Half Yearly Report

RNS Number : 5014L

Corero Network Security PLC

05 September 2012

 



Corero Network Security plc (AIM: CNS)

("Corero", the "Group" or the "Company")

Interim results for the six month period ended 30 June 2012

Corero Network Security plc, the AIM listed network security and business software provider, announces its half yearly report for the six month period ended 30 June 2012.

Group Financial Highlights:

·      Revenues of $10.8 million (H1 2011: revenue $7.4 million)

·      Operating loss* $1.5 million (H1 2011: profit $0.2 million)

·      Adjusted loss before tax** $1.7 million (H1 2011: profit $0.1 million)

·      Loss per share 4.9 cents (H1 2011: 3.3 cents)

·      Strong cash position of $9.2 million at 30 June 2012 (30 June 2011: $8.5 million)

* before depreciation, amortisation, acquisition, restructuring and financing costs

** before depreciation, amortisation, acquisition and restructuring costs

Operating Highlights:

·      Corero Network Security ("CNS") continued to win new customers

o   41 new customers (2011: 38) with an average value of $52,000 (2011: $40,000)

o   Sales order intake in the period up 18%

o   Continued strong performance in core verticals of gaming (including the world's largest on-line gaming company), e-betting and e-retail (such as Moneysupermarket.com and a leading international credit card processing company)

o   "First Line of Defence" proposition leverages industry leading DDoS and intrusion prevention technology

·      Corero Business Systems ("CBS") performed strongly

o   Sales order intake in the period up 19%

o   143 new academy and 2 new college contracts won

o   Further expansion contracts from existing academy groups

 

Andrew Miller, COO of Corero, commented: "We are pleased to report continued growth in both our core businesses. Feedback from channel partners and customers, and industry analyst research, coupled with the significant threat from the increasing volume and sophistication of DDoS cyber attacks, gives us confidence that the CNS "First Line of Defence" positioning will provide strong revenue growth prospects.

 

"CBS enjoyed another period of strong growth from new customer wins through direct and partner sales efforts.  The business continues to invest in its two key software products - Resource Financials & HR and Resource EMS.

 

"The Board remains confident in the Group's near and long term prospects."

Enquiries:

Corero Network Security plc
Andrew Miller, Group Chief Operating Officer		Tel: [phone]
FinnCap
Stuart Andrews/Henrik Persson		Tel: [phone]
Walbrook PR		Tel: [phone]
Paul McManus/Helen Westaway (Media Relations)
Paul Cornelius (Investor Relations)

About Corero Network Security

Corero Network Security plc consists of two businesses: Corero Network Security and Corero Business Systems.

Corero Network Security is an international network security company and the leading provider of Distributed Denial of Service (DDoS) defence and Next Generation Intrusion Prevention Systems (NGIPS)solutions. As the First Line of Defense, Corero's products and services stop DDoS attacks, protect IT infrastructure and eliminate downtime. Customers include enterprises, service providers and government organizations worldwide. Corero's appliance-based solutions are dynamic and automatically respond to evolving cyber attacks, known and unknown, allowing existing IT infrastructure -- such as firewalls -- to perform their intended purposes. Corero's products are transparent, highly scalable and feature the lowest latency and highest reliability in the industry.

Corero Business Systems is a leading provider of powerful and dynamic modular accounting, human resources, payroll and management information software to the schools (including academies) and further education sectors in the UK and internationally.  

Interim results for the six month period ended 30 June 2012

Presentation currency

Subsequent to the acquisition and integration of the US-based Corero Network Security division during 2011, the Group's reporting currency has been changed to US Dollars ("$") which is more closely aligned to the profile of the Group's revenue and cost base. The change is effective from 1 January 2012 and thus the results for the six months ended 30 June 2012 are reported in $ with the relevant comparatives restated from GBP Sterling to $.  The average $-GBP exchange rate, used for the conversion of the statement of comprehensive income, for the 6 months period to 30 June 2012 was 1.58 (2011: 1.62) and 1.60 for the year ended 31 December 2011.  The closing $-GBP exchange rate, used for the conversion of the Group's assets and liabilities, at 30 June 2012 was 1.56 (2011: 1.60) and at 31 December 2011 was 1.55.

