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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Touchstone Grp | LSE:TSE | London | Ordinary Share | GB0003058137 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 28.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number:3786J
Touchstone Group PLC
06 December 2007
This announcement replaces the RNS announcement number 2927J released at 07.00
on 6 December 2007.
Two figures in the Other Operating Expenses line of the Consolidated Profit and
Loss account have changed. For the six months to 30 September 2007 the figure
is (6,411), not (6,496) this was a typographical error. For the year to 31
March 2007 the figure is (12,678), not (12,768), this was a transposition error.
In Note 2, the figure for amortisation of intangible assets for the six months
to 30 September 2006 (as restated) is 122, not 48 and the negative goodwill
adjustment is (74), not -.
In Note 5, the figure for amortisation of intangibles as at 30 September 2006
(as restated) is 122.
Date: 6 December 2007
On behalf of: Touchstone Group plc ('Touchstone' or the 'Group')
Embargoed until: 0700hrs
Touchstone Group plc
Interim results
Touchstone Group plc, the AIM-listed provider of business software solutions and
consultancy services, announces its interim results for the six months to 30
September 2007.
Highlights
* Turnover increased by 15% to #15.5m (2006: #13.5m)
* Fee-based revenue growth of 18% to #7.2m (2006: #6.1m)
* Microsoft Dynamics solutions growth of over 38% now representing 66% of
total operations (2006: 56%)
* No.1 Microsoft Dynamics partner in the UK for third consecutive year
* Adjusted pre-tax profits* #1.04m (2006: #1.34m)
* Basic Earnings per share 4.31p (2006: 7.19p)
* Cashflow from operations #1.0m (2006:#0.1m)
* Interim dividend maintained at 1.5p per share (2006:1.5p)
* Profit on operating activities before depreciation, amortisation and share
based payments
Commenting, Keith Birch, Chief Executive, said:
"Despite a disappointing start to the year, subsequent trading, including the
current trading period, has shown a marked improvement on the comparable period
last year.
"With strong order books and sale pipelines, the Group anticipates continued
good levels of trading in its traditionally stronger second half."
Enquiries to:
Keith Birch, Chief Executive Officer
Touchstone Group plc 020 7121 4700
Samantha Robbins/Adam Leviton
Redleaf Communications 020 7822 0200
Matt Davis
Brewin Dolphin (NOMAD) 0845 270 8600
END
Chairman's Interim statement
Results
I have pleasure in announcing our interim results for the half-year ending
September 2007; our first financial statements produced under International
Financial Reporting Standards (IFRS) guidelines.
Turnover for the period is up by 15% to #15.54m compared with #13.5m for the
same period last year. Profits on ordinary activities before tax are #765k
compared to #1.1m last year. Profits from operating activities before
depreciation, amortisation and share based payments are #1.04m compared with
#1.34m last year. Basic earnings per share after amortisation are 4.31p per
share compared with 7.19p last year. Diluted earnings per share after
amortisation are 4.25p compared with 7.06p last year.
Cash and Dividends
The Group generated good cash flows from operating activities of #1m compared to
#100k for the same period last year. Cash balances at 30 September 2007 stood at
#2.6m compared to #2.5m at 31 March 2007 and #2.1m at 30 September 2006.
The Board has declared an unchanged interim dividend of 1.5p per share (2006:
1.5p). The interim dividend will be payable on 11 Jan 2008 to all shareholders
on the register on 14 Dec 2007.
Review of Operations
The Group generates its revenues from supplying business software and related
professional services to mid -market and enterprise organisations. Software is
principally authored by global technology partners such as Microsoft or Infor.
The Group supplies this software along with associated professional services to
clients in a range of broad market sectors including Not-for-profit, Financial
Services, Media, Technology & Publishing, Professional Services and Hospitality
& Leisure.
The Group has also developed its own specialist software based upon Microsoft
Dynamics technology. This software helps the Group to address the specific
needs of a number of niche markets including Off-shore Wealth Management, Rental
& Construction Services and Commodity Trading.
