Cleardebt Group PLC
28 March 2008
ClearDebt Group Plc
('The Group')
Unaudited Interim Results for the six months ended 31 December 2007
The Group provides specialist independent financial advice and appropriate
solutions to individuals experiencing personal debt problems.
Financial Highlights
6 Months 6 Months Year
Ended ended ended
31 December 31 December 30 June
2007 2006 * 2007 *
£ £ £
Revenue 794,839 226,780 420,963
Loss before taxation (495,178) (289,028) (657,494)
Cash used in operations (374,077) (463,740) (771,602)
* restated to reflect the adoption of IFRS
Operational Highlights
O Number of passed IVAs shows improvement in second quarter:
July 15 Oct 24
Aug 12 Nov 14
Sep 9 Dec 19
Total 36 Total 57
O 2,300 debt management plans currently signed up
O Significant growth in number of new DMPs ( 350+ per month)
Outlook
O Number of passed IVAs continues to increase and future looks positive
Jan 17
Feb 30
Pipeline of 70+
David Mond, CEO of ClearDebt Group commented
'This has been a trying period that has ended strongly. The banks have started
to pass IVAs again which should allow our low cost, scaleable model to take up
the slack in the market, bringing in new business.
Our debt management arm, acquired in July 2007, has proved a huge advantage,
providing positive cash flow, and is now profitable in its own right. We believe
that our wider offering of debt management products will both appeal to the
consumer and provide us with a wider customer base and financial flexibility.
We believe that the future is very positive, even if the market conditions
remain challenging. With the banks finally coming to an agreement brokered by
the Insolvency Service and the BBA, we look forward to arranging a more
equitable solution for the severely indebted, driving our business forward by
operational development and acquisition as we do so.'
For further information, please contact:
ClearDebt Group Plc David Mond
Chief Executive
Tel No: 0161 969 2023
WH Ireland Limited (Nominated Adviser) David Youngman
Tel No: 0161 832 2174
St Helen's Capital Plc (Broker) Ruari McGirr
Tel No: 0207 628 5582
College Hill Associates (Financial PR) Paddy Blewer
Tel No: 0207 457 2020
Chairman's Statement
I present our Interim results for the 6 months ended 31 December 2007.
During this period the Group made an operating loss of £457,413 (2006:
£297,935). This result includes an operating loss of £127,144 attributable to
Abacus (Financial Consultants) Limited ('Abacus'), which was acquired on 17 July
2007, and an operating loss of £330,269 attributable to ClearDebt Limited ('
ClearDebt'). Whilst Abacus's results were a little disappointing having taken
slightly longer to integrate into their new premises, ClearDebt's figures were
still impacted by the delay in agreement to the joint Insolvency Service/British
Bankers Association protocol during the period under review.
The Board has concluded that there has been no impairment of goodwill, not
withstanding the operating losses, due to the positive growth the Group has
achieved since October 2007 and the satisfactory outcome of the discussions
relating to the new IVA protocol as announced on 6 December 2007.
The number of passed IVAs shows improvement in the second quarter of the period
under review
July 15 Oct 24
Aug 12 Nov 14
Sep 9 Dec 19
Total 36 Total 57
and the number of passed IVAs continues to increase into the third quarter
Jan 17
Feb 30
and the future looks positive with a pipeline of 70+ cases at various stages of
process.
There are challenging times ahead. However, with the successful integration of
Abacus, which is now trading profitably with over 2,300 debt management plans
now generating income, growing at a rate of 350+ per month and with ClearDebt
increasing the numbers of IVAs being achieved, the directors expect an
improvement in ClearDebt's trading results as additional numbers of IVAs are
processed.
I am guardedly optimistic regarding the future. Following the launch of our
Partner Programme in June 2007, ClearDebt has now signed up over 1,100 mortgage
brokers and financial advisors as ClearDebt Introducers. We have also recently
signed an exclusive distribution deal with The Mortgage Brain Limited, one of
the largest mortgage sourcing software houses in the UK, making ClearDebt's
Partner Programme available online to over 24,000 mortgage brokers and financial
advisors within the UK, which the directors believe is more than any other debt
resolution company in the UK.
