44 (0) 7836 722 482 Zeus Capital Limited Ross Andrews / Brian Stockbridge +44 (0) 161 831 1512 Joint-Broker Rivington Street Corporate Finance Jon Levinson +44 (0) 20 7562 3357
CHAIRMAN'S STATEMENT
I am pleased to report on the Group's results and performance for the financial year ended 31(st) December 2011.
The period under review has been encouraging in terms of continued progress in the overall recovery of the Group and one where our desktop claims management and implant solution iteam has continued to produce strong results and greater awareness within the insurance profession.
Financials and Review of the Year
In January 2011, holders of GBP200,000 in Convertible Loan Notes showed their commitment to RiIG and converted their Loan Notes to Equity Shares. In November 2011, a new GBP30,000 unsecured Loan Note 2015 was issued in favour of Spread Trustees Company Ltd. on behalf of The French Settlement. In December 2011, the Group privately placed GBP130,000 with existing shareholder Bob Morton through Hawk Investment Holdings Limited (along with Chairman John French), showing confidence in the Boards' on-going strategic direction and support. These key events helped the Group strengthen its balance sheet.
Turnover for the period rose 43.7% to GBP3.06m (2010: GBP2.13m) as a direct result of the Group's repositioning in the insurance market place. Losses in the period narrowed by 77.6% from loss GBP402,343 (2010) to a loss GBP90,060 (2011). These strong trends in the business reaffirm the management team's focus on driving our business units forward. The operating divisions returned an operating contribution of GBP0.703m before Group costs (2010: GBP0.300m), up by 134%. RiIG's profit generated on operations amounted to GBP80,385 before non recurring costs expended in the continued drive to change the shape of the business.
During October 2011, the Group successfully vacated surplus premises, giving annualised savings on property outgoings of GBP41,901.
During September 2011 Dominic Boyce, the Group's long serving Finance Director and Company Secretary, stepped down from the Group to return to Trinidad to pursue family interests. The Board welcomed Stephen Coke as in-coming Finance Director and Company Secretary, an experienced finance professional, joining a strong and well balanced senior management team at a time of successful turnaround at RiIG.
Business Review
The Group's professional consultancy business comprises four complementary product lines - iteam, Verify, Surety Claims and Consult.
iteam provides outsourcing capabilities within an insurer's claims operation with highly qualified personnel being implanted into client operational teams. The brand continues to grow as the insurance market suffers from a lack of talent and the need to understand financial drivers in an increasingly competitive claims market.
Verify provides cost effective field investigation services across motor, property, creditor and liability markets. Client interest has occurred particularly with regard to the counter fraud capability of Verify. It offers an affordable deterrent to spurious claims - and this has been accepted by the market.
Surety Claimsis a specialist credit hire audit and handling operation. Surety is the newest division of the business and capitalises on the expert knowledge of the team to reduce insurers' exposure to high and inflated costs. Credit hire is a significant issue within the U.K. motor claims arena and with the knowledge gained from our work with existing clients the Group is excited by the opportunities the new division offers RiIG.
Consult provides consultancy-led services to RiIG clients. Audits have been undertaken across the spectrum of claims areas including most elements of the supply chain and within insurer operations. The identification of claims leakage (unjustified over payments) and the improvement of cost controls and operational efficiencies continue to challenge some operations in the market. Consult has delivered much needed clarity during 2011. Inflationary drivers on indemnity spend and reserves will not lessen and we have seen considerable interest in these areas.
Consult has also delivered training and mentoring to a number of clients ensuring that their staff continues to be developed and trained. With the continued talent issues within the industry in the U.K. and abroad RiIG has had significant interest for these services from outside parties and are encouraged by the performance seen in 2011.
RiIG now finds itself with a complementary blend of services on which to build and produce scale: Claims Management - Insource and Outsourced - including Credit Hire, Field Investigation Services, Audit and Consultancy. The Group is able to provide proven solutions in a number of different areas within the insurers value chain - be that volume claims management; specialist credit hire claims; identification of fraud; understanding of cost drivers and where leakage is occurring and the ability to review process and train staff to a higher level.
RiIG's commitment to excellence is underlined by being one of the first signatories of the Aldermanbury Declaration, an industry wide initiative to improving professionalism and standards within the U.K. insurance industry.
