We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Tialis Essential It Plc | LSE:TIA | London | Ordinary Share | GB00BN4M3M55 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 57.50 | 55.00 | 60.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Cmp Processing,data Prep Svc | 14.46M | -437k | -0.0180 | -31.94 | 13.93M |
TIDMIDE
RNS Number : 7030N
IDE Group Holdings PLC
26 September 2019
IDE Group Holdings Plc
("IDE", the "Group" or the "Company")
Unaudited Interim Results
IDE Group Holdings plc, the mid-market network, cloud and IT managed services provider, today announces its unaudited results for the six months ended 30 June 2019.
Summary
-- Revenue of GBP14.7 million (H1 2018*: GBP21.8 million)
-- Adjusted EBITDA** profit of GBP1.2 million (H1 2018*: loss of GBP7.6 million), including IFRS 16 adjustment of GBP0.57 million
-- The loss after tax for the period was reduced to GBP2.9 million (H1 2018 - continuing operations: loss of GBP35.5 million).
-- Net debt*** as at 30 June 2019 of GBP12.3 million (31 December 2018: GBP9.9 million), following GBP10.0 million loan note issue in first quarter and repayment of Group bank debt
-- Loan notes subscribed for by existing shareholders, Company now has no external debt other than with key shareholders
-- Significant customer multi-year contract renewals, including a 3-year contract for cloud and hosting with a total value of GBP1 million
-- New partnership with a global IT services company, first project started post-period end in August
* from continuing operations, excluding the results relating to 365 ITMS Limited and the PACT business which were sold in October 2018
** before net finance costs, tax, depreciation, impairment charges, amortisation, exceptional items and share based payment charges
*** excluding IFRS 16 liabilities
IDE Group Holdings Plc Tel: +44 (0)344 Andy Parker, Executive Chairman 874 1000 finnCap Limited Tel: +44 (0)20 7220 Nominated Adviser and Broker 0500 Corporate finance: Jonny Franklin-Adams/ Hannah Boros ECM: Tim Redfern/ Richard Chambers
Executive Chairman's Statement
The first six months of the year has been a period of stabilisation following the upheaval of the restructuring which took place during 2018. As a result of the actions taken during 2018, we started 2019 in a much improved position with a strong leadership team, an appropriate cost base as well as a clear focus on operational execution and customer service to drive increased profitability and cash generation. To that end, it is pleasing to report an Adjusted EBITDA* of GBP1.2 million (including a GBP0.57 million IFRS adjustment as explained in the financial review) for the period compared to the GBP7.6 million loss in the corresponding last year, which reflected the significant challenges the business faced last year.
Refinancing
In January 2019 we announced a proposed fundraising of GBP10.0 million by the way of the issue of secured loan notes in order to fully repay the Group's bank facilities and provide additional working capital. The first tranche of loan notes was issued in January with the remaining loan notes issued in February and March following which the Group's bank facilities were fully repaid. We saw this as a very positive step as the Group now has secure, long term funding and no external debt as the loan notes are held solely by shareholders of the Company, predominantly the three largest, two of whom are also represented on the Board. Further details of the loan notes can be found in the financial review below.
Trading
Towards the end of 2018, several of the Group's material customers renewed their contracts with IDE, some on a multi-year basis and I am pleased to say that during the period under review, the Group secured several other significant renewals including a 3 year contract for cloud and hosting services with a total contract value of over GBP1 million.
The restructuring last year meant that we entered this year with an appropriate cost base and the refinancing in the first quarter has given us a stable platform from which to grow. To that end, in May this year we recruited a new Head of Sales to drive sales growth. Already our level of engagement with our key customers, including a large international outsourcer, has immeasurably improved. In addition, we are being awarded extensions to other contracts and have commenced new projects which we expect to grow over the coming months.
Furthermore, we were very pleased to enter into a new partnership with another global IT services company during the period, and the first project under this new partnership commenced post-period end in August. We believe there is significant potential for growth with this partner and look forward to updating shareholders in this respect.