During the period, overall client revenues increased by 15% to #15.54m (2006:
#13.5m). This includes software of #3.6m (2006:#2.8m), professional fees of
#7.2m (2006: #6.1m) and annual help-desk support revenue of #4.8m (2006: #4.5m).
Revenues from clients who have selected solutions based upon Microsoft Dynamics
technology increased by over 38% during the period to #10.3m (2006: #7.5m) and
now represent over 66% of total operations (2006: 56%).
Income from the sale of software increased by 27% during the period. Income
from the sale of Microsoft Dynamics related software increased by over 125% to
#2.4m (2006: #1.1m). This continued success in the supply of Microsoft Dynamics
solutions resulted in the Group being confirmed as Microsoft's No.1 business
software partner in the UK for the third consecutive year.
Fee income generated from implementing business solutions increased by 18%
during the period. Fee income associated with Microsoft Dynamics related
solutions grew by 26% to #5.6m (2006: #4.4m).
Annual help-desk support revenue is a significant aspect of Group operations and
provides useful revenue visibility. During the period the Group's recurring
revenue stream increased by approximately 5% and now represents over 33% of
total operations. Annual help-desk revenues from clients who have chosen
Microsoft Dynamics related software increased by over 17% to #2.4m (2006: #2m).
Gross margins for the period are slightly lower at 48% (2006: 50%). This is due
to lower fee-earning utilisations experienced at the beginning of the period
coupled with an increasing proportion of software development being
'off-shored'. As it is the Group's current policy to expense all R&D costs, the
R&D costs from the Group's off-shore partners are treated as an effective cost
of sale.
Current Trading
Despite a disappointing start to the year, subsequent trading, including the
current trading period, has shown a marked improvement on the comparable period
last year.
With strong order books and sale pipelines, the Group anticipates continued good
levels of trading in its traditionally stronger second half.
David RT Thompson
5 December 2007
Unaudited consolidated profit and loss account
for the period ended 30 September 2007
For six months Restated for six Restated for
ended months ended year ended
30 September 30 September 31 March
2007 2006 2007
Note #000 #000 #000
Turnover 15,540 13,513 30,165
________ ________ ________
Cost of sales (8,092) (6,764) (14,354)
________ ________ ________
Gross profit 7,448 6,749 15,811
Other operating expenses (6,411) (5,408) (12,678)
________ ________ ________
Operating profit before depreciation, 1,037 1,341 3,133
amortisation and share based payments
Depreciation (85) (125) (229)
Amortisation of intangibles (172) (122) (265)
Share based payment costs 1 (12) (12) (24)
________ ________ ________
Operating profit 768 1,082 2,615
Financial income 31 26 57
Financial expenses (34) (9) (19)
________ ________ ________
Profit/(loss) on ordinary activities before 765 1,099 2,653
taxation
Income tax expense (250) (288) (771)
________ ________ ________
Profit for the period 515 811 1,882
________ ________ ________
Earnings per share
Basic 5 4.31p 7.19p 16.44 p
Diluted 5 4.25p 7.06p 16.15p
The company has no recognised gains or losses other than those reported in the
profit and loss account. Accordingly, a statement of total recognised gains and
losses has not been prepared.
The results disclosed in the profit and loss account are on an historical cost
basis.