We are also pursuing a number of other initiatives including the provision of
our DMP Protect Policy with all Debt Management Plans undertaken by Abacus and
the introduction in the coming months of the 'ClearCash' pre-paid debit card
aligned to a ClearCash bank account by ClearDebt.
We are aware of and closely monitoring the prospects for consolidation within
our industry. We still believe that our low cost model, which is closely aligned
to creditors' current preferred positions, is an increasingly attractive
proposition in the current market and that the Group is well positioned to
capitalise on any opportunities that may arise.
Gerald Carey FCIB
28 March 2008
ClearDebt Group Plc
Consolidated Income Statement 6 Months ended 6 Months ended Year ended
31 December 2007 31 December 2006 30 June 2007
Unaudited Unaudited Unaudited
£ £ * £ *
REVENUE
- ongoing 192,973 226,780 420,963
- acquisitions 601,866
794,839 226,780 420,963
Cost of sales (808,222) (344,177) (324,405)
Gross (Loss)/Profit (13,383) (117,397) 96,558
ADMINISTRATION EXPENSES (444,030) (180,538) (791,587)
(LOSS) FROM OPERATIONS
- ongoing (330,269) (297,935) (695,029)
- acquisitions (127,144) - -
(457,413) (297,935) (695,029)
Finance costs (59,205) - -
Finance income 21,440 8,907 37,535
LOSS BEFORE TAXATION (495,178) (289,028) (657,494)
Income tax expense - - -
LOSS FOR THE PERIOD (495,178) (289,028) (657,494)
Loss per share - basic and diluted (pence) (0.16) (0.11) (0.24)
The results for the period are derived from continuing activities.
* Restated to reflect the adoption of IFRS as per note 5.
There was no recognised income or expenditure other than the loss for the
period. Accordingly no Statement of Recognised Gains and Losses has been
prepared.
ClearDebt Group Plc
Consolidated Balance Sheet 31-Dec-07 31- Dec-06 30-June-07
As at 31 December 2007 Unaudited Unaudited Unaudited
£ £ * £ *
ASSETS
NON CURRENT ASSETS
Property, plant and equipment 338,334 170,532 155,378
Goodwill 4,245,461 3,068,986 3,068,986
Intangible assets 33,298 56,806 45,053
4,617,093 3,296,324 3,269,417
CURRENT ASSETS
Accrued income 103,031 185,710 172,291
Trade receivables 286,196 391,113 147,370
Other receivables 5,372 16,452 274,585
Cash at bank and in hand 662,212 1,182,072 849,795
1,056,811 1,775,347 1,444,041
TOTAL ASSETS 5,673,904 5,071,671 4,713,458
EQUITY AND LIABILITIES
Issued capital 6,091,812 5,776,812 5,776,812
Share premium account 60,440 417,246 407,046
Retained losses (2,214,232) (1,350,588) (1,719,054)
TOTAL EQUITY 3,938,020 4,843,470 4,464,804
NON CURRENT LIABILITIES
Loans and borrowings 1,200,000 - -
1,200,000 - -
CURRENT LIABILITIES
Taxation 191,324 - -
Trade payables 91,501 129,631 104,356
Other payables 251,044 98,570 144,298
Deferred Tax 2,015 - -
535,884 228,201 248,654
TOTAL LIABILITIES 1,735,884 228,201 248,654
TOTAL EQUITY AND LIABILITIES 5,673,904 5,071,671 4,713,458
* Restated to reflect the adoption of IFRS as per note 5.