Outlook and Prospects
The Group has continued to secure new business from both existing and new clients during the latter part of the year and in recent weeks. This is encouraging although the mild winter has had an impact on the level of claims within the industry. RiIG's pipeline of new business prospects remains strong, including new areas such as PPI claims for the banking market place. As announced recently, the Group is also looking at broadening its activities in the insurance sector having identified an existing opportunity for the provision of technical training and mentoring services as well as placement activities.
RiIG has seen a marked change since the restructuring of the business and Board. The Group's offerings are well received and highly valued by the market place. The Group counts amongst its clients eight of the top insurance companies. RiIG's business units are well positioned to capitalise on its ability to react quickly to client needs and the Group continues to expand its client base.
As Chairman, and on behalf of my Board and shareholders, I would like to formally thank our staff. Each year we set ourselves challenging targets across the Group, and each year our staff reacts positively and enthusiastically to the challenges set by transacting more business. The Board looks to the future with confidence.
JOHN FRENCH Chairman
17 May 2012
STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 December 2011
Hot Features
Premium
Notes 2011 2010
GBP GBP
Revenue 3,064,243 2,131,971
Administrative expenses (3,140,301) (2,452,361)
Share option expense (11,894) (52,746)
Loss from operations (87,952) (373,136)
Interest receivable - -
Interest payable (2,108) (30,677)
Loss before tax (90,060) (403,813)
Taxation 2 - 1,470
Loss for the year (90,060) (402,343)
Total comprehensive income
for the year (90,060) (402,343)
Basic loss per share 3 (0.028p) (0.25p)
Diluted loss per share 3 (0.028p) (0.25p)
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY For the year ended 31 December 2011
Share premium Share option Retained
Share capital account reserve deficit Total
GBP GBP GBP GBP GBP
Balance
at 1
January
2010 2,044,062 872,841 - (3,013,504) (96,601)
Issue of
options - - 52,746 - 52,746
Issue of
shares 142,763 447,237 - - 590,000
Exercise
of
options - 21,099 (21,099) - -
Loss for
the
period - - - (402,343) (402,343)
-------------------- --------------------- ------------------- ------------------- -------------------
Balance
at 31
December
2010 2,186,825 1,341,177 31,647 (3,415,847) 143,802
==================== ===================== =================== =================== ===================
Balance
at 1
January
2011 2,186,825 1,341,177 31,647 (3,415,847) 143,802
Issue of
options - - 11,894 - 11,894
Issue of
shares 70,962 259,038 - - 330,000
Exercise - - - - -
of
options
Loss for
the
period - - - (90,060) (90,060)
-------------------- --------------------- ------------------- ------------------- -------------------
Balance
at 31
December
2011 2,257,787 1,600,215 43,541 (3,505,907) 395,636
==================== ===================== =================== =================== ===================
CONSOLIDATED BALANCE SHEET 31 December 2011
2011 2010
Notes GBP GBP
ASSETS
Non-current assets
Property, plant and equipment 23,817 26,687
----------- -----------
Current assets
Work in progress 368,501 405
Trade and other receivables 337,384 573,931
Cash and cash equivalents 4 135,343 149,214
841,228 723,550
----------- -----------
Total assets 865,045 750,237
EQUITY AND LIABILITIES
Equity
Share capital 2,257,787 2,186,825
Share premium account 1,600,215 1,341,177
Share option reserve 43,541 31,647
Retained deficit (3,505,907) (3,415,847 )
Equity attributable to equity
holders of the parent 395,636 143,802
----------- -----------
Current liabilities
Trade and other payables 439,409 406,435
Convertible loan notes 30,000 200,000
469,409 606,435
Total equity and liabilities 865,045 750,237
These financial statements were approved by the Board of Directors on 16(th) May 2012.
