Final Results

 

TIDMWFCA 
 
RNS Number : 2701A 
WFCA PLC 
06 October 2009 
 
? 
WFCA plc 
 
 
("WFCA", "the Company" or "the Group") 
 
 
FINAL RESULTS 
 
 
 
 
WFCA plc (AIM: WFCA.L), a leading regional advertising and marketing agency, 
today announces its final results for the year ended ended 30 June 2009. 
 
 
 
 
Highlights 
 
 
-   Gross profit increased by 75 per cent. to GBP6,057,770 (2008: GBP3,451,744). 
-   Profit before tax, exceptionals and discontinued operations of GBP750,113 
(2008: GBP91,006). 
-   Substantial overhead savings from consolidating domestic operations into a 
new Tunbridge 
 

    Wells head office 
-   Company raised additional equity of GBP2.5 million after costs. 
 
 
Further enquiries: 
 
 
WFCA plc 
Stephen Latter, Financial Director    Tel: [phone] 
 
 
Daniel Stewart & Company plc 
Simon Leathers/Oliver Rigby         Tel: [phone] 
  WFCA plc 
 
 
Chairman's and Chief Executive's Statement 
for the year ended 30th June 2009 
 
 
Business Review & Summary 
 
 
We are pleased to announce that the performance of WFCA during a very difficult 
year has met expectations with the Group remaining both profitable and cash 
generative. The Profit before tax, exceptional items and discontinued operations 
of GBP750,113 compares to GBP91,006 for the comparable period last year and 
reflects the financial strengthening of the Group following the acquisition of 
WFCA Integrated Limited in April last year. As reported in the interim 
statement, the name of the company has now been changed from Ekay plc to WFCA 
plc to reflect the significance of WFCA to the Group. 
 
 
The economy determined that the year ended June 2009 would be one of operational 
consolidation rather than considering acquisition opportunities but the 
strategic aim of developing the group both organically and by merger and 
acquisition still remains. During the first half of the year, the entire 
operational base was consolidated into a new Tunbridge Wells head office 
removing approximately GBP900K per annum from overheads with minimal impact on 
our non Tunbridge Wells based client relationships. As mentioned in the interim 
statement, the loss making Channel Islands division was closed in October last 
year. 
 
 
In line with trading conditions generally, client activity over the financial 
year has been restrained with marketing budgets below that experienced in the 
previous twelve months. Furthermore, in a depressed environment, new business 
opportunities have been few but we are pleased to announce that towards the end 
of the financial year WFCA successfully pitched for and won several new 
accounts. When the outlook within the marketing sector improves, WFCA with its 
restructured cost base, remains very well placed to benefit. 
 
 
As an agency we are also 'practising what we preach' and are in the process of 
re-positioning our own brand to "WFCA - we create buyers". This provides 
differentiation in a competitive market, is a compelling offer for clients, 
prospects and staff alike and is furthermore serving to define our merger and 
acquisition priorities. Our strategic goal remains that of growth from a 
positioning as the largest full-service marketing services company outside of 
London. 
 
 
Board changes in the year resulted in Eddie Powell, the founder of Ekay plc and 
Bill Jones both leaving to pursue other interests and the appointment, as a 
non-executive director with effect from July 2009, of Robert Hamer who has over 
twenty years of experience in the marketing sector. We are also pleased to 
announce that Mark Gallagher has joined us from Manning Gottlieb OMD as 
executive media director and is providing new energy and ambition within 
our media and digital offering. 
 
 
Clearly, this last year has placed additional strains on all aspects of trading 
but none more than on the demands made upon the Group's staff. On behalf of all 
the directors we would like to thank them for their total support and commitment 
to the Group. 
 
 
 
 
Financial Summary 
 
 
Delivering a net profit before tax, exceptional costs and discontinued 
operations of GBP750,113 represented a major step forward for the Group. With 
the benefit of a whole year's contribution from WFCA Integrated, Gross Profit 
increased from GBP3,451,744 to GBP6,057,770 with the gross margin increasing 
from 7.7% to 18.1%, reflecting the improved margins achieved by providing a 
wider range of marketing services. The results for the year included a strong 
first half, before most clients reduced advertising budgets in response to the 
recession. 
 
