We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Ultimate Fin. | LSE:UFG | London | Ordinary Share | GB0031685414 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 25.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
Premium
RNS Number:9325Q
Ultimate Finance Group PLC
07 September 2005
Ultimate Finance Group plc
Embargoed until 07:00 7 September 2005
Preliminary Statement of Results for the twelve months ended 30 June 2005
Ultimate Finance Group plc ("Ultimate", "the company" or "the group) provides
recourse factoring, invoice discounting and confidential invoice discounting
Financial highlights:
* Group generates first profit on ordinary activities before taxation,
#20,581, since trading commenced three years ago (2004: #338,609 loss)
* Client sales financed up 104% to #82.5 million (2004: #40.4 million)
* Turnover up 95% to #2,309,728 (2004: #1,183,506)
* Sustained growth in client numbers continues, up 61% to 171 clients
* Total client advances approaching #10 million
* New sales office opened in Birmingham servicing the Midlands
* New products added to range to enhance revenue from existing client base and
broaden market appeal
* Current financial year has started well and Directors confident of continued
growth
Brian Sumner, chief executive, commented:
"After another year of strong growth, it is with great pleasure that I am able
to announce the first profitable reporting period since trading began in June
2002. It is most gratifying to see the strategic ambition of the group deliver
returns in line with expectations".
Enquiries:
Brian Sumner,
Chief Executive Ultimate Finance Group plc 0870 872 1012 07976 406474
Richard Pepler,
Managing Director Ultimate Finance Group plc 0870 872 1013 07870 212180
Shane Dolan Biddicks 020 7448 1000
Chairman's statement
Results
I am pleased to be able to report, that for the year ended 30 June 2005 Ultimate
achieved a profit before tax for the first time with considerable growth in
client sales financed and trading income in the period. It has also
significantly expanded its client base with the client portfolio at the year end
numbering 171 as against 106 at 30 June 2004.
Client sales financed in the year increased by 104 per cent to #82.5 million
from the previous year (2004: #40.4 million). This increase has come not only
from the increased number of clients but also as a consequence of the growth
experienced by existing clients and the increase in size of transactions with
new clients.
Turnover for the period increased by 95 per cent to #2,309,728 (2004:
#1,183,506) with profit on ordinary activities before taxation being #20,581
compared to a loss on ordinary activities before taxation of #338,609 in 2004.
Of the total turnover for the year, 80 per cent corresponds to factoring clients
with the balance being attributable to confidential invoice discounting
arrangements.
Profit on ordinary activities after taxation for the year amounted to #92,324.
Basic earnings per share for the year to 30 June 2005 amounted to 0.46p compared
to a loss per share of 2.72p for 2004. The after tax profit incorporates the
recognition of a deferred tax asset of #71,743 (2004: nil) relating to taxable
losses accumulated since the formation of the company. In order to more
accurately measure the earnings per share on the trading performance of the
group, an additional adjusted figure has been included in the consolidated
profit and loss account, to reflect the earnings before the impact of the
deferred tax asset. On this basis, the earnings per share amounted to 0.10p
compared to the loss per share of 2.72p in 2004.
Taxation
A deferred tax asset has been recognised this year as the group has been trading
profitably since January 2005 and is expected to continue to generate sufficient
taxable profits to utilise the tax benefit derived from timing differences and
cumulative losses incurred to date.
Funding
The back to back receivables financing arrangement with Lloyds TSB Commercial
Finance to which I referred in my statement last year has proved to be a
catalyst to drive the business forward in terms of growth and increase in
shareholder value. At the year end the group had utilised #8.3 million of the
#14 million facility, a gearing ratio of 4:1 (net of cash balances).
Management and employees
Since its inception an integral element of the success of Ultimate has been the
commitment and hard work of my colleagues on the board and employees of
Ultimate. It is they who have achieved these results. I would like to
acknowledge and thank them for their efforts.
Outlook
Our primary aim is to maximise the return to shareholders and the board is
committed to delivering growth in shareholder value. We are planning for the
future and look forward to it with confidence.
Clive R Garston
Chairman
Chief Executive's review
After another year of strong growth, it is with great pleasure that I am able to
announce the first profitable reporting period since trading began in June 2002.
It is most gratifying to see the strategic ambition of the group deliver returns
in line with expectations.
Those ambitions have been forged on the four cornerstones of our strategy; a
strong service ethic, a wealth of experience applied to risk management and
underwriting criteria, a recognition that only the best staff developed to the
full through training and guidance can deliver on the 'ultimate' promise and a
sound and secure product range capable of being tailored to meet the practical
needs of the client throughout the business cycle.
