Final Results
Released: 07:00 17-Sep-09
Number: 1840Z
RNS Number : 1840ZCleardebt Group PLC17 September 2009
ClearDebt Group plc
(The 'Company' or the 'Group')
Preliminary results for the year ended 30 June 2009
ClearDebt Group plc, the AIM quoted integrated consumer debt advisory, IVA and debt management group, is pleased to announce its preliminary results for the year ended 30 June 2009.
Financial Highlights: significant growth across key metrics
-
Revenue: £3,386,935 - 2008: £1,869,190
-
Gross profit: £1,436,365 - 2008: £107,807
-
Profit/(loss) from operations: £576,128 - 2008: (£1,131,950)
-
Profit/(loss) after taxation: £407,062 - 2008: (£697,264)
-
Cash generated by/(used in) operations: £380,807 - 2008: (£652,233)
Operational Highlights: ClearDebt model driving considerable growth
-
Since 1 July 2008 (2008: 1 July 2007), the following numbers of IVAs have been arranged:
|
|
Year ended |
|
Year ended |
|
|
30 June 2009 |
|
30 June 2008 |
|
|
|
|
|
|
First quarter |
84 |
|
36 |
|
Second quarter |
117 |
|
57 |
|
Third quarter |
118 |
|
67 |
|
Fourth quarter |
164 |
|
87 |
|
|
|
|
|
|
|
483 |
|
247 |
-
Abacus debt management plan unit now profitable: 52% of leads from the ClearDebt website
-
Since 1 July 2008, Abacus has arranged 2,856 new plans (1 July 2007: 2,707) and had 2,860 active plans at 30 June 2009 ( 2008: 1,899)
-
Launch of new products: integrated personal finance management tool and the 'ClearCash' pre-paid debit card
Outlook
-
Cash generated from current and predicted growth to be reinvested in business development and organic growth
-
Financial services industry continued acceptance of IVA as an acceptable form of personal debt relief
-
Predicted growth in personal debt and insolvency will drive further growth
-
ClearDebt integrated model to continue to drive new income streams for the Group
David Mond, CEO of ClearDebt commented:
'Whilst the first signs of an economic recovery are now visible, many individuals remain deeply indebted and the man or woman in the street remains finely balanced on the debt tightrope. We at ClearDebt offer an integrated debt management solution to our clients and are now seeing the steps taken over the last two years beginning to produce results.
With our intelligent kaizen based system, which gives an effective debt resolution solution to the customer, we have been in a position to benefit from the UK's personal debt crisis. With our new ClearCash personal finance management product, we can also be part of the solution, educating our clients on the best way to manage their income.
The last year was very much a step change in performance. Following a good start to the first quarter, we predict further growth across our income streams.'
17 September 2009
For further information, please contact:
|
David Mond, ClearDebt Group plc (CEO) |
Tel: 0161 969 2023 |
|
Robin Gwyn, WH Ireland Limited (Nominated Adviser) |
Tel: 0161 832 2174 |
|
Ruari McGirr, (St Helens Capital plc) (Broker) |
Tel: 0207 448 5971 |
Chairman's Statement
I am delighted to present the Group's financial statements for the year ended 30 June 2009.
The Group made a maiden pre-tax profit for the year of £460,923 (2008: loss of £1,221,860) resulting in a profit after taxation of £407,062 (2008: loss of £697,264). The successful diversification of the Group's IVA activities into the debt management arena via the acquisition of Abacus (Financial Consultants) Limited ('Abacus') has been the key to this turnaround.
The Group's balance sheet shows net assets of £4,535,318 (2008: £4,053,256) including cash of £584,593 (2008: £265,537) which is sufficient to continue to develop the Group's business over the next 12 months, given the positive cash flow now being enjoyed in both ClearDebt Limited ('ClearDebt') and Abacus.
The Group is now providing a complete offering of appropriate debt solutions to its clients and continues to realise synergies across its internet marketing platforms. The Group continues to invest in a substantial referral base and is further developing The Debt Advice Portal software to manage all of the Group's external referral relationships. I look forward to another profitable year following a good start to the first quarter.