ClearDebt Group Plc 6 Months 6 Months Year
Consolidated Cash Flow ended ended ended
For the period to 31 December 2007 31-Dec-07 31-Dec-06 30-June -07
Unaudited Unaudited Unaudited
£ £ * £ *
Loss before taxation (495,178) (289,028) (657,494)
Adjustments to reconcile loss before
taxation to net cash from/(used in)
operating activities
Finance costs 59,205 - -
Finance income (21,440) (8,907) (37,535)
Depreciation/amortisation 61,367 33,411 74,534
Decrease/(increase) in trade and other receivables 239,281 (149,888) (150,859)
Decrease in trade and other payables (179,547) (58,235) (37,783)
Interest paid (59,205) - -
Interest received 21,440 8,907 37,535
Cash used in operations (374,077) (463,740) (771,602)
Taxation - - -
Cash used in operating activities (374,077) (463,740) (771,602)
Investing activities
Acquisition of plant and equipment (53,180) (75,787) (90,002)
Cost of acquisition of subsidiary and share issue (346,606)
Acquisition of subsidiary (1,200,000) - -
Net cash acquired 271,280 - -
Cash used in investing activities (1,328,506) (75,787) (90,002)
Financing
Net borrowings 1,200,000 - -
Share Issue 315,000 1,000,000 1,000,000
Share Issue costs - -
(10,200)
Cash from financing 1,515,000 1,000,000 989,800
(Decrease)/increase in cash and cash equivalents (187,583) 460,473 128,196
Opening cash and cash equivalents 849,795 721,599 721,599
Closing cash and cash equivalents 662,212 1,182,072 849,795
* Restated to reflect the adoption of IFRS as per note 5.
ClearDebt Group Plc
Consolidated Statement of Changes in Equity
As at 31 December 2007 Share
Issued premium Retained
capital account losses Total
£ £ £ £
Balance at 1 July 2006
5,141,891 52,167 (1,061,560) 4,132,498
Loss for the period
- - (289,028) (289,028)
Issue of shares 1,000,000
634,921 365,079 -
Balance at 31 December 2006
5,776,812 417,246 (1,350,588) 4,843,470
Loss for the period
- - (368,466) (368,466)
Share issue costs
- (10,200) - (10,200)
As at 1 July 2007
5,776,812 407,046 (1,719,054) 4,464,804
Loss for the period
- - (495,178) (495,178)
Issue of shares
315,000 - - 315,000
Share issue costs
- (346,606) - (346,606)
Balance at 31 December 2007
6,091,812 60,440 (2,214,232) 3,938,020
Notes to the Interim Financial Statements
1. Accounting policies and basis of preparation
The Group's previous financial statements have been prepared under UK Generally
Accepted Accounting Principles (UK GAAP). For the financial year ended 30 June
2008, the Group will prepare its annual consolidated financial statements in
accordance with IFRS as adopted by the European Union (EU) and implemented in
the UK.
The Group's date of transition to IFRS was 1 July 2006 at which date the Group
prepared its opening IFRS balance sheet. The financial information for the 6
months ended 31 December 2007 is unaudited and has been prepared in accordance
with the Group's accounting policies based on IFRS standards that are expected
to apply for the financial year 2007. The financial information for the 6
months ended 31 December 2006 is also unaudited and has been restated under
IFRS. The Group has not applied IAS 34, Interim Financial Reporting, which is
not mandatory for UK Groups, in the preparation of these interim financial
statements.
The presentation of financial information under IFRS is governed by IFRS 1 '
First-time Adoption of IFRS', because the financial information is part of the
period covered by the Group's first IFRS financial statement for the year ended
30 June 2008. In some cases this will require the presentation of an item in a
different position, or the use of a different description in the financial
statements to that adopted in the UK GAAP financial statements. These
reclassifications have been described in the explanatory notes.
An explanation of how the transition from UK GAAP to IFRS has affected the
Group's financial statements for the period ended 31 December 2007; 30 June 2007
and 31 December 2006 is set out in note 5.
The interim financial information has not been audited and does not constitute
statutory accounts within the meaning of Section 240 of the Companies Act 1985.
The Group's statutory accounts for the year ended 30 June 2007, prepared under
UK GAAP have been delivered to the Registrar of Companies. The report of the
auditors on these accounts was unqualified and did not contain a statement under
Section 237(2) or (3) of the Companies Act 1985.
The principal accounting policies adopted in the preparation of these interim
financial statements are set out below. These policies have been consistently
applied to all periods presented.