Unaudited consolidated balance sheet
at 30 September 2007
Restated Restated
30 September 2007 30 September 2006 31 March 2007
Note #000 #000 #000
Assets
Non- Current
Property,Plant and equipment 378 364 417
Goodwill 5,961 4,415 6,051
Other intangible assets 2,338 1,981 2,420
Investments 145 145 145
________ ________ ________
8,822 6,905 9,033
Current assets
Stocks 57 150 117
Trade and Other Debtors 10,618 9,392 11,918
Cash and cash equivalents 2,617 2,161 2,522
________ ________ ________
13,292 11,703 14,557
________ ________ ________
Total Assets 22,114 18,608 23,590
________ ________ ________
EQUITY AND LIABILITIES
Equity attributable to the equity holders of
the parent
Share Capital 6 (1,235) (1,181) (1,232)
Share premium reserve (3,225) (2,461) (3,210)
Other reserves (249) (923) (207)
Retained earnings (4,399) (3,317) (4,217)
_______ _______ _______
(9,108) (7,882) (8,866)
Non- current Liabilities
Long-term borrowings (325) - (433)
Deferred tax (267) (130) (297)
Trade and other payables (208) (197) (200)
_______ _______ _______
(800) (327) (930)
Current Liabilities
Current portion of long-term borrowings (217) - (217)
Trade and other payables (11,276) (9,740) (12,649)
Current tax liabilities (713) (659) (928)
_______ _______ _______
(12,206) (10,399) (13,794)
_______ _______ _______
Total Equity and Liabilities (22,114) (18,608) (23,590)
_______ _______ _______
Consolidated statement of changes in equity (unaudited)
for the six month period ended 30 September 2007
ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT
Share
premium
Share reserve Other Retained TOTAL EQUITY
capital reserves # earnings #'000
#'000 #'000 #'000 #'000
As restated As restated As restated As restated As restated
BALANCE AT 1 APRIL 2007 1,232 3,210 207 4,217 8,866
BROUGHT FORWARD
_______ _______ _______ _______ _______
CHANGES IN EQUITY FOR THE SIX MONTHS ENDED
31 MARCH 2007
Profit for the period - - - 515 515
_______ _______ _______ _______ _______
TOTAL RECOGNISED INCOME AND EXPENSE FOR - - - 515 515
THE PERIOD
Dividends - - - (333) (333)
Issue of share capital - - - -
Exercise of share options 3 15 - - 18
Grant of options - - 12 - 12
Deferred tax on options - - 30 - 30
_______ _______ _______ _______ _______
BALANCE CARRIED FORWARD 1,235 3,225 249 4,399 9,108
AT 30TH SEPTEMBER 2007
====== ====== ====== ====== ======
# At 30 September 2007, other reserves includes a capital redemption reserve of
#19,000 and a share option reserve of #200,000.
Restated consolidated statement of changes in equity (unaudited)
for the six month period ended 30 September 2006
ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT
Share
Share premium Other Retained TOTAL EQUITY
capital reserve reserves # earnings #'000
#'000 #'000 #'000 #'000
As restated As restated As restated As restated As restated
BALANCE AT 1 APRIL 2007
BROUGHT FORWARD
Adjusted balance 1,164 2,264 865 2,604 6,897
CHANGES IN EQUITY FOR THE SIX MONTHS ENDED
30 SEPTEMBER 2006
Net gains not recognised in the income
statement:
Purchase of minority interests in
subsidiaries - - - 196 196
_______ _______ _______ _______ _______
Net expense recognised directly in equity - - 196 196
Loss for the period - - - 811 811
_______ _______ _______ _______ _______
TOTAL RECOGNISED INCOME AND EXPENSE - - - 1,007 1,007
FOR THE PERIOD
Dividends - - - (294) (294)
Issue of share capital 15 175 - - 190
Exercise of share options 2 22 - - 24
Grant of options - - 12 - 12
Deferred tax on options - - 46 - 46
_______ _______ _______ _______ _______
BALANCE AT 30 SEPTEMBER 2006 1,181 2,461 923 3,317 7,882
CARRIED FORWARD
====== ====== ====== ====== ======
# At 30 September 2006, other reserves includes a capital redemption reserve of
#19,000, a reserve of #719,000 representing shares to be issued relating to the
acquisition of Touchstone (CI) Limited, and a share option reserve of #185,000.