Group revenue in the period was impacted by certain projects and contracts coming to an end and a general level of churn in the business, in particular with respect to our cloud and networks divisions. In order to address this going forward, we continue to enhance our cloud platform and offering and are developing a joint value proposition with Equinix, Inc. a multi-national data centre and co-location provider. Furthermore, we continue to close down legacy networks in order to improve service and profitability.
In summary, the first half of the year has shown a significant turnaround from the upheaval of the previous year. We have been successful in renewing significant customer contracts and in progressing new relationships. We continue to explore further areas where costs can be saved whilst investing in areas that will help drive growth. We are confident in the outlook for the Group and remain ambitious in securing and improving margins and cash generation.
Andy Parker
Executive Chairman
Financial Review
Results for the six months to 30 June 2019
Revenue for the six months to 30 June 2019 was GBP14.7 million (H1 2018 - continuing operations: GBP21.8 million). The decrease in revenue can be primarily attributed to a fall in lifecycle revenues included within managed services and reductions in project revenues due to certain significant projects coming to an end last year and during the period under review. Furthermore, as referred to in the Chairman's statement, there has been a general level of churn across the business, in particular within the cloud and networks divisions.
Gross profit for the six months to 30 June 2019 was GBP3.6 million (including a GBP0.1 million IFRS 16 adjustment) (H1 2018 - continuing operations: GBP0.3 million), representing an overall gross margin of 24%, a significant improvement to the prior period. The low level of gross profit in the six months to 30 June 2018 was due predominantly to the inclusion within cost of sales of a provision of GBP2.2 million in relation to an onerous supply contract.
At an Adjusted EBITDA* level the Group generated a profit of GBP1.2 million (including an IFRS 16 adjustment of GBP0.57 million as detailed above) from continuing operations as compared to a loss of GBP7.6 million from continuing operations in the first half of 2018. The results six months to 30 June 2018 included GBP5.7 million of provisions in relation to onerous contracts and empty properties which were a major contributor to the loss at Adjusted EBITDA* level in that period.
Exceptional costs amounted to GBP0.4 million (H1 2018 - continuing operations: GBP0.9 million) and related predominantly to legacy redundancy costs as a result of the reduction in headcount in the previous financial year. Going forward, we expect exceptional costs to continue to decrease.
Depreciation increased to GBP1.5 million for the six months to 30 June 2019 compared to GBP1.2 million for H1 2018 as a result of a GBP0.5 million adjustment in relation to IFRS 16.
There were no impairment charges for the six months to 30 June 2019, whereas for the six months to 30 June 2018 impairment charges totalling GBP27.5 million were recognised in relation to goodwill and intangible assets resulting from the acquisition of IDE Group Manage (formerly Selection Services), although at the time of the final results for the year to 31 December 2018, GBP13.7 million of these charges were reversed.
Net financial costs have increased to GBP1.0 million (H1 2018 - continuing operations: GBP0.3 million), which include GBP0.7 million of interest on the loan notes issued in the first half of the year which is payable at the end of their term. In addition the costs include GBP0.1 million of notional interest in relation to the convertible loan notes issued last year and an additional GBP0.1 million of interest expense relating to the IFRS 16 adjustment.
The loss after tax for the period was GBP2.9 million (H1 2018 - continuing operations: loss of GBP35.5 million).
Loss per share was 0.73p (H1 2018 - continuing operations: 17.86p).
Cashflow and Net Debt
The Group's cash outflow from operating activities in the period was GBP0.5 million (H1 2018: GBP1.6 million). A number of onerous contracts have been provided for and hence do not impact the Group's Adjusted EBITDA*, but continue to affect the Group's cashflow, however continued efforts are being made in identifying further areas where costs can be rationalised in order to improve both profitability and cash flow.
As at the beginning of the period the Group's facilities with National Westminster Bank plc ("Natwest") comprised a five-year, fully drawn GBP4.75 million Revolving Credit Facility ("RCF") and a GBP3.5 million overdraft facility (the "Facilities"). Interest was payable on the utilised RCF at 2% above LIBOR.
In January 2019 the Company issued GBP5.3 million of secured loan notes with a six-year term and a 12% coupon which is compounded, rolled up and payable at the end of the term ("Secured LNs"). The proceeds of the Secured LNs were used to repay GBP4.125 million to Natwest and the RCF was reduced to GBP625k. In February and March 2019, a further GBP4.7 million in total of Secured LNs were issued to repay the remaining Facilities, which were then cancelled, and provide additional working capital. The Secured LNs carry an arrangement fee of 2.5 per cent., payable at the end of the term, and an exit fee of 2.5 per cent., also payable at the end of the term.
The net debt balance (excluding IFRS 16 liabilities) at 30 June 2019 was GBP12.3 million (31 December 2018: GBP9.9 million), which comprised the Secured LNs held at amortised cost using the effective interest rate method resulting in a liability as at 30 June 2019 of GBP10.7 million (note 5), plus the convertible loan notes of GBP1.7 million issued in August 2018 (note 6) and finance lease liabilities of GBP0.6 million, net of cash of GBP0.7 million.
New IFRS implementation
The Company has adopted IFRS 16 - Leases for the financial year ending 31 December 2019, and it has chosen to use the modified retrospective approach to adoption which means there are no restatements to the prior year figures.
IFRS 16 introduces a single lessee accounting model, whereby the Group now recognises a lease liability and a right of use asset at 1 January 2019 for leases previously classified as operating leases. Within the income statement, operating lease charges, which previously sat in both cost of sales and administrative expenses, have been replaced by depreciation and interest expenses.
The adoption of IFRS 16 resulted in a right of use asset of GBP2.0 million, with a corresponding liability of GBP2.0 million, being recognised as at 1 January 2019 which was depreciated to a value of GBP1.5 million as at 30 June 2019.
In order to see how the impact of IFRS 16 has affected gross profit and Adjusted EBITDA*, a reconciliation is presented below:
6 months ended 6 months ended 30 June 2019 30 June 2018 (continuing operations) GBP000 GBP000 Gross profit - consistent with 2018 presentation and accounting policy 3,495 346 Changes due to new accounting policy 93 - - IFRS 16 Gross profit - consistent with 2019 presentation and accounting policy 3,588 346 Adjusted EBITDA* - consistent with 2018 presentation and accounting policy 651 (7,649) Changes due to new accounting policy 567 - - IFRS 16 Adjusted EBITDA* - consistent with 2019 presentation and accounting policy 1,218 (7,649)
* before net finance costs, tax, depreciation, impairment charges, amortisation, exceptional items and share based payment charges.
Consolidated Statement of Comprehensive Income
Unaudited Unaudited Audited Six months Six months Year ended ended ended 30 June 30 June 31 December 2019 2018 2018 Note GBP000 GBP000 GBP000 ----------------------------------------------- -------------- ------------ ------------- Continuing Operations Revenue 2 14,713 21,781 41,137 Cost of sales (11,125) (21,435) (34,521) ---------------------------------------- ------ -------------- ------------ ------------- Gross profit 3,588 346 6,616 Administrative expenses excluding impairment (5,704) (12,162) (19,247) Impairment charge on goodwill - (23,722) (17,528) Operating loss (2,116) (35,538) (30,159) ---------------------------------------- ------ -------------- ------------ ------------- Analysed as: Adjusted EBITDA* 1,218 (7,649) (3,886) Exceptional items 3 (410) (846) (2,368) Depreciation of property, plant and equipment (1,491) (1,151) (2,848) Amortisation of intangible assets (1,433) (1,949) (3,290) Impairment of goodwill & intangibles - (23,722) (17,528) Loss on disposal of fixed assets - (164) (441) Charges for share based payments - (57) 202 Net financial costs (1,007) (277) (389) Loss before taxation (3,123) (35,815) (30,548) Income tax 200 303 1,089 ---------------------------------------- ------ -------------- ------------ ------------- Loss for the period from continuing operations attributable to owners of the parent company (2,923) (35,512) (29,459) Discontinued operations Loss after tax for the year from discontinued operations - (3,597) (3,165) ---------------------------------------- ------ -------------- ------------ ------------- Loss for the period after taxation (2,923) (39,109) (32,624) ---------------------------------------- ------ -------------- ------------ ------------- Other comprehensive income: Items that are or may be classified subsequently to profit or loss: Foreign exchange translation differences - equity accounted investments 6 (2) (23) ---------------------------------------- ------ -------------- ------------ ------------- Loss for the period and total comprehensive income attributable to equity holders of the parent (2,917) (39,111) (32,647) ---------------------------------------- ------ -------------- ------------ ------------- Basic and diluted loss per share - continuing operations 4 Basic (pence per share) (0.73) (17.69) (11.97) Diluted (pence per share) (0.73) (17.69) (11.97) ---------------------------------------- ------ -------------- ------------ -------------