The interim statements are prepared on a going concern basis, which assumes the
Group will continue in operational existence for the foreseeable future. The
Group's ability to meet its future working capital requirements and therefore
continue as a going concern is dependent upon it being able to generate
significant revenues and free cash flow. The Directors have prepared projections
which they consider to be prudent and which demonstrate that the business can
operate within its existing cash resources and have identified a series of
realistically achievable actions that they are committed to taking to mitigate
the rate of cash outflow should revenues not be secured as predicted. The
Directors believe that the Group has sufficient funds for the foreseeable future
and therefore the interim financial statements have been prepared on the going
concern basis.
The principal effects identified on adoption of IFRS are discussed below:
IFRS 3 'Business Combinations', IAS 36 and IAS 38 resulted in a change to the
accounting policy for goodwill. Until 30 June 2006, goodwill was:
Amortised on a straight line basis over a period of up to 10 years from the year
of acquisition and assessed for an indication of impairment at each balance
sheet date.
In accordance with the provisions of IFRS 3 and IAS 36:
- The Group ceased amortisation of goodwill from 1 July 2006;
- Accumulated amortisation as at 30 June 2007 has been eliminated
with a
corresponding increase in the carrying value of goodwill of £323,052;
- From 1 July 2006 onwards, goodwill is tested annually for
impairment, as well as when there are indications of impairment.
Basis of consolidation
The consolidated interim financial statements comprise the accounts of ClearDebt
Group Plc and its subsidiary undertakings ClearDebt Limited, Abacus (Financial
Consultants) Limited and Carrwood Limited (dormant) up to 31 December 2007.
Revenue
Revenue represents the amount of net fees and commission, excluding value added
tax, made during the period on client's contracts. Revenue is accrued based on
the stage of completion of specific client contracts where the outcome can be
assessed with reasonable certainty.
Goodwill
Goodwill arising on consolidation represents the excess of the cost of
acquisition over the Group's interest in the fair value of the identifiable
assets and liabilities of a subsidiary, associate or jointly controlled entity
at the date of acquisition.
Goodwill on acquisition of subsidiaries is separately disclosed.
Goodwill is recognised as an asset and reviewed for impairment at least
annually. Any impairment is recognised immediately in the income statement and
is not subsequently reversed.
Goodwill is allocated to cash generating units for the purpose of impairment
testing. Each of these cash generating units represents the Group's investment
by primary reporting segment.
On disposal of a subsidiary, associate or jointly controlled entity, the
attributable amount of goodwill is included in the determination of the profit
or loss on disposal.
Goodwill arising on the acquisitions before the date of transition to IFRS has
been retained at the previous UK GAAP amounts subject to being tested for
impairment at that date.
Amortisation
Amortisation is calculated so as to write off the cost of intangible assets less
their estimated residual value, over the useful economic life of the asset as
follows:
Development costs - 25% straight line
The directors review the carrying value of development costs and goodwill on a
regular basis and, if appropriate, impair the value of development costs as
required.
Property, plant and equipment
All property, plant and equipment is initially recorded at cost. Depreciation is
provided at rates calculated to write off the cost less residual value of each
asset over its expected useful life, as follows:
Software development - 25% straight line
Fixtures and fittings - 25% straight line
Residual value and estimated remaining lives are reviewed annually.
Impairment
At each balance sheet date, the Group reviews the carrying amounts of its
property, plant and equipment to determine whether there is any indication that
those assets have suffered an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated in order to determine the
extent of the impairment loss (if any). Where the asset does not generate cash
flows that are independent from other assets, the Group estimates the
recoverable amount of the cash-generating unit to which the asset belongs. An
intangible asset with an indefinite useful life is tested for impairment
annually and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the
asset for which the estimates of future cash flows have been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to
be less than its carrying amount, the carrying amount of the asset
(cash-generating unit) is reduced to its recoverable amount. An impairment loss
is recognised as an expense immediately, unless the relevant asset is carried at
a revalued amount, in which case the impairment loss is treated as a revaluation
decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset
(cash-generating unit) is increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognised
for the asset (cash-generating unit) in prior years. A reversal of an impairment
loss is recognised as income immediately, unless the relevant asset is carried
at a revalued amount, in which case the reversal of the impairment loss is
treated as a revaluation increase.