 
The consolidated income statement also includes a net GBP7,371 loss from 
exceptional items and discontinued operations. The exceptional costs of 
GBP272,464 relate primarily to expenses connected with the merger of all UK 
operations last year to create a single UK head office, while the profit of 
GBP265,093 from discontinued operations relates to the closure of our Channel 
Islands division, as fully reported in the interim statement. 
 
 
Given the economic conditions and the risk of exposure to tightening supplier 
credit terms within the marketing services industry during the first half of 
2009, the directors believed it prudent to increase the working capital 
available to the Company. Accordingly, between April and June, the Company 
raised additional equity of GBP2.5 million after costs The benefit of this is 
evident in the very significant improvement in the Group's working capital 
position and this will continue to strengthen as a result of ongoing 
profitability. All long term debt has been eliminated, current debt reduced 
significantly and the net assets of the Group increased by 77% to GBP7.1 million 
over the financial year. 
 
 
In the interim results we reported that, following a ruling by the High Court in 
June 2008, the Special Reserve of GBP6.5 million has been merged within 
distributable retained earnings. However, we are not recommending the payment of 
a dividend from this year's profit at this stage in the Group's development. 
 
 
Outlook 
 
 
Overall it has been a sound financial performance in a very demanding year. With 
the cost reduction exercise and refinancing of the Group's working capital both 
completed, the Group is now well positioned to grow both organically and by 
acquisition. 
 
 
 
 
 
 
 
 
 
 
 
 
Bob Morton                                       Michael Richards 
ChairmanChief Executive 
 
 
 
 
  WFCA plc 
 
 
Group Income Statement for the Year Ended 30th June 2009 
 
 
 
 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
|                          |      |             |             |    Year     |  Year ended  | 
|                          |      |             |             |    ended    |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
|                          |      |             |             |  30th June  |  30th June   | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
|                          |      |   Before    |Exceptional  |    2009     |    2008      | 
|                          |      |Exceptional  |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
|                          |      |    Items    |    Items    |    Total    |    Total     | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
|                          |      |    GBP      |    GBP      |    GBP      |     GBP      | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Revenue                  |      |  33,387,852 |           - |  33,387,852 |   44,474,052 | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Direct costs             |      |  27,330,082 |           - |  27,330,082 | (41,022,308) | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
|                          |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Gross profit             |      |   6,057,770 |           - |   6,057,770 |    3,451,744 | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Other operating income   |      |       8,700 |           - |       8,700 |       22,604 | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
|                          |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
|                          |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Operating costs before   |      | (5,221,925) |   (272,464) | (5,494,389) |  (6,690,894) | 
| share option credit and  |      |             |             |             |              | 
| release of provision     |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Release of provision     |      |           - |           - |           - |      115,000 | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Share option             |      |    (14,100) |           - |    (14,100) |       17,131 | 
| (charge)/credit          |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
|                          |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Total operating cost     |      | (5,236,025) |   (272,464) | (5,508,489) |  (6,558,763) | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Depreciation             |      |    (95,210) |           - |    (95,210) |    (116,858) | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
|                          |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Total operating          |      |     735,235 |   (272,464) |     462,771 |  (3,201,273) | 
| profit/(loss)            |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Interest income          |      |      14,878 |           - |      14,878 |       54,670 | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
|                          |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Profit /(loss) before    |      |     750,113 |   (272,464) |     477,649 |  (3,146,603) | 
| taxation                 |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
|                          |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Income tax               |      |   (128,123) |           - |   (128,123) |       54,456 | 
| (charge)/credit          |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
|                          |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Profit / (Loss) before   |      |     621,990 |   (272,464) |     349,526 |  (3,092,147) | 
| Discontinued Operations  |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
|                          |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Profit from Discontinued |      |     265,093 |           - |     265,093 |            - | 
| Operations               |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
|                          |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Profit/(loss) for the    |      |             |             |             |              | 
| year attributable        |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| to equity holders of the |      |     887,083 |   (272,464) |     614,619 |  (3,092,147) | 
| parent                   |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
|                          |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Earnings per share       |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
|                          |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Basic earnings/loss per  |      |             |             |       0.37p |      (4.62)p | 
| share                    |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
| Diluted earnings/loss    |      |             |             |       0.36p |      (4.23)p | 
| per share                |      |             |             |             |              | 
+--------------------------+------+-------------+-------------+-------------+--------------+ 
 
 
 
 
There were no gains or losses for the year other than those recognised in the 
income statement. 
  WFCA plc 
 