Group summary

In the six months to 30 June 2012 the Group reported revenues of $10.8 million (H1 2011: $7.4 million) and operating loss before depreciation, amortisation, acquisition, restructuring and financing costs of $1.5 million (H1 2011: profit $0.2 million).  The reported Group loss before taxation was $2.8 million (H1 2011: $1.4 million) with a reported loss per share of 4.9 cents (H1 2011: 3.3 cents).

The Group had cash balances of $9.2 million at 30 June 2012 (2011: $8.5 million). The net increase in cash in the 6 month period ended 30 June 2012 was $2.5 million (H1 2011: reduction $2.6 million). In March 2012, the Company raised $6.9 million net of expenses in a share placing to fund organic growth.

Corero Network Security ("CNS")

Revenues increased in the first half of 2012 to $6.7 million (H1 2011 representing 4 months to 30 June 2011: $4.4 million).  CNS sales order intake (bookings as opposed to amounts recognised as revenue) in the six months ended 30 June 2012 increased 18% to $6.7 million (2011: $5.6 million).  This lower than expected growth was impacted by an increase in macroeconomic uncertainty in Europe in the second quarter of 2012.

CNS reported an operating loss before depreciation, amortisation, acquisition, restructuring and financing costs in the six months to 30 June 2012 of $2.1 million (H1 2011: $0.1 million) as the division continued to invest in sales and marketing to build its market presence as well as in product development.

Highlights in the first half of 2012 include:

·      41 new customers (2011: 38) with an average value of $52,000 (2011: $40,000)

·      Continued strong performance in core verticals of gaming, e-betting and e-retail

·      Continued investment in terms of new product features and functionality

·      Launched "ReputationWatch" which identifies known malicious entities in real-time to dynamically prevent Distributed Denial of Service ("DDoS") cyber attacks

·      Partnership with Webroot to integrate Webroot's IP Reputation Service, which delivers updated high risk IP address threat data within minutes and protects against attacks from multiple threat sources, into Corero's First Line of Defence solution

·      Strong pipeline of opportunities going into the second half of 2012

·      Ranked by Gartner as "a Visionary" in the IPS Magic Quadrant published in July 2012

New customer wins included significant orders from: Agarik (a leading French web hosting and managed service provider); a leading telecommunications service provider in Italy; Books.com; a Malaysian state ministry; a leading French retail group; a national state railway operator in Europe and a leading international provider of financial technology to banks and corporations.

Material orders (upgrades and support contract renewals) from existing customers included: the world's leading online gaming company; the global leader in gases for industry, health and the environment; a leading international credit card processing company; one of the largest telecommunication service providers in Europe and South America; Moneysupermarket.com; a UK group operating in the bookmaking, bingo and casino markets; a leading international energy group and one of the largest insurers in the US.

CNS has refocused its positioning and go-to-market proposition as a "First Line of Defence" (FLoD) solution to leverage both its industry leading DDoS protection and intrusion prevention technology into a compelling solution for the corporate and service provider market.  This repositioning builds upon the fact that a large percentage of customers have deployed CNS' security solutions in front of their firewalls to provide business critical DDoS and server intrusion attack prevention.

CNS is working on its next generation product.  This next generation product, which leverages existing intellectual property, will significantly increase CNS' addressable market with a hardware platform-independent FLoD solution which can be deployed in virtual environments. This will enable CNS to target not only the corporate enterprise and service provider market but also the high growth Cloud Computing market.

CNS has continued in the period to add to its talented team and invested in its product development capabilities.  CNS headcount increased from 73 at 31 December 2011 to 83 at 30 June 2012.

The CNS management team has been strengthened with the appointment of Ashley Stephenson as Executive Vice President responsible for CNS' product and solutions strategy and Paul Lawrence as Vice President International Operations.  Ashley Stephenson has extensive IT industry experience having co-founded and led several IT companies including Reva Systems (acquired by ODIN) and Xedia Corporation (acquired by Lucent).  Paul Lawrence previously held management positions in leading companies such as Barracuda Networks, Response Data Communications and AirTight Networks, and will take over the management of the international sales team outside of North America from Andre Stewart in the third quarter of 2012.  Andre Stewart will, following the transition of his responsibilities to Paul Lawrence, be leaving the Company to pursue other initiatives.   We would like to thank Andre for his contribution to the early stage development and formation of the Corero Network Security strategy.