Gerald Carey FCIB
Chairman
17 September 2009
CHIEF EXECUTIVE'S STATEMENT
The IVA Protocol reached with creditor banks in February 2008 enabled the number of IVA approvals to start to increase once again after a long period of rejections by creditors. I am pleased to say that as a result ClearDebt enjoyed a 96% increase in the number of IVAs passed in the year with 483 new cases (2008: 247). This increase in cases reflects not only the favourable economic climate for IVAs but also the benefits of cross marketing with Abacus and enabled ClearDebt to achieve profitability. Income is currently being generated from 858 cases.
Abacus has also achieved profitability for the first time (under ClearDebt Group plc ownership) in the current year and continues to make good progress in the favourable economic climate for debt solutions. A total of 2,856 new debt management plans ('DMP') were agreed in the year (2008: 2,707) an increase of 6% with some 52% of leads arising from the ClearDebt website. As at 30 June 2009 Abacus had 2,860 active paying debt management plans (2008: 1,899) which shows a healthy increase of 51% for the year.
We continue to expand our internet marketing activities across the Group and are constantly exploring new online marketing opportunities. In conjunction with this, we are also enhancing and expanding The Debt Advice Portal software to manage all of our broker generated referrals.
During the latter part of the year we also launched the ClearCash pre-paid MasterCard which is being offered to indebted individuals who struggle to obtain or operate a bank account. The card has the facility to make bill payments on-line and various other tools to enable budgeting. The card also offers discounts from a variety of sites and gives purchase protection insurance on all purchases.
We continue to closely monitor consolidation opportunities within our industry and the Group is well positioned to capitalise on any opportunities that may arise. We also continue to develop our back office systems to enable us to meet creditors' needs in as efficient a way as possible.
THE CONSUMER DEBT MARKET
ClearDebt Group operates within the debt resolution sector, an established sub-category of financial services. Personal insolvencies saw a step change in 2006 with a 58% increase in individual insolvencies to over 100,000 per annum which has been steadily maintained each year since then. The first half of 2009 is showing a 25% year on year increase when compared to the first half of 2008. These rises have been largely due to the expansion in consumer debt, the contraction in credit and latterly a large rise in unemployment leading to an inability to service debt.
As the economic climate has worsened the non-seasonally adjusted quarterly IVA numbers from the insolvency service have shown a steady increase from the lows in the first quarter of calendar year 2008 (pre the IVA protocol) until the last quarter of 2008. The numbers for the first quarter of calendar year 2009 saw a small decrease in IVA numbers which probably reflects the impact of rising unemployment - which makes an IVA generally an unsuitable debt solution. Despite this ClearDebt is continuing to show good growth as disclosed in the operational review. The insolvency statistics also show the number of individual insolvencies continuing to rise and we are also seeing an excellent increase in the take up of debt management plans through Abacus.
THE CLEARDEBT MODEL
Unlike many of its major competitors in the consumer IVA market, ClearDebt has developed a low overhead, high quality model, based on Kaizen manufacturing principles and an intelligent internet interface - www.cleardebt.co.uk. This model allows the company's cost base to be kept to a minimum level whilst still providing high levels of service. It also facilitates efficient growth as there is minimal need to hire new staff until customer number thresholds have been breached.
Due to this distinctive operating model, ClearDebt is able to offer a more effective debt resolution solution than many of its rivals. The model allows ClearDebt to offer IVAs (if that is the appropriate solution) at lower cost not only to the debtor, but also the creditor, by enhancing dividends - thereby increasing the chance that an IVA will be approved by the creditor and completed by the debtor, benefiting all parties involved in the proposal.
THE ABACUS MODEL - Debt Management Plans
Abacus provides services to indebted individuals by negotiating and putting in place a debt management plan with their creditors. The debtor makes monthly payment to Abacus who then distributes the payment to the creditors as agreed in the plan less an administration fee at an agreed percentage of the debtor's monthly payment. An initial set up fee is also charged.