RESTATED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
for the year ended 31 March 2007
ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT
Share
Share premium Other Retained TOTAL EQUITY
capital reserve reserves # earnings #'000
#'000 #'000 #'000 #'000
As restated As restated As restated As restated As restated
BALANCE AT 1 April 2006 1,181 2,461 923 3,317 7,882
BROUGHT FORWARD
_______ _______ _______ _______ _______
CHANGES IN EQUITY FOR THE YEAR
ENDED 31 MARCH 2007
Profit for the period - - - 1,071 1,071
_______ _______ _______ _______ _______
TOTAL RECOGNISED INCOME AND EXPENSE FOR - - - 1,071 1,071
THE PERIOD
Dividends - - - (171) (171)
Issue of share capital 48 - - - 48
Exercise of share options 3 30 - - 33
Grant of options - - 12 - 12
Shares issued relating to - 719 (719) - -
acquisition of Touchstone
(CI) Limited
Deferred tax on options - - (9) - (9)
_______ _______ _______ _______ _______
BALANCE AT 31 MARCH 2007 1,232 3,210 207 4,217 8,866
CARRIED FORWARD
====== ====== ====== ====== ======
# At 31 March 2007, other reserves includes a capital redemption reserve of
#19,000 and a share option reserve of #188,000.
Unaudited consolidated cash flow statement
for the period ended 30 September 2007
Note Six months Restated - six Restated-Year
months
ended ended Ended
30 September 30 September 31 March
2007 2006 2007
Note #000 #000 #000
Cash flow from operating activities
Cash generated from operations 2 1,036 96 1,239
Interest paid (34) (9) (19)
Income taxes paid (465) (292) (523)
Net cash (used in) / generated from operating 537 (205) 697
activities
Cashflows from investing activities
Acqusition of subsidiaries - (382) (1,581)
Net Cash acquired on acquisitions of subsidiaries - 39 223
Purchase of minority interests in subsidiaries - (196) (196)
Purchase of property, plant and equipment (46) (144) (261)
Proceeds from sale of property, plant and equipment - 5 5
Purchase of available for sale investments - (50) (50)
Proceeds from sale of available for sale investments - 21 21
Interest received 31 26 57
Net cash used in investing activities (15) (681) (1,782)
Cashflows from financing activities
Proceeds from the issue of share capital - 190 238
Proceeds from the exercise of share options 15 24 57
(Repayments) / proceeds from long term borrowings (108) - 650
Dividends paid (333) (294) (465)
Net cash (used in) / generated from financing (426) (80) 480
activities
Net cash increase / (decrease) in cash and cash 96 (966) (605)
equivalents
Cash and cash equivalents at the beginning of the 2,522 3,127 3,127
period
Cash and cash equivalents at the end of the period 2,618 2,161 2,522
Notes
1. Basis of preparation of the interim financial statements
The financial information contained in this interim report does not constitute
statutory accounts within the meaning of Section 240 of the Companies Act 1985.
The consolidated financial statements of Touchstone Group Plc have been prepared
in accordance with International Financial reporting standards as adopted by the
EU ("adopted IFRS")
Transition to adopted IFRSs
The consolidated financial statements have been prepared in accordance with
adopted IFRS for the first time and consequently have applied IFRS1. An
explanation of how the transition to adopted IFRSs has affected the reported
financial position, financial performance and cash flows of the group is
provided in note 7.
In addition to exempting companies from the requirement to restate comparatives
for IAS 32 and IAS 39, IFRS 1 grants certain exemptions from the full
requirements of Adopted IFRSs in the transition period. The following
exemptions have been taken in these financial statements:
* Business combinations - Business combinations that took place prior to 1
April 2006 have not been restated.
Measurement convention
The financial statements are prepared on the historical cost basis except that
the following assets and liabilities are stated at their fair value: financial
instruments classified as fair value through the profit or loss or as
available-for-sale. Non-current assets and disposal groups held for sale are
stated at the lower of previous carrying amount and fair value less costs to
sell.
Basis of Consolidation
The purchase method of accounting is used to account for the acquisition of
subsidiaries by the group. The costs of an acquisition is measured as the fair
value of the assets given, equity instruments issued and liabilities incurred or
assumed at the date of exchange, plus costs directly attributable to the
acquisition. Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are initially measured at fair
value at the acquisition date irrespective of the extent of any minority
interest.
The results of subsidiaries acquired or disposed of during the year are included
in the consolidated income statement from the effective date of acquisition or
up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used into line with those used by
other members of the group.
All intra-group transactions, balances and unrealised gains on transactions
between group companies are eliminated on consolidation. Unrealised losses are
also eliminated unless the transaction provides evidence of an impairment of the
asset transferred.