 
 
 
Group and Company Balance Sheets at 30th June 2009 
 
 
 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
|                                         |          | Group                       | Company                     | 
+-----------------------------------------+----------+-----------------------------+-----------------------------+ 
|                                         |          | As at        | As at        | As at        | As at        | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
|                                         |          | 30th June    | 30th June    | 30th June    | 30th June    | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
|                                         |          | 2009         | 2008         | 2009         | 2008         | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
|                                         |          | GBP          | GBP          | GBP          | GBP          | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Assets                                  |          |              |              |              |              | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Non-current assets                      |          |              |              |              |              | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Property, plant and equipment           |          |      291,135 |      470,746 |      156,341 |      200,046 | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Goodwill                                |          |    8,497,907 |    8,497,907 |            - |            - | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Investments in subsidiaries             |          |            - |            - |   10,100,509 |   10,100,509 | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
|                                         |          |    8,789,042 |    8,968,653 |   10,256,850 |   10,300,555 | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
|                                         |          |              |              |              |              | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Current Assets                          |          |              |              |              |              | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Trade and other receivables             |          |    3,697,583 |    7,636,070 |    1,106,945 |    1,854,939 | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Cash and short term deposits            |          |       80,917 |      757,249 |        8,753 |        1,304 | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
|                                         |          |    3,778,500 |    8,393,319 |    1,115,698 |    1,856,243 | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
|                                         |          |              |              |              |              | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Total Assets                            |          |   12,567,542 |   17,361,972 |   11,372,548 |   12,156,798 | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
|                                         |          |              |              |              |              | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Equity and Liabilities                  |          |              |              |              |              | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Share capital                           |          |    2,657,809 |    1,568,088 |    2,657,809 |    1,568,088 | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Share premium                           |          |    1,383,648 |            - |    1,383,648 |            - | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Special reserve                         |          |            - |    6,499,126 |            - |    6,499,126 | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Retained earnings                       |          |    3,076,760 |  (4,051,085) |    2,627,316 |  (3,464,752) | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
|                                         |          |    7,118,217 |    4,016,129 |    6,668,773 |    4,602,462 | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Non Current Liabilities                 |          |              |              |              |              | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Long term borrowings                    |          |            - |    1,030,983 |            - |    1,000,000 | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
|                                         |          |              |              |              |              | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Current Liabilities                     |          |              |              |              |              | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Trade and other payables                |          |    5,207,472 |   12,011,838 |    4,591,995 |    6,400,324 | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Provisions for other liabilities and    |          |              |              |              |              | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Charges                                 |          |      192,376 |      302,202 |      111,780 |      154,012 | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Corporate income tax payable            |          |       49,477 |          820 |              |            - | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
|                                         |          |              |              |              |              | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Total Liabilities                       |          |    5,449,325 |   13,345,843 |    4,703,775 |    7,554,336 | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
|                                         |          |              |              |              |              | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
| Total Equity and Liabilities            |          |   12,567,542 |   17,361,972 |   11,372,548 |   12,156,798 | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
|                                         |          |              |              |              |              | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
|                                         |          |              |              |              |              | 
+-----------------------------------------+----------+--------------+--------------+--------------+--------------+ 
 WFCA plc 
 
 
 