* Earnings from continuing operations before net finance costs, tax, depreciation, amortisation, impairment charges, share based payments and exceptional costs
Consolidated Statement of Financial Position
Unaudited Unaudited Audited 30 June 30 June 31 December 2019 2018 2018 GBP000 GBP000 GBP000 ------------------------------- --- ---------- ------------------- ---------------- Non-current assets Intangible assets 20,267 10,309 21,464 Goodwill 5,931 14,997 5,931 Property, plant and equipment 10,493 11,470 9,836 Financial and other assets - 63 - ------------------------------- --- ---------- ------------------- ---------------- 36,691 36,839 37,231 ------------------------------- --- ---------- ------------------- ---------------- Current assets Trade and other receivables 7,970 12,000 8,893 Stock - 354 - Cash and cash equivalents 690 3,833 - 8,660 16,187 8,893 ------------------------------- --- ---------- ------------------- ---------------- Total assets 45,351 53,026 46,124 ------------------------------- --- ---------- ------------------- ---------------- Current liabilities Borrowings 5 - 4,850 7,586 Trade and other payables 6,578 13,770 7,670 Deferred income 2,190 6,571 2,962 Taxation 342 10 - Finance lease obligations 613 234 214 Provisions 770 2,510 1,514
10,493 27,945 19,946 ------------------------------- --- ---------- ------------------- ---------------- Non-current liabilities Deferred income 13 - 13 Borrowings 5 10,676 9,500 - Convertible loan notes 6 1,750 - 1,654 Finance lease obligations 1,526 594 494 Deferred tax liabilities 3,698 4,812 3,899 Provisions 1,705 3,936 1,705 19,368 18,842 7,765 ------------------------------- --- ---------- ------------------- ---------------- Total liabilities 29,861 46,787 27,711 ------------------------------- --- ---------- ------------------- ---------------- Net assets 15,490 6,239 18,413 ------------------------------- --- ---------- ------------------- ---------------- Equity attributable to equity holders of the parent Called up share capital 10,020 5,018 10,020 Share premium account 35,439 35,439 35,439 Other reserves 811 (125) 817 Retained earnings (30,780) (34,092) (27,863) ------------------------------- --- ---------- ------------------- ---------------- Total equity 15,490 6,239 18,413 ------------------------------- --- ---------- ------------------- ----------------
Consolidated Statement of Changes in Equity
Share Share Equity Retained Foreign capital premium Reserve earnings currency Total (a) (b) (c) (d) translation reserve (e) GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 ---------------------------- --------- --------- --------- ---------- ------------- --------- At 1 January 2018 5,018 35,439 - 4,963 (127) 45,293 Total comprehensive income for the period Loss for the period - - - (39,109) - (39,109) Exchange rate differences - - - - (2) (2) Transactions with owners recorded directly in equity Share based payments - - - 57 - 57 At 30 June 2018 5,018 35,439 - (34,089) (129) 6,239 Total comprehensive income for the period Profit for the period - - - 6,485 - 6,485 Exchange rate differences - - - - (21) (21) Transactions with owners recorded directly in equity Share based payments - - - (259) - (259) Share issues 5,002 - - - - 5,002 Convertible loan notes - - 967 - - 967 At 31 December 2018 10,020 35,439 967 (27,863) (150) 18,413 Total comprehensive income for the period Loss for the period - - - (2,917) - (2,917) Exchange rate differences - - - - (6) (6) At 30 June 2019 10,020 35,439 967 (30,780) (156) 15,490 ---------------------------- --------- --------- --------- ---------- ------------- --------- (a) Share capital represents the nominal value of equity shares
(b) Share premium represents the excess over nominal value of the fair value of consideration received for equity shares; net of expenses of the share issue;
(c) The equity reserve consists of the equity component of convertible loan notes that were issued as part of the fundraising in August 2018 less the equity component of instruments converted or settled.
