Interim Results

RNS Number : 5452W

Clarity Commerce Solutions PLC

22 November 2010

 



CCS.L

Clarity Commerce Solutions plc

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

Unaudited Interim Results for the six months ended 30 September 2010

Clarity Commerce Solutions plc (AIM:CCS), a leading supplier of software solutions for the Retail, Hospitality, Entertainment and Leisure sectors, is pleased to announce its unaudited Interim Results for the six months ended 30 September 2010.

Financial Highlights

·      Turnover up 7% to £9.5m (H1 2009: £8.8m)

·      Recurring revenue 40%

·      Gross profit 84% (H1 2009: 80%)

·      Loss for the period of £0.8m (H1 2009: profit of £0.3m), which reflects business investment and H1 contract slippages

·      Cash at 30 September 2010 of £0.9m (H1 2009: £1.7m)

·      Strong H2 expected underpinned by strong sales pipeline with several key orders already secured

·      Pre and post period contract wins therefore also announced today with EuroPalaces, Dune & Coop Denmark

Operational Highlights

·      Acquisition and integration of Cyntergy now completed enabling Clarity to provide a 'one stop' shop of products

·      Business infrastructure strengthened during the period with investments in sales, operations and management to support long term growth 

·      Key ClarityLive product suite, which offers multi-channel and multi-sector capabilities, also strengthened to address new and emerging market opportunities such as mobile

·      Significant sales pipeline building across business with several key orders secured for H2. Major roll outs for Pret A Manger, Merlin and FocusDIY during the period

·      Directors optimistic of strong H2 performance and steady growth over the short to medium term

Ken Smith, CEO commented:

"In recent years, we have restructured the business, returned it to profitability and secured major blue chip new business wins on the back of our market leading software and service solutions and hence our financial results at this Interim stage are disappointing. 

The first half undoubtedly has been a challenge as we experienced lengthening sales cycles and their impact on revenues while we continued to invest in the business, thereby providing the necessary business infrastructure to support our long term growth.  

Significant new business wins, which slipped into H2 have been announced today and with our enhanced ClarityLive product suite, underpinned by new sales and operational management structures, our business is now well placed to address significant market opportunities.

We have a strong order book and prospect list, and remain optimistic that our expectations for the full year will be met.

I look forward to reporting further progress in due course."

Enquiries:

Clarity Commerce Solutions plc
Ken Smith, CEO	T: 01256 365 150
Stephen Sadler, CFO
Arbuthnot Securities
Hugh Field / Ed Gay / Adam Lloyd	T: 020 7012 2000
Biddicks
Shane Dolan	T: 020 7448 1000

Chairman's Statement

Overview

Although there is significant sales activity, trading conditions in our sector are typified by existing and prospective customers taking longer than usual to place orders or roll out programmes.  Clarity is not immune to this phenomenon and that is reflected in our results for the half year.    

Our first half financial performance has, as a result, been impacted by these trends as certain key orders which were expected in the first half slipped into the second, resulting in a loss for the period. Nevertheless, our pipeline remains strong and we are optimistic that our ambitions for the full year and beyond can be fulfilled.

Shareholders will recall from previous announcements that we took a deliberate decision to invest in management, processes and delivery capabilities over the past year, and we remain convinced that this was appropriate. These capabilities are now in place and are contributing to satisfying existing orders and the active pursuit of new business. As a result, several key orders have been secured towards the end of, and subsequent to, the half year end.  The need to complete roll out programmes means that, in certain cases, we will not see the benefit of these orders until later in our financial year, which is traditionally second-half weighted.

Contracts update

During the six months to 30 September 2010, and subsequently, key orders have been received from both existing and new customers.  Currently we have opportunities with several exciting, potentially very large prospects and bid activity remains high. A separate announcement has been made today covering new wins at EuroPalaces, Dune, Coop Denmark and others.

In addition, previously announced major contracts with Merlin and Pret A Manger, are now in the roll out phase. As is often the case, these customers have subsequently placed orders for further site openings and additional software requirements beyond the scope of the original contracts.