Over the last three years the performance of the group has improved markedly
year on year. From a standing start in June 2002, a healthy portfolio of 171
clients has been created generating over #82 million in sales financed in the
year to 30 June 2005. Since the year end our client base has grown further to
186 clients as at 31 August 2005. Through factoring and invoice discounting
products and our new debtor protection product, our revenues have almost doubled
year on year and with this growth we have experienced steady progress through
the breakeven point and into profitability.
As the portfolio matures so we have naturally experienced a degree of client
losses, mostly smaller clients, often start up businesses that have failed
within their first two years of trading. Whilst unfortunate, client churn is
somewhat inevitable at the smaller end of our market. I am pleased to report,
however, that bad debts have been almost completely avoided in these collect-out
and recovery situations. Once again this is testimony to our risk management
procedures and the quality of our operations staff.
Market and products
With the opening of our Midlands office in Birmingham last autumn, the
'Ultimate' brand has benefited from increasing awareness throughout that region
of the country. I am pleased to report that the Midlands office has exceeded
performance expectations in the period since it opened.
We now have sales offices in the Midlands based in Birmingham, the North based
in Manchester, the South and Southwest based in Bristol and the Southeast based
in St Albans, all of which provides us with substantial coverage of England and
Wales.
The market for our products has continued to grow at about 10 per cent per annum
according to industry statistics. Clearly we are growing at a rate considerably
above this level, taking market share largely from the bank factors and
discounters and this will continue to be our strategy whatever market conditions
emerge over the next few years.
2005 saw the introduction of our debtor protection scheme offered in conjunction
with and fully backed by our insurer AIG. No risk accrues to Ultimate with this
product. Thus far the product has been very well received and take up both by
new clients and existing clients has been very positive. Clients are now able to
lay off customer insolvency risk through Ultimate in conjunction with AIG.
At the time of writing it is also pleasing to note that the sale of the first
'ultimate Cash' contract was recently concluded. This product is tailored for
the recruitment industry and combines a payroll service together with full
factoring to provide a comprehensive out sourcing solution.
Both the debtor protection scheme and 'ultimate Cash' give rise to improved
margins and new marketing opportunities.
People and systems
As indicated in my review for the year to June 2004, we have continued to
strengthen all departments of the business to keep in step with a growing
business. Resource growth in the operations department is anticipated to
continue growing in line with the size of the portfolio.
2004/05 also saw the implementation of a new software system designed to provide
improvements in risk management, the efficiency of data processing and client
reporting leading to many productivity gains. Whilst the system is still bedding
down, I anticipate that it will soon deliver many benefits to all stakeholders
of the group.
Prospects
After three years in business I can confidently state that we have, thus far,
fulfilled all of the management team's expectations for the business in what is
still an exciting market full of opportunities.
With a well-trained and competent operations team safeguarding the funds
invested in the portfolio and an established and very experienced sales team
based across the country able and willing to provide appropriate, competitive
and speedy solutions to company cash flow problems, I am confident of continued
growth.
It remains for me to thank all the staff at Ultimate who have once again
demonstrated beyond expectations their commitment and passion for our business
by delivering exceptional growth with utmost attention to risk and service.
Brian Sumner
Chief Executive
Consolidated profit and loss account
for the year to 30 June 2005
Note 2005 2004
# #
Turnover 2,309,728 1,183,506
Administrative expenses (1,947,615) (1,356,134)
---------- ---------
Operating profit / (loss) 362,113 (172,628)
Other interest receivable and similar income 5,339 5,096
Interest payable and similar charges (346,871) (171,077)
---------- ---------
Profit / (loss) on ordinary activities before
taxation 20,581 (338,609)
Tax on profit on ordinary activities 2 71,743 -
--------- ---------
Profit / (loss) on ordinary activities after
taxation 92,324 (338,609)
======== =========
Earnings / (loss) per share 10
Basic 0.46p (2.72)p
Before recognition of deferred tax asset 0.10p (2.72)p
Diluted 0.46p (2.72)p
===== ======
All amounts relate to continuing activities.
There are no recognised gains or losses in the current and previous periods
except those reported above.
Consolidated balance sheet
At 30 June 2005
Note 2005 2004
# #
Fixed assets
Tangible assets 104,963 42,792
Current assets
Debtors 3 10,208,569 5,220,028
Cash at bank and in hand 600,022 326,944
---------- ---------
10,808,591 5,546,972
Creditors: amounts falling due within one year 4 (8,873,681) (3,642,215)
---------- ---------
Net current assets 1,934,910 1,904,757
---------- ---------
Net assets 2,039,873 1,947,549
========== =========
Capital and reserves
Called up share capital 5 999,851 999,851
Share premium account 6 1,949,390 1,949,390
Profit and loss account 6 (909,368) (1,001,692)
--------- ---------
Shareholders' funds (all equity) 2,039,873 1,947,549
========= =========
These financial statements were approved by the board of directors on 6
September 2005 and were signed on its behalf by:
Brian Sumner Darren Newman
Director Director
Consolidated cash flow statement
for the year to 30 June 2005
Note 2005 2004
# #
Reconciliation of operating profit / (loss)
to net cash flow from operating activities
Operating profit / (loss) 362,113 (172,628)
Depreciation charges 31,065 13,451
Increase in debtors (4,916,798) (2,336,595)
Increase in creditors 148,656 51,249
------------- -------------
Net cash outflow from operating activities (4,374,964) (2,444,523)
============= =============
Cash flow statement
Cash flow from operating activities (4,374,964) (2,444,523)
Returns on investments and servicing of
finance 8 (341,532) (165,981)
Capital expenditure 8 (93,236) (26,677)
------------- -------------
Cash outflow before financing (4,809,732) (2,637,181)
Financing 8 5,166,399 2,265,352
------------- -------------
Increase / (decrease) in cash in the period 356,667 (371,829)
============= =============
Reconciliation of net cash flow to movement
in net debt
Increase / (decrease) in cash in the period 356,667 (371,829)
Cash inflow from debt in the period 9 (5,166,399) (1,093,942)
------------- -------------
Movement in net debt in the period 9 (4,809,732) (1,465,771)
Net debt at the start of the period (3,143,269) (1,677,498)
------------- -------------
Net debt at the end of the period 9 (7,953,001) (3,143,269)
============= =============
Reconciliation of movements in shareholders' funds
for the year to 30 June 2005
2005 2004
# #
Profit / (loss) for the period 92,324 (338,609)
New share capital subscribed (net of issue - 1,171,410
costs)
--------------- ---------------
Net addition to shareholders' funds 92,324 832,801
Opening shareholders' funds 1,947,549 1,114,748
--------------- ---------------
Closing shareholders' funds 2,039,873 1,947,549
=============== ===============
Notes to the preliminary statement
for the year ended 30 June 2005
1 Accounting policies
The following accounting policies have been applied consistently in dealing with
items which are considered material in relation to the group's financial
statements.
Basis of preparation
The financial statements have been prepared in accordance with applicable
accounting standards and under the historical cost accounting rules. Unless
otherwise stated, the acquisition method of accounting has been adopted. Under
this method, the results of subsidiary undertakings acquired or disposed of in
the year are included in the consolidated profit and loss account from the date
of acquisition or up to the date of disposal.
The board is required to report as to whether it is appropriate for the
financial statements to be prepared on a going concern basis. The executive
directors have prepared a budget which demonstrates a good future for the
company and that the finances are sound. The board therefore continues to adopt
the going concern basis in preparing the financial statements.
2 Taxation
2005 2004
# #
UK Corporation Tax at 30% (2004: 30%) - -
---------------- ----------------
Total current tax charge - -
Deferred tax - origination and reversal of 71,743 -
timing differences
---------------- ----------------
Total taxation on profit on ordinary 71,743 -
activities
================ ================
Factors affecting the tax charge for the current period
The current tax charge for the period is lower than the standard rate of
corporation tax in the UK (30%). The differences are explained below.
2005 2004
# #
Current tax reconciliation
Profit / (loss) on ordinary activities before 20,581 (338,609)
tax
---------------- ----------------
Current tax at 30% 6,174 (101,583)
Effects of:
Expenses not deductible for tax purposes 11,039 4,540
Capital allowances for period in excess of (2,003) (3,551)
depreciation
Provisions not deductible for tax purposes 7,908 241
Utilisation / non utilisation of tax losses (23,118) 100,353
================ ================
Total current tax charge (see above) Nil Nil
================ ================
Whilst not recognised in prior years, a deferred tax asset of #71,743 has been
recognised in the year, as the directors believe it is more probable than not
that it will be recovered in the future. An amount of #204,821 (2004: #294,967)
has not been recognised as the directors have not concluded that it is more
likely than not that there will be sufficient taxable profits from which the
future reversal of the underlying timing differences can be deducted. (Note 7)
3 Debtors
2005 2004
# #
Gross factored debts receivable 18,589,303 8,974,588
Due to clients on collection (8,634,165) (3,882,097)
---------- ---------
Client commitments 9,955,138 5,092,491
Amounts owed by group undertakings - -
Deferred tax 71,743 -
Other debtors 38,438 19,902
Prepayments and accrued income 143,250 84,898
---------- ---------
10,208,569 5,197,291
Debtors falling due after more than 1 year: - 22,737
prepayments and accrued income
---------- ---------
10,208,569 5,220,028
========== =========
4 Creditors: amounts falling due within one year
2005 2004
# #
Bank loans and overdrafts 8,553,023 3,470,213
Trade creditors 42,207 47,340
Taxation and social security 84,854 42,523
Other creditors 158,273 48,269
Accruals and deferred income 35,324 33,870
---------- ----------
8,873,681 3,642,215
========== ==========
The group has a loan facility with Lloyds TSB Commercial Finance Ltd for a #14
million back-to-back receivables financing agreement the minimum period for
which expires on 31 December 2005.