The fair value of the equity component of convertible loan notes issued is the residual value after deduction of the fair value of the debt component of the instrument from the face value of the loan note.
(d) Retained earnings represents retained profits and accumulated losses
(e) On consolidation, the balance sheets of the Group's foreign subsidiaries are translated into sterling at the rates of exchange ruling at the balance sheet date. Exchange gains or losses arising from the consolidation of these foreign subsidiaries are recognised in the foreign currency translation reserve.
Consolidated Cash Flow Statement
Unaudited Unaudited Audited Six months Six months Year ended ended ended 30 June 30 June 31 December 2019 2018 2018 GBP000 GBP000 GBP000 ----------------------------------------- ---- ------------ ------------------- ------------- Loss for the period (2,917) (39,109) (32,624) Adjustments for: Depreciation of property, plant and equipment 1,491 1,278 3,033 Amortisation of intangible assets 1,433 2,121 3,549 Impairment Charge - 27,525 21,505 Net financial costs 1,007 287 390 Equity settled share-based payment expenses - 57 (202) Taxation (200) (303) (1,216) Loss on disposal of fixed assets - 155 425 Other (6) (1) - Profit on disposal of subsidiary - - (680) ----------------------------------------------- ------------ ------------------- ------------- 808 (7,990) (5,820) Decrease in trade and other receivables 923 2,730 6,284 Decrease in trade and other payables (1,521) (1,655) (11,320) Decrease in inventory - - 366 (Decrease)/ increase in provisions (745) 5,209 1,485 (535) (1,500) (9,005) Net corporation tax recovered/ - 103 - (paid) Net cash used in operating activities (535) (1,603) (9,005) ----------------------------------------------- ------------ ------------------- ------------- Cash flow from investing activities: Proceeds from sale of subsidiary and PACT business, net of overdraft repaid - - 3,611 Acquisition of property, plant and equipment (131) - (272) Realisation of non-current financial assets - 470 89 Proceeds from sale of fixed assets - 9 23 ----------------------------------------------- ------------ ------------------- ------------- Net cash (used in)/ from investing activities (131) 479 3,451 ----------------------------------------------- ------------ ------------------- ------------- Cash flows from financing activities: Share issue, net of share issue costs - - 3,752 Proceeds from borrowings, net of expenses 9,810 2,000 3,800 Repayment of loans and other borrowings (4,750) - (2,750) Repayment of finance lease obligations (613) (109) (335) Net interest paid (186) (286) (320) Net cash from financing activities 4,261 1,605 4,147 ----------------------------------------------- ------------ ------------------- ------------- Net increase/ (decrease) in cash
and cash equivalents 3,595 481 (1,407) Cash and cash equivalents at beginning of period (2,905) (1,498) (1,498) Cash and cash equivalents at end of period 690 (1,017) (2,905) ----------------------------------------------- ------------ ------------------- ------------- Being: Cash and cash equivalents 690 3,833 - Bank overdraft - (4,850) (2,905) ----------------------------------------------- ------------ ------------------- ------------- 690 (1,017) (2,905) ---------------------------------------------- ------------ ------------------- -------------
Notes to the half-yearly financial information
1. Basis of preparation
The condensed consolidated interim financial information for the six-month period ended 30 June 2019 and 30 June 2018 is unaudited. This statement has not been reviewed by the Company's auditor. This condensed consolidated interim financial information was approved by the Board of Directors and authorised for issue on 26 September 2019. A copy of this half-yearly financial report is available on the Company's website at www.idegroup.com.
The Company is a public limited liability company incorporated and domiciled in Scotland. The address of its registered office is 24 Dublin Street, Edinburgh EH1 3PP. The Company is listed on the AIM market of the London Stock Exchange.
IDE and its subsidiaries have not applied IAS 34, 'Interim Financial Reporting' as adopted by the European Union, which is not mandatory for UK AIM listed companies, in the preparation of this half-yearly financial report.
This condensed consolidated interim financial information for the six-month period ended 30 June 2019 therefore does not comply with all the requirements of IAS 34, 'Interim Financial Reporting' as adopted by the European Union. The consolidated interim financial information should be read in conjunction with the annual financial statements of the Company as at and for the year ended 31 December 2018, which were prepared in accordance with IFRS as adopted by the European Union.
This condensed consolidated interim financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2018 were approved by the Board of Directors on 24 July 2019 and delivered to the Registrar of Companies. The report of the auditor was unqualified, did not contain an emphasis of matter paragraph and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
Accounting policies
The accounting policies used in the preparation of the condensed consolidated interim financial information for the six months ended 30 June 2019 are in accordance with the recognition and measurement criteria of International Financial Reporting Standards ("IFRS") as adopted by the European Union and are consistent with those that will be adopted in the annual statutory financial statements for the year ended 31 December 2019.
While the financial information included has been prepared in accordance with the recognition and measurement criteria of IFRS, as adopted by the European Union, these financial statements do not contain sufficient information to comply with IFRSs. The accounting policies applied by the Group in this financial information reflect the adoption of IFRS 16 Leases which is effective as of 1 January 2019. The adoption of this standard has not resulted in a restatement of the prior year figures.
Other than the adoption of IFRS 16 - Leases, the accounting policies adopted in the interim financial statements are consistent with those adopted in the financial statements for the year ended 31 December 2018.
IFRS 16 - Leases
The Group has adopted IFRS 16 on a modified retrospective basis. As disclosed in the Financial Review, upon transition, a lease liability has been recognised based on future lease payments discounted at an appropriate borrowing rate. Additionally, a right of use asset has been recognised along with a related lease liability. Within the income statement, the operating lease charge has been replaced by depreciation and interest expense. This has resulted in a decrease in operating expenses and an increase in finance costs.
Exceptional items and other non-recurring items
Items which are material because of their size or nature and which are non-recurring are highlighted separately on the face of the income statement. The separate reporting of exceptional items helps provide a better picture of the Company's underlying performance. Items which may be included within the exceptional category include:
-- spend on major restructuring programmes; -- significant goodwill or other asset impairments; and -- other particularly significant or unusual items.
Exceptional items are excluded from the headline profit measures used by the Group and are highlighted separately in the income statement as management believe that they need to be considered separately to gain an understanding the underlying profitability of the trading businesses.
For further details, please refer to note 3.
Going concern
The condensed consolidated interim financial information has been prepared on a going concern basis.
Taking into account the support of certain of the Company's significant shareholders, of which two are represented on the Board, as demonstrated by the refinancing at the beginning of the year, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Directors consider that the adoption of the going concern basis is appropriate.
2. Segment reporting
Operating segments are reported in a manner consistent with the internal reporting to the Chief Operating Decision Maker ("CODM"). The CODM has been identified as the Board of Directors.
The operating segments are defined by distinctly separate product offerings or markets. The CODM assesses the performance of the operating segments based on a measure of revenue and gross profit.