Corero Business Systems ("CBS")

Revenues increased by 34% in the first half of 2012 to $4.1 million (H1 2011: $3.1 million).  CBS continues to perform strongly with sales order intake (bookings as opposed to amounts recognised as revenue) in the six month period ended 30 June 2012 up 19% to $4.7 million (2011: $4.0 million).

CBS reported an operating profit before depreciation, amortisation, acquisition, restructuring and financing costs in the six months to 30 June 2012 of $1.2 million (H1 2011: $1.0 million).

Key achievements in the first half of 2012 include:

·      143 new academy and school customers (2011: 114) - to a total of 450 academy and school customers

·      New academy group wins

o  Outwood Grange Academy Trust, Wakefield (initially 5 schools)

o  Templer Academy Schools Trust, Newton Abbot (initially 3 schools)

o  Reach2 Academy Trust, London (initially 3 schools)  

·      Further expansion contracts from existing academy groups

o  Kemnal Academies Trust added a further 21 schools to their group (bringing the total number of academies they will manage in 2012 to 32 academies)

o  The School Partnership Trust added a further 10 schools to their group (bringing the total number of academies they will manage in 2012 to 30 academies)

·      Serco relationship delivering incremental new business

CBS has continued in the period to add to its talented team, headcount increased from 53 at 31 December 2011 to 55 at 30 June 2012. The CBS management team has been strengthened with the appointment of Mike Stansfield as Product Development Director. Mike has over 25 years' experience in software development with leading software companies including Sage and Pitney Bowes Software.

Outlook

The CNS division is not immune to the on-going macroeconomic uncertainty, particularly in Europe, which has an impact on sales cycles and customer decision making.  However, the dynamics in the network security market are strong with the growth in DDoS attacks expected to drive increased demand for CNS' FLoD offering.  The DDoS market is growing strongly, industry research from Infonetics showing that the DDoS prevention appliance market is forecast to more than double to $450 million from 2011 to 2015.  In addition, Forrester research confirms that DDoS protection is one of the top five security technology growth opportunities for the next three years given the increase in "hactivism".

CNS will continue to invest in its product offering with increased resources dedicated to its next generation FLoD product which will open up additional market opportunities with a solution to address multi-platform deployment flexibility including operating in virtualised IT environments.  This will significantly broaden the CNS target market, most notably the fast growing Cloud Computing market.

CBS' continued growth and robust performance in the first half of 2012 reflects its strong market position in the schools and further education market. The Academy market in England is expected to continue to grow with CBS' growing reputation and profile opening up new opportunities in the UK and international schools market. 

The Board remains confident in the Group's near and long term prospects.

Consolidated Interim Statement of Comprehensive Income

for the six month period ended 30 June 2012

	Unaudited six months ended 30 June	Unaudited six months ended 30 June	Audited year ended 31 December
	2012	2011	2011
	$'000	$'000	$'000
Revenue	10,757	7,444	18,034
Cost of sales	(2,634)	(1,569)	(4,090)
Gross profit	8,123	5,875	13,944
Operating expenses before highlighted items	(9,618)	(5,656)	(13,501)
-      Depreciation and amortisation of intangible assets	(1,107)	(576)	(1,521)
-     Acquisition and restructuring costs	-	(933)	(975)
Operating expenses	(10,725)	(7,165)	(15,997)
Operating loss	(2,602)	(1,290)	(2,053)
Finance income	56	49	98
Finance costs	(246)	(142)	(359)
Loss before taxation	(2,792)	(1,383)	(2,314)
Taxation	186	-	308
Loss for the period	(2,606)	(1,383)	(2,006)
Total (loss)/profit for the period attributable to:
Equity holders of the parent	(2,660)	(1,383)	(2,051)
Non-controlling interest	54	-	45
	(2,606)	(1,383)	(2,006)
Other comprehensive expense
Difference on translation of UK subsidiaries	(5)	(25)	(358)
Total comprehensive expense for the period	(2,611)	(1,408)	(2,364)
Total comprehensive (expense)/income for the period attributable to:
Equity holders of the parent	(2,650)	(1,408)	(2,400)
Non-controlling interest	39	-	36
Total	(2,611)	(1,408)	(2,364)