Financial Highlights

£'000	Six months ended 31/03/10 (unaudited)	Six months ended 31/03/09 (unaudited)	Twelve months ended 31/03/10 (audited)
Revenue	9,470	8,842	19,081
Gross profit	7,914	7,052	15,561
Operating expenses	(8,300)	(6,423)	(13,652)
Operating (loss)/profit from continuing operations (before amortisation and share based payments)	(386)	629	1,909
(Loss)/profit before tax and amortisation of intangibles and share based payments	(407)	603	1,855
(Loss)/profit for the period from continuing operations	(839)	341	1,995
(Loss)/earnings per share from continuing operations	(2.16)p	1.06p	5.68p
Cash at period end	942	1,669	2,347

In the six months to 30 September 2010 revenue increased 7% to £9.5m (2009:£8.8m). Included within that figure were revenues of £1.0m from Cyntergy, our support business which was acquired in May.

Of the revenue of £9.5m approximately £3.8m (40%) was from recurring support and maintenance activity. The remaining £5.7m of new business was generated from licence revenue, such as at EuroPalaces, from new roll out programmes such as Pret A Manger and from requests for additional product features from existing customers.

Cost of sales of £1.6m (2009:£1.8m) consisted of hardware and third party licence costs. Gross profit of £7.9m (2009:£7.1m) represented a margin of 84% which compared favourably with both the prior year interim figure (80%) and the full year to 31 March 2010 (82%).

During the second half of the year to 31 March 2010 and continuing into the first half of this financial year the Company invested in a structure to provide a robust platform for future growth which will allow us to maximise our available opportunities . This included a programme of investment in senior and middle management positions which is now complete. As a consequence staff costs, which are the major component of our overhead expense, have increased. We are already seeing the benefits of our new structure and we believe it will enable us to accelerate our revenue growth in the second half of this year and beyond.

Operating costs for the half year were £8.3m (2009:£6.4m), representing an increase of 14% over the prior year once Cyntergy costs of £1.0m are taken into account.

A combination of the shortfall in targeted revenue and an increase in overheads has meant that we recorded a loss for the half year of £0.4m (2009 profit of £0.6m) before taxation, amortisation of intangibles and share based payments. As highlighted in today's contracts update we have closed a number of significant deals in October and November which will help to drive improved second half performance in line with market expectations.

Cash flow for the half year reflects the increased costs and the extended sales cycles which meant that cash from deals completed in the second quarter was not received until after the period end. As a result we saw a cash outflow of £1.3m (2009:£0.2m), leaving a group cash balance of £0.9m at 30 September 2010.

Acquisition of Cyntergy

On 28 May 2010 Clarity acquired the business and assets of Cyntergy Services Limited, the IT help desk and training company which had been previously owned by the Clarity Group. In the period to 30 September 2010 Cyntergy made a loss of £3,000 which included acquisition costs of approximately £30,000. During the half year good progress was made to integrate Cyntergy into the Clarity Group. As well as servicing its existing customers Cyntergy provides support and training services for a number of Clarity customers. A new premises lease has been negotiated on improved terms and it is expected that the operation will move into profitability in the near term.

The summarised income statement result for Cyntergy is shown below:

£000	Cyntergy	Other Clarity group	Combined
Revenue	1,074	8,396	9,470
Gross profit	1,000	6,914	7,914
Overheads	(1,004)	(7,296)	(8,300)
Loss before amortisation and share based payments	(4)	(382)	(386)

Operating Review

Much of the first half of the year was spent delivering projects and preparing the business for the future. 

In the UK, the roll out at FocusDIY was concluded in all 180 stores and a large part of the Pret A Manger estate was also installed.  Simon Curtis, recently appointed as UK Managing Director, is leading the drive to turn a number of revenue opportunities across all sectors into firm orders.

In France, our new Directeur Generale, Patrick Lindemann, has made a strong start since his appointment, having overseen the launch of our new cinema product, and its subsequent sale to both large and small customers.  His attention is now focussed on further cinema orders, and a move into retail and hospitality opportunities in the near term.

Elsewhere in Europe, we have secured and delivered projects for C1000 (Schuitema), Coop Denmark, Bakker Bart and BBA (Amsterdam Harbour) and have some significant opportunities going forward.

The US business is moving ahead with considerable sales activity under way with Amusement Parks and both existing and new Retail customers.  Again, we have some considerable opportunities being pursued.

None of these prospects would be realisable without the right product.  Our ClarityLive product suite is making a strong impact in the market place due to its logical and attractive structure and flexibility of implementation, sometimes utilising clients' existing hardware.  As a key adjunct to the suite, we have recently launched a number of new elements to our business, extending our reach into new and emerging markets such as smartphones and social networking.  These activities are now being conducted via our ClarityMobile group, headed up by Tony Houldsworth, and ClarityLabs, our new product "incubator" group.  In addition, our expertise in retail and hospitality technologies will be provided via a revenue-earning ClarityConsulting group.    

