We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| 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
TIDMUFG
RNS Number : 5794O
Ultimate Finance Group PLC
10 March 2009
10 March 2009
Ultimate Finance Group plc
Half Yearly Report
Ultimate Finance Group plc ('Ultimate', 'UFG' or the 'Company'), the AIM-quoted
factoring, invoice discounting and financial solutions provider to the SME
sector, announces its Half Yearly Report for the period ended 31 December 2008.
Highlights
* Pre-tax profit for half year ending 31 December 2008 of GBP140,000 (31 December
2007: GBPnil)
* Client turnover financed ahead 14% to GBP99.1million (31 December 2007:
GBP87.2million)
* GBP6.4 million of GBP18 million banking facility remains available to grow
client base
* Sales force continues to grow both in numbers and regional coverage
* Central Manchester office will shortly move into larger premises and two sales
professionals have already joined and brought in their first deals
* 64% increase in enquiry numbers compared to the same period in 2007
* 25 new clients taken on in the first two months of 2009
Clive Garston, Chairman, said:
"Although trading conditions remain challenging, Ultimate continues to expand
its sales force, which now comprises nine experienced individuals covering all
the main regions of England and Wales.
Your board is confident about the future of the business and continues to take
the measures necessary to build sustainable shareholder value. Therefore,
notwithstanding current economic conditions, the board looks forward to the
future with confidence."
Further information:
Ultimate Finance Group plc:
+--------------------------------+----------------------------------------+
| Richard Pepler, Chief | +44 (0) 845 251 3030 |
| Executive | |
| rpepler@ultimatefinance.co.uk | |
+--------------------------------+----------------------------------------+
| Shane Horsell, Finance | +44 (0) 845 251 3030 |
| Director | |
| shorsell@ultimatefinance.co.uk | |
+--------------------------------+----------------------------------------+
Media enquiries:
Allerton Communications
+-----------------------------------+---------------------------------------+
| Peter Curtain | +44 (0) 20 3137 2500 |
| peter.curtain@allertoncomms.co.uk | |
+-----------------------------------+---------------------------------------+
Nominated Adviser:
Strand Partners Limited
+-------------------------------+----------------------------------------+
| James Harris/David Altberg | +44 (0) 20 7409 3494 |
+-------------------------------+----------------------------------------+
About Ultimate Finance Group plc:
Ultimate Finance Group plc provides tailored invoice discounting and factoring
facilities to the SME market. The Company prides itself on a high-quality,
personal approach, with regular contact with all its clients.
The Company's range of invoice discounting and factoring products, which are
complemented by sales ledger credit management and our debtor protection
product, are supported by an IT infrastructure that enables clients to access
their account information in real time via the internet.
Chairman's Statement
Results
I am pleased to report for the six-month period ended 31 December 2008 Ultimate
made a profit before taxation of GBP140,000 (31 December 2007: GBPnil).Turnover
for the period was GBP2,137,000 (31 December 2007: GBP2,056,000) and client
turnover financed in the period rose 14% to GBP99.1m (31 December 2007:
GBP87.2m). Earnings per share amounted to 0.51p (31 December 2007: 0.00p).
Ultimate's cost base continues to be contained, with the sole justification for
any increase being to meet the necessary demands of a growing portfolio and
expanding business.
Funding
I am pleased to report that the back-to-back receivable financing arrangement
with Lloyds TSB Commercial Finance has been extended until the end of March
2010. During the course of this year we will be engaging in discussions with the
bank with a view to extending and increasing the facility. At 31 December 2008
the group had utilised GBP11.6m of the GBP18m facility.
Change of Auditors
In December 2008 BDO Stoy Hayward LLP were appointed as the Company's auditors.
I would like to thank KPMG LLP for auditing and offering other professional
advice since the Company was incorporated and for the assistance that they have
given to the Company in its development.
Risk management
Ultimate maintains high standards of underwriting and risk management continues
to be the primary focus for controlling the business. Its credit control staff
are experienced in both client management and risk management. With the UK
economy in recession, inevitably there has been a marked increase in the number
of business failures. As a result, Ultimate has had to be increasingly careful
and selective in growing its client numbers and continues to strengthen its
underwriting procedures.
In the longer term, the market for factoring and invoice discounting products
continues to present real growth opportunities, and the recession has increased
the level and quality of enquiries. We continue, however, to remain robust in
our strict underwriting procedures and risk management during these challenging
times for the UK economy.
Our clients continue to represent an appropriate spread of risk in terms of size
of investment, industry type and geographical location. The single largest
investment at the end of December 2008 was GBP828,000 (31 December 2007:
GBP938,000), which constituted 5% (31 December 2007: 6%) of total funds
advanced.
