Interim Results
Eckoh Technologies PLC
28 November 2005
For Immediate Release 28 November 2005
Eckoh Technologies plc
Half-Year Results
6 months 6 months Year
ended ended ended
30 Sept 30 Sept 31 March
2005 2004 2005
£'000 £'000 £'000
Turnover 55,007 39,416 79,720
Continuing operations 35,561 37,720 76,529
Acquisitions 18,566 - -
Total continuing operations 54,127 37,720 76,529
Discontinued operations 880 1,696 3,191
Gross profit 11,496 9,486 20,045
Operating loss (478) (1,132) (9,783)
Profit/(loss) before taxation 1,226 (970) (9,411)
Adjusted profit before taxation(1) 856 241 884
Profit/(loss) for the period 969 (1,091) (9,440)
Cash and short-term investments 12,501 9,083 13,296
Half-year highlights:
• Group turnover increased by 40% to £55.0m (H1 2004/5 - £39.4m)
• Adjusted PBT increased to £0.9m from £0.2m (Profit before taxation £1.2m
(H1 2004/5 - loss £1.0m))
• Retained Profit of £1.0m (H1 2004/5 - loss £1.1m)
• Cash and short-term investment balances total £12.5m
• Flotation of Symphony Telecom Holdings plc on AIM
Operational Highlights:
• Speech Alliance with BT extended until 2010
• New Speech contract wins with Scottish Power, Her Majesty's Court
Service and Probability Games Corporation and renewals with TD Waterhouse
and William Hill
• Journey Finder voted "Product of the Year 2005" at this year's European
Call Centre Awards
• Ongoing strategic review of the Eckoh Group designed to unlock long-term
shareholder value
(1) Profit before taxation, intangible asset amortisation and impairment and exceptional items
Martin Turner, Chief Executive Officer, commented today:
"Our annual turnover run-rate now comfortably exceeds £100m for the first time.
Interim gross profit increased 21%, profit before tax (excluding goodwill and
exceptional items) was £1.2m, and the group delivered a net profit of £1.0m. All
areas of the group continue to make good progress.
We see more growth ahead, and are continuing with our strategic review designed
to deliver long-term shareholder value. Current trading indicates further
improvements in financial and operating performance in the second half of the
financial year, and we remain confident about Eckoh's future prospects."
For further enquiries, please contact
Eckoh Technologies plc
Martin Turner, Chief Executive Officer
Nik Philpot, Chief Operating Officer
Adam Moloney, Group Finance Director
www.eckoh.com Tel: 01442 458 300
Buchanan Communications
Mark Edwards/Jeremy Garcia Tel: 020 7466 5000
Corporate developments
The Board of Directors and its advisors are continuing to evaluate a number of
strategic options designed to create long-term value from Eckoh's constituent
businesses, simplify Eckoh's ongoing operations and increase overall
profitability and cash flows.
As part of this review, the following transactions have been completed in the
first half of this financial year:
• The acquisition of Anglia Telecom Centres Limited on 29 April 2005 by
Symphony Telecom Holdings plc for up to £10.0m;
• The subsequent flotation of the enlarged Symphony group on AIM, and
placing of shares on 15 September. As at 30 September 2005 Eckoh retains a
64.64% shareholding in Symphony, currently valued at £7.1m, and which will
continue to remain a subsidiary of Eckoh until such time that Eckoh's
shareholding falls below 50% through the issue of new Symphony ordinary
shares, or the disposal by Eckoh of some, or all, of its shares in Symphony;
and
• The sale of Freecom.net to OFEX-listed eDirectory.co.uk plc on 31 July
2005 for consideration of up to £3.2m in shares and cash.
Following the completion of these transactions, the continuing Eckoh Group
operates three principal trading divisions - Eckoh Speech Solutions, Advertised
IVR Services and Client IVR Services. These continue to be subject to the
Group's ongoing strategic review.
Continuing operations
Eckoh Speech Solutions
Eckoh is a European market leader in self-service call centre solutions using
advanced speech recognition and related technologies. The Group has an exclusive
partnership with BT to provide its top corporate customers with hosted speech
recognition services. To date this alliance has supplied speech solutions
services to 18 clients and created over 22 applications, generating over 30
million minutes of self-service speech transactions. The BT alliance was
extended in July of this year until 2010, which will enable BT to fulfil the
increasing requirement from customers for long term, multi-year contracts for
Eckoh's hosted speech recognition services.