Leasing
Rentals payable under operating leases are charged against income on a straight
line basis over the lease term.
Deferred taxation
The tax expense represents the sum of the tax currently payable and deferred
tax.
The tax currently payable is based on taxable profit for the year. Taxable
profit differs from net profit as reported in the income statement because it
excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The
Group's liability for current tax is calculated by using tax rates that have
been enacted or substantively enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amount of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability method. Deferred
tax liabilities are recognised for all taxable temporary differences and
deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary differences
can be utilised. Such assets and liabilities are not recognised if the temporary
difference arises from the initial recognition of goodwill or from the initial
recognition (other than in a business combination) of other assets and
liabilities in a transaction which affects neither the tax profit nor the
accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries and associates, and interests in joint
ventures, except where the Group is able to control the reversal of the
temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
Deferred tax is calculated at the tax rates that are expected to apply to the
period when the asset is realised or the liability is settled. Deferred tax is
charged or credited in the income statement, except when it relates to items
credited or charged directly to equity, in which case the deferred tax is also
dealt with in equity.
Trade and other receivables
Trade receivables are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method, less provision
for impairment. A provision for impairment of trade receivables is established
when there is objective evidence that the Group will not be able to collect all
amounts due according to the original terms of receivables. The amount of
provision is the difference between the asset's carrying amount and the present
value of estimated future cash flows, discounted at the effective interest rate.
Financial liability
Financial liabilities are classified according to the substance of the
contractual arrangements entered into.
An instrument will be classified as a financial liability when there is a
contractual obligation to deliver cash or another financial asset to another
enterprise.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand, deposits held at
call with banks and other short-term highly liquid investments with original
maturities of three months or less.
For the purposes of the Cash Flow Statement, cash and cash equivalents consist
of cash and cash equivalents as defined above.
Provisions
Provisions are recognised when the Group has a present obligation (legal or
constructive) as a result of a past event and it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation. If the
effect of the time value of money is material, provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money.
Derecognition of financial instruments
The derecognition of financial instruments takes place when the Group no longer
controls the contractual rights that comprise the financial instrument, which is
normally the case when the instrument is sold, or all of the cash flows
attributable to the instrument are passed through to an
independent third party.
Segmental Reporting
The total revenue, losses before tax and net assets are attributable to the one
principal activity of the Group, provision of financial solutions to individuals
experiencing personal debt problems and the provision of advice regarding
structured settlements and related financial services. All revenue and costs
originate within the United Kingdom. The revenue shown in the Group Income
Statement represents amounts in respect of the provision of financial solutions
to individuals experiencing personal debt problems. Revenue is largely derived
from nominee and supervisory fees which results from individual voluntary
arrangements (IVA) and the fees charged for the arrangement of debt management
plans (DMP).
2. Analysis of existing and acquired operations
6 Months ended Ongoing Acquisitions
31 December 2007
£ £ £
REVENUE 794,839 192,973 601,866
Cost of sales (808,222) (245,020) (563,202)
Gross Loss (13,383) (52,047) 38,664
ADMINISTRATION EXPENSES (444,030) (278,222) (165,808)
(LOSS) FROM OPERATIONS (457,413) (330,269) (127,144)
3. Loss per ordinary share
The calculation of basic loss per ordinary share is based on losses attributable
to equity holders of the parent of £495,178 (6 months ended 31 December 2006:
£289,028, year ended 30 June 2007: £657,494) and on 302,450,621 ordinary shares
(6 months ended 31 December 2006: 257,964,290, year ended 30 June 2007:
273,011,039) being the weighted average number of shares in issue during the
period.
The loss for the periods and the weighted average number of ordinary shares for
calculating the diluted loss per share are identical to those for the basic loss
per share. This is because the outstanding share options would have the
effect of reducing the loss per ordinary share and would therefore not be
dilutive under the terms of International Accounting Standard ('IAS') 33.
4. Loan facility
During the period the Group entered into a £1,600,000 loan facility at
commercial rates of interest with D E M Mond of which £400,000 has been repaid.