GOODWILL
Goodwill arising on consolidation represents the excess of the cost of
acquisition over the group's interest in the fair value of the identifiable
assets, liabilities and contingent liabilities of a subsidiary, associate or
jointly controlled entity at the date of acquisition.
Goodwill on acquisition of subsidiaries is separately disclosed. Goodwill on
acquisition of associates and jointly controlled entities is included in
investment in associates and jointly controlled entities.
Goodwill is recognised as an asset and reviewed for impairment at least
annually. Any impairment is recognised immediately in the income statement and
is not subsequently reversed. Goodwill is allocated to cash generating units for
the purpose of impairment testing.
On disposal of a subsidiary, associate or jointly controlled entity, the
attributable amount of goodwill is included in the determination of the profit
or loss on disposal.
Goodwill arising on acquisitions before the date of transition to IFRS has been
retained at the amount previously calculated under UK GAAP subject to being
tested for impairment at that date. Goodwill written off to reserves under UK
GAAP prior to 1998 has not been reinstated and is not included in determining
any subsequent profit or loss on disposal.
OTHER INTANGIBLE ASSETS
Research and development expenditure
Expenditure on research activities is recognised as an expense in the period in
which it is incurred.
An internally-generated intangible asset arising from the group's software
product development is recognised only if all of the following conditions are
met:
* an asset is created that can be identified;
* it is probable that the asset created will generate future economic
benefits;
* the development cost of the asset can be measured reliably;
* the product or process is technically and commercially feasible; and
* sufficient resources are available to complete the development and to
either sell or use the asset.
Where no internally-generated intangible asset can be recognised, development
expenditure is recognised as an expense in the period in which it is incurred.
The Group is anticipating increasing levels of software development activity in
the second half of the year and if this expenditure meets the capitalisation
criteria above, it will be capitalised.
Intellectual property rights
Intangible assets such as intellectual property rights are measured initially at
their purchase cost and amortised on a straight-line basis over their estimated
useful lives, on the following bases:
* Intellectual property rights over ten years
* Intangible assets acquired as part of an acquisition are capitalised at
their fair value where this can be reliably measured.
2. Reconciliation of the operating profit to net cash inflow from operating
activities
6 months Restated Restated
ended 6 months ended Year ended
30 September 30 September 31 March
2007 2006 2007
#000 #000 #000
Operating profit 764 1,082 2,615
Depreciation of tangible assets 85 125 229
Amortisation of intangible assets 172 122 265
Negative goodwill adjustment - (74) (74)
Share option charge 12 12 24
Increase / (Decrease) in working capital 3 (1,168) (1,825)
(Profit) / loss on disposal of fixed assets - (3) 5
Net cash flow from operating activities 1,036 96 1,239
3. Analysis of changes in net funds
At 1 April At 30 September
2007 Cashflow 2007
#000 #000 #000
Cash at bank and in hand 522 96 618
Short term bank deposits 2,000 (-) 2,000
2,522 96 2,618
4. Dividends
The directors have declared an interim dividend of 1.5 pence (2006: 1.5 pence)
on the ordinary shares. The cost of this interim dividend is #182,000 (2006:
#177,000). In accordance with IAS 10: Post Balance Sheet Events, which prohibits
dividends declared after the period end (proposed dividends) from being
recognised as a liability at the balance sheet date, the cost of this dividend
has not been provided for.
5. Earnings per share
30 September Restated 30 Restated 31
2007 September 2006 March 2007
#000 #000 #000
Profit for the period / financial year attributable to 515 811 1,882
shareholders
Amortisation of intangibles 172 122 265
Profit for the financial year before amortisation 687 933 2,147
(adjusted profit)
30 September 30 September 31 March
2007 2006 2007
No No No
Weighted average number of shares in issue 11,948,358 11,281,215 11,444,042
Dilution effect of option schemes:
- approved employee option scheme (a) 110,002 123,499 130,069
- unapproved employee share option scheme (b) 67,612 67,654 78,389
12,125,972 11,472,368 11,652,500
30 September Restated 30 Restated 31
2007 September 2006 March 2007
Earnings per ordinary share before amortisation 5.75 8.27p 18.75p
Loss per ordinary share on amortisation (1.44)p (1.08)p (2.31)p
Basic earnings per ordinary share 4.31p 7.19p 16.44p
Diluted earnings per ordinary share 4.25p 7.06p 16.15p
(a)As at 30 September 2007, there were 160,188 share options in issue under an
approved employee option scheme and
(b) 436,326 in an unapproved scheme. The options first became exercisable in
2001 dependant on the achievement of certain performance targets.