 
Statement of Changes in Equity for the Year Ended 30th June 2009 
 
 
Group 
+---------------------------------+-----------+-----------+-------------+-------------+-----------+ 
|                                 |  Share    |  Share    |  Retained   |  Special    |           | 
+---------------------------------+-----------+-----------+-------------+-------------+-----------+ 
|                                 |  Capital  |  Premium  |  Earnings   |  Reserve    |  Total    | 
+---------------------------------+-----------+-----------+-------------+-------------+-----------+ 
|                                 |    GBP    |    GBP    |    GBP      |    GBP      |    GBP    | 
+---------------------------------+-----------+-----------+-------------+-------------+-----------+ 
|                                 |           |           |             |             |           | 
+---------------------------------+-----------+-----------+-------------+-------------+-----------+ 
| Balance at 1st July 2008        | 1,568,088 |         - | (4,051,085) |   6,499,126 | 4,016,129 | 
+---------------------------------+-----------+-----------+-------------+-------------+-----------+ 
| Charge for share options        |         - |         - |      14,100 |           - |    14,100 | 
+---------------------------------+-----------+-----------+-------------+-------------+-----------+ 
| Profit for the year             |         - |         - |     614,619 |           - |   614,619 | 
+---------------------------------+-----------+-----------+-------------+-------------+-----------+ 
| Total recognised income and     | 1,568,088 |         - | (3,422,366) |   6,499,126 | 4,644,848 | 
| expense for the year            |           |           |             |             |           | 
+---------------------------------+-----------+-----------+-------------+-------------+-----------+ 
|                                 |           |           |             |             |           | 
+---------------------------------+-----------+-----------+-------------+-------------+-----------+ 
| Issue of share capital          | 1,089,721 | 1,484,682 |           - |           - | 2,574,403 | 
+---------------------------------+-----------+-----------+-------------+-------------+-----------+ 
| Issue costs                     |         - | (101,034) |           - |           - | (101,034) | 
+---------------------------------+-----------+-----------+-------------+-------------+-----------+ 
| Transfer from special reserve   |         - |           |   6,499,126 | (6,499,126) |         - | 
+---------------------------------+-----------+-----------+-------------+-------------+-----------+ 
| Balance at 30th June 2009       | 2,657,809 | 1,383,648 |   3,076,760 |           - | 7,118,217 | 
+---------------------------------+-----------+-----------+-------------+-------------+-----------+ 
|                                 |           |           |             |             |           | 
+---------------------------------+-----------+-----------+-------------+-------------+-----------+ 
 
 
 
 
Company 
+----------------------------------+-----------+-----------+-------------+-------------+-----------+ 
|                                  |  Share    |  Share    |  Retained   |  Special    |           | 
+----------------------------------+-----------+-----------+-------------+-------------+-----------+ 
|                                  |  Capital  |  Premium  |  Earnings   |  Reserve    |  Total    | 
+----------------------------------+-----------+-----------+-------------+-------------+-----------+ 
|                                  |    GBP    |    GBP    |    GBP      |    GBP      |    GBP    | 
+----------------------------------+-----------+-----------+-------------+-------------+-----------+ 
|                                  |           |           |             |             |           | 
+----------------------------------+-----------+-----------+-------------+-------------+-----------+ 
| Balance at 1st July 2008         | 1,568,088 |         - | (3,464,752) |   6,499,126 | 4,602,462 | 
+----------------------------------+-----------+-----------+-------------+-------------+-----------+ 
| Charge for share options         |         - |         - |      14,100 |           - |    14,100 | 
+----------------------------------+-----------+-----------+-------------+-------------+-----------+ 
| Loss for the year                |         - |         - |   (421,158) |           - | (421,158) | 
+----------------------------------+-----------+-----------+-------------+-------------+-----------+ 
| Total recognised income and      | 1,568,088 |         - | (3,871,810) |   6,499,126 | 4,195,404 | 
| expense for the year             |           |           |             |             |           | 
+----------------------------------+-----------+-----------+-------------+-------------+-----------+ 
|                                  |           |           |             |             |           | 
+----------------------------------+-----------+-----------+-------------+-------------+-----------+ 
| Issue of share capital           | 1,089,721 | 1,484,682 |           - |           - | 2,574,403 | 
+----------------------------------+-----------+-----------+-------------+-------------+-----------+ 
| Issue costs                      |         - | (101,034) |           - |           - | (101,034) | 
+----------------------------------+-----------+-----------+-------------+-------------+-----------+ 
| Transfer from special reserve    |         - |           |   6,499,126 | (6,499,126) |         - | 
+----------------------------------+-----------+-----------+-------------+-------------+-----------+ 
| Balance at 30th June 2009        | 2,657,809 | 1,383,648 |   2,627,316 |           - | 6,668,773 | 
+----------------------------------+-----------+-----------+-------------+-------------+-----------+ 
|                                  |           |           |             |             |           | 
+----------------------------------+-----------+-----------+-------------+-------------+-----------+ 
 
 
 
 
 
 
 