Structural changes

Last year we reviewed the Group's three year strategy, concluding that the business had an excellent future whereby, given its position in several key sectors and geographies, it could grow considerably.  However, this growth could only be achieved with an investment in sales management and operational scalability; otherwise we risked either being ill equipped to win key orders or, perhaps worse, poor implementation of significant orders when received.

Accordingly we have invested appropriately in people and processes in order to maximise revenue opportunities and facilitate smooth implementation of projects. In the short term, such an investment has an obvious adverse cost effect but we believe will pay off when orders start to flow.

The acquisition of Cyntergy earlier in the year enables us to provide a "one-stop shop" of products backed by training and support.  Our Cinema and Hotels and Resorts support teams have been integrated with Cyntergy's operations, providing both improved service and reduced cost of operation, the effects of which will be seen in the coming months.

Research and Development

 Our investment in the creation of the ClarityLive suite places Clarity in a unique position in its chosen markets.  We are not aware of any other provider which can offer the multi-channel, multi-sector capabilities of our product offering.  Our Service-Oriented-Architecture ("SOA") technology model provides the perfect platform for delivering solutions to the customer, whatever his requirement. 

Our Leisure product, now largely completed, is receiving very encouraging feedback from customers and prospects alike. Launched formally at the Leisure Industry Week exhibition at the NEC in September, several orders have already been received, including Lee Valley Regional Park Authority, and the prospect list is growing.

In our Entertainment business, the September order from EuroPalaces was most encouraging, not only because of its size, but also because it marks a new beginning for this business.  Previously inhibited by outdated technology, our Cinema group now offers a leading-edge product which places us back at the forefront of this sector.  Following the EuroPalaces order, several independent operators have also signed, with further key orders pending.

Our Hotels and Resorts ("H&R") business has operated in a very difficult market where we and our competitors have found opportunities scarce.  Our decision to integrate the H&R support operations with Cyntergy has afforded some efficiencies which will ensure we maintain a presence in this market on a relatively low cost base.  Our key focus is on Resorts opportunities for which our technology is well suited. Resorts typically involve hotel, food and beverage, golf and spa combinations, where our modern, integrated architecture can meet all of the customer's requirements from one product family.  Ironically, the first key win for our "Spa" solution was for Debenhams, where its multi-channel functionality was applied to this prestigious retailer's personal shopping and nail bar requirements.

Outlook

Having achieved good results in recent years following the successful turnaround of the Company, the first six months have been challenging as we balanced investing in the business for long term growth, while addressing the implications of lengthening sales cycles which, have been experienced across the sector as a whole. But with the enhancements to our product set and a new sales and operational management structure in place, Clarity is now significantly better placed to exploit its market opportunities and deliver increased shareholder value. We remain encouraged by the strength of our order and prospect lists, and optimistic that our ambitions for the full year and beyond can be fulfilled.

Sir Colin Chandler

Group Chairman

22 November 2010

Condensed Consolidated Income Statement

for the six months ended 30 September 2010

	Notes	Six months ended 30/09/10 Unaudited £'000	Six months ended 30/09/09 Unaudited £'000	Twelve months ended 31/03/10 Audited £'000
Continuing operations:
Revenue	6	9,470	8,842	19,081
Cost of sales		(1,556)	(1,790)	(3,520)
Gross profit		7,914	7,052	15,561
Operating expenses		(8,300)	(6,423)	(13,652)
Operating (loss)/profit pre amortisation and share based payments		(386)	629	1,909
Amortisation and impairment of acquired intangible assets		(203)	(203)	(416)
Share based payments	7	(53)	-	-
Operating (loss)/profit from continuing operations		(642)	426	1,493
Finance income		1	49	49
Finance costs		(22)	(75)	(103)
(Loss)/profit before taxation from continuing operations		(663)	400	1,439
Taxation (expense)/credit		(176)	(59)	556
(Loss)/profit for the period from continuing operations, attributable to the owners of the parent company		(839)	341	1,995
(Loss)/earnings per share:	5
Basic and diluted - continuing operations		(2.16)p	1.06p	5.68p

Condensed Consolidated Statement of Comprehensive Income 

for the six months ended 30 September 2010

		Six months ended 30/09/10 Unaudited £'000	Six months ended 30/09/09 Unaudited £'000	Twelve months ended 31/03/10 Audited £'000
(Loss)/profit for the period from continuing operations		(839)	341	1,995
Other comprehensive income:
Exchange differences on translation of foreign operations		(85)	(77)	(66)
Total comprehensive (expense)/income for the period attributable to the owners of the parent company		(924)	264	1,929

Condensed Consolidated Statement of Financial Position

 as at 30 September 2010

	Notes	As at 30/09/10 Unaudited £'000	As at 30/09/09 Unaudited £'000	As at 31/03/10 Audited £'000
Assets:
Non-current assets:
Property, plant and equipment		325	236	262
Deferred tax		721	-	721
Goodwill		8,807	8,890	8,627
Other intangible assets		203	609	406
Total non-current assets		10,056	9,735	10,016
Current assets:
Inventories		137	78	155
Trade and other receivables		6,113	4,330	5,439
Cash and cash equivalents		942	1,669	2,347
Total current assets		7,192	6,077	7,941
Total assets		17,248	15,812	17,957
Liabilities:
Non-current liabilities:
Bank loans		491	885	689
Deferred consideration		309	2,936	713
Obligations under finance leases		-	10	-
Total non-current liabilities		800	3,831	1,402
Current liabilities:
Trade payables		1,895	1,426	1,496
Other payables		3,188	2,740	2,747
Income tax		419	470	633
Bank loans and overdrafts		400	400	400
Loan notes		116	129	102
Obligations under finance leases		-	8	14
Deferred consideration		828	600	690
Total current liabilities		6,846	5,773	6,082
Total liabilities		7,646	9,604	7,484
Net assets		9,602	6,208	10,473
Equity:
Shareholders' equity:
Share capital	8	10,506	8,007	9,710
Share premium		8,919	7,576	8,473
Retained earnings		(9,883)	(10,698)	(9,044)
Translation reserve		(447)	(373)	(362)
Share based payment reserve	7	53	-	-
Own shares held in trust	7	(1,242)	-	-
Other reserve		1,696	1,696	1,696
Total equity attributable to the equity shareholders of the parent company		9,602	6,208	10,473

Condensed Consolidated Statement of Changes in Equity

as at 30 September 2010

	Share Capital £'000	Share Premium Account £'000	Retained Earnings £'000	Translation Reserve £'000	Share based payments Reserve £'000	Own shares held in trust £'000	Other Reserve £'000	Total £'000
At 31 March 2009 and 1 April 2009	8,007	7,576	(11,039)	(296)	-	-	1,696	5,944
Consolidated profit for the period	-	-	341	-	-	-	-	341
Other comprehensive income net of tax:
Exchange differences on translation of foreign operations	-	-	-	(77)	-	-	-	(77)
At 30 September 2009 and 1 October 2009	8,007	7,576	(10,698)	(373)	-	-	1,696	6,208
Consolidated profit for the period	-	-	1,654	-	-	-	-	1,654
Other comprehensive income net of tax:
Exchange differences on translation of foreign operations	-	-	-	11	-	-	-	11
Transactions with owners in their capacity as owners -       Issue of shares	1,703	897	-	-	-	-	-	2,600
At 31 March 2010 and 1 April 2010	9,710	8,473	(9,044)	(362)	-	-	1,696	10,473
Consolidated loss for the period	-	-	(839)	-	-	-	-	(839)
Other comprehensive income net of tax:
Exchange differences on translation of foreign operations	-	-	-	(85)	-	-	-	(85)
Transactions with owners in their capacity as owners -       Issue of shares	796	446	-	-	-	(1,242)	-	-
Share based payments	-	-	-	-	53	-	-	53
At 30 September 2010	10,506	8,919	(9,883)	(447)	53	(1,242)	1,696	9,602

Share Premium account represents the premium on issue of shares less any applicable costs.

Other Reserve results from the application of merger relief in the Company's own accounts.

Translation Reserve arises from the retranslation of the net investments in foreign operations.

Own shares held in trust represent shares issued to an employee benefit trust pursuant to options and joint ownership awards to directors and staff.

Condensed Consolidated Statement of Cash Flows

 for the six months ended 30 September 2010

	Notes	Six months ended 30/09/10 Unaudited £'000	Six months ended 30/09/09 Unaudited £'000	Twelve months ended 31/03/10 Audited £'000
Operating activities:
(Loss)/profit before tax and finance costs		(642)	426	1,493
Depreciation		44	41	95
Amortisation:
Intellectual property rights		203	203	416
Goodwill		-	-	-
Interest paid		(22)	(75)	(290)
Taxation		(390)	228	389
Share based payments	7	53	-	-
Operating cash flows before movements in working capital:		(754)	823	2,103
Decrease in inventories		18	182	105
(Increase)/decrease in trade and other receivables		(410)	40	(1,075)
Increase/(decrease) in trade and other payables		530	(894)	(923)
Cash (used in)/generated from operating activities		(616)	151	210
Investing activities:
Purchase of subsidiary		(150)	-	-
Purchase of property, plant and equipment		(102)	(30)	(114)
Interest received		1	49	238
Net cash (absorbed by)/ generated from investing activities		(251)	19	124
Financing activities:
Proceeds from the issue of share capital		-	-	2,600
Repayment of loan notes		(250)	(170)	(2,067)
Repayment of bank loans		(200)	(200)	(400)
Capital element of finance leases		(2)	(4)	(8)
Interest element of finance leases		(1)	(1)	(2)
Cash (absorbed)/generated from financing activities		(453)	(375)	123
Net (decrease)/increase in cash and cash equivalents		(1,320)	(205)	457
Cash and cash equivalents at the beginning of the period		2,347	1,951	1,951
Exchange differences on cash movements		(85)	(77)	(61)
Cash and cash equivalents at the end of the period		942	1,669	2,347

Notes to the Condensed Consolidated Interim Financial Statements

1 Reporting entity

Clarity Commerce Solutions plc is a public limited company incorporated and domiciled in England and Wales (registration number 3914814). The Company's registered address is Paterson House, Hatch Warren Farm, Hatch Warren Lane, Hatch Warren, Basingstoke, Hampshire, RG22 4RA.

The Company's ordinary shares are traded on the AIM market of the London Stock Exchange plc. The condensed interim financial statements of the Group for the year ended 30 September 2010 comprise the Company and its subsidiaries.

Across the period the Group was primarily involved in the provision of software solutions for entertainment, leisure, hospitality and retail sectors with offices in the United Kingdom, United States, France, Holland and New Zealand.

2 Going concern

The Directors have reviewed the projections for the forthcoming 12 month period from the date of approval of the financial information and based on the level of existing cash, projected income and expenditure, the Directors are satisfied that the Company and Group have adequate resources to continue in business for the foreseeable future. Accordingly the going concern basis has been used in preparing the Consolidated Interim Financial Statements.

3 Basis of preparation

The Condensed Consolidated Interim Financial Statements in this document does not constitute statutory financial statements for the purposes of s434 of the Companies Act 2006.  The Statutory Financial Statements for the year ended 31 March 2010 ("Report and Accounts 2010") have been filed with the Registrar of Companies.  The auditor's report on those Financial Statements, which were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU), was unqualified and did not contain a statement under section 498 of the Companies Act 2006.

The Condensed Consolidated Interim Financial Statements is the unaudited interim consolidated statements (the "Condensed Consolidated Interim Financial Statements") of Clarity Commerce Solutions plc, a company incorporated in Great Britain and registered in England and Wales, and its subsidiaries (together referred to as the "Group") for the six month period ending 30 September 2010 (the "interim period").  The Condensed Consolidated Interim Financial Statements are unaudited.

The Condensed Consolidated Interim Financial Statements have been prepared on the basis of the accounting policies set out in the Report and Accounts 2010.  The presentation of the Condensed Consolidated Interim Financial Statements is consistent with the Report and Accounts 2010. 

The Condensed Consolidated Interim Financial Statements were approved by the Board and authorised for issue on 19^th November 2010.

4 Critical judgements and estimation uncertainty

The preparation of the Condensed Consolidated Interim Financial Statements requires management to make estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the Condensed Consolidated Interim Financial Statements. If in the future such estimates and assumptions, which are based on management's best judgement at the date of preparation of the Condensed Consolidated Interim Financial Statements, deviate from actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which circumstances change. Where necessary, the comparatives have been reclassified or extended from the previously reported results to take into account presentational changes.