Such plans are suitable for individuals whose debts are more manageable and rely on the goodwill of creditors as they are not a formal insolvency procedure and interest usually continues to accrue on outstanding debts although some creditors are prepared to waive the interest for short periods.
Many clients are cross referred between ClearDebt and Abacus allowing the Group to offer an appropriate advice solution to all individuals.
As a leading member of the Debt Resolution Forum, ClearDebt has been in regular negotiation with the creditor community and aims to be at the forefront of any proposals to introduce a Regulated Debt Management Plan following the completion of the current consultation process being undertaken by the Ministry of Justice.
OPERATIONAL REVIEW
ClearDebt - IVA Division
Since 1 July 2008 (2008: 1 July 2007), the following numbers of IVAs have been arranged:
|
|
Year ended |
|
Year ended |
|
|
30 June 2009 |
|
30 June 2008 |
|
|
|
|
|
|
First quarter |
84 |
|
36 |
|
Second quarter |
117 |
|
57 |
|
Third quarter |
118 |
|
67 |
|
Fourth quarter |
164 |
|
87 |
|
|
|
|
|
|
|
483 |
|
247 |
ClearDebt has made good progress in the first three quarters of the year before seeing a rapid acceleration in the number of new plans in the fourth quarter. Case numbers in the first quarter of the current financial year are expected to be ahead of the fourth quarter which is especially pleasing given this first quarter is traditionally a quieter period for ClearDebt and the industry in general.
The Board monitors several key performance indicators ('KPI's') for the business on a monthly basis including the number of cases passed, various conversion ratios from lead to cases passed and the cost per case acquired.
Abacus- Debt Management Division
The division has achieved profitability this year with a total of 2,860 plans generating income at 30 June 2009 (2008: 1,899). Abacus currently has 2,939 paying plans in place as at 31 August 2009. Gross profitability has increased markedly with the low cost of acquisition of leads from ClearDebt sources versus other more expensive third party lead acquisition costs.
Given that debtors often miss payments to the plans or delay in starting up newly agreed plans, the Board only include plans which have made a payment in the current month in the KPIs for total plans in place and new plans acquired in the month. The other main KPI monitored by the Board is in relation to the value of payments made by the plans each month as this has a direct bearing on fee income which is a fixed percentage of plan payments. Revenue is only recognised by Abacus upon receipt of fees which are drawn from debtor payments as received.
The costs of acquisition of cases and plans are also monitored closely and KPIs continue to be refined following the purchase of Abacus where an increasingly large proportion of leads are being obtained from ClearDebt.
FINANCIAL REVIEW
Gross profit increased to £1,436,365 (2008: £107,807) as a result of increased turnover, careful control of salary costs, and ever continuing refinements in marketing spend and additional synergies between ClearDebt and Abacus.
FUTURE OUTLOOK
The IVA market has continued to recover from pre Protocol levels in the first quarter of 2008 but has still not seen the peak reached in the 4th quarter of 2006. Despite this ClearDebt has substantially increased the numbers of IVAs it has dealt with and has substantially outperformed the growth rate in the wider market over the period.
We continue to see a significant number of appropriate referrals from ClearDebt to Abacus for debt management plans and as a result Abacus continues to trade strongly.
Given the current economic outlook in the UK with rising unemployment I believe the Group is well placed for another successful year.
I would finally like to pay tribute to all our employees who have bonded well together to create a very talented team offering the high standards of service and commitment that the company has set for itself.
David Emanuel Merton Mond FCA FCCA
Chief Executive Officer
17 September 2009
Group Income Statement
For the year ended 30 June 2009
|
|
Notes |
|
2009 £ |
|
2008 £ |
|
|
|
|
|
|
|
|
Revenue |
2 |
|
3,386,935 |
|
1,869,190 |
|
Cost of sales |
|
|
(1,950,570) |
|
(1,761,383) |
|
|
|
|
|
|
|
|
Gross profit |
|
|
1,436,365 |
|
107,807 |
|
Administrative expenses |
|
|
(693,335) |
|
(920,711) |
|
|
|
|
|
|
|
|
Profit/(loss) before interest, tax, depreciation and amortisation |
|
|
743,030 |
|
(812,904) |
|
Depreciation |
|
|
(90,279) |
|
(75,464) |
|
Amortisation |
|
|
(76,623) |
|
(243,582) |
|
|
|
|
|
|
|
|
Profit/(loss) from operations |
3 |
|
576,128 |
|
(1,131,950) |
|
|
|
|
|
|
|
|
Finance costs |
4 |
|
(126,600) |
|
(122,505) |
|
Finance income |
|
|
11,395 |
|
32,595 |
|
|
|
|
|
|
|
|
Profit/(loss) before taxation |
|
|
460,923 |
|
(1,221,860) |
|
Taxation |
5 |
|
(53,861) |
|
524,596 |
|
|
|
|
|
|
|
|
Profit/(loss) after taxation for year |
|
|
407,062 |
|
(697,264) |
|
|
|
|
|
|
|
|
Earnings/(loss) per ordinary share - basic (pence) |
6 |
|
0.13p |
|
(0.23p) |
|
Earnings/(loss) per ordinary share - diluted (pence) |
6 |
|
0.13p |
|
(0.23p) |
|
|
|
|
|
|
|
The results for the period are derived from continuing activities.
No separate statement of total recognised income and expenditure is presented as all such income and expenses have been dealt with in the Group income statement above.
Group Balance Sheet
As at 30 June 2009
|
|
|
2009 |
2008 |
|
|
|
£ |
£ |
|
Assets Non-current assets |
|
|
|
|
Intangible assets |
|
4,537,299 |
4,504,814 |
|
Property plant and equipment |
|
189,800 |
244,056 |
|
Deferred taxation |
|
347,940 |
403,396 |
|
|
|
|
|
|
|
|
5,075,039 |
5,152,266 |
|
Current assets |
|
|
|
|
Trade and other receivables |
|
729,310 |
472,824 |
|
Corporation tax repayment receivables |
|
- |
102,793 |
|
Cash and cash equivalents |
|
584,593 |
265,537 |
|
|
|
|
|
|
|
|
1,313,903 |
841,154 |
|
|
|
|
|
|
Total assets |
|
6,388,942 |
5,993,420 |
|
|
|
|
|
|
|
|
|
|
|
Equity and liabilities Equity |
|
|
|
|
Issued capital |
|
6,166,812 |
6,091,812 |
|
Share premium account |
|
279,948 |
279,948 |
|
Share based compensation |
|
97,814 |
97,814 |
|
Retained losses |
|
(2,009,256) |
(2,416,318) |
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
4,535,318 |
4,053,256 |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Trade and other payables |
|
639,807 |
740,164 |
|
Corporation tax payable |
|
13,817 |
- |
|
|
|
|
|
|
|
|
653,624 |
740,164 |
|
Non-current liabilities |
|
|
|
|
Financial liabilities |
|
1,200,000 |
1,200,000 |
|
|
|
|
|
|
Total liabilities |
|
1,853,624 |
1,940,164 |
|
|
|
|
|
|
Total equity and liabilities |
|
6,388,942 |
5,993,420 |
|
|
|
|
|
Group Statement of Changes in Equity
|
|
Share Capital |
|
Share Premium |
|
Other Reserves |
|
Retained Losses |
|
Total Equity |
|
|
£ |
|
£ |
|
£ |
|
£ |
|
£ |
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at 1 July 2007 |
5,776,812 |
|
407,046 |
|
- |
|
(1,719,054) |
|
4,464,804 |
|
Share issue |
315,000 |
|
- |
|
- |
|
- |
|
315,000 |
|
Share issue costs |
- |
|
(29,284) |
|
- |
|
- |
|
(29,284) |
|
Share based compensation |
|
|
(97,814) |
|
97,814 |
|
- |
|
- |
|
Loss for the period |
- |
|
- |
|
- |
|
(697,264) |
|
(697,264) |
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at 1 July 2008 |
6,091,812 |
|
279,948 |
|
97,814 |
|
(2,416,318) |
|
4,053,256 |
|
Share issue |
75,000 |
|
- |
|
- |
|
- |
|
75,000 |
|
Profit for the period |
- |
|
- |
|
- |
|
407,062 |
|
407,062 |
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at 30 June 2009 |
6,166,812 |
|
279,948 |
|
97,814 |
|
(2,009,256) |
|
4,535,318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital
Share Capital has arisen on the issue of shares and represents the nominal value of shares issued.