People
The importance of a well trained and dedicated work force cannot be
underestimated and I believe that the success of Ultimate Finance is entirely
attributable to its committed team. I would like to thank all my co-directors
and staff for their efforts and continued commitment to Ultimate in what have
been difficult economic conditions.
Outlook
Although trading conditions remain challenging, Ultimate continues to expand its
sales force, which now comprises nine experienced individuals covering all the
main regions of England and Wales.
Your board is confident about the future of the business and continues to take
all necessary steps to build sustainable shareholder value. Therefore,
notwithstanding current economic conditions, the board looks forward to the
future with confidence.
Clive R Garston
Chairman
Chief Executive's Review
Strategy
Our foremost focus remains the SME sector, taking in clients ranging from
good-quality, well founded start-ups to established and stable, medium-sized
businesses.
We have continued to develop and strengthen our national sales team to maximise
its effectiveness, taking advantage of movement elsewhere in the industry to
recruit six seasoned professionals since the financial year-end, raising total
sales headcount by two. We have also strengthened our risk management team with
three appointments.
Our Northern-based operation will shortly expand into larger offices in
Manchester. With a newly appointed Managing Director (North), UFG continues to
build its brand and position itself prominently in the centre of the North-West
region's business community.
Ultimate Finance is represented across England and Wales, with staff based in
nine locations, linked to its offices in the South-West, South-East and North.
Performance
Our experience shows that in times of tightening credit, companies turn to
independent, flexible asset financiers such as Ultimate in greater numbers, and
margins tend to increase. It is likely that current market conditions will
produce a similar outcome for the industry.
Whilst our sector remains competitive, we are still seeing our competitors
increase their rates, bringing prospects of increased competitive advantage for
Ultimate. We have experienced a substantial increase, 64%, in enquiries, as a
result achieving a larger share of the market.
We are pleased to have achieved an improvement in profitability and are
optimistic that our careful growth strategy and dedicated team will together
provide margin improvement. In January and February 2009 alone we have won 25
new clients, and three of the last five months have been record months for new
business.
The Ultimate Finance Group team
Our staff remain our greatest asset and we have strengthened the team with some
of the best professionals in the industry.
The six new members of the Ultimate team have collectively more than 100 years
of industry experience. We have seen significant growth in our North region, led
by Lee Baty, and further growth into the South East region.
Conclusion
We are seeing the benefits of nurturing our relationships with key introducers,
which has resulted in quality referrals and as a result a higher-quality, more
stable client base.
With a market growth of 9% in 2008 compared to 2007 in UK factored turnover
(source: Asset Based Finance Association), a determined and highly experienced
management team focused on expanding our portfolio and profits, robust risk
management and high levels of service, the Company has, I am confident, strong
prospects.
There is no doubt the state of the economy is producing difficult times for SMEs
including some of our clients. It is vital at times such as these that
businesses have access to specialist help and support to maintain their plans
for growth.
Our robust approach to risk, combined with our comprehensive product offering
and regional knowledge, equip us well to benefit from both current uncertainties
and, when it arrives, an improved business environment.
Richard Pepler
Chief Executive
Consolidated Income Statement (unaudited)
For the six months ended 31 Dec 2008
+-----------------------------------+------+---------+------------+---------+
| | Note | Six | Six | Year |
| | | months | months | ended |
| | | ended | ended | 30 |
| | | 31 Dec | (restated) | June |
| | | 2008 | 31 Dec | 2008 |
| | | | 2007 | |
+-----------------------------------+------+---------+------------+---------+
| | | GBP000 | GBP000 | GBP000 |
+-----------------------------------+------+---------+------------+---------+
| | | | | |
+-----------------------------------+------+---------+------------+---------+
| Revenue | | 2,137 | 2,056 | 4,146 |
+-----------------------------------+------+---------+------------+---------+
| Cost of Sales | | (363) | (432) | (784) |
+-----------------------------------+------+---------+------------+---------+
| | | | | |
+-----------------------------------+------+---------+------------+---------+
| Gross profit | | 1,774 | 1,624 | 3,362 |
+-----------------------------------+------+---------+------------+---------+
| | | | | |
+-----------------------------------+------+---------+------------+---------+
| Administrative expenses | | (1,633) | (1,623) | (3,224) |
+-----------------------------------+------+---------+------------+---------+
| | | | | |
+-----------------------------------+------+---------+------------+---------+
| Operating profit | | 141 | 1 | 138 |
+-----------------------------------+------+---------+------------+---------+
| | | | | |
+-----------------------------------+------+---------+------------+---------+
| Financial income | | 2 | 3 | 6 |
+-----------------------------------+------+---------+------------+---------+
| Financial expenses | | (3) | (4) | (7) |
+-----------------------------------+------+---------+------------+---------+
| | | | | |
+-----------------------------------+------+---------+------------+---------+
| | | | | |
+-----------------------------------+------+---------+------------+---------+
| Profit before tax | | 140 | 0 | 137 |
+-----------------------------------+------+---------+------------+---------+
| Taxation | 3 | (39) | 0 | (112) |
+-----------------------------------+------+---------+------------+---------+
| | | | | |
+-----------------------------------+------+---------+------------+---------+
| Profit for the period | | 101 | 0 | 25 |
| attributable to equity holders of | | | | |
| the parent | | | | |
+-----------------------------------+------+---------+------------+---------+
| | | | | |
+-----------------------------------+------+---------+------------+---------+
| Earnings per share | | | | |
+-----------------------------------+------+---------+------------+---------+
| Basic | | 0.51p | 0.00p | 0.13p |
+-----------------------------------+------+---------+------------+---------+
| Diluted | | 0.51p | 0.00p | 0.13p |
+-----------------------------------+------+---------+------------+---------+
All amounts relate to continuing activities and are attributable to equity
holders of the parent.