	30 June 2012	30 June 2011	31December 2011
	Cents	Cents	Cents
Basic and diluted loss per share	(4.9)	(3.3)	(4.6)

Consolidated Interim Statement of Financial Position

as at 30 June 2012

	Unaudited six months ended 30 June	Unaudited six months ended 30 June	Audited year ended 31 December
	2012	2011	2011
	$'000	$'000	$'000
Assets
Non-current assets
Goodwill	18,778	16,973	18,772
Acquired intangible assets	4,225	5,179	4,659
Capitalised development expenditure	3,512	1,305	2,325
Property, plant and equipment	995	610	1,015
	27,510	24,067	26,771
Current assets
Inventories	569	341	373
Trade and other receivables	6,338	5,296	5,304
Cash and cash equivalents	9,217	8,510	6,680
	16,124	14,147	12,357
Liabilities
Current Liabilities
Trade and other payables	(3,921)	(4,451)	(4,375)
Borrowings	(235)	-	(273)
Deferred income	(8,466)	(8,886)	(8,390)
	(12,622)	(13,337)	(13,038)
Net current assets/(liabilities)	3,502	810	(681)
Non-current liabilities
Borrowings	(5,840)	(5,133)	(5,510)
Deferred income	(1,740)	(1,055)	(1,252)
Deferred taxation	(1,382)	-	(1,567)
	(8,962)	(6,188)	(8,329)
Net assets	22,050	18,689	17,761
Equity
Ordinary share capital	920	752	752
Deferred share capital	7,051	7,051	7,051
Shares to be issued	124	124	124
Share premium	37,928	31,228	31,228
Merger reserve	-	1,588	-
Share options reserve	291	231	259
Non-controlling interest	75	-	36
Translation reserve	(339)	(25)	(349)
Retained earnings	(24,000)	(22,260)	(21,340)
Total surplus attributable to equity holders of the parent	22,050	18,689	17,761

Consolidated Interim Statement of Cash Flows

for the six month period ended 30 June 2012

	Unaudited six months ended 30 June	Unaudited six months ended 30 June	Audited year ended 31 December
	2012	2011	2011
Cash flows from operating activities	$'000	$'000	$'000
Loss before taxation	(2,792)	(1,383)	(2,314)
Adjustments for:
Amortisation of acquired intangible assets	570	362	924
Amortisation of capitalised development expenditure	292	136	322
Depreciation	245	78	275
Finance income	(56)	(49)	(98)
Finance expense	246	142	359
Decrease in provisions	-	-	(7)
Share based payment charge	32	5	32
Changes in working capital
Increase in inventories	(196)	(120)	(151)
Increase in trade and other receivables	(899)	(2,533)	(2,776)
(Decrease)/increase in payables	(54)	1,986	1,864
Net cash from operating activities	(2,612)	(1,376)	(1,570)
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired	-	(3,649)	(3,649)
Purchase of intangible assets	(135)	-	(61)
Capitalised development expenditure	(1,472)	(497)	(1,754)
Purchase of property, plant and equipment	(225)	(391)	(1,008)
Net cash used in investing activities	(1,832)	(4,537)	(6,472)
Cash flows from financing activities
Net proceeds from issue of ordinary share capital	6,868	3,403	3,403
Term loan received	250	-	250
Finance income	56	49	98
Finance expense	(68)	-	(17)
Capital element of finance lease repayments	(13)	(9)	(22)
Repayment of credit facility	(136)	(489)	(300)
Net cash from financing activities	6,957	2,954	3,412
Effects of exchange rates on cash and cash equivalents	24	314	155
Net increase/(decrease) in cash and cash equivalents	2,537	(2,645)	(4,475)
Cash and cash equivalents at 1 January	6,680	11,155	11,155
Cash and cash equivalents at balance sheet dates	9,217	8,510	6,680