6. Called up share capital
30 September 30 September
2007 2006
#000 #000
Authorised
Number of ordinary shares, 14.21m of 10p each 1,421 1,421
Allotted, called up and fully paid
Issued and fully paid up 12,334,189 shares (11.81m - 2006) 1,235 1,181
In 2005 the company repurchased 250,000 shares, representing 2% of issued share
capital at 30 September 2007, for consideration of #275,000. None of these
shares had been cancelled as at 30 September 2007. The nominal value and market
value of Treasury shares held at 30 September 2007 was #25,000 and #425,000
respectively.
7. Reconciliation of UK GAAP to IFRS
As stated in note 1, these are the Group's first consolidated financial
statements prepared in accordance with Adopted IFRSs.
The accounting policies set out in note 1 have been applied in preparing the
financial statements for the period ended 30 September 2007, the comparative
information presented in these financial statements for the year ended 31 March
2007 and in the preparation of an opening IFRS balance sheet at 31 March 2007
(the Group's date of transition).
In preparing its opening IFRS balance sheet, the Group has adjusted amounts
reported previously in financial statements prepared in accordance with its old
basis of accounting (UK GAAP). An explanation of how the transition from UK GAAP
to Adopted IFRSs has affected the Group's financial position, financial
performance and cash flows is set out in the following tables and the notes that
accompany the tables.
Main changes in the basis of preparation between IFRS and UK GAAP
In accordance with the requirements of IFRS 3, goodwill has been frozen at its
brought forward net book value at the date of transition, and amortisation
charged under UK GAAP for the periods ended 30 September 2006 and 31 March 2007
has been reversed.
In addition, under the requirements of IFRS 3, the fair values of customer
relationships and software acquired with the business combinations arising
during the periods ended 30 September 2006 and 31 March 2007 have been
recognised separately from goodwill and classified as intangible assets to be
amortised over their expected useful economic lives of 10 years and 5 years
respectively.
The adoption of IFRS has not had an impact on the amount of cash previously
disclosed under UK GAAP in any of the periods of account in the financial
statements.
7. Reconciliation of UK GAAP to IFRS (Contd.)
Consolidated balance sheet reconciliation at 1 April 2006 (Transition date)
Adjustments UK GAAP in Effect of Reported
IFRS format transition under IFRS
#'000 to IFRS #'000
#'000
ASSETS
Non-current assets
Property, plant and equipment 318 - 318
Goodwill 4,501 - 4,501
Other intangible assets 1,300 - 1,300
Deferred tax a - 53 53
Investments 118 - 118
_______ _______ _______
6,237 53 6,290
Current assets
Inventories 33 - 33
Trade and other receivables 10,094 - 10,094
Cash and cash equivalents 3,127 - 3,127
_______ _______ _______
13,254 - 13,254
_______ _______ _______
TOTAL ASSETS 19,491 53 19,544
====== ====== ======
EQUITY AND LIABILITIES
Equity attributable to the equity holders of the
parent
Share capital (1,164) - (1,164)
Share premium reserve (2,264) - (2,264)
Other reserves a (812) (53) (865)
Retained earnings (2,604) - (2,604)
_______ _______ _______
(6,844) (53) (6,897)
Minority interest (196) - (196)
_______ _______ _______
Total equity (7,040) (53) (7,093)
Non-current liabilities
Trade and other payables (194) - (194)
_______ _______ _______
(194) - (194)
Current liabilities
Trade and other payables (11,606) - (11,606)
Current tax liabilities (651) - (651)
_______ _______ _______
(12,257) - (12,257)
_______ _______ _______
TOTAL EQUITY AND LIABILITIES (19,491) (53) (19,544)
====== ====== ======
Adjustments:
a. Deferred tax asset recognised on share options.