There were no recognised income and expense items (2007: nil) other than those
reflected in the above income statement.
Consolidated Balance Sheet (unaudited)
at 31 Dec 2008
+--------------------------------------------+----------+------------+----------+
| | | | |
+--------------------------------------------+----------+------------+----------+
| | 31 Dec | 31 Dec | 30 June |
| | 2008 | 2007 | 2008 |
| | | (restated) | |
| | | | |
+--------------------------------------------+----------+------------+----------+
| | GBP000 | GBP000 | GBP000 |
+--------------------------------------------+----------+------------+----------+
| Non-current assets | | | |
+--------------------------------------------+----------+------------+----------+
| Property, plant and equipment | 72 | 117 | 104 |
+--------------------------------------------+----------+------------+----------+
| Deferred tax asset | 127 | 128 | 127 |
+--------------------------------------------+----------+------------+----------+
| | | | |
+--------------------------------------------+----------+------------+----------+
| Current assets | | | |
+--------------------------------------------+----------+------------+----------+
| Loans and other receivables | 14,176 | 14,954 | 13,871 |
+--------------------------------------------+----------+------------+----------+
| Cash and cash equivalents | 329 | 373 | 88 |
+--------------------------------------------+----------+------------+----------+
| | | | |
+--------------------------------------------+----------+------------+----------+
| | | | |
+--------------------------------------------+----------+------------+----------+
| Total assets | 14,704 | 15,572 | 14,190 |
+--------------------------------------------+----------+------------+----------+
| | | | |
+--------------------------------------------+----------+------------+----------+
| | | | |
+--------------------------------------------+----------+------------+----------+
| Current liabilities | | | |
+--------------------------------------------+----------+------------+----------+
| Borrowings | (11,605) | (12,278) | (11,204) |
+--------------------------------------------+----------+------------+----------+
| Current tax liabilities | (196) | (178) | (146) |
+--------------------------------------------+----------+------------+----------+
| Trade and other payables | (221) | (439) | (265) |
+--------------------------------------------+----------+------------+----------+
| | | | |
+--------------------------------------------+----------+------------+----------+
| Total liabilities | (12,022) | (12,895) | (11,615) |
+--------------------------------------------+----------+------------+----------+
| | | | |
+--------------------------------------------+----------+------------+----------+
| Net assets | 2,682 | 2,677 | 2,575 |
+--------------------------------------------+----------+------------+----------+
| | | | |
+--------------------------------------------+----------+------------+----------+
| Equity attributable to equity holders of | | | |
| the parent | | | |
+--------------------------------------------+----------+------------+----------+
| Share capital | 1,000 | 1,000 | 1,000 |
+--------------------------------------------+----------+------------+----------+
| Share premium | 1,949 | 1,949 | 1,949 |
+--------------------------------------------+----------+------------+----------+
| Retained earnings | (267) | (272) | (374) |
+--------------------------------------------+----------+------------+----------+
| | | | |
+--------------------------------------------+----------+------------+----------+
| Total equity | 2,682 | 2,677 | 2,575 |
+--------------------------------------------+----------+------------+----------+
| | | | |
+--------------------------------------------+----------+------------+----------+
Consolidated Cash Flow Statement (unaudited)
for the six months ended 31 Dec 2008
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| | | Six | Six | |
| | | months | months | Year |
| | | ended | ended | ended |
| | | 31 Dec | (restated) | (restated) |
| | | 2008 | 31 Dec | 30 June |
| | | | 2007 | 2008 |
| | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| | | GBP000 | GBP000 | GBP000 |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Cash flows from operating activities | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Profit for the period before | | 140 | - | 137 |
| taxation | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Adjustments for: | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Depreciation | | 37 | 40 | 79 |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Financial Income | | (2) | (3) | (6) |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Financial Expense | | 3 | 4 | 7 |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Equity settled share-based payment expenses | | 6 | 5 | 12 |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Taxation | | (39) | - | (112) |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| (Increase)/decrease in loans and other | | (308) | 50 | 772 |
| receivables | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Increase/(decrease) in trade and other | | (41) | (128) | (280) |