The following table presents revenue and gross profit in respect of the Group's operating segment for the six months ended 30 June 2019:
Unaudited for the six-month period ended 30 June 2019
Managed Services Cloud Hosting Networks Projects Central Total GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 ---------------------------------------- ----------------- -------------- --------- --------- -------- --------- Revenue 5,777 4,204 3,014 1,718 - 14,713 Cost of Sales (4,015) (3,500) (2,545) (1,065) - (11,125) ---------------------------------------- ----------------- -------------- --------- --------- -------- --------- Gross profit 1,762 704 469 653 - 3,588 Administrative expenses - - - - (5,704) (5,704) Operating profit/ (loss) 1,762 704 469 653 (5,704) (2,116) ---------------------------------------- ----------------- -------------- --------- --------- -------- --------- Analysed as: Adjusted EBITDA* 1,762 704 469 653 (2,370) 1,218 Depreciation - - - - (1,491) (1,491) Amortisation of intangible assets - - - - (1,433) (1,433) Exceptional costs - - - - (410) (410) ---------------------------------------- ----------------- -------------- --------- --------- -------- --------- Net financial costs - - - - (1,007) (1,007) ---------------------------------------- ----------------- -------------- --------- --------- -------- --------- Profit/(loss) before taxation 1,762 704 469 53 (6,711) (3,123) Tax on loss on ordinary activities - - - - 200 200 ---------------------------------------- ----------------- -------------- --------- --------- -------- --------- Profit/(loss) for the period after taxation 1,762 704 469 53 (6,511) (2,923) ---------------------------------------- ----------------- -------------- --------- --------- -------- ---------
Unaudited for the six-month period ended 30 June 2018
Continuing Operations Managed Services Cloud Hosting Networks Projects Central Total GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 --------------------------------------- ----------------- -------------- --------- --------- --------- --------- Revenue 8,115 5,324 4,051 4,291 - 21,781 Cost of Sales (9,091) (5,271) (4,026) (3,047) - (21,435) --------------------------------------- ----------------- -------------- --------- --------- --------- --------- Gross loss/ (profit) (976) 53 25 1,244 - 346 Administrative expenses (12,162) (12,162) Impairment of goodwill & intangibles (23,722) (23,722) Operating (loss)/ profit (976) 53 25 1,244 (35,884) (35,538) --------------------------------------- ----------------- -------------- --------- --------- --------- --------- Analysed as: Adjusted EBITDA* (976) 53 25 1,244 (7,995) (7,649) Equity settled share-based payments - - - - (57) (57) Depreciation - - - - (1,151) (1,151) Amortisation of intangible assets - - - - (1,949) (1,949) Impairment of goodwill & intangibles - - - - (23,722) (23,722) (Loss) / profit on Disposal - - - - (164) (164) Exceptional costs - - - - (846) (846) --------------------------------------- ----------------- -------------- --------- --------- --------- --------- Net financial costs (277) (277) --------------------------------------- ----------------- -------------- --------- --------- --------- --------- (Loss)/ profit before taxation (976) 53 25 1,244 (36,161) (35,815) Tax on loss on ordinary activities - - - - 303 303 --------------------------------------- ----------------- -------------- --------- --------- --------- --------- Profit/(loss) for the period after taxation (976) 53 25 1,244 (35,858) (35,512) --------------------------------------- ----------------- -------------- --------- --------- --------- ---------
* Earnings from continuing operations before net finance costs, tax, depreciation, amortisation, goodwill impairment, share based payments and exceptional costs
Administrative expenses are not allocated against operating segments in the Group's internal reporting. The statement of financial position is not allocated between the operating segments in the Group's internal reporting.