7. Reconciliation of UK GAAP to IFRS (Contd.)
Consolidated balance sheet reconciliation at 30 September 2006
Adjustments UK GAAP in Effect of Reported
IFRS format transition under IFRS
#'000 to IFRS #'000
#'000
ASSETS
Non-current assets
Property, plant and equipment 364 - 364
Goodwill a,d 4,103 312 4,415
Other intangible assets b 1,218 763 1,981
Investments 145 - 145
_______ _______ _______
5,830 1,075 6,905
Current assets
Inventories 150 - 150
Trade and other receivables 9,392 - 9,392
Cash and cash equivalents 2,161 - 2,161
_______ _______ _______
11,703 - 11,703
_______ _______ _______
TOTAL ASSETS 17,533 1,075 18,608
====== ====== ======
EQUITY AND LIABILITIES
Equity attributable to the equity holders of the
parent
Share capital (1,181) - (1,181)
Share premium reserve (2,461) - (2,461)
Other reserves e (824) (99) (923)
Retained earnings a,b,c,d (2,471) (846) (3,317)
_______ _______ _______
(6,937) (945) (7,882)
Non-current liabilities
Long-term borrowings - - -
Deferred tax d,e - (130) (130)
Trade and other payables (197) - (197)
_______ _______ _______
(197) (130) (327)
Current liabilities
Current portion of long-term borrowings - - -
Trade and other payables (9,740) - (9,740)
Current tax liabilities (659) - (659)
_______ _______ _______
(10,399) - (10,399)
_______ _______ _______
TOTAL EQUITY AND LIABILITIES (17,533) (1,075) (18,608)
====== ====== ======
Adjustments:
a. Reversing amortisation charged in the period on goodwill (#800,000) and
reclassifying amounts previously included in the value of goodwill
(#729,000).
b. Recognition of customer relationships and software as separately
identifiable intangible assets (#803,000) and the amortisation thereon for
the period (#40,000).
c. Negative goodwill arising on acquisition credited to income statement
(#74,000).
d. Deferred tax liability recognised in respect of customer relationships and
software (#241,000) and reduction in liability during the period (#12,000).
e. Deferred tax asset recognised on share options (#99,000).
7. Reconciliation of UK GAAP to IFRS (Contd.)
Consolidated balance sheet reconciliation at 31 March 2007
Adjustments UK GAAP in Effect of Reported
IFRS format transition under IFRS
#'000 to IFRS #'000
#'000
ASSETS
Non-current assets
Property, plant and equipment 417 - 417
Goodwill a,d 5,379 672 6,051
Other intangible assets b 1,136 1,284 2,420
Investments 145 - 145
_______ _______ _______
7,077 1,956 9,033
Current assets
Inventories 117 - 117
Trade and other receivables 11,918 - 11,918
Cash and cash equivalents 2,522 - 2,522
_______ _______ _______
14,577 - 14,577
_______ _______ _______
TOTAL ASSETS 21,634 1,956 23,590
====== ====== ======
EQUITY AND LIABILITIES
Equity attributable to the equity holders of the
parent
Share capital (1,232) - (1,232)
Share premium reserve (3,210) - (3,210)
Other reserves e (117) (90) (207)
Retained earnings a,b,c,d,e (2,648) (1,569) (4,217)
_______ _______ _______
(7,207) (1,659) (8,866)
Non-current liabilities
Long-term borrowings (433) - (433)
Deferred tax d,e - (297) (297)
Trade and other payables (200) - (200)
_______ _______ _______
(633) (297) (930)
Current liabilities
Current portion of long-term borrowings (217) - (217)
Trade and other payables (12,649) - (12,649)
Current tax liabilities (928) - (928)
_______ _______ _______
(13,794) - (13,794)
_______ _______ _______
TOTAL EQUITY AND LIABILITIES (21,634) (1,956) (23,590)
====== ====== ======
Adjustments:
a. Reversing amortisation charged in the period on goodwill (#1,567,000) and
reclassifying amounts previously included in the value of goodwill
(#1,311,000).