| payables | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Increase/(decrease) in tax payable | | 50 | (57) | 117 |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Net cash from operating activities | | (154) | (89) | 726 |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Cash flows from investing activities | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Purchase of property, plant and equipment | | (5) | (28) | (54) |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Cash flows from financing activities | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Financial Income | | 2 | 3 | 6 |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Financial Expense | | (3) | (4) | (7) |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Proceeds from bank borrowings | | 401 | 355 | - |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Repayment of bank borrowings | | - | - | (719) |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Net increase/(decrease) in cash and cash | | 241 | 237 | (48) |
| equivalents | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Cash and cash equivalents at beginning of | | 88 | 136 | 136 |
| period | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| Cash and cash equivalents at end of period | | 329 | 373 | 88 |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
| | | | | |
+---------------------------------------------+------+--------------------------+------------------------------+------------------------------+
Notes to the half yearly report
1. Preparation of half yearly report
The financial information in the half yearly report has been prepared using the
recognition and measurement principles of International Accounting Standards,
International Financial Reporting Standards and Interpretations adopted for use
in the European Union (collectively Adopted IFRSs). The principal accounting
policies used in preparing the half yearly report are those the group expects to
apply in its financial statements for the year ending 30 June 2009 and are
unchanged from those disclosed in the group's Director's report and consolidated
financial statements for the year ended 30 June 2008. The financial information
for the six months ended 31 December 2008 and the six months ended 31 December
2007 is unaudited and does not constitute the group's statutory financial
statements for those periods. The comparative financial information for the full
year ended 30 June 2008 has, however, been derived from the audited statutory
financial statement for that period. A copy of those statutory financial
statements has been delivered to the Registrar of Companies. The auditors'
report on those accounts was unqualified, did not include references to any
matters to which the auditors drew attention by way of emphasis without
qualifying their report and did not contain a statement under section 237(2)-(3)
of the Companies Act 1985.
While the financial figures included in this
half-yearly report have been computed in accordance with IFRSs applicable to
interim periods, this half-yearly report does not contain sufficient information
to constitute an interim financial report as that term is defined in IAS 34.
2 Going Concern
The board is pleased to report that the back-to-back receivable financing
arrangement with Lloyds TSB Commercial Finance has been extended until the end
of March 2010. The board has held discussions with its bankers about its future
borrowing needs and no matters have been drawn to its attention to suggest that
renewal may not be forthcoming on acceptable terms.
The group's forecasts and projections covering this period and taking account of
reasonably possible changes in trading performance, show that the group is
expected to operate within the level of its current facility. At 31 December
2008 the group had utilised GBP11.6m of the GBP18m facility.
3 Taxation
Taxation has been provided for at 28% (2007: 30%).
4 Earnings per share
The basic earnings per share of 0.51p (31 Dec 2007: nil) has been calculated
from the profit after taxation of GBP101,000 and on the weighted average number
of shares in issue during the reporting period. The fully diluted earnings per
share of 0.51p (31 Dec 2007: nil), has been calculated from the profit after
taxation of GBP101,000 and on the weighted average of the shares in issue during
the period adjusted for all dilutive potential ordinary shares.
5 Restatement of 31 December 2007
At the 30 June 2008 a number of balance sheet items were reclassified as
compared to their treatment in the published interim financial information for
the six months ended 31 December 2007 as the directors felt that the
classifications made at the year end were more appropriate than in the interim
financial statements. The comparatives in this financial information have been
restated to reflect those categorisation changes at 30 June 2008 and so that
they are comparable with their treatment at the 31 December 2008. The
reclassifications have no effect upon the income statement nor the net assets.
6 Cashflow
Included in cash and cash equivalents at the 30 June 2008 and prior period
interim financial statements were amounts owed under the Lloyds Banking Group
back to back financing agreement. The directors have reviewed this
classification and do not believe that they meet the liquidity criteria of cash
and cash equivalents as defined by IAS 7. The directors believe that the amounts
so owed are more appropriately defined as financing amounts within the cash flow
and have therefore reclassified the amounts in the comparative financial
statements. The reclassification has no effect upon the income statement nor the
balance sheet.
7 Half Yearly Report
Copies of the half yearly report are available to shareholders. Additional
copies may be obtained from the Ultimate Finance Group plc registered office:
Bradley Pavilions, Pear Tree Road, Bradley Stoke, Bristol BS32 0BQ or on the
company's website at www.ultimatefinance.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UUUUUWUPBGRB
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