First half turnover from Speech Solutions was £2.3m (H1 2004/5 - £2.7m) with a
gross margin of 51% (H1 2004/5 - 50%). The decline in revenues compared with H1
2004/5 is primarily due to lower results from the cinema clients and the
non-recurrence of a number of one-off build fees. The revenue model has focused
on keeping set-up fees low to maximise overall contract value and to clearly
differentiate Eckoh's pricing proposition from a customer premised speech
solution. This model is expected to deliver more predictable growth and revenues
going forward. Direct operating expenses were stable at £1.1m (H1 2004/5 -
£1.1m).
Despite the steady performance in revenue there continues to be good progress
made in acquiring high quality new clients, broadening our reach into what we
consider to be the more lucrative markets in the medium to long term. During H1
the utility sector in particular has started to perform strongly with Three
Valleys Water and NIE going live through the BT alliance, and a new contract for
services to Scottish Power. There is a further contract announced today, with
Her Majesty's Court Service to provide an automated payment collection service
in the North East region. A contract has been signed to supply a speech-enabled
roulette service to Probability Games Corporation for use in a new television
format expected to launch in January 2006. In addition a new two-year contract
with Ideal Shopping Direct to provide complex data capture services began in
June.
There have also been key contract renewals with William Hill and TD Waterhouse
indicating that Eckoh's proposition remains competitive and is delivering the
appropriate value to the clients. In addition, "Journey Finder", a speech-based
product developed by BT and Eckoh Technologies and utilised in the successful
Traintracker service for National Rail Enquiries, was voted "Product of the Year
2005" at this year's European Call Centre Awards.
Sales efforts are increasingly focused on the financial services, public sector,
travel and utilities sectors where although the sales cycles are typically
longer than average, it is believed that the largest contracts will ultimately
be won. To that end the sales team has been strengthened with sales specialists
in these areas. Because operating expenses have been stable, and are expected to
remain at the same level, any increase to revenues at the 50%+ margins currently
achieved will have a significant effect on the profitability of the Group.
The Directors continue to be confident that there is potential for significant
growth in the UK and European hosted speech markets and believe that its first
mover advantage, coupled with its extended alliance with BT, places Eckoh Speech
Solutions in a prime position to benefit from that growth. The Directors
continue to assess all available options and opportunities for the Speech
Solutions division in order to facilitate growth and thus create shareholder
value.
Advertised IVR Services
Advertised IVR Services has operated profitably for many years. It operates a
variety of consumer entertainment voice and data products such as dating and
chat services, competitions, and mobile content which it advertises in
newspapers, magazines and on television. Since July 2003 this includes L!VE TV
as a flexible and low cost environment to test, promote and showcase these
services. Gross margins from individual campaigns fluctuate with advertising
efficiency, which is influenced by price, seasonality, TV programming and
availability.
First half turnover from Advertised Services increased to £6.1m (H1 2004/5 -
£5.7m) with a gross margin of 44% (H1 2004/5 - 40%). Direct operating expenses
were £1.2m (H1 2004/5 - £1.2m).
The Directors see further opportunities for growth in both turnover and
profitability through increased distribution and the introduction of new
services. Specifically, the new contract with IPC Magazines in the Client IVR
Services area is presenting cross-selling opportunities, particularly for dating
services, into their large portfolio of consumer magazines. In addition, the
increasing penetration of WAP enabled and 3G mobile handsets is presenting new
opportunities for broadening the dating proposition to include photos and video
clips of users, which it is anticipated will appeal to a wider market.
Proposed changes to the Electronic Programming Guide (EPG) on the Sky Digital
television platform is likely to result in L!VE TV's channel number and position
being changed early in 2006. It is uncertain yet what impact this will have on
overall revenues although some of the airtime sales arrangements for daytime
hours are likely to be lost as a result. This has forced a review of the
strategy for the channel and a number of options are being considered and trials
undertaken. However, until the timing of the change becomes certain, no firm
decision will be taken on how the channel will be operated going forward.
The first half has seen reasonable levels of expenditure in creating new sales
and marketing materials to publicise the various services. This should start to
reap benefits as the new advertisements and commercials are introduced. Profit
levels in this division are expected to continue to be strong in the second half
of the financial year.
Client IVR Services
Eckoh's Client IVR Services is one of the UK's largest suppliers of premium IVR
and premium SMS services, and works with a number of prominent media owners such
as ITV, Trinity Mirror, Channel 4, IPC, EMAP and Northcliffe Newspapers. Eckoh
delivers an end-to-end interactive solution including creation, design,
development, implementation, deployment, hosting and reporting.
Client Services is able to secure and retain the largest contracts by offering
quality customer support, hosting its services on one of the largest call
processing platforms in the UK, and by offering very competitