Interim Results

 

TIDMSGH 
 
RNS Number : 1006P 
SatCom Group Holdings plc 
19 March 2009 
 

+------------------------------------+---------------------------------------+ 
| Press Release                      |                         19 March 2009 | 
+------------------------------------+---------------------------------------+ 
 
 
SatCom Group Holdings Plc 
 
 
("SatCom" or "the Group") 
 
 
Interim results for the six months ended 31 December 2008 
 
 
 
 
SatCom Group Holdings Plc (AIM: SGH), a leading reseller of mobile satellite 
communications equipment and airtime, announces its interim results for the six 
months ended 31 December 2008. 
 
 
Highlights 
+--+------------------------------------------------------------------------+ 
| -| Turnover increased 68% to US$53.6 million (H1 2007: US$31.9 million)   | 
+--+------------------------------------------------------------------------+ 
| -| EBITDA up 55% to US$3.4 Million (H1 2007: US$2.2 million)              | 
+--+------------------------------------------------------------------------+ 
| -| Profit before tax increased by 58% to US$2.5 million (H1 2007: US$1.6  | 
|  | million)                                                               | 
+--+------------------------------------------------------------------------+ 
| -| Basic earnings per share increased by 60% to 3.35 cents  (H1           | 
|  | 2007: 2.02 cents)                                                      | 
+--+------------------------------------------------------------------------+ 
| -| Recommended interim dividend  increased to 0.25 cents per share  (H1   | 
|  | 2007: 0.2 cents per share)                                             | 
+--+------------------------------------------------------------------------+ 
 
 
 
 
Commenting on the results, Richard Vos, Chairman of SatCom Group Holdings Plc, 
said: "These excellent results demonstrate that, despite global economic 
conditions, the Group remains well positioned to build on the growth it has 
already achieved.  Importantly, SatCom's core business is protected due to the 
end user's day-to-day reliance on the communication services provided." 
 
 
- Ends - 
  For further information: 
+-------------------------------------------------+------------------------+ 
| SatCom Group Holdings plc                       |                        | 
+-------------------------------------------------+------------------------+ 
| Mark White, Chief Executive Officer             |  Tel: [phone] | 
|                                                 |                    206 | 
+-------------------------------------------------+------------------------+ 
| [e-mail]                      |   www.SatComgroup.com  | 
+-------------------------------------------------+------------------------+ 
|                                                 |                        | 
+-------------------------------------------------+------------------------+ 
| Martin Ward, Chief Financial Officer            |  Tel: [phone] | 
|                                                 |                    201 | 
+-------------------------------------------------+------------------------+ 
| [e-mail]                     |   www.SatComgroup.com  | 
+-------------------------------------------------+------------------------+ 
 
 
+-------------------------------------------------+---------------------------+ 
| Arden Partners plc                              |                           | 
+-------------------------------------------------+---------------------------+ 
| Fred Walsh / Matthew Armitt                     |      Tel: [phone] | 
|                                                 |                      1651 | 
+-------------------------------------------------+---------------------------+ 
|                                                 | www.arden-partners.co.uk  | 
+-------------------------------------------------+---------------------------+ 
 
 
+-------------------------------------------------+------------------------+ 
| Abchurch                                        |                        | 
+-------------------------------------------------+------------------------+ 
| Chris Lane / George Parker                      |   Tel: [phone] | 
|                                                 |                   7719 | 
+-------------------------------------------------+------------------------+ 
| [e-mail]                |                        | 
+-------------------------------------------------+------------------------+ 
 
Chairman's Statement 
 
 
 
 
I am delighted to say that the Group has maintained strong revenue and profit 
growth over the first half-year and continues to trade profitably. Our core 
mobile satellite services business has held up well and our entry into the VSAT 
market has also begun to provide a positive contribution to the business. 
 
 
As indicated in the 2007/08 Annual Report, our business is now global and each 
of our trading subsidiaries, supported by our improved back office systems, is 
benefitting from its membership of the Group and contributing to overall Group 
profitability. 
 
 
The business remains on track in spite of the current economic environment. 
Although the global economic climate remains uncertain, the Mobile Satellite 
sector continues to attract ongoing investment and the Group is well placed to 
exploit new opportunities. SatCom's core business is protected due to the end 
user's day-to-day reliance on the communication services provided. 
 
 
The Board is therefore pleased to recommend payment once again of an increased 
Interim Dividend. 
 
 
 
 
 
 
Richard Vos 
Chairman 
 
 
18 March 2009 
 
 
 
 
 
 
  Chief Executive's Statement 
 
 
Highlights 
The Group's results for the six months to 31 December 2008 show strong growth. 
This increase has come primarily from sales of broadband services, US Government 
contracts and the VSAT services from the newly acquired SDN Global. 
 
 
Our investment in SDN Global and their network infrastructure is starting to 
benefit trading. For the six months under review SDN Global contributed to the 
Group results with an operating profit of $143,000 from Revenue of $7.1 million 
and this compares to a loss of $(385,000) from Revenue of $4.7 million in the 
same period in 2007 before we acquired the company. 
 
 
Financial review 
Turnover for the six months ended 31 December 2008 was $53.6 million (2007: 
$31.9 million) reflecting an increase of 68% over the same period last year. The 
Group's EBITDA has also grown by 55% to $3.4 million (2007: $2.2 million), with 
the Group benefiting from the strengthening of the US dollar during the period. 
 
 
Dividends 
In line with the Group's progressive dividend policy, SatCom intends to pay an 
interim dividend of 0.25 cents per ordinary share (2007 interim 0.2 cents). This 
will be paid on 17 April 2009 to all shareholders on the register at 27 March 
2009. 
 
 
The proposed final dividend for the year ended 30 June 2008 of 0.40 cents per 
share was paid in December 2008 (2007 final: 0.33 cents). 
 
 
Finance 
In June 2009 our issue of GBP3,000,000 2009 8% Convertible Bonds and US$600,000 
4% Convertible Bonds fall due for redemption or conversion at a price of 39 
pence. We are assuming that our share price will not exceed the conversion price 
and that the Company will therefore redeem the issue in full. The board is in 
negotiation to secure additional facilities. 
 
 
Outlook 
 
 
Following the outcome of the refinance negotiations the Group will continue to 
look for strategic and profit enhancing acquisitions as they arise in both the 
Mobile Satellite Services and the VSAT sectors. 
 
 
 
 
 
 
Mark White 
Chief Executive Officer 
18 March 2009 
  Consolidated accounts for the six months ended 31 December 2008 
Consolidated income statement 
 
 
+----------+---------+----------+----------+--+--+-------+-----------+-----------+----------+ 
|          |                    |                | Notes | Unaudited | Unaudited |  Audited | 
|          |                    |                |       | half year | half year |     year | 
|          |                    |                |       | 31 Dec 08 | 31 Dec 07 |    ended | 
|          |                    |                |       |   $'000's |   $'000's |   30 Jun | 
|          |                    |                |       |           |           |       08 | 
|          |                    |                |       |           |           |  $'000's | 
|          |                    |                |       |           |           |          | 
+----------+--------------------+----------------+-------+-----------+-----------+----------+ 
|          |                    |                |       |           |           |          | 
+----------+--------------------+----------------+-------+-----------+-----------+----------+ 
| Revenue  |                    |                |  2    |           |           |          | 
+----------+--------------------+----------------+-------+-----------+-----------+----------+ 
|  Continuing operations        |                |       |           |           |          | 
+-------------------------------+----------------+-------+-----------+-----------+----------+ 
|  - Ongoing                    |                |       |    46,487 |    31,907 |   69,803 | 
+-------------------------------+----------------+-------+-----------+-----------+----------+ 
|  - Acquisitions               |                |       |     7,131 |         - |    2,267 | 
+-------------------------------+----------------+-------+-----------+-----------+----------+ 
|                               |                |       |    53,618 |    31,907 |   72,070 | 
+-------------------------------+----------------+-------+-----------+-----------+----------+ 
| Cost of sales                 |                |       |  (43,772) |  (24,930) | (55,825) | 
+-------------------------------+----------------+-------+-----------+-----------+----------+ 
| Gross profit                  |                |       |     9,846 |     6,977 |   16,245 | 
+-------------------------------+----------------+-------+-----------+-----------+----------+ 
|                               |                |       |           |           |          | 
+-------------------------------+----------------+-------+-----------+-----------+----------+ 
| Administrative expenses                        |       |   (6,441) |   (4,744) | (10,225) | 
+------------------------------------------------+-------+-----------+-----------+----------+ 
|          |         |                           |       |           |           |          | 
+----------+---------+---------------------------+-------+-----------+-----------+----------+ 
| EBITDA             |                           |       |     3,405 |     2,233 |    6,020 | 
+--------------------+---------------------------+-------+-----------+-----------+----------+ 
| Depreciation and amortisation                  |       |     (372) |     (223) |    (506) | 
+------------------------------------------------+-------+-----------+-----------+----------+ 
|                                                |       |           |           |          | 
+------------------------------------------------+-------+-----------+-----------+----------+ 
| Operating profit (EBIT)                        |  3    |           |           |          | 
+------------------------------------------------+-------+-----------+-----------+----------+ 
| Continuing operations                          |       |           |           |          | 
+------------------------------------------------+-------+-----------+-----------+----------+ 
|  - Ongoing                                     |       |     2,890 |     2,010 |    5,520 | 
+------------------------------------------------+-------+-----------+-----------+----------+ 
|  - Acquisitions                                |       |       143 |         - |      (6) | 
+------------------------------------------------+-------+-----------+-----------+----------+ 
|                                                |       |     3,033 |     2,010 |    5,514 | 
+------------------------------------------------+-------+-----------+-----------+----------+ 
|                                                |       |           |           |          | 
+------------------------------------------------+-------+-----------+-----------+----------+ 
| Net interest and similar charges               |       |     (476) |     (376) |    (789) | 
+------------------------------------------------+-------+-----------+-----------+----------+ 
| Amortisation of issue costs on convertible     |       |      (64) |      (59) |    (128) | 
| loan stock                                     |       |           |           |          | 
+------------------------------------------------+-------+-----------+-----------+----------+ 
|          |         |                           |       |           |           |          | 
+----------+---------+---------------------------+-------+-----------+-----------+----------+ 
| Profit on ordinary activities before           |       |           |           |          | 
+------------------------------------------------+-------+-----------+-----------+----------+ 
|          |         |                           |       |     2,493 |     1,575 |    4,597 | 
| taxation |         |                           |       |           |           |          | 
+----------+---------+---------------------------+-------+-----------+-----------+----------+ 
|                                                |       |           |           |          | 
+------------------------------------------------+-------+-----------+-----------+----------+ 
| Taxation                                       |  4    |     (494) |     (330) |    (918) | 
+------------------------------------------------+-------+-----------+-----------+----------+ 
|          |         |                           |       |           |           |          | 
+----------+---------+---------------------------+-------+-----------+-----------+----------+ 
| Profit on ordinary activities after            |       |           |           |          | 
+------------------------------------------------+-------+-----------+-----------+----------+ 
| Taxation                                 |  |  |       |     1,999 |     1,245 |    3,679 | 
+------------------------------------------+--+--+-------+-----------+-----------+----------+ 
|                                          |  |  |       |           |           |          | 
+------------------------------------------+--+--+-------+-----------+-----------+----------+ 
|                                                                                           | 
+-------------------------------------------------------------------------------------------+ 
| Basic earnings per share                    |  |  5    |      3.35 |      2.09 |     6.17 | 
|                                             |  |       |     cents |     cents |    cents | 
+---------------------------------------------+--+-------+-----------+-----------+----------+ 
| Diluted earnings per share                     |  5    |      3.24 |      2.13 |     5.89 | 
|                                                |       |     cents |     cents |    cents | 
+------------------------------------------------+-------+-----------+-----------+----------+ 
|                                                |       |           |           |          | 
+----------+---------+----------+----------+--+--+-------+-----------+-----------+----------+ 
  Consolidated accounts as at 31 December 2008 
Consolidated balance sheet 
 
 
+------------------+---------+--------+--------+--------+-----------+-----------+----------+ 
|                                                       | Unaudited | Unaudited |  Audited | 
+-------------------------------------------------------+-----------+-----------+----------+ 
|                                                       |      half |      half |     year | 
|                                                       |      year |      year |    ended | 
+-------------------------------------------------------+-----------+-----------+----------+ 
|                                                       |    31 Dec |    31 Dec |   30 Jun | 
|                                                       |        08 |        07 |       08 | 
+-------------------------------------------------------+-----------+-----------+----------+ 
|   Notes                                               |   $'000's |   $'000's |  $'000's | 
+-------------------------------------------------------+-----------+-----------+----------+ 
|                                                       |           |           |          | 
+-------------------------------------------------------+-----------+-----------+----------+ 
| Non-current assets                                    |           |           |          | 
+-------------------------------------------------------+-----------+-----------+----------+ 
| Goodwill                                              |    18,711 |    12,673 |   18,045 | 
+-------------------------------------------------------+-----------+-----------+----------+ 
| Intangible fixed assets                               |     1,570 |       995 |    1,406 | 
+-------------------------------------------------------+-----------+-----------+----------+ 
| Property, plant and equipment       |                 |     1,825 |       878 |    1,775 | 
+-------------------------------------+-----------------+-----------+-----------+----------+ 
|                                                       |           |           |          | 
+-------------------------------------------------------+-----------+-----------+----------+ 
|                                                       |    22,106 |    14,546 |   21,226 | 
+-------------------------------------------------------+-----------+-----------+----------+ 
|                                                       |           |           |          | 
+-------------------------------------------------------+-----------+-----------+----------+ 
| Current assets                                        |           |           |          | 
+-------------------------------------------------------+-----------+-----------+----------+ 
| Inventories                                           |     7,092 |     4,999 |    5,475 | 
+-------------------------------------------------------+-----------+-----------+----------+ 
| Trade and other receivables                           |    19,587 |    18,241 |   17,523 | 
+-------------------------------------------------------+-----------+-----------+----------+ 
| Bank balances and cash                                |       454 |     1,160 |    2,097 | 
+-------------------------------------------------------+-----------+-----------+----------+ 
|                                                       |           |           |          | 
+-------------------------------------------------------+-----------+-----------+----------+ 
|                                                       |    27,133 |    24,400 |   25,095 | 
+-------------------------------------------------------+-----------+-----------+----------+ 
|                                              |                    |           |          | 
+----------------------------------------------+--------------------+-----------+----------+ 
| Current liabilities                          |                    |           |          | 
+----------------------------------------------+--------------------+-----------+----------+ 
| Financial liabilities                        |              6,423 |       805 |    7,109 | 
+----------------------------------------------+--------------------+-----------+----------+ 
| Trade and other payables                     |             21,090 |    19,916 |   19,277 | 
+----------------------------------------------+--------------------+-----------+----------+ 
| Current tax                                  |              1,299 |       333 |    1,028 | 
+----------------------------------------------+--------------------+-----------+----------+ 
| Obligations under finance leases             |                197 |       118 |      197 | 
+----------------------------------------------+--------------------+-----------+----------+ 
|                                              |                    |           |          | 
+----------------------------------------------+--------------------+-----------+----------+ 
|                                              |             29,009 |    21,172 |   27,611 | 
+----------------------------------------------+--------------------+-----------+----------+ 
|                                                       |           |           |          | 
+-------------------------------------------------------+-----------+-----------+----------+ 
| Net current assets/(liabilities)                      |   (1,876) |     3,228 |  (2,516) | 
+-------------------------------------------------------+-----------+-----------+----------+ 
|                  |         |                          |           |           |          | 
+------------------+---------+--------------------------+-----------+-----------+----------+ 
| Total assets less current liabilities        |             20,230 |    17,774 |   18,710 | 
+----------------------------------------------+--------------------+-----------+----------+ 
|                  |         |                          |           |           |          | 
+------------------+---------+--------------------------+-----------+-----------+----------+ 
| Non-current liabilities                      |                    |           |          | 
+----------------------------------------------+--------------------+-----------+----------+ 
| Financial liabilities                        |              5,677 |     7,264 |    5,875 | 
+----------------------------------------------+--------------------+-----------+----------+ 
| Obligations under finance leases             |                 90 |       127 |      137 | 
+----------------------------------------------+--------------------+-----------+----------+ 
|                  |         |                          |           |           |          | 
+------------------+---------+--------------------------+-----------+-----------+----------+ 
|                                              |              5,767 |     7,391 |    6,012 | 
+----------------------------------------------+--------------------+-----------+----------+ 
|                  |         |                          |           |           |          | 
+------------------+---------+--------------------------+-----------+-----------+----------+ 
| Net assets       |         |                          |    14,463 |    10,383 |   12,698 | 
+------------------+---------+--------------------------+-----------+-----------+----------+ 
|                  |         |                          |           |           |          | 
+------------------+---------+--------------------------+-----------+-----------+----------+ 
| Shareholders' equity       |                          |           |           |          | 
+----------------------------+--------------------------+-----------+-----------+----------+ 
| Called-up share capital    |                          |     6,053 |     6,053 |    6,053 | 
+----------------------------+--------------------------+-----------+-----------+----------+ 
| Share premium account                                 |     4,845 |     4,845 |    4,845 | 
+-------------------------------------------------------+-----------+-----------+----------+ 
| Merger reserve             |            9             |  (10,884) |  (10,884) | (10,884) | 
+----------------------------+--------------------------+-----------+-----------+----------+ 
| Retained profits           |                          |    14,449 |    10,369 |   12,684 | 
+----------------------------+--------------------------+-----------+-----------+----------+ 
|                  |         |                          |           |           |          | 
+------------------+---------+--------------------------+-----------+-----------+----------+ 
| Total shareholders' funds                             |    14,463 |    10,383 |   12,698 | 
+------------------+---------+--------+--------+--------+-----------+-----------+----------+ 
 
 
Consolidated accounts as at 31 December 2008 
Consolidated statement of changes in equity 
+--------------------------+--+---------+---------+----------+----------+--------+ 
|                          |  |         |         |          |          |        | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
|                          |  |         |         |          |          |        | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
|                          |  |  Share  |  Share  |   Merger | Retained |        | 
|                          |  |         |         |          |          |        | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
|                          |  | capital | premium |  reserve |  Profits |  Total | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
|                          |  |  $'000s |  $'000s |   $'000s |   $'000s | $'000s | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
|                          |  |         |         |          |          |        | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
| Balance at 30 June 2007  |  |   6,053 |   4,845 | (10,884) |    9,321 |  9,335 | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
|                          |  |         |         |          |          |        | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
| Profit for the financial |  |       - |       - |        - |    1,245 |  1,245 | 
| period                   |  |         |         |          |          |        | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
| Dividends paid           |  |       - |       - |        - |    (197) |  (197) | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
| Balance at 31 December   |  |   6,053 |   4,845 | (10,884) |   10,369 | 10,383 | 
| 2007                     |  |         |         |          |          |        | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
|                          |  |         |         |          |          |        | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
| Profit for the financial |  |       - |       - |        - |    2,434 |  2,434 | 
| period                   |  |         |         |          |          |        | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
| Dividends paid           |  |       - |       - |        - |    (119) |  (119) | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
| Balance at 30 June 2008  |  |   6,053 |   4,845 | (10,884) |   12,684 | 12,698 | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
|                          |  |         |         |          |          |        | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
| Profit for the financial |  |       - |       - |        - |    1,999 |  1,999 | 
| period                   |  |         |         |          |          |        | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
| Dividends paid           |  |       - |       - |        - |    (234) |  (234) | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
| Balance at 31 Dec 2008   |  |   6,053 |   4,845 | (10,884) |   14,449 | 14,463 | 
+--------------------------+--+---------+---------+----------+----------+--------+ 
 
 
 
 
 
 
 
 
Consolidated accounts for the six months ended 31 December 2008 
Consolidated cash flow statement 
 
 
+--------------------------------+-----------+-------+-----------+-----------+----------+ 
|                                |                   | Unaudited | Unaudited |  Audited | 
+--------------------------------+-------------------+-----------+-----------+----------+ 
|                                |                   |      half |      half |     year | 
|                                |                   |      year |      year |    ended | 
+--------------------------------+-------------------+-----------+-----------+----------+ 
|                                |                   |    31 Dec |    31 Dec |   30 Jun | 
|                                |                   |        08 |        07 |       08 | 
+--------------------------------+-------------------+-----------+-----------+----------+ 
|                                |      Notes        |   $'000's |   $'000's |  $'000's | 
+--------------------------------+-------------------+-----------+-----------+----------+ 
|                                |                   |           |           |          | 
+--------------------------------+-------------------+-----------+-----------+----------+ 
| Cash flows from operating activities               |           |           |          | 
+----------------------------------------------------+-----------+-----------+----------+ 
| Net cash generated from operating activities    6  |       837 |     1,937 |    4,585 | 
+----------------------------------------------------+-----------+-----------+----------+ 
|                                            |       |           |           |          | 
+--------------------------------------------+-------+-----------+-----------+----------+ 
| Cash flows from investing activities               |           |           |          | 
+----------------------------------------------------+-----------+-----------+----------+ 
| Interest received                                  |         1 |        17 |       81 | 
+----------------------------------------------------+-----------+-----------+----------+ 
| Purchase of intangible fixed assets                |     (829) |     (218) |    (673) | 
+----------------------------------------------------+-----------+-----------+----------+ 
| Purchase of tangible fixed assets                  |     (423) |     (126) |    (366) | 
+----------------------------------------------------+-----------+-----------+----------+ 
| Cash paid to acquire subsidiary undertakings       |         - |   (1,032) |  (4,649) | 
+----------------------------------------------------+-----------+-----------+----------+ 
| Net cash used in investing activities              |   (1,251) |   (1,359) |  (5,607) | 
+----------------------------------------------------+-----------+-----------+----------+ 
|                                            |       |           |           |          | 
+--------------------------------------------+-------+-----------+-----------+----------+ 
| Cash flows from financing activities       |       |           |           |          | 
+--------------------------------------------+-------+-----------+-----------+----------+ 
| Decrease in short term borrowing                   |     (750) |     (120) |    (267) | 
+----------------------------------------------------+-----------+-----------+----------+ 
| Decrease(increase) in long term borrowing          |     (198) |         - |    2,885 | 
+----------------------------------------------------+-----------+-----------+----------+ 
| Payment of finance lease liabilities               |      (47) |      (60) |    (142) | 
+----------------------------------------------------+-----------+-----------+----------+ 
| Dividends paid                             |       |     (234) |     (197) |    (316) | 
+--------------------------------------------+-------+-----------+-----------+----------+ 
| Net cash (used) generated in financing activities  |   (1,229) |     (377) |    2,160 | 
+----------------------------------------------------+-----------+-----------+----------+ 
|                                            |       |           |           |          | 
+--------------------------------------------+-------+-----------+-----------+----------+ 
| Net (decrease) increase in cash and cash   |       |   (1,643) |       201 |    1,138 | 
| equivalents                                |       |           |           |          | 
+--------------------------------------------+-------+-----------+-----------+----------+ 
|                                            |       |           |           |          | 
+--------------------------------------------+-------+-----------+-----------+----------+ 
| Cash and cash equivalents at the beginning |       |     2,097 |       959 |      959 | 
| of the period                              |       |           |           |          | 
+--------------------------------------------+-------+-----------+-----------+----------+ 
|                                            |       |           |           |          | 
+--------------------------------------------+-------+-----------+-----------+----------+ 
| Cash and cash equivalents at the end of    |       |       454 |     1,160 |    2,097 | 
| the period                                 |       |           |           |          | 
+--------------------------------+-----------+-------+-----------+-----------+----------+ 
 
 
  Consolidated accounts for the six months ended 31 December 2008 
Group notes 
 
 
1. Basis of preparation 
The financial statements are presented in US dollars since this is the currency 
in which the majority of the Company's transactions are denominated. 
 
 
The interim statement does not constitute statutory accounts as defined by 
Section 235 of the Companies Act 2006. The information for the year to 30 June 
2008 has been extracted from the full financial statements for that year (as 
restated for the adoption of IFRS), which received an unqualified audit report, 
and which, have been filed with the Registrar of Companies.  The accounting 
policies and method of computation are consistent with the full financial 
statements for the year to 30 June 2008. 
 
 
 
 
 
 
2. Revenue by geographical location of customer 
+--------------------+------+-------------+----+-----------+----+-----------+--+-----------+ 
|                           |             |    | Unaudited |    | Unaudited |  |   Audited | 
+---------------------------+-------------+----+-----------+----+-----------+--+-----------+ 
|                           |             |    |      half |    |      half |  |      year | 
|                           |             |    |      year |    |      year |  |     ended | 
+---------------------------+-------------+----+-----------+----+-----------+--+-----------+ 
|                           |             |    |    31 Dec |    |    31 Dec |  | 30 Jun 08 | 
|                           |             |    |        08 |    |        07 |  |           | 
+---------------------------+-------------+----+-----------+----+-----------+--+-----------+ 
|                           |             |    |   $'000's |    |   $'000's |  |   $'000's | 
+---------------------------+-------------+----+-----------+----+-----------+--+-----------+ 
|                           |             |    |           |    |           |  |           | 
+---------------------------+-------------+----+-----------+----+-----------+--+-----------+ 
| European Union                          |    |     8,150 |    |     5,944 |  |    12,526 | 
+-----------------------------------------+----+-----------+----+-----------+--+-----------+ 
| United States      |                    |    |    30,294 |    |    13,711 |  |    36,073 | 
+--------------------+--------------------+----+-----------+----+-----------+--+-----------+ 
| Asia               |                    |    |     9,101 |    |    10,508 |  |    18,504 | 
+--------------------+--------------------+----+-----------+----+-----------+--+-----------+ 
| Rest of the World  |                    |    |     6,073 |    |     1,744 |  |     4,967 | 
+--------------------+--------------------+----+-----------+----+-----------+--+-----------+ 
|                    |                    |    |           |    |           |  |           | 
+--------------------+--------------------+----+-----------+----+-----------+--+-----------+ 
|                    |                    |    |    53,618 |    |    31,907 |  |    72,070 | 
+--------------------+------+-------------+----+-----------+----+-----------+--+-----------+ 
 
 
 
 
3. Operating profit 
Operating profit is stated after charging: 
+---------------------------------+---+-----------+---+-----------+--+----------+ 
|                                 |   | Unaudited |   | Unaudited |  |  Audited | 
+---------------------------------+---+-----------+---+-----------+--+----------+ 
|                                 |   |      half |   |      half |  |     year | 
|                                 |   |      year |   |      year |  |    ended | 
+---------------------------------+---+-----------+---+-----------+--+----------+ 
|                                 |   |    31 Dec |   |    31 Dec |  |   30 Jun | 
|                                 |   |        08 |   |        07 |  |       08 | 
+---------------------------------+---+-----------+---+-----------+--+----------+ 
|                                 |   |   $'000's |   |   $'000's |  |  $'000's | 
+---------------------------------+---+-----------+---+-----------+--+----------+ 
|                                 |   |           |   |           |  |          | 
+---------------------------------+---+-----------+---+-----------+--+----------+ 
| Staff costs                     |   |     4,383 |   |     2,484 |  |    5,645 | 
+---------------------------------+---+-----------+---+-----------+--+----------+ 
| Depreciation and amortisation   |   |       372 |   |       223 |  |      506 | 
+---------------------------------+---+-----------+---+-----------+--+----------+ 
| Auditor's remuneration - as     |   |       130 |   |        70 |  |      144 | 
| auditors                        |   |           |   |           |  |          | 
+---------------------------------+---+-----------+---+-----------+--+----------+ 
| Auditor's remuneration - other  |   |         - |   |         - |  |       32 | 
| work                            |   |           |   |           |  |          | 
+---------------------------------+---+-----------+---+-----------+--+----------+ 
| Operating lease costs: land and |   |       404 |   |       173 |  |      523 | 
| buildings                       |   |           |   |           |  |          | 
+---------------------------------+---+-----------+---+-----------+--+----------+ 
|                                 |   |           |   |           |  |          | 
+---------------------------------+---+-----------+---+-----------+--+----------+ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4. Taxation 
The tax charge of $494,000 (2007: $330,000) is calculated by applying the 
effective tax rate for each of the Group's material tax jurisdictions to the 
profit before tax in each jurisdiction. 
 
 
 
 
5. Earnings per share 
 Basic earnings per share are based on the Group profit attributable to members 
of the parent company of $1,999,000 (2007: $1,245,000) and on 59,628,644 (2007: 
59,628,644) being the weighted average number of shares in issue during the 
period. 
 
 
Diluted earnings per share are based on the profit attributable to members of 
the parent company plus the interest payable to the convertible bondholders, 
less the relevant tax relief thereon, being $2,266,000 (2007: $1,480,000) and on 
69,801,511 (2007: 69,564,941) being the diluted weighted average number of 
shares in issue during the period. 
 
 
 
6. Cash flow statement 
+---------------------------+---------+---------+-----------+-----------+------------+ 
|                           |         |         | Unaudited | Unaudited |    Audited | 
+---------------------------+---------+---------+-----------+-----------+------------+ 
|                           |         |         | half year | half year | year ended | 
+---------------------------+---------+---------+-----------+-----------+------------+ 
|                           |         |         | 31 Dec 08 | 31 Dec 07 |  30 Jun 08 | 
+---------------------------+---------+---------+-----------+-----------+------------+ 
|                           |         |         |   $'000's |   $'000's |    $'000's | 
+---------------------------+---------+---------+-----------+-----------+------------+ 
|                           |         |         |           |           |            | 
+---------------------------+---------+---------+-----------+-----------+------------+ 
| Reconciliation of operating activities to operating cash flows                     | 
+------------------------------------------------------------------------------------+ 
|                           |         |         |           |           |            | 
+---------------------------+---------+---------+-----------+-----------+------------+ 
| Operating profit                    |         |     3,033 |     2,010 |      5,514 | 
+-------------------------------------+---------+-----------+-----------+------------+ 
| Adjustments for:                    |         |           |           |            | 
+-------------------------------------+---------+-----------+-----------+------------+ 
| Depreciation                        |         |       372 |       223 |        418 | 
+-------------------------------------+---------+-----------+-----------+------------+ 
|                                     |         |           |           |            | 
+-------------------------------------+---------+-----------+-----------+------------+ 
| Operating cash flow before movement |         |     3,405 |     2,233 |      6,020 | 
| in working capital                  |         |           |           |            | 
+-------------------------------------+---------+-----------+-----------+------------+ 
|                                     |         |           |           |            | 
+-------------------------------------+---------+-----------+-----------+------------+ 
| (Increase) decrease in inventories  |         |   (1,617) |       589 |        372 | 
+-------------------------------------+---------+-----------+-----------+------------+ 
| (Increase) decrease in receivables  |         |   (2,064) |   (1,018) |        492 | 
+-------------------------------------+---------+-----------+-----------+------------+ 
| Increase (decrease) in payables     |         |     1,813 |     1,255 |      (777) | 
+-------------------------------------+---------+-----------+-----------+------------+ 
|                           |         |         |           |           |            | 
+---------------------------+---------+---------+-----------+-----------+------------+ 
| Cash generated by operations        |         |     1,537 |     3,059 |      6,107 | 
+-------------------------------------+---------+-----------+-----------+------------+ 
|                                     |         |           |           |            | 
+-------------------------------------+---------+-----------+-----------+------------+ 
| Interest paid                       |         |     (477) |     (393) |      (870) | 
+-------------------------------------+---------+-----------+-----------+------------+ 
| Income taxes paid                   |         |     (223) |     (729) |      (652) | 
+-------------------------------------+---------+-----------+-----------+------------+ 
|                                     |         |           |           |            | 
+-------------------------------------+---------+-----------+-----------+------------+ 
| Net cash generated from operating   |         |       837 |     1,937 |      4,585 | 
| activities                          |         |           |           |            | 
+-------------------------------------+---------+-----------+-----------+------------+ 
|                                     |         |           |           |            | 
+---------------------------+---------+---------+-----------+-----------+------------+ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7. Investments 
Details of the trading investments at 31 December 2008, in which the Group holds 
20% or more of the issued share capital of any class of share capital, are as 
set out below. All companies are in the business of distribution of satellite 
communication equipment and airtime and all holdings are in ordinary shares 
apart from Shared Data Networks, LLC where the equity is classified as 
Membership interest : 
 
 
+--------------------------------------------+--------------+--------------+ 
| Name of subsidiary                         | % of shares  |   Country    | 
|                                            |    held      |              | 
+--------------------------------------------+--------------+--------------+ 
|                                            |              |              | 
+--------------------------------------------+--------------+--------------+ 
| SatCom Distribution Limited                |    100%      |      UK      | 
+--------------------------------------------+--------------+--------------+ 
| SatCom Distribution Inc.*                  |    100%      |     USA      | 
+--------------------------------------------+--------------+--------------+ 
| O'Gara Satellite Systems, Inc.*            |    100%      |     USA      | 
+--------------------------------------------+--------------+--------------+ 
| SatCom Distribution (Asia) Limited*        |    100%      |  Hong Kong   | 
+--------------------------------------------+--------------+--------------+ 
| SatCom Distribution Middle East FZ LLC*    |      55%     |     UAE      | 
+--------------------------------------------+--------------+--------------+ 
| Horizon Mobile Communications Co Limited*  |    100%      |  Thailand    | 
+--------------------------------------------+--------------+--------------+ 
| Horizon Mobile Communications Pte Limited* |    100%      |  Singapore   | 
+--------------------------------------------+--------------+--------------+ 
| Horizon Mobile Communications (HK) Co      |    100%      |     BVI      | 
| Limited*                                   |              |              | 
+--------------------------------------------+--------------+--------------+ 
| Horizon Mobile Communications (Australia)  |    100%      |  Australia   | 
| Pty Limited*                               |              |              | 
+--------------------------------------------+--------------+--------------+ 
| Horizon Mobile Communications (HK) Co      |    100%      |    Japan     | 
| Limited **                                 |              |              | 
+--------------------------------------------+--------------+--------------+ 
| SatCom Global FZE                          |    100%      |     UAE      | 
+--------------------------------------------+--------------+--------------+ 
| World Communication Center, Inc.*          |    100%      |     USA      | 
+--------------------------------------------+--------------+--------------+ 
| Shared Data Networks, LLC*                 |    100%      |     USA      | 
+--------------------------------------------+--------------+--------------+ 
 
 
** Registered branch    * Held by a subsidiary undertaking 
 
 
 
 
8. Share options 
 
 
Details of the Company schemes movements during the period are as follows: 
 
 
+-------------------+-----------+----------+---------------+-----------+----------------+ 
|                   |June 2008  | Issued/  |December 2008  | Exercise  |Exercise dates  | 
|                   |           |(Lapsed)  |               |  price    |                | 
+-------------------+-----------+----------+---------------+-----------+----------------+ 
| EMI approved (UK) |    28,440 |        - |        28,440 | 9.6 pence |   April 2008 - | 
|                   |           |          |               |           |           2015 | 
+-------------------+-----------+----------+---------------+-----------+----------------+ 
| Unapproved        |    10,760 |        - |        10,760 | 9.6 pence |   April 2008 - | 
| (Overseas)        |           |          |               |           |           2015 | 
+-------------------+-----------+----------+---------------+-----------+----------------+ 
| EMI approved (UK) |     4,380 |        - |         4,380 |      34.0 | October 2008 - | 
|                   |           |          |               |     pence |           2015 | 
+-------------------+-----------+----------+---------------+-----------+----------------+ 
| Unapproved        |   121,981 | (23,077) |        98,904 |      34.0 | October 2008 - | 
| (Overseas)        |           |          |               |     pence |           2015 | 
+-------------------+-----------+----------+---------------+-----------+----------------+ 
| EMI approved (UK) |    18,240 |  (2,920) |        15,320 |      36.5 |  December 2009 | 
|                   |           |          |               |     pence |         - 2016 | 
+-------------------+-----------+----------+---------------+-----------+----------------+ 
| Unapproved        |   122,477 | (20,876) |       101,601 |      36.5 |  December 2009 | 
| (Overseas)        |           |          |               |     pence |         - 2016 | 
+-------------------+-----------+----------+---------------+-----------+----------------+ 
| Unapproved        |         - |  250,000 |       250,000 |      10.0 |  November 2011 | 
| (Overseas)        |           |          |               |     pence |         - 2018 | 
+-------------------+-----------+----------+---------------+-----------+----------------+ 
|                   |           |          |               |           |                | 
+-------------------+-----------+----------+---------------+-----------+----------------+ 
| TOTAL             |   306,278 |  203,127 |       509,405 |           |                | 
+-------------------+-----------+----------+---------------+-----------+----------------+ 
 
 
 
 
9. Merger reserve 
The acquisition by the Company of SatCom Distribution Limited and its 
subsidiaries in May 2004 was accounted for as a group reconstruction. 
Accordingly, a debit merger reserve was recognised in the consolidated balance 
sheet representing the difference between the consideration paid to acquire the 
Group and its net assets at the date of the transaction. 
 
 
 
 
 
 
10. Related Party Transactions 
Transactions between group companies are eliminated on consolidation and are not 
disclosed in this note. 
 
 
SatCom Distribution Limited incurred consultancy costs in the period in the 
amount of EUR196,000 (2007: EUR181,000) from Satellite Communications Consultancy 
BVBA. This is a company incorporated in Belgium and is controlled by a director, 
Mark White. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IR SFSFAASUSESD