The facility is secured against an all assets debenture given by Ultimate
Finance Limited and a deed of guarantee and indemnity has been given by Ultimate
Finance Group plc.
At the end of the year, the group utilised #8,310,341 of the facility.
5 Called up share capital
2005 2004
# #
Authorised
Equity: 40,000,000 ordinary shares of 5p each 2,000,000 1,000,000
================ ================
Allotted, called up and fully paid
Equity: 19,997,018 ordinary shares of 5p each 999,851 999,851
================ ================
6 Share premium and reserves
Share Profit
premium and loss
account account
2005 2005
# #
At beginning of year 1,949,390 (1,001,692)
Retained profit for the period - 92,324
--------- ---------
At end of year 1,949,390 (909,368)
========= =========
7 Provisions for liabilities and charges
2005
#
Deferred tax asset at beginning of year -
Deferred tax asset recognised in the year (71,743)
--------
Deferred tax asset at end of year (71,743)
========
The deferred tax (assets)/liabilities not recognised, as calculated under
Financial Reporting Standard 19 are as follows:
Unprovided Unprovided
2005 2004
# #
Difference between accumulated depreciation and
capital allowances 14,304 12,301
Other timing differences (219,125) (307,268)
--------------- ---------------
(204,821) (294,967)
=============== ===============
A deferred tax asset has been partially recognised, as the directors believe
that it is more probable than not that it will be recovered in the future. (Note
3)
8 Analysis of cash flows
2005 2004
# #
Returns on investment and servicing of
finance
Interest received 5,339 5,096
Interest paid (346,871) (171,077)
---------------- ----------------
(341,532) (165,981)
================ ================
Capital expenditure
Purchase of tangible fixed assets (93,236) (26,677)
---------------- ----------------
(93,236) (26,677)
================ ================
Financing
Issue of ordinary share capital - 1,316,047
Expenses paid in connection with share issue - (144,637)
Utilisation of credit facility 5,166,399 1,093,942
---------------- ----------------
5,166,399 2,265,352
================ ================
9 Analysis of net debt
At 30 June Cash flow At 30 June
2004 2005
# # #
Cash in hand, at bank 326,944 273,078 600,022
Bank overdraft (326,271) 83,589 (242,682)
---------- ---------- ----------
673 356,667 357,340
Utilisation of credit facility (3,143,942) (5,166,399) (8,310,341)
---------- ---------- ----------
Total (3,143,269) (4,809,732) (7,953,001)
========== ========== ==========
10 Earnings per share
The basic profit per share for the period to 30 June 2005 has been calculated
from the profit on ordinary activities after taxation of #92,324 (2004: #338,609
loss) and on the weighted average number of ordinary shares in issue during the
year (19,997,018) (2004: 12,470,488).
The company has dilutive potential ordinary shares in respect of the 'Company
Share Option Plan'. The diluted earnings per share amounts to 0.46p (2004:
(2.72)p) and is based on profit on ordinary activities after taxation of #92,324
(2004: #338,609 loss) and 20,027,787 ordinary shares being the weighted average
of the shares in issue during the year adjusted to assume conversion of all
dilutive potential ordinary shares (2004: 12,470,488).
Adjusted earnings per share figures have been calculated in addition to the
basic and diluted figures since, in the opinion of the directors, these provide
further information on the understanding of the group's performance. A
reconciliation of the different earnings per share figures is shown below.
2005 2004
pence pence
Basic earnings per share 0.46 (2.72)
Adjustment for recognition of deferred tax asset (0.36) -
----- ----
Earnings per share before recognition of deferred tax asset 0.10 (2.72)
===== ====
11 Preliminary statement of results
This preliminary statement was approved by the Board on 6 September 2005. It is
not the company's statutory accounts.
The statutory accounts for the period ended 30 June 2005 have been audited and
have been approved by the Board of directors on 6 September 2005. Copies of the
Directors' Report and Consolidated Financial Statements will be sent to all
shareholders shortly and will be available from the Group's Bristol office,
Bradley Pavilions, Pear Tree Road, Bradley Stoke, Bristol BS32 0BQ.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SSMFUMSISELU
1 Year Ultimate Finance Chart |
1 Month Ultimate Finance 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