Stephen J Coke Director
Company Registration Number 03922895
CONSOLIDATED AND COMPANY CASH FLOW STATEMENT
For the year ended 31 December 2011
2011 2010
Notes GBP GBP
)
Cash flows from operating activities
Loss from operations (87,952 (373,136 )
Adjustments for:
Depreciation of property, plant
and equipment 12,212 11,666
Loss on disposal of property,
plant and equipment - 1,540
Share option expense 11,894 52,746
--------------- ---------
Operating cash flows before
movements in working capital (63,846 ) (307,184 )
(Increase)/decrease in work
in progress (368,096) 1,572
Decrease/(increase) in receivables 6,547 (202,635)
Increase in payables 32,974 158,373
--------------- ---------
Cash used in operations (392,421) (349,874)
Interest paid (2,108) (30,677)
Tax refunded - 1,470
--------------- ---------
Net cash used in operating activities (394,529) (379,081)
--------------- ---------
Cash flows from investing activities
Purchases of property, plant
and equipment (9,342) (6,860)
--------------- ---------
Net cash used in investing activities (9,342) (6,860)
--------------- ---------
Cash flows from financing activities
Proceeds from issue of shares 360,000 260,000
Proceeds from issue of convertible
loan notes 30,000 300,000
--------------- ---------
Net cash from financing activities 390,000 560,000
--------------- ---------
Net (decrease)/increase in cash
and cash equivalents (13,871) 174,059
Cash and cash equivalents at
beginning of year 149,214 (24,845)
--------------- ---------
Cash and cash equivalents at
end of year 135,343 149,214
1. Significant accounting policies
Basis of accounting
The financial statements have been prepared on an historical cost basis. The directors, based on current management information and financial projections, have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.
The company has prepared detailed profit and cash flow projections; projected gross profit margins are realistic and consistent with past performance, the existing and anticipated pricing structure and order book. Projected debtor collections are also realistic and consistent with past performance. Overhead levels have been closely considered and consistent with cost saving measures implemented.
The Board considers the cost base to be stable, and the risk of losing significant customers to be low, due to the nature of the services.
On 14(th) December 2011 the Group privately placed GBP130,000 in new shares. The remaining GBP200,000 of convertible loan notes were converted in two tranches of GBP100,000 each on 13 January 2011 and on 20 January 2011. The Group has a new GBP30,000 unsecured loan note 2015 in place, issued on 21(st) November 2011.
Cash flow projections have analysed all known liabilities, commitments and repayment dates in the future, including the period beyond twelve months from the date of this report. These projections include current enacted taxation rates.
The Group's main products are considered to be robust and are anticipated to benefit from external factors such as further Ministry of Justice reforms and industry attitudes to the claims environment. Significant new business has not been factored into the financial projections, although there are a number of new business contracts in negotiation. Current market response and the conversion of potential customers have both been good.
Projections have been tested by performing sensitivity analyses on critical assumptions, specifically levels of activity, to ensure sufficient levels of working capital. In these projections turnover has been flexed to incorporate both current confirmed work and new work expected to be won in the year.
There are additional plans in place to alter the amounts and timing of cash flows so unexpected needs or opportunities can be addressed. The Board has raised share capital and loan notes to fund the growth of the business and to capitalise on the growth opportunities that may present themselves. Improved trading, confidence from existing shareholders and current investment market conditions give the directors' confidence that this will be achieved.
As such the directors continue to adopt the going concern basis in the preparation of the financial statements.
Statement of compliance
The financial statements of Resources in Insurance Group plc and all its subsidiaries have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.
Basis of consolidation
The consolidated financial statements incorporate the results of the Company and all its subsidiary undertakings as if they were a single entity. Subsidiary undertakings are consolidated from the date of acquisition using the acquisition method of accounting.
Key risks and judgements
To be able to prepare financial statements according to generally accepted accounting principles, management and the Board must make estimates and assumptions that affect the recorded asset and liability items as well as
1. Significant accounting policies (continued)
other information, such as that provided on provisions and pensions. These estimates are based on historical experience and various other assumptions that management and the Board believe are reasonable under the circumstances. The results of these form the basis for making judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
Revenue recognition
Revenue is recognised by reference to the stage of completion of the transaction, in accordance with IAS 18, and represents the value of services provided in the period and is stated net of VAT.
Property, plant and equipment
Property, plant and equipment are stated at cost less provision for depreciation. Depreciation is provided at rates calculated to write off the cost of each asset less its estimated residual value evenly over its estimated useful life, as follows:
Claims software over three to five years Office equipment and fittings over three to five years Website development over three years
Investments
Fixed asset investments are stated at cost less provision for diminution in value.
Work in progress
Work in progress is valued at the lower of cost and net realisable value.
Trade and other receivables
Trade and other receivables are measured on initial recognition at fair value. When objective evidence exists that the asset is impaired the estimated irrecoverable amount is written off to profit and loss.
Trade and other payables
Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
Leasing and finance lease commitments
Assets obtained under hire purchase contracts and finance leases are capitalised in the balance sheet and depreciated over their useful economic lives. The interest element of the rental obligations is charged to profit and loss over the period of the contract and represents a constant proportion of the balance of capital payments outstanding. Rentals paid under operating leases are charged to profit and loss on a straight line basis over the term of the lease.
Current and deferred taxation
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the company's subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which
1. Significant accounting policies (continued)
applicable tax regulations is subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements.
However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the group and it is probable that the temporary difference will not reverse in the foreseeable future.
Pension costs
The Group contributes to two defined contribution Group Personal Pension Schemes for Directors and senior employees. Pension contributions are charged to profit and loss as they are incurred.
Share-based payment transactions
The Group operates a number of equity-settled, share-based compensation plans. The fair value of the employee services received in exchange for the grant of the options is recognised as an expense. The total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted, excluding the impact of any non-market vesting conditions (for example, profitability and sales growth targets). Non-market vesting conditions are included in assumptions about the number of options that are expected to vest. At each balance sheet date, the entity revises its estimates of the number of options that are expected to vest. It recognises the impact of the revision to original estimates, if any, in the income statement, with a corresponding adjustment to equity.
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
IFRS standards in issue but not yet effective
The following standards and amendments to existing standards have been published and are mandatory for the Group's accounting periods beginning on or after 1 January 2012 or later periods, but the Group has decided not to early adopt them. The directors do not anticipate that the adoption of these standards and interpretations would have a material impact on the financial statements in the period of initial application although there will be revised and additional disclosures. The Group plans to apply these standards in the reporting period in which they become effective. The new standards and interpretations include:
Endorsed and available for early adoption:
-- Amendments to IFRS 7 - Transfers of Financial Assets (effective beginning on or after 1 July 2011)
-- IFRS 9 - Financial Instruments (effective beginning on or after 1 January 2013) -- IFRS 13 - Fair Value Measurement (effective beginning on or after 1 January 2013)
-- Amendments to IAS 1 - Presentation of Items of Other Comprehensive Income (effective beginning on or after 1 July 2012)
-- Amendments to IAS 12 - Deferred Tax - Recovery of Underlying Assets (effective beginning on or after 1 January 2012)
-- IFRS 10 - Consolidated Financial Statements (effective beginning on or after 1 January 2013)
2. Taxation
2011 2010
GBP GBP
Domestic current year tax
UK corporation tax - -
Adjustments for prior years - (1,470)
Current tax charge - (1,470)
Factors affecting the tax charge for the year
Loss on ordinary activities before taxation (90,060) (403,813)
Result on ordinary activities multiplied by
standard rate of corporation tax of 26.5% (2010:
28%) (23,866) (113,068)
Adjustment for the effects of:
Expenses not deductible for tax purposes 4,305 23,109
Depreciation and amortisation 3,236 2,333
Adjustments to previous periods - (1,470)
Capital allowances (2,475) -
Other adjustments 18,800 87,626
Current tax charge - (1,470)
At 31 December 2011 the Group had corporation tax losses and unclaimed capital allowances of approximately GBP2,629,000 (2010: GBP2,559,000).
No deferred tax asset has been recognised in respect of these losses due to there being uncertainty as to whether sufficient future taxable profits will be generated by the company in the near future, to prudently justify this.
3. Loss per share
The calculation of the basic and fully diluted loss per share is based on the loss for the year of GBP90,060 (2010: loss of GBP402,343) and on 317,465,150 ordinary shares, (2010: 162,465,262) being the weighted average number of ordinary shares in issue during the year. In calculating fully diluted loss per share, the weighted average number of shares was 317,465,150 (2010: 162,456,262) ordinary shares.
4. Cash and cash equivalents
2011 2010
GBP GBP
Cash and bank balances 135,343 149,214
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SFEFMMFESEII
1 Year Resources In Insurance Group Chart |
1 Month Resources In Insurance Group Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