Share premium
The share premium account arose from the issue of equity shares above the nominal value less share issue costs.
Other reserve
This reserve is the result of the Company's grant of equity settled share options and warrants and measured in accordance with IFRS2 Share-based payment transactions.
Retained losses
The Retained losses reflect losses incurred to date.
Group Cashflow Statement
|
|
|
|
|
|
|
2009 |
|
2008 |
|
|
£ |
|
£ |
|
Cash flow from Continuing Operating Activities |
|
|
|
|
Profit/(loss) before taxation |
460,923 |
|
(1,221,860) |
|
Depreciation of property, plant and equipment |
90,279 |
|
75,464 |
|
Amortisation of intangible assets |
76,623 |
|
243,582 |
|
(Increase)/decrease in trade and other receivables |
(256,486) |
|
160,486 |
|
Finance costs |
126,600 |
|
122,505 |
|
Finance income |
(11,395) |
|
(32,595) |
|
(Decrease)/increase in trade and other payables |
(105,737) |
|
185 |
|
|
|
|
|
|
Cash generated by/(used) in operations |
380,807 |
|
(652,233) |
|
Income tax refund |
123,585 |
|
- |
|
|
|
|
|
|
Cash generated by/(used) in operating activities |
504,392 |
|
(652,233) |
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Acquisition of business and assets |
(10,612) |
|
(1,250,014) |
|
Acquisition of intangibles |
(23,496) |
|
- |
|
Acquisition of property, plant and equipment |
(36,023) |
|
(102,817) |
|
Finance income |
11,395 |
|
32,595 |
|
Sale of other intangible assets |
- |
|
25,000 |
|
|
|
|
|
|
Net cash absorbed by investing activities |
(58,736) |
|
(1,295,236) |
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
Proceeds from new loans |
- |
|
1,600,000 |
|
Repayment of loans |
- |
|
(400,000) |
|
Proceeds of share issue |
- |
|
315,000 |
|
Share issue costs |
- |
|
(29,284) |
|
Interest on loans |
(126,600) |
|
(122,505) |
|
|
|
|
|
|
Cash (used by)/generated from financing activities |
(126,600) |
|
1,363,211 |
|
|
|
|
|
|
Increase/(decrease) in cash and cash equivalents |
319,056 |
|
(584,258) |
|
Opening cash and cash equivalents |
265,537 |
|
849,795 |
|
|
|
|
|
|
Closing cash and cash equivalents |
584,593 |
|
265,537 |
|
|
|
|
|
Notes forming part of the preliminary announcement for the year ended 30 June 2009
1. Basis of preparation
The preliminary financial information does not constitute full accounts within the meaning of section 434 of the Companies Act 2006 but is derived from accounts for the years ended 30 June 2009 and 30 June 2008. The figures for the year ended 30 June 2009 are audited. The preliminary announcement is prepared on the same basis as set out in the statutory accounts for the year ended 30 June 2009. While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS), as adopted by the European Union (EU), this announcement does not in itself contain sufficient information to comply with IFRSs.
ClearDebt Group plc is incorporated and domiciled in the United Kingdom. The consolidated financial information of ClearDebt Group plc set out in this announcement is presented in Pounds Sterling (£), which is also the functional currency of the parent. The consolidated financial information has been approved for issue by the Board of Directors on 17 September 2009.
