![](/cdn/assets/images/search/clock.png)
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 |
---|---|---|---|---|---|
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 |
Embargoed until 07:00 12th September 2006 Ultimate Finance Group plc ("the Company" or "Ultimate Finance") Full year results for the year ended 30 June 2006 Highlights: * Significant growth in profit on ordinary activities before taxation, £ 290,494 compared with £20,581 last year. * Turnover for the period up 52% to £3,500,594 (2005: £2,309,728) * Client sales financed up 49% to £123m (2005:£82.5m) * Earnings per share (excluding deferred tax) 1.45p compared to 0.10p for 2005. * Basic earnings per share (including deferred tax) 1.98p (2005: 0.46p). * New northern client service office opened in Manchester and a new sales office opened in Leeds which will support growth plans in the north of England. * The directors are confident of further growth in the financial year ending 30th June 2007. Brian Sumner, chief executive, commented: "I am delighted with this set of results which represents significant growth in both activity and profit. We have increased our profits significantly and are continuing our controlled growth on schedule. Our target market offers tremendous growth opportunities for the group, which we are well positioned to maximise." Enquiries: Brian Sumner, Chief Executive Ultimate Finance Group plc 07976 406 474 Richard Pepler, Managing Ultimate Finance Group plc 07870 212 180 Director Kris McGuire/Adam Reynolds Hansard Communications 0207 2451100 Chairman's statement Results I am pleased to be able to report, following last year's first period of profitability Ultimate achieved a significant growth in profit before tax, for the year ended 30 June 2006, as a result of 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 230 as against 171 at 30 June 2005. Client sales financed in the year increased by 49 per cent to £123million from the previous year (2005: £82.5 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 52 per cent to £3,500,594 (2005: £ 2,309,728) with profit on ordinary activities before taxation being £290,494 compared to £20,581 in 2005. Profit on ordinary activities after taxation for the year amounted to £395,544. Of the total turnover for the year, 80% corresponds to factoring clients with the balance being attributable to confidential invoice discounting arrangements. Basic earnings per share for the year to 30 June 2006 amounted to 1.98p compared to 0.46p for 2005. The after tax profit incorporates the recognition of a deferred tax asset of £105,050 (2005: £71,743) 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 note 11, to reflect the earnings before the impact of the deferred tax asset. On this basis, the earnings per share amounted to 1.45p compared to 0.10p in 2005. Taxation A deferred tax asset has been recognised fully 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 has continued to prove 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 £9.2 million of the £18 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 I am confident that the current year will be one of continued progress. 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 significant growth in both activity and profit; with profit on ordinary activities rising to £290,494 (2005: £20,581). 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 four years since inception, the performance of the group has improved markedly year on year. From a standing start in June 2002, a healthy portfolio of 230 clients has been created generating over £123 million in sales financed in the year to 30 June 2006. Through factoring and invoice discounting products and our debtor protection product, our revenues have risen 52% year on year and with this growth we have experienced strong progress on 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 We have recently opened a client service centre in Manchester and a new sales office in Leeds covering Yorkshire and the North-East, both of which are performing well. We now have sales offices in the Midlands based in Birmingham, the North based in Manchester and Leeds, the South and Southwest based in Bristol and the Southeast based in St Albans, all of which provides us with national coverage of England and Wales. The market for our products has continued to grow at about 12 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. 