Consolidated Interim Statement of Changes in Equity

for the six month period ended 30 June 2012

2002	Ordinary and deferred share capital	Shares to be issued	Share premium account	Merger reserve	Share options reserve	Non-controlling interest	Translation reserve	Profit and loss reserve	Total
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000
1 January 2011	7,547	-	22,262	1,588	226	-	-	(20,877)	10,746
Share based payments	-	-	-	-	5	-	-	-	5
Issue of share capital	256	-	8,966	-	-	-	-	-	9,222
Shares to be issued	-	124	-	-	-	-	-	-	124
Other comprehensive expense	-	-	-	-	-	-	(25)	-	(25)
Loss for the period ended 30 June 2011	-	-	-	-	-	-	-	(1,383)	(1,383)
30 June 2011	7,803	124	31,228	1,588	231	-	(25)	(22,260)	18,689
Share based payments	-	-	-	-	28	-	-	-	28
Transfer	-	-	-	(1,588)	-	-	-	1,588	-
Other comprehensive expense	-	-	-	-	-	(9)	(324)	-	(333)
Loss for the period ended 31 December 2011	-	-	-	-	-	45	-	(668)	(623)
31 December 2011	7,803	124	31,228	-	259	36	(349)	(21,340)	17,761
Share based payments	-	-	-	-	32	-	-	-	32
Issue of share capital	168	-	6,700	-	-	-	-	-	6,868
Other comprehensive (expense)/income	-	-	-	-	-	(15)	10	-	(5)
Loss for the period ended 30 June 2012	-	-	-	-	-	54	-	(2,660)	(2,606)
30 June 2012	7,971	124	37,928	-	291	75	(339)	(24,000)	22,050

Notes to the interim financial statements

1. General information and basis of preparation

Corero Network Security plc (the "Company") is a company domiciled in England. The condensed consolidated interim financial statements of the Company for the six months ended 30 June 2012

comprise the Company and its subsidiaries (together referred to as the "Group").

These condensed consolidated financial statements have been prepared in accordance with IAS 34,

"Interim Financial Reporting", as adopted by the European Union. They do not include all disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2011 Annual Report. The financial information for the half years ended 30 June 2012 and 30 June 2011 does not constitute statutory accounts within the meaning of Section 434(3) of the Companies Act 2006 and is unaudited.

The annual financial statements of Corero Network Security plc are prepared in accordance with

IFRSs as adopted by the European Union. The comparative financial information for the year ended

31 December 2011 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2011 have been filed with the Registrar of Companies. The Independent Auditors' Report on that Annual Report and Financial

Statement for 2011 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

The consolidated financial statements have been prepared on a going concern basis as the Directors believe that the current sales prospects combined with existing working capital resources should ensure that the Group has adequate working capital to service its existing business for the foreseeable future. The directors have made this assessment based on internal forecasts and cash flow projections.

The same accounting policies, presentation and methods of computation are followed in these consolidated financial statements as were applied in the Group's latest annual audited financial statements except that the presentation currency has been changed from GBP sterling to $ and comparatives previously reported in GBP sterling have been restated in $. The Board considers that with the acquisition and integration of the US-based Corero Network Security division during 2011, reporting in $ is more closely aligned to the profile of the Group's revenue and cost base.

These consolidated interim financial statements were approved by the Board on 4 September 2012 and approved for issue on 5 September 2012.

2. Segment reporting

Business segments

The Group is managed according to two business units which make up the Group's two reportable operating segments: Corero Network Security and Corero Business Systems.  These divisions are the basis on which the Group reports its primary segment information to the Board, which management consider to be the Chief Operating Decision maker for the purposes of IFRS 8 Operating Segments.  The principal activity of Corero Network Security is the design, development and delivery of network security products. The principal activity of Corero Business Systems is the design, development and delivery of finance and management information software to the school, further education and commercial sectors.

2. Segmental reporting continued

	Corero Network Security			Corero Business Systems			Central Costs			Total
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000
	6m	6m	12m	6m	6m	12m	6m	6m	12m	6m	6m	12m
	30 Jun 2012	30 Jun 2011	31 Dec 2011	30 Jun 2012	30 Jun 2011	31 Dec 2011	30 Jun 2012	30 Jun 2011	31 Dec 2011	30 Jun 2012	30 Jun 2011	31 Dec 2011
Revenue to external customers
Product and licence	3,109	1,946	4,845	1,343	803	1,978	-	-	-	4,452	2,749	6,823
Professional services	82	131	272	1,132	781	2,030	-	-	-	1,214	912	2,302
Support	3,467	2,309	5,871	1,624	1,474	3,038	-	-	-	5,091	3,783	8,909
Total	6,658	4,386	10,988	4,099	3,058	7,046	-	-	-	10,757	7,444	18,034
Cost of sales	-1,667	-984	-2,716	-967	-585	-1,374	-	-	-	-2,634	-1,569	-4,090
Gross profit	4,991	3,402	8,272	3,132	2,473	5,672	-	-	-	8,123	5,875	13,944
Operating expenses before depreciation, amortisation, acquisition and restructuring costs	-7,071	-3,534	-9,181	-1,950	-1,471	-3,121	-597	-651	-1,199	-9,618	-5,656	-13,501
Depreciation and amortisation of intangible assets	-934	-421	-1,171	-173	-150	-344	-	-5	-6	-1,107	-576	-1,521
Acquisition and restructuring costs	-	-474	-485	-	-	-	-	-459	-490	-	-933	-975
Operating expenses	-8,005	-4,429	-10,837	-2,123	-1,621	-3,465	-597	-1,115	-1,695	-10,725	-7,165	-15,997
Operating (loss)/profit	-3,014	-1,027	-2,565	1,009	852	2,207	-597	-1,115	-1,695	-2,602	-1,290	-2,053
Finance income	-	-	-	1	-	-	55	49	98	56	49	98
Finance costs	-246	-142	-359	-	-	-	-	-	-	-246	-142	-359
(Loss)/profit before taxation	-3,260	-1,169	-2,924	1,010	852	2,207	-542	-1,066	-1,597	-2,792	-1,383	-2,314

2. Segmental reporting continued

	Corero Network Security			Corero Business Systems			Central Costs			Total
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000
	30 Jun 2012	30 Jun 2011	31 Dec 2011	30 Jun 2012	30 Jun 2011	31 Dec 2011	30 Jun 2012	30 Jun 2011	31 Dec 2011	30 Jun 2012	30 Jun 2011	31 Dec 2011
Non current assets
Goodwill	17,983	16,158	17,983	795	815	789	-	-	-	18,778	16,973	18,772
Acquired intangible assets	4,218	5,171	4,652	7	8	7	-	-	-	4,225	5,179	4,659
Capitalised development expenditure	1,858	151	998	1,654	1,154	1,327	-	-	-	3,512	1,305	2,325
Property, plant & equipment	874	544	928	121	66	87	-	-	-	995	610	1,015
	24,933	22,024	24,561	2,577	2,043	2,210	-	-	-	27,510	24,067	26,771
Current assets
Inventories	569	341	373	-	-	-	-	-	-	569	341	373
Trade and other receivables	3,149	2,672	3,676	3,020	2,500	1,487	169	124	141	6,338	5,296	5,304
Cash and cash equivalents	846	441	714	486	255	812	7,885	7,814	5,154	9,217	8,510	6,680
	4,564	3,454	4,763	3,506	2,755	2,299	8,054	7,938	5,295	16,124	14,147	12,357
Current liabilities
Trade, other payables and provisions	-2,184	-2,929	-2,877	-1,583	-1,254	-1,369	-154	-268	-129	-3,921	-4,451	-4,375
Borrowings	-235	-	-273	-	-	-	-	-	-	-235	-	-273
Deferred income	-4,753	-5,665	-5,238	-3,713	-3,221	-3,152	-	-	-	-8,466	-8,886	-8,390
Net current liabilities	-7,172	-8,594	-8,388	-5,296	-4,475	-4,521	-154	-268	-129	-12,622	-13,337	-13,038
Non-current  liabilities
Borrowings	-5,840	-5,133	-5,510	-	-	-	-	-	-	-5,840	-5,133	-5,510
Deferred income	-1,740	-1,055	-1,252	-	-	-	-	-	-	-1,740	-1,055	-1,252
Deferred taxation	-1,382	-	-1,567	-	-	-	-	-	-	-1,382	-	-1,567
	-8,962	-6,188	-8,329	-	-	-	-	-	-	-8,962	-6,188	-8,329
Net assets/(liabilities)	13,363	10,696	12,607	787	323	-12	7,900	7,670	5,166	22,050	18,689	17,761

3. Loss per share

Loss per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period.

At the reporting dates there were no potentially dilutive ordinary shares.  Therefore the diluted loss per share is equal to the loss per share.

	30 June 2012 loss	30 June 2012 weighted average number of shares	30 June 2012 loss per share	30 June 2011 loss	30 June 2011 weighted average number of shares	30 June 2011 loss per share
	$'000	Thousand	Cents	$'000	Thousand	Cents
Basic and diluted loss per share	(2,660)	54,363	(4.89)	(1,383)	42,390	(3.26)

				31 Dec 2011 loss	31 Dec 2011 weighted average number of shares	31 Dec 2011 loss per share
				$'000	Thousand	Cents
Basic and diluted loss per share				(2,051)	45,074	(4.56)

 

END

 

 

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