3. Exceptional costs
In accordance with the Group's policy in respect of exceptional costs, the following charges were incurred in relation to continuing operations:
Unaudited Unaudited Audited Six months Six months Year ended ended ended 30 June 30 June 31 December 2019 2018 2018 GBP000 GBP000 GBP000 ---------------------------------- ------------ ------------ ------------- Restructuring and reorganisation costs 410 994 2,368 ----------------------------------- ------------ ------------ -------------
4. Earnings per share from continuing operations
The calculation of basic and diluted loss per share is based on results from continuing operations attributable to ordinary shareholders divided by the weighted average number of ordinary shares in issue during the year. The weighted average number of shares for the purpose of calculating the basic and diluted measures in the reporting periods is the same. This is because the outstanding options would have the effect of reducing the loss per ordinary share and therefore would be anti-dilutive under the terms of IAS 33. Basic and diluted unaudited loss per share from continuing operations are calculated as follows:
Unaudited Unaudited Audited Six months Six months Year ended ended ended 30 June 30 June 31 December 2019 2018 2018 GBP000 GBP000 GBP000 ----------------------------------- -------------- ------------ ------------- Loss attributable to shareholders (2,923) (35,512) (29,459) Weighted average number of shares 400,802,032 200,729,121 246,067,004 Diluted weighted average number of shares 420,931,989 211,784,158 259,333,840 ------------------------------------ -------------- ------------ ------------- Basic loss per share (pence) (0.73) (17.69) (11.97) Diluted loss per share (pence) (0.73) (17.69) (11.97)
5. Borrowings
As at the beginning of the period the Group's facilities with National Westminster Bank plc ("Natwest") comprised a five-year, fully drawn GBP4.75 million Revolving Credit Facility ("RCF") and a GBP3.5 million overdraft facility (the "Facilities"). Interest was payable on the utilised RCF at 2% above LIBOR.
In January 2019 the Company issued GBP5.3 million of secured loan notes with a six-year term and a 12% coupon which is compounded, rolled up and payable at the end of the term ("Loan Notes"). The proceeds of the Loan Notes were used to repay GBP4.125 million to Natwest and the RCF was reduced to GBP625,000. In February and March 2019, a further GBP4.7 million in total of Loan Notes were issued to repay the remaining Facilities, which were then cancelled, and provide additional working capital. The Loan Notes carry an arrangement fee of 2.5 per cent., payable at the end of the term, and an exit fee of 2.5 per cent., also payable at the end of the term.
The Loan Notes are held at amortised cost using the effective interest rate method. The effective interest rate for the Loan Notes has been calculated to be 18%.
Unaudited Audited Six months Unaudited Year ended Six months ended 30 June ended 31 December 2019 30 June 2018 GBP000 2018 GBP000 GBP000 ------------------------------ -------------- ------------- ------------- Non-Current Loan Notes 10,676 - - Bank Loan - 9,500 - Total 10,676 9,500 - ------------------------------- -------------- ------------- ------------- Current Bank Loan - - 4,750 Unamortised loan arrangement fee - - (69) Bank overdraft - 4,850 2,905 Total - 4,850 7,586 ------------------------------- -------------- ------------- -------------
6. Convertible Loan Notes
On 21 August 2018, as part of a wider fundraising, the Company issued GBP2.55 million of unsecured loan notes, which have a term of 5 years and a zero per cent. coupon ("CLNs"). The CLNs can be converted into new ordinary shares in the capital of IDE at a price of 2.5 pence per share. Conversion is at the option of the holder at any time during the 5-year term. At the end of the term, if the holder has not chosen to convert the CLNs, the CLNs will be settled with a cash repayment. At issue, the CLNs had a fair value of GBP2.54 million, split into an equity component (GBP0.96 million) and a debt component (GBP1.58 million).
Unaudited Audited Six months Unaudited Year ended Six months ended 30 June ended 31 December 2019 30 June 2018 GBP000 2018 GBP000 GBP000
-------------------------------- ---- -------------- ------------- ------------- Balance at beginning of period 1,654 - - Additions - - 1,583 Interest unwound 96 - 71 Total 1,750 - 1,654 -------------------------------------- -------------- ------------- -------------
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR LLFSTAVIEFIA
(END) Dow Jones Newswires
September 26, 2019 02:01 ET (06:01 GMT)
1 Year Tialis Essential It Chart |
1 Month Tialis Essential It 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