2006 saw a considerable growth in the take-up 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 offset customer insolvency risk through Ultimate in conjunction with AIG. The debtor protection scheme gives rise to improved margins and new marketing opportunities. People and systems We have continued to strengthen all departments of the business to keep in step with a growing business. Investments in offices, systems, equipment and staff made over the last four years are now delivering profit growth which we confidently expect to continue. Resource growth in the operations department is anticipated to continue growing in line with the size of the portfolio. 2005/06 saw the bedding down of our new software system designed to provide improvements in risk management, the efficiency of data processing and client reporting leading to many productivity gains. The system is working well and already delivering benefits to all stakeholders of the group. Prospects After four 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 2006 Note 2006 2005 £ £ Turnover 3,500,594 2,309,728 Administrative expenses (2,635,325) (1,947,615) Operating profit 865,269 362,113 Other interest receivable and similar 4,391 5,339 income Interest payable and similar charges (579,166) (346,871) Profit on ordinary activities before 290,494 20,581 taxation Tax on profit on ordinary activities 2 105,050 71,743 Profit on ordinary activities after 395,544 92,324 taxation Earnings per share 11 Basic 1.98p 0.46p Diluted 1.97p 0.46p 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 2006 Note 2006 2005 £ £ Fixed assets Tangible assets 116,695 104,963 Current assets Debtors 3 12,170,505 10,208,569 Cash at bank and in hand 4 844 600,022 12,171,349 10,808,591 Creditors: amounts falling due 5 (9,852,627) (8,873,681) within one year Net current assets 2,318,722 1,934,910 Net assets 2,435,417 2,039,873 Capital and reserves Called up share capital 6 999,851 999,851 Share premium account 7 1,949,390 1,949,390 Profit and loss account 7 (513,824) (909,368) Shareholders' funds (all equity) 2,435,417 2,039,873 These financial statements were approved by the board of directors on 11 September 2006 and were signed on its behalf by: Brian Sumner Shane Horsell Director Director Consolidated cash flow statement for the year to 30 June 2006 Note 2006 2005 £ £ Reconciliation of operating profit to net cash flow from operating activities Operating profit 865,269 362,113 Depreciation charges 45,545 31,065 Increase in debtors (1,856,886) (4,916,798) Increase in creditors 290,574 148,656 Net cash outflow from operating (655,498) (4,374,964) activities Cash flow statement Cash flow from operating activities (655,498) (4,374,964) Returns on investments and servicing of 9 (574,775) (341,532) finance Capital expenditure 9 (57,277) (93,236) Cash outflow before financing (1,287,550) (4,809,732) Financing 9 688,372 5,166,399 (Decrease)/Increase in cash in the (599,178) 356,667 period Reconciliation of net cash flow to movement in net debt (Decrease)/Increase in cash in the (599,178) 356,667 period Cash inflow from debt in the period 10 (688,372) (5,166,399) Movement in net debt in the period 10 (1,287,550) (4,809,732) Net debt at the start of the period (7,953,001) (3,143,269) Net debt at the end of the period 10 (9,240,551) (7,953,001) Reconciliation of movements in shareholders' funds for the year to 30 June 2006 2006 2005 £ £ Profit for the period 395,544 92,324 Net addition to shareholders' funds 395,544 92,324 Opening shareholders' funds 2,039,873 1,947,549 Closing shareholders' funds 2,435,417 2,039,873 Notes to the preliminary statement * 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. The directors have confirmed the company will provide financial support to Ultimate Finance Limited in order to meet liabilities as they fall due. 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. * Taxation * 2006 2005 £ £ UK Corporation Tax at 30% (2005: 30%) - - Total current tax charge - - Deferred tax - origination and reversal of timing 105,050 71,743 differences Total taxation on profit on ordinary activities 105,050 71,743 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. 