b. Recognition of customer relationships and software as separately
identifiable intangible assets (#1,385,000) and the amortisation thereon
for the year (#101,000).
c. Negative goodwill arising on acquisition credited to income statement
(#74,000).
d. Deferred tax liability recognised in respect of customer relationships and
software (#416,000) and reduction in liability during the year (#31,000).
e. Deferred tax asset recognised on share options (#88,000) and allocated
between other reserves (#90,000) and income statement (#2,000) in
accordance with IAS 12.
7. Reconciliation of UK GAAP to IFRS (Contd.)
Reconciliation of the consolidated income statement for the six month period
ended 30 September 2006
Adjustments UK GAAP in Effect of Reported
IFRS format transition under IFRS
#'000 to IFRS #'000
#'000
REVENUE 13,513 - 13,513
Cost of sales (6,764) - (6,764)
_______ _______ _______
GROSS PROFIT 6,749 - 6,749
Other operating expenses a (5,482) 74 (5,408)
_______ _______ _______
RESULT FROM OPERATING ACTIVITIES BEFORE 1,267 74 1,341
DEPRECIATION, AMORTISATION AND SHARE BASED
PAYMENT COSTS
Depreciation (125) - (125)
Amortisation of intangibles b (882) 760 (122)
Share based payment costs (12) - (12)
_______ _______ _______
OPERATING PROFIT 248 834 1,082
Investment income 26 - 26
Finance costs (9) - (9)
_______ _______ _______
PROFIT BEFORE TAX 265 834 1,099
Income tax expense c (300) 12 (288)
_______ _______ _______
LOSS FOR THE PERIOD (35) 846 811
====== ====== ======
Earnings per share:
Basic (0.31)p 7.50p 7.19p
====== ====== ======
Diluted (0.31)p 7.50p 7.19p
====== ====== ======
Adjustments:
a. Negative goodwill arising on acquisition credited to income
statement (#74,000).
b. Reversing amortisation charged in the period on goodwill (#800,000) and
recognising the amortisation on customer relationships and software
(#40,000).
c. Movement in deferred tax liability (#12,000).
7. Reconciliation of UK GAAP to IFRS (Contd.)
Reconciliation of the consolidated income statement for the year ended 31 March
2007
Adjustments UK GAAP in Effect of Reported
IFRS format transition under IFRS
#'000 to IFRS #'000
#'000
REVENUE 30,165 - 30,165
Cost of sales (14,354) - (14,354)
_______ _______ _______
GROSS PROFIT 15,811 - 15,811
Other operating expenses a (12,752) 74 (12,678)
_______ _______ _______
RESULT FROM OPERATING ACTIVITIES BEFORE 3,059 74 3,133
DEPRECIATION, AMORTISATION AND SHARE BASED
PAYMENT COSTS
Depreciation (229) - (229)
Amortisation of intangibles b (1,731) 1,466 (265)
Share based payment costs (24) - (24)
_______ _______ _______
OPERATING PROFIT 1,075 1,540 2,615
Investment income 57 - 57
Finance costs (19) - (19)
_______ _______ _______
PROFIT BEFORE TAX 1,075 1,540 2,615
Income tax expense c (800) 29 (771)
_______ _______ _______
PROFIT FOR THE YEAR 313 1,569 1,882
====== ====== ======
Earnings per share:
Basic 2.73p 13.71p 16.44p
====== ====== ======
Diluted 2.69p 13.46p 16.15p
====== ====== ======
Adjustments:
a. Negative goodwill arising on acquisition credited to income
statement (#74,000).
b. Reversing amortisation charged in the year on goodwill (#1,567,000) and
recognising the amortisation on customer relationships and software
(#101,000).
c. Movement in deferred tax liability (#31,000) and movement in deferred tax
asset recognised in income statement (#2,000).
There were no adjustments required to the consolidated cash flow statement for
the year ended 31 March 2007 and the six month period ended 30 September 2006
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR KGMGZKVKGNZM
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