Impairment of goodwill, intangible assets and investments

Where there is an indication that the carrying value of items in goodwill, intangible assets and investments may have been impaired through events or changes in circumstances a review will be undertaken of the recoverable amount of those assets based on a value in use calculation which will involve estimates and assumptions to be made by management.

5 Earnings/(loss) per share

The calculations of earnings/(loss) per share are based on the profit/(loss) after tax for the financial period and the following numbers of shares:

for the six months ended 30 September 2010

	Six months ended  30/09/10 Unaudited Number	Six months ended  30/09/09 Unaudited Number	Twelve months ended 31/03/10 Audited Number
Weighted average number of shares:
For basic profit/(loss) per share	38,841,805	32,029,305	35,127,593
For diluted profit/(loss) per share	38,841,805	32,029,305	35,127,593

	Six months ended  30/09/10 Unaudited £'000	Six months ended 30/09/09 Unaudited £'000	Twelve months ended 31/03/10 Audited £,000
(Loss)/earnings for the period from continuing operations	(839)	341	1,995
(Loss)/earnings for the period attributable to the owners of the parent company	(839)	341	1,995
(Loss)/earnings per share:
Basic and diluted - continuing operations	(2.16)p	1.06p	5.68p

The employee share options are considered non dilutive due to the loss in the period.

Own shares held in trust are excluded from the weighted average number of shares.

6 Geographic segments

Below is an analysis of revenue by geographic location.

for the six months ended 30 September 2010

	Six months ended 30/09/10 Unaudited £'000	Six months ended 30/09/09 Unaudited £'000	Twelve months ended 31/03/10 Audited £'000
United Kingdom	5,066	3,114	7.360
Europe (excluding United Kingdom)	2,072	2,893	5,353
United States of America	2,165	2,670	6,087
Rest of World	167	165	281
	9,470	8,842	19,081

7 Employee benefit schemes

The company has issued share options to certain directors and employees. These must be measured at fair value at the date of grant and recognised as an expense in the income statement with a corresponding increase in equity. The fair value of the options was estimated at the date of grant using the Black-Scholes option-pricing model. The fair value will be charged as an expense in the income statement over the vesting period. The charge is recognised on a straight line basis taking into account the expected and actual level of vesting.

for the six months ended 30 September 2010

Tranche	Date of Grant	Exercise Price (£)	Ordinary Shares under option	Share price at date of grant (£)	Expected volatility	Risk free rate	Life of options (years)	Expected Dividend
1	27 April 2010	0.39	2,330,508	0.39	47.4%	4.8%	3	Nil
2	5 August 2010	0.39	854,999	0.39	47.4%	4.8%	3	Nil

8 Share Capital

As at 30 September 2010

	As at 30/09/10 Unaudited £'000	As at 30/09/09 Unaudited £'000	As at 31/03/10 Audited £'000
Authorised Share Capital:
44,000,000 ordinary shares of £0.25 each	11,000	11,000	11,000
Allotted, called up and fully paid
Opening	9,710	8,007	8,007
Issue of ordinary shares	796	-	1,703
At 30 September 2010 (42,024,000 (2009 32,028,000 31 March 2010 33,841.805) ordinary shares of £0.25 each	10,506	8,007	9.710

9 Acquisitions

On 28 May 2010 the Group acquired 80% of the business and assets of Cyntergy Services Limited (in administration).  Cyntergy Services Limited provides software support and training services.  As part of the acquisition Clarity has taken on a number of customer contracts and approximately 80 employees.  Cash consideration was £150,000 and the acquired assets and liabilities are set out in the table below:

	Carrying value as at 28/05/2010 Unaudited £'000	Fair Value adjustment Unaudited £'000	Provisional Fair Value to the Group Unaudited £'000
Financial assets:
Property, plant and equipment	24	(19)	5
Trade receivables	276	-	276
	300	(19)	281
Financial liabilities:
Deferred income	93	-	93
Other payables	218	-	218
	311	-	311
Net liabilities	(11)	(19)	(30)
Goodwill			180
Cash consideration			150

The goodwill resulting from the acquisition is attributable to the future synergies of combining the business into the Group.

Cyntergy Limited contributed £1,009,000 of revenue and a loss of £3,000 (before adjustment for non controlling interest) before tax, for the period between the date of acquisition and the statement of financial position date.  Cyntergy Limited had turnover of £1,009,000 and a loss before tax of £3,000 for the full period under review.

 

END

 

 

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