2006 2005 £ £ Current tax reconciliation Profit on ordinary activities before tax 290,494 20,581 Current tax at 30% 87,148 6,174 Effects of: Expenses not deductible for tax purposes 12,624 11,039 Capital allowances for period in excess of 2,494 (2,003) depreciation Provisions not deductible for tax purposes (4,683) 7,908 Utilisation of tax losses (97,583) (23,118) Total current tax charge (see above) Nil Nil A further deferred tax asset of £105,050 has been recognised in the year (2005: £71,743), as the directors believe it is more probable than not that it will be recovered in the future. * Debtors * 2006 2005 £ £ Gross factored debts receivable 22,640,689 18,589,303 Due to clients on collection (10,815,958) (8,634,165) Client commitments 11,824,731 9,955,138 Deferred tax 176,793 71,743 Other debtors 28,685 38,438 Prepayments and accrued income 140,296 143,250 12,170,505 10,208,569 Of the deferred tax asset, an amount which we cannot quantify will be recoverable after more than one year. * Cash The company, together with its subsidiary undertakings, is party to a back to back receivables financing agreement with one of its bankers. This agreement permits the bankers to set off and/or combine all bank accounts included therein. The accounting disclosure of cash, loans and overdrafts adopted this year reflects the substance of this agreement. * Creditors: amounts falling due within one year * 2006 2005 £ £ Bank loans and overdrafts 9,241,395 8,553,023 Trade creditors 35,158 42,207 Taxation and social security 138,515 84,854 Other creditors 270,503 158,273 Accruals and deferred income 167,056 35,324 9,852,627 8,873,681 The group has a loan facility with Lloyds TSB Commercial Finance Ltd for a £18 million back-to-back receivables financing agreement the minimum period for which expires on 30 June 2007. 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 £9,213,516 of the facility (2005: £ 8,310,341). * Called up share capital * 2006 2005 £ £ Authorised Equity: 40,000,000 (2005: 40,000,000) ordinary 2,000,000 2,000,000 shares of 5p each Allotted, called up and fully paid Equity: 19,997,018 ordinary shares of 5p each 999,851 999,851 * Share premium and reserves * Share Profit premium and loss account account 2006 2006 £ £ At beginning of year 1,949,390 (909,368) Retained profit for the period - 395,544 At end of year 1,949,390 (513,824) * Provisions for liabilities and charges Group Company Group Company 2006 2006 2005 2005 £ £ £ £ Deferred tax asset at 71,743 71,743 - - beginning of year Deferred tax asset 105,050 (54,757) 71,743 71,743 recognised in the year Deferred tax asset at 176,793 16,986 71,743 71,743 end of year There is no unrecognised deferred tax asset at 30 June 2006, as calculated under Financial Reporting Standard 19: Group Unprovided Unprovided 2006 2005 £ £ Difference between accumulated depreciation and - (14,304) capital allowances Other timing differences - 219,125 - 204,821 Company Unprovided Unprovided 2006 2005 £ £ Difference between accumulated depreciation and - - capital allowances Other timing differences - - - - * Analysis of cash flows * 2006 2005 £ £ Returns on investment and servicing of finance Interest received 4,391 5,339 Interest paid (579,166) (346,871) (574,775) (341,532) Capital expenditure Purchase of tangible fixed assets (57,277) (93,236) (57,277) (93,236) Financing Utilisation of credit facility/bank overdraft 688,372 5,166,399 688,372 5,166,399 * Analysis of net debt * At 30 At 30 June Cash flow June 2005 June 2006 £ £ £ Cash in hand, at bank (see note 4) 600,022 (599,178) 844 Utilisation of credit facility/ (8,553,023) (688,372) (9,241,395) bank overdraft Total (7,953,001) (1,287,550) (9,240,551) * Earnings per share The basic profit per share for the period to 30 June 2006 has been calculated from the profit on ordinary activities after taxation of £395,544 (2005: £ 92,324) and on the weighted average number of ordinary shares in issue during the year (19,997,018) (2005: 19,997,018). The company has dilutive potential ordinary shares in respect of the `Company Share Option Plan.' The diluted earnings per share amounts to 1.97p (2005: 0.46p) and is based on profit on ordinary activities after taxation of £395,544 (2005: £92,324) and 20,054,325 ordinary shares being the weighted average of the shares in issue during the year adjusted to assume conversion of all dilutive potential ordinary shares (2005: 20,027,787). 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. 2006 2005 Pence pence Basic earnings per share 1.98 0.46 Adjustment for recognition of deferred tax asset (0.53) (0.36) Earnings per share before recognition of deferred tax 1.45 0.10 asset * Preliminary statement of results This preliminary statement was approved by the Board on 11 September 2006. It is not the company's statutory accounts. The statutory accounts for the period ended 30 June 2006 have been audited and have been approved by the Board of directors on 11 September 2006. Copies of the Directors' Report and Consolidated Financial Statements will be sent to shareholders shortly and will be available from the Group's Bristol office, Bradley Pavilions, Pear Tree Road, Bradley Stoke, Bristol BS32 0BQ. END
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