5. Explanation of the transition to IFRS
For all periods up to and including the year ended 30 June 2007 the Group
prepared its financial statements in accordance with United Kingdom Generally
Accepted Accounting Practices (UK GAAP).
In preparing these interim financial statements, the Group has started from an
opening balance sheet as at 1 July 2006, the Group's date of transition to IFRS,
and made those changes in accounting policies and other restatements required by
IFRS.
IFRS 1 allows first time adopters certain exemptions from the
general requirements to retrospectively apply IFRS as effective for the 30 June
2006 year end. The optional exemptions taken by the Group are as follows:
Business Combinations: The Group has elected not to apply IFRS 3 Business
Combinations retrospectively to business that took place prior to the transition
date. Consequently goodwill arising on business combinations before transition
date remains at its previous UK GAAP carrying value as at the date of
transition.
The reconciliation between UK GAAP and IFRS for the Group's loss, income
statements, balance sheet and total equity are presented below:
6 Months Year
ended ended
31-Dec-06 30-June-07
Unaudited Unaudited
£ £
Loss after tax under UK GAAP (450,554) (980,546)
Amortisation of goodwill 161,526 323,052
Loss after tax under IFRS (289,028) (657,494)
Reconciliation of income statement for the 6 months ended 31 December 2006
UK GAAP IFRS IFRS
effect
£ £ £
REVENUE 226,780 - 226,780
Cost of sales (344,177) - (344,177)
Gross (Loss) (117,397) - (117,397)
ADMINISTRATION EXPENSES
Amortisation of goodwill (161,526) 161,526 -
Other (180,538) - (180,538)
TOTAL ADMINISTRATION EXPENSES (342,064) 161,526 (180,538)
LOSS FROM OPERATIONS (459,461) 161,526 (297,935)
Finance income 8,907 - 8,907
LOSS BEFORE TAXATION (450,554) 161,526 (289,028)
Income tax expense - - -
LOSS FOR THE PERIOD (450,554) 161,526 (289,028)
Reconciliation of income statement for the year ended 30 June 2007
UK GAAP IFRS IFRS
effect
£ £ £
REVENUE 420,963 - 420,963
Cost of sales (324,405) - (324,405)
Gross Profit 96,558 - 96,558
ADMINISTRATION EXPENSES
Amortisation of goodwill (323,052) 323,052 -
Other (791,587) - (791,587)
TOTAL ADMINISTRATION EXPENSES (1,114,639) 323,052 (791,587)
LOSS FROM OPERATIONS (1,018,081) 323,052 (695,029)
Finance income 37,535 - 37,535
LOSS BEFORE TAXATION (980,546) 323,052 (657,494)
Income tax expenses - - -
LOSS FOR YEAR (980,546) 323,052 (657,494)
Reconciliation of equity as at 31 December 2006 and 30 June 2007
31-Dec-06 30-June-07
Unaudited Unaudited
£ £
Total equity under UK GAAP 4,910,145 4,141,752
Amortisation of goodwill 161,526 323,052
Total equity under IFRS 5,071,671 4,464,804
Reconciliation of balance sheet as at 31 December 2006
UK IFRS
GAAP effect IFRS
£ £ £
ASSETS
NON CURRENT ASSETS
Plant and equipment 170,532 - 170,532
Goodwill 2,907,460 161,526 3,068,986
Intangible assets 56,806 - 56,806
3,134,798 161,526 3,296,324
CURRENT ASSETS
Accrued income 185,710 - 185,710
Trade receivables 391,113 - 391,113
Other receivables 16,452 - 16,452
Cash at bank and in hand 1,182,072 - 1,182,072
1,775,347 - 1,775,347
TOTAL ASSETS 4,910,145 161,526 5,071,671
EQUITY AND LIABILITIES
Issued capital 5,776,812 - 5,776,812
Share premium account 417,246 - 417,246
Retained losses (1,512,114) 161,526 (1,350,588)
TOTAL EQUITY 4,681,944 161,526 (4,843,470)
NON CURRENT LIAIBILITIES