The statutory accounts for the year ended 30 June 2009 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. Statutory accounts for the year ended 30 June 2008 have been filed with the Registrar of Companies. The auditors' report on those accounts was unqualified and did not contain any statement under Section 237 (2) or (3) of the Companies Act 1985.
2. Segmental Information
The Group's total income, loss before taxation and net assets were all derived from its principal activities being the provision of IVA and other financial advice and appropriate solutions to individuals experiencing personal debt problems. All the Group's activities were undertaken wholly in the United Kingdom.
Year ended 30 June 2009
|
|
Insolvency |
Debt Management |
Total 2009 |
Insolvency |
Debt Management |
Total 2008 |
|
|
£ |
£ |
£ |
£ |
£ |
£ |
|
Revenue |
766,366 |
2,620,569 |
3,386,935 |
486,586 |
1,382,604 |
1,869,190 |
|
Inter Group trading |
175,125 |
(175,125) |
- |
- |
- |
- |
|
Cost of sales |
(463,787) |
(1,486,783) |
(1,950,570) |
(533,481) |
(1,227,902) |
(1,761,383) |
|
|
_________ |
_________ |
_________ |
_________ |
_________ |
_________ |
|
Gross profit /(loss) |
477,704 |
958,661 |
1,436,365 |
(46,895) |
154,702 |
107,807 |
|
Administrative expenses |
(277,307) |
(582,930) |
(860,237) |
(666,663) |
(573,094) |
(1,239,757) |
|
|
_________ |
_________ |
_________ |
_________ |
_________ |
_________ |
|
Profit/(loss) from operations |
200,397 |
375,731 |
576,128 |
(713,558) |
(418,392) |
(1,131,950) |
|
Finance costs |
- |
(126,600) |
(126,600) |
- |
(122,505) |
(122,505) |
|
Finance income |
11,395 |
- |
11,395 |
32,595 |
- |
32,595 |
|
|
_________ |
_________ |
_________ |
________ |
_________ |
_________ |
|
Profit/(loss) before taxation |
211,792 |
249,131 |
460,923 |
(680,963) |
(540,897) |
(1,221,860) |
|
Taxation |
53,266 |
(107,127) |
(53,861) |
387,161 |
137,435 |
524,596 |
|
|
_________ |
_________ |
_________ |
_________ |
_________ |
_________ |
|
Profit/(loss) for year |
265,058 |
142,004 |
407,062 |
(293,802) |
(403,462) |
(697,264) |
|
|
_________ |
_________ |
_________ |
_________ |
_________ |
_________ |
Net operating assets are reconciled to equity funds as follows:
|
|
2009 £ |
|
2008 £ |
|
Gross assets |
|
|
|
|
Insolvency |
4,674,784 |
|
4,300,999 |
|
Debt management |
1,714,158 |
|
1,692,421 |
|
|
6,388,942 |
|
5,993,420 |
|
|
|
|
|
|
Gross liabilities |
|
|
|
|
Insolvency |
413,347 |
|
485,977 |
|
Debt management |
1,440,277 |
|
1,454,187 |
|
|
1,853,624 |
|
1,940,164 |
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure to acquire property, plant and equipment |
|
|
|
|
Insolvency |
11,715 |
|
50,033 |
|
Debt management |
24,308 |
|
52,784 |
|
|
36,023 |
|
102,817 |
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure to acquire intangible assets |
|
|
|
|
Insolvency |
23,496 |
|
- |
|
Debt management |
- |
|
- |
|
|
|
|
|
|
|
23,496 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Depreciation of property, plant and equipment |
|
|
|
|
Insolvency |
30,508 |
|
27,875 |
|
Debt management |
59,771 |
|
47,589 |
|
|
|
|
|
|
|
90,279 |
|
75,464 |
|
|
|
|
|
|
|
|
|
|
|
Amortisation of intangible assets |
|
|
|
|
Insolvency |
65,373 |
|
68,082 |
|
Debt management |
11,250 |
|
175,500 |
|
|
|
|
|
|
|
76,623 |
|
243,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3. Separately Disclosable Items |
|
|
|
|
|
2009 |
|
2008 |
|
|
£ |
|
£ |
|
Administrative Expenses |
(77,500) |
|
100,000 |
ClearDebt took legal action in early 2008 against the IVA Council and others for defamation after the IVA Council sent correspondence to ClearDebt's clients (and clients of other IVA companies) alleging they had been mis-sold IVAs. The case was settled on 21 November 2008 with the award of £250,000 to ClearDebt in respect of damages and legal costs together with a letter of apology. £77,500 of the provision made in 2008 for legal costs has been released in the current year after the receipt of the monies and the discharge of the associated legal costs.
|
4. Finance Costs |
2009 |
|
2008 |
|
|
£ |
|
£ |
|
|
|
|
|
|
Interest payable on loans |
126,600 |
|
122,505 |
|
5. Taxation |
2009 |
|
2008 |
|
|
£ |
|
£ |
|
Analysis of current year |
|
|
|
|
Current tax |
|
|
|
|
UK corporation tax payable |
13,817 |
|
- |
|
UK corporation tax repayment due |
- |
|
(102,793) |
|
Under/overprovision) from prior years |
(15,412) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Deferred tax |
|
|
|
|
Temporary differences, origination and reversal |
150,818 |
|
(421,803) |
|
Effect of tax rate changing on opening balance |
(95,362) |
|
- |
|
|
|
|
|
|
Total deferred tax debit/(credit) |
55,456 |
|
(421,803) |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit/(loss) for the period |
53,861 |
|
(524,596) |
|
|
|
|
|
|
Factors affecting charge for year |
|
|
|
|
|
2009 £ |
|
2008 £ |
|
Profit/(loss) before taxation |
460,923 |
|
(1,221,860) |
|
|
|
|
|
|
Profit/(loss) multiplied by standard rate of corporation tax in the UK of 28% (2008: 21%) |
129,058 |
|
(256,590) |
|
|
|
|
|
|
EFFECTS OF: |
|
|
|
|
|
|
|
|
|
Expenses not deductible |
302 |
|
3,051 |
|
Adjustment due to change of tax rate |
(95,362) |
|
- |
|
Other prior year adjustment |
25,019 |
|
- |
|
Recognition of tax losses related to previous periods |
- |
|
(271,057) |
|
Marginal relief |
(5,156) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Current tax expense/(credit) for year |
53,861 |
|
524,596 |
|
6. Earnings per Ordinary Share |
|
|
|
|
|
|
|
2009 |
|
2008 |
|
|
|
£ |
|
£ |
|
Profit/(loss) for the financial year |
|
407,062 |
|
(697,264) |
|
|
|
|
|
|
|
Average number of ordinary shares in issue |
|
306,213,855 |
|
303,902,042 |
|
Dilutive potential of warrants |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
306,213,855 |
|
303,902,042 |
|
|
|
|
|
|
|
Earnings/(loss) per share |
|
|
|
|
|
|
|
|
|
|
|
Basic loss per 2p (2008: 2p) ordinary share |
0.13p |
|
(0.23p) |
|
|
Diluted loss per 2p (2008: 2p) ordinary share |
0.13p |
|
(0.23p) |
|
|
|
|
|
|
|
The calculation of the basic and diluted earnings/(loss) per ordinary share of 0.13p (2008: loss of 0.23p) each has been based on the profit/(loss) for the relevant financial year and on 306,213,855 shares (2008: 303,902,042). This represents the weighted average number of ordinary shares in issue. The profit for the period and the weighted average number of ordinary shares for the purpose of calculating the diluted earnings per share are the same as for the basic earnings per share calculation. This is because the outstanding warrants were exercisable at a price above the ordinary share price for most of the year and would therefore not be dilutive under the terms of IAS 33. The loss for the year ended 30 June 2008 and the weighted average number of ordinary shares for the purposes of calculating the diluted loss per share are the same as for the basic loss per share calculation. This is because the outstanding warrants would have the effect of reducing the loss per ordinary share and therefore are not dilutive under the terms of IAS 33.
This information is provided by RNS
