Interim Results

RNS Number:1010I
Ultimate Finance Group PLC
28 February 2003


                         Ultimate Finance Group plc

For immediate release

28th February 2003



          Maiden interim results for the period ended 31 December 2002

 Ultimate Finance Group plc ("Ultimate Finance", "the company" or "the Group")
          was admitted on AIM in June 2002 as a newly formed business

    The Group offers recourse factoring, bulk factoring, confidential invoice
              discounting, credit insurance and trade finance services


Key points:

*  Maiden interim results in line with expectations

     *  #127,000 of revenues generated on #4,627,000 of total factored
        client turnover for the period.

     *  Expected loss before tax of #440,000 includes #122,000 of one-off
        start up costs

     *  Company moving towards profitability in medium term

*  Board strengthened with appointment of Mark Harris as non executive
   director

*  Senior Sales Executive appointed in the South East, further extending
   national coverage.

*  Target market is growing.  The factoring and invoice discounting
   industry in the UK is now serving approximately 30,000 businesses and turning
   over approximately #76.5 billion in the nine months to 30 September 2002 (FDA
   statistics).

*  Directors are confident of sustained growth going forward



Brian Sumner, Chief Executive of Ultimate Finance commented:

"I am very pleased to report the rapid establishment of our business and maiden
interim results in line with expectations.  The business infrastructure is
firmly in place and our offering has been well received in the market place.  We
are now ideally placed to push ahead in what is an increasingly receptive target
market.

These results demonstrate the success of our commercial strategy of developing a
strong network of business introducers such as accountants and specialist
brokers, a proactive approach to financial solutions and allowing clients direct
access to decision-makers at Ultimate Finance.  I am confident that this
approach will result in continued, sustainable growth".



Press enquiries:

Brian Sumner, Chief Executive            Ultimate Finance Group plc                       [phone]
Richard Pepler, Managing Director        Ultimate Finance Group plc                       [phone]
David Youngman                           W H Ireland                                      [phone]
Gerald Raingold                          Dawnay Day Corporate Finance                     [phone]
Shane Dolan                              Biddicks                                         [phone]




Chairman's Statement

Introduction

Since the admission of your company's share capital to AIM on 12 June 2002, the
business has experienced rapid but controlled growth in accordance with our
pre-determined strategy.  Professional staff, supported by efficient business
systems and processes, have delivered satisfactory interim results, which are in
line with expectations.

Our factoring and invoice discounting services provide small and medium-sized
businesses with a highly flexible form of funding.  Funds are not restricted (as
with a normal bank overdraft) by a formula based on the assets or net worth on a
balance sheet.  This flexibility is driving the demand for factoring and
discounting products and as a result our target market is growing strongly
affording significant business opportunities for the Group in the future.

Results

Trading commenced on 12 June 2002.  Turnover for the period ended 31 December
2002 was #127,000 on total factored client turnover of #4,627,000.  The loss
before tax was #440,000, which includes #122,000 of "one-off" start up costs.

Overheads have been rigidly controlled and growth is in line with increases in
staffing levels.  At 31 December 2002, the company employed nine staff.

The Group's client portfolio, which is rising steadily, is in line with
expectation and reflects a wide range of business activities, located throughout
England and Wales, served from the company's two offices in Bristol and Greater
Manchester.

Advances to clients reached #1,110,000 at 31 December 2002 and this, together
with the loss for the period, has utilised most of the net proceeds received
from the Placing.  Continuing growth will be financed by the debt finance
facility from the Bank of Scotland.  The principal facility from Bank of
Scotland of #4,500,000 is a conditional, secured revolving credit facility for
an initial period of two years.

Main Products

Our Recourse Factoring products, which include Bulk Factoring, account for over
90 per cent. of the Group's turnover.  Funding is provided, in most cases up to
80 per cent. of approved debts, on a continuing basis together with debt
collection and sales ledger management for the full factoring service.  The
balance of funds is then forwarded to the client less any outstanding charges.
Bulk Factoring is offered if the debtors are considered to be sufficiently good
quality and the client's credit control is considered effective and efficient.
The arrangement is disclosed to debtors although the client continues to
maintain its own sales ledger.

Confidential Invoice Discounting offers cash flow finance in a similar way to
factoring.  The differences are that the arrangement is not disclosed to the
debtors, the client continues to run its own sales ledger as it is usually
equipped to do so and the client's balance sheet tends to be stronger than the
average factoring client.

Trade Finance and debtor insurance are offered through close partnerships with
specialist providers.

Risk Management

From the outset, the Group has invested in industry recognised risk management
software and well-qualified, experienced staff safeguard the security of the
business.  We have successfully managed risk during the period whilst continuing
to provide the top class service expected by our clients.

Our target market is smaller sized businesses and to spread the risk our funds
are utilised across a diversified portfolio of clients.  The largest investment
to any one client at the end of the period under review was #162,000.

People

I pleased to report that since the Group's flotation, your Board has been
strengthened with the appointment of Mark Harris as a non-executive director.
Mark is a chartered accountant and a director of Glenmore Investments Limited, a
significant shareholder of the company.  I would like to welcome Mark to the
Board and I look forward to his wealth of business experience playing a valuable
role as we grow the business.

In addition to this appointment and to facilitate continued growth, the company
has recently strengthened its commercial team by recruiting an experienced,
senior sales executive based in the South East.

Finally, I would like to thank our Chief Executive, Brian Sumner and his
executive team, for successfully guiding the company through its flotation and
for establishing a business, which I believe offers tremendous growth prospects
going forward.   The professionalism and quality of our staff play a key role in
Ultimate Finance's continued success and I would like to thank them enormously
for their dedication and support to date as well as their continued efforts
ongoing.