 
  WFCA plc 
 
 
Consolidated and Company Cash Flow Statement 
For the Year Ended 30th June 2009 
 
 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
|                                      | Group                     | Company                   | 
+--------------------------------------+---------------------------+---------------------------+ 
|                                      | As at       | As at       | As at       | As at       | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
|                                      | 30th June   | 30th June   | 30th        | 30th June   | 
|                                      |             |             | June        |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
|                                      | 2009        | 2008        | 2009        | 2008        | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
|                                      | GBP         | GBP         | GBP         | GBP         | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Cash Flows from Operating Activities |             |             |             |             | 
|                                      |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Profit / (Loss) from operations      |     462,771 | (3,201,273) |    (56,408) | (2,503,405) | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Share option charge / (credit)       |      14,100 |    (17,131) |      14,100 |    (17,131) | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Discontinued operations              |   (393,110) |   2,386,462 |   (393,110) |   2,051,150 | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Impairment of property, plant &      |           - |      41,205 |           - |      41,205 | 
| equipment                            |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Depreciation of property, plant &    |      95,210 |     116,857 |      50,176 |      42,393 | 
| equipment                            |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Operating cash flows before movement |     178,971 |   (673,880) |   (385,242) |   (385,788) | 
| in working capital                   |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Loss on sale of property, plant &    |       2,873 |      60,989 |     (3,670) |       1,323 | 
| equipment                            |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Decrease in receivables              |   2,886,472 |     772,621 |     775,242 |     475,103 | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Decrease in payables                 | (4,139,506) | (2,554,241) | (1,350,686) |   (628,043) | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Cash consumed by operations          | (1,071,190) | (2,394,511) |   (964,356) |   (537,405) | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Income tax received / (paid)         |           - |      33,263 |           - |           - | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Net cash from operating activities   | (1,071,190) | (2,361,248) |   (964,356) |   (537,405) | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Cash Flows from Investing Activities |             |             |             |             | 
|                                      |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Interest received                    |      14,877 |      54,670 |       1,112 |      12,492 | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Acquisition of subsidiary net of     |           - | (2,417,593) |           - | (3,505,706) | 
| cash required                        |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Cash relating to discontinued        |   (134,363) |           - |           - |           - | 
| operations                           |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Proceeds from sale of property,      |           - |      29,887 |           - |       1,000 | 
| plant & equipment                    |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Purchase of property, plant &        |    (54,087) |   (115,016) |     (2,800) |     (9,524) | 
| equipment                            |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Net cash from investment activities  |   (173,573) | (2,448,052) |     (1,688) | (3,501,738) | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Cash Flows from Financing Activities |             |             |             |             | 
|                                      |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Proceeds on issue of shares          |   1,391,515 |   2,521,326 |   1,391,515 |   2,521,326 | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Costs of share issue                 |   (100,930) |    (64,000) |   (101,034) |    (64,000) | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Net cash from financing activities   |   1,290,585 |   2,457,326 |   1,290,481 |   2,457,326 | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
|                                      |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
|                                      |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Net increase/(decrease) in cash and  |      45,822 | (2,351,974) |     324,437 | (1,581,817) | 
| cash equivalents                     |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Cash and cash equivalents at 1st     |   (685,602) |   1,666,372 |   (496,631) |   1,085,186 | 
| July 2008                            |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
|                                      |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Cash and cash equivalents at 30th    |   (639,780) |   (685,602) |   (172,194) |   (496,631) | 
| June 2009                            |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
|                                      |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Represented by:                      |             |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Cash & short term deposits           |      80,917 |     757,249 |       8,753 |       1,304 | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Bank overdrafts                      |   (720,697) | (1,442,851) |   (180,947) |   (497,935) | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
| Total cash and cash equivalents      |   (639,780) |   (685,602) |   (172,194) |   (496,631) | 
+--------------------------------------+-------------+-------------+-------------+-------------+ 
  WFCA plc 
 
 
Notes to the Consolidated Financial Statements 
For the Year Ended 30th June 2009 
 
 
 
 
1.    Operating costs 
 
 
+----------------------------------+-------+-------------+-------------+ 
|                                  |       |          Group            | 
+----------------------------------+-------+---------------------------+ 
|                                  |       | Year ended  | Year ended  | 
+----------------------------------+-------+-------------+-------------+ 
|                                  |       |  30th June  |  30th June  | 
+----------------------------------+-------+-------------+-------------+ 
|                                  |       |    2009     |    2008     | 
+----------------------------------+-------+-------------+-------------+ 
|                                  | Notes |    GBP      |    GBP      | 
+----------------------------------+-------+-------------+-------------+ 
|                                  |       |             |             | 
+----------------------------------+-------+-------------+-------------+ 
| Total staff costs                | 4     |   3,965,687 |   2,637,988 | 
+----------------------------------+-------+-------------+-------------+ 
| Establishment costs              |       |     272,867 |     272,151 | 
+----------------------------------+-------+-------------+-------------+ 
| Other operating costs (net)      |       |   1,269,935 |   3,648,624 | 
+----------------------------------+-------+-------------+-------------+ 
|                                  |       |             |             | 
+----------------------------------+-------+-------------+-------------+ 
| Total operating costs            |       |   5,508,489 |   6,558,763 | 
+----------------------------------+-------+-------------+-------------+ 
|                                  |       |             |             | 
+----------------------------------+-------+-------------+-------------+ 
| Other Operating costs include:   |       |             |             | 
+----------------------------------+-------+-------------+-------------+ 
|                                  |       |             |             | 
+----------------------------------+-------+-------------+-------------+ 
| Loss on disposal of plant and    |       |       2,873 |      60,989 | 
| equipment                        |       |             |             | 
+----------------------------------+-------+-------------+-------------+ 
|                                  |       |             |             | 
+----------------------------------+-------+-------------+-------------+ 
| Operating lease rentals:         |       |             |             | 
+----------------------------------+-------+-------------+-------------+ 
| Property                         |       |     162,330 |     189,446 | 
+----------------------------------+-------+-------------+-------------+ 
| Plant and equipment              |       |      29,828 |      26,882 | 
+----------------------------------+-------+-------------+-------------+ 
|                                  |       |             |             | 
+----------------------------------+-------+-------------+-------------+ 
| Auditor's remuneration:          |       |             |             | 
+----------------------------------+-------+-------------+-------------+ 
| Audit fees payable to Brebners   |       |      20,000 |      36,625 | 
+----------------------------------+-------+-------------+-------------+ 
| Audit fees payable to other      |       |           - |      15,754 | 
| auditors                         |       |             |             | 
+----------------------------------+-------+-------------+-------------+ 
| Other services - tax and         |       |      15,605 |      21,668 | 
| assurance                        |       |             |             | 
+----------------------------------+-------+-------------+-------------+ 
|                                  |       |             |             | 
+----------------------------------+-------+-------------+-------------+ 
 
 
Exceptional Items 
 
     The exceptional items primarily comprise staff termination costs resulting 
from the acquisition of WFCA 
 

    Integrated Limited in April 2008. 
 
 
2.    Share capital 
 
 
+--------------------------+-----------+-----------+-------------+-------------+ 
|                          |   Year    |   Year    |    Year     |    Year     | 
|                          |   ended   |   ended   |    ended    |    ended    | 
+--------------------------+-----------+-----------+-------------+-------------+ 
|                          |   30th    |   30th    |  30th June  |  30th June  | 
|                          |   June    |   June    |             |             | 
+--------------------------+-----------+-----------+-------------+-------------+ 
|                          |   2009    |   2008    |    2009     |    2008     | 
+--------------------------+-----------+-----------+-------------+-------------+ 
|                          |    GBP    |    GBP    |    No.      |    No.      | 
+--------------------------+-----------+-----------+-------------+-------------+ 
|                          |           |           |             |             | 
+--------------------------+-----------+-----------+-------------+-------------+ 
| Authorised:              |           |           |             |             | 
+--------------------------+-----------+-----------+-------------+-------------+ 
| Ordinary shares of 1p    | 5,000,000 | 2,000,000 | 500,000,000 | 200,000,000 | 
| each                     |           |           |             |             | 
+--------------------------+-----------+-----------+-------------+-------------+ 
|                          |           |           |             |             | 
+--------------------------+-----------+-----------+-------------+-------------+ 
| Issued and fully paid:   |           |           |             |             | 
+--------------------------+-----------+-----------+-------------+-------------+ 
| Ordinary shares of 1p    | 2,657,809 | 1,568,088 | 265,780,908 | 156,808,717 | 
| each                     |           |           |             |             | 
+--------------------------+-----------+-----------+-------------+-------------+ 
|                          |           |           |             |             | 
+--------------------------+-----------+-----------+-------------+-------------+ 
 
 
On 4th June 2009 the company's authorised capital was increased from 
GBP2,000,000 to GBP5,000,000 by the creation of 300,000,000 new ordinary shares 
of 1p each ranking pari passu with the existing share capital. 
 
On the same day resolutions were passed to allot and issue 44,100,000 shares via 
a placing and allot and issue 64,433,333 shares to certain directors in 
consideration for the cancellation of loans and other liabilities due to them. 
These issues resulted in GBP1,479,667 being credited to the share premium 
account. 
 
On various other dates during the year 438,850 further ordinary shares of 1p 
each were issued under various share option schemes. The amount paid in excess 
of the nominal value, amounting to GBP5,015, was credited to the share premium 
account. 
 
 
 
 
3.    Earnings per share 
 
 
+-----------------------------------------+-------------+-------------+ 
|                                         |          Group            | 
+-----------------------------------------+---------------------------+ 
|                                         | Year ended  | Year ended  | 
+-----------------------------------------+-------------+-------------+ 
|                                         |  30th June  |  30th June  | 
+-----------------------------------------+-------------+-------------+ 
|                                         |    2009     |    2008     | 
+-----------------------------------------+-------------+-------------+ 
|                                         |    GBP      |    GBP      | 
+-----------------------------------------+-------------+-------------+ 
|                                         |             |             | 
+-----------------------------------------+-------------+-------------+ 
| Basic EPS                               |             |             | 
+-----------------------------------------+-------------+-------------+ 
| Reported earnings (GBP)                 |     614,619 | (3,092,147) | 
+-----------------------------------------+-------------+-------------+ 
| Reported EPS                            |       0.37p |     (4.62)p | 
+-----------------------------------------+-------------+-------------+ 
|                                         |             |             | 
+-----------------------------------------+-------------+-------------+ 
| Diluted EPS                             |             |             | 
+-----------------------------------------+-------------+-------------+ 
| Diluted reported earnings (GBP)         |     614,619 | (3,092,147) | 
+-----------------------------------------+-------------+-------------+ 
| Reported diluted EPS                    |       0.36p |     (4.23)p | 
+-----------------------------------------+-------------+-------------+ 
|                                         |    No.      |    No.      | 
+-----------------------------------------+-------------+-------------+ 
| Weighted average number of ordinary     |             |             | 
| shares                                  |             |             | 
+-----------------------------------------+-------------+-------------+ 
| Issued ordinary shares at 1st July 2008 | 156,808,717 |  39,130,900 | 
+-----------------------------------------+-------------+-------------+ 
| Effect of shares issued during the year |   7,936,927 |  27,808,228 | 
+-----------------------------------------+-------------+-------------+ 
| Weighted average number of shares for   | 164,745,644 |  66,939,128 | 
| basic EPS                               |             |             | 
+-----------------------------------------+-------------+-------------+ 
|                                         |             |             | 
+-----------------------------------------+-------------+-------------+ 
| Weighted average number of ordinary     |             |             | 
| shares                                  |             |             | 
+-----------------------------------------+-------------+-------------+ 
| Dilutive share options 1 outstanding    |      77,700 |     583,450 | 
+-----------------------------------------+-------------+-------------+ 
| Dilutive share options 2 outstanding    |   3,700,000 |   4,800,000 | 
+-----------------------------------------+-------------+-------------+ 
| Dilutive share options 3 outstanding    |   1,000,000 |           - | 
+-----------------------------------------+-------------+-------------+ 
| Unapproved share options                |     850,000 |     850,000 | 
+-----------------------------------------+-------------+-------------+ 
|                                         |             |             | 
+-----------------------------------------+-------------+-------------+ 
| Weighted average number of shares for   | 170,373,344 |  73,172,578 | 
| diluted EPS                             |             |             | 
+-----------------------------------------+-------------+-------------+ 
|                                         |             |             | 
+-----------------------------------------+-------------+-------------+ 
 
 
 
 
4.    Accounting estimates and judgements 
 
       Management has discussed with the Audit Committee the development, 
selection and disclosure of the 
 

      Group's critical accounting policies 
and estimates and the application of these policies and estimates. 
 
       As permitted by Section 408 of the Companies Act 2006, the profit and 
loss account of the parent 
 

      Company is not presented as part of these 
financial statements. The parent Company's loss for the 
 

      financial 
year amounted to GBP421,158. 
 
5.Report and Accounts 
 
       The Company's report and accounts together with the notice of the Annual 
General Meeting will be sent to 
 

      shareholders in due course. The 
Company will make a further announcemement once these have been 
 

      sent 
to shareholders and are available on the website. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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