Other liabilities - - -
- - -
CURRENT LIABILITIES
Trade payables 129,631 - 129,631
Other payables 98,570 - 98,570
228,201 - 228,201
TOTAL LIABILITIES 228,201 - 228,201
TOTAL EQUITY AND LIABILITIES 4,910,145 161,526 5,071,671
Reconciliation of balance sheet as at 30 June 2007
UK IFRS
GAAP effect IFRS
£ £ £
ASSETS
NON CURRENT ASSETS
Plant and equipment 155,378 - 155,378
Goodwill 2,745,934 323,052 3,068,986
Intangible assets 45,053 - 45,053
2,946,365 323,052 3,269,417
CURRENT ASSETS
Accrued income 172,291 - 172,291
Trade receivables 147,370 - 147,370
Other receivables 274,585 - 274,585
Cash at bank and in hand 849,795 - 849,795
1,444,041 - 1,444,041
TOTAL ASSETS 4,390,406 323,052 4,713,458
EQUITY AND LIABILITIES
Issued capital 5,776,812 - 5,776,812
Share premium account 407,046 - 407,046
Profit and loss account (2,042,106) 323,052 (1,719,054)
TOTAL EQUITY 4,141,752 323,052 4,464,804
CURRENT LIABILITIES
Trade payables 104,356 - 104,356
Other payables 144,298 - 144,298
TOTAL LIABILITIES 248,654 - 248,654
TOTAL EQUITY AND LIABILITIES 4,390,406 323,052 4,713,458
Reconciliation of balance sheet as at 1 July 2006
UK IFRS
GAAP effect IFRS
£ £ £
ASSETS
NON CURRENT ASSETS
Plant and equipment 116,404 - 116,404
Goodwill 3,068,986 - 3,068,986
Intangible assets 68,559 - 68,559
3,253,949 - 3,253,949
CURRENT ASSETS
Accrued income 205,596 - 205,596
Trade receivables 209,380 - 209,380
Other receivables 28,411 - 28,411
Cash at bank and in hand 721,599 - 721,599
1,164,986 - 1,164,986
TOTAL ASSETS 4,418,935 - 4,418,935
EQUITY AND LIABILITIES
Issued capital 5,141,891 - 5,141,891
Share premium account 52,167 - 52,167
Profit and loss account (1,061,560) - (1,061,560)
TOTAL EQUITY 4,132,498 - -
CURRENT LIABILITIES
Trade payables 155,613 - 155,613
Other payables 130,824 - 130,824
TOTAL LIABILITIES 286,437 - 286,437
TOTAL EQUITY AND LIABILITIES 4,418,935 - 4,418,935
6. Movement in net debt
1-July-07 Cash Flow Non-Cash Movements 31-Dec-07
£ £ £ £
Cash at Bank 849,795 (187,583) - 662,212
Debts due after one year - (1,200,000) - (1,200,000)
849,795 (1,387,583) - (537,788)
7. Reconciliation of net cash flow to movement in net funds
6 Months 6 Months Year ended
31-Dec-07 31-Dec-06 30-Jun-07
Unaudited Unaudited Unaudited
£ £ * £ *
(Decrease)/increase in cash in the period (187,583) 460,473 128,196
Net cash (inflow) from debt financing (1,200,000) - -
Change in net (debt)/funds resulting from cash (1,387,583) 460,473 128,196
flows
Net funds/(debt) at start of period 849,795 721,599 721,599
Net (debt)/funds at end of period (537,788) 1,182,072 849,795
* Restated to reflect the adoption of IFRS as per note 5.
8. Purchase of subsidiary
On the 17 July 2007 the Group acquired the whole of the issued share capital of
Abacus (Financial Consultants) Limited for a total consideration of £1,200,000.
Book Fair value
value adjustments Total
£ £ £
Property, plant and equipment 179,388
Trade and other receivables 39,064
Cash at bank and in hand 271,280
Trade and other payables (272,870)
Taxation (191,324)
Deferred taxation (2,015)
23,523
Goodwill 1,176,477
Total consideration 1,200,000
9. The Board of Directors approved the interim report on 28 March 2008.
10. Availability of Interim Report.
A copy of the Interim Report will be sent to shareholders and will also be
available from the Group's website at www.cleardebtgroup.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