Outlook

The market for factoring and discounting is still growing robustly giving us
increasing numbers of good quality opportunities to win business.  Indeed, the
factoring and invoice discounting industry in the UK is now serving over 30,000
businesses turning over approximately #76.5 billion in the 9 months to 30
September 2002 (FDA statistics).

The second half of the year has started well.  The combination of a strong
network of business introducers such as accountants and specialist brokers, a
proactive approach to financial solutions, a return to relationship factoring
and invoice discounting as well as allowing clients access to decision-makers
has proven to be a successful commercial strategy.  I am satisfied that this
approach will result in continued, sustainable growth and I look forward to the
future with confidence.


Clive Garston
Chairman



Profit and Loss Account for the period from 12 January 2002 to 31 December 2002

                                                                                              #'000

Turnover                                                                                        127
Operating loss                                                                                (459)

Net interest receivable                                                                          19
Loss on ordinary activities before and after taxation                                         (440)
Basic and fully diluted loss per share                                                      (3.92p)





Trading commenced on 12 June 2002 and the above results relate to the activities
carried out since that date.  The company was dormant for the period from
incorporation on 12 January 2002 to 12 June 2002, being the date its shares were
admitted to AIM.

There are no recognised gains and losses in the period other than those reported
in the profit and loss account.





Balance Sheet at 31 December 2002

                                                                                              #'000

Fixed assets                                                                                     24

Current assets
Debtors                                                                                       1,110
Cash at bank                                                                                    531
Other current assets                                                                             57

Current liabilities
Amounts due in less than one year                                                             (383)

Net current assets                                                                            1,315

Net assets                                                                                    1,339

Shareholders' funds
Called up share capital                                                                         561
Share premium account                                                                         1,218
Profit & Loss account                                                                         (440)

Total shareholders' funds                                                                     1,339







Reconciliation of movements in shareholders' funds
                                                                                              #'000

Loss for the period                                                                           (440)

New share capital subscribed (net of                                                          1,779
issue costs)

Net addition to shareholders' funds                                                           1,339

Opening shareholders' funds                                                                       -

Closing shareholders' funds                                                                   1,339





Cash Flow Statement for the period from 12 January 2002 to 31 December 2002

                                                                                                #'000

Net cash outflow from operating activities                                                    (1,539)

Returns on investments and servicing of finance                                                    19

Capital expenditure                                                                              (28)

Cash outflow before financing                                                                 (1,548)

Financing
Issue of shares                                                                                 1,779
Increase in debt                                                                                  300

Increase in cash                                                                                  531





Reconciliation of net cash flow to movement in net funds
                                                                                                #'000

Increase in cash                                                                                  531
Cash inflow from increase in debt                                                               (300)

Movement in net funds in the period                                                               231

Net funds at the start of the period                                                                -

Net funds at the end of the period                                                                231





Reconciliation of operating loss to net operating cash flows
                                                                                              #'000

Operating loss                                                                                (459)

Depreciation charges                                                                              4

Increase in commitments to clients                                                          (1,110)

Increase in sundry debtors                                                                     (57)

Provisions against client commitments                                                            10

Increase in sundry creditors                                                                     73

Net cash outflow from operating activities                                                  (1,539)





Notes to the interim report

1. This report covers the period from incorporation, 12 January 2002 to 31
   December 2002.  The trading period commenced 12 June 2002.

2. The basic loss per share has been calculated from the loss after taxation of
   #440,000 and on the 11,223,372 ordinary shares in issue at 31 December 2002

3. These interim financial statements were approved by the board of directors on
   27 February 2003.

4. Accounting policies

   The following accounting policies have been applied consistently in dealing 
   with items which are considered material in relation to the company's 
   financial statements:

Basis of preparation

These unaudited financial statements do not constitute statutory accounts.  They
have, however, been reviewed by the auditors whose report is included.  As these
financial statements represent the first accounting period, no audit has been
carried out and no audit report has been issued on the company.  The first set
of audited financial statements will be drawn up to 30 June 2003.

The financial statements have been prepared in accordance with applicable
accounting standards, and under the historical cost accounting rules.

Fixed assets and depreciation

Depreciation is provided to write-off the cost less the estimated residual value
of tangible fixed assets by equal instalments over their estimated useful
economic lives as follows:

Office equipment incl. network equipment - 5 years

Computer equipment excl. network equipment - 3 years.

Turnover

Turnover represents fees (excluding value added tax) and discount income.  Fees
are recognised when service is provided and discount income is recognised on
funds advanced to clients as it becomes due.

Cost of issuing share capital

The direct cost of issuing the share capital of the business has been netted off
against the share premium account as allowed by FRS4.

Cash and liquid resources

Cash, for the purpose of the cash flow statement, comprises cash in hand and
deposits repayable on demand, less overdrafts payable on demand.

Introducer commissions

Commissions payable to the introducers of business are charged to the profit and
loss account over the minimum period of the service contract.  In the event of
early termination, any commission not already charged to the profit and loss
account will be written off in full.

Net client commitments

Amounts due to clients under recourse factoring agreements are offset against
the related trade debtors.  The resulting balance represents net client
commitments and is included in debtors.

Client provisions

Provision is made generally in relation to the level of clients' turnover in the
period.

5. Interim Report

   Copies of this report are being sent to shareholders.  Additional copies may 
   be obtained from the Ultimate Finance Group plc Bristol office: 1st Floor, 
   Aztec Centre, Aztec West, Almondsbury, Bristol BS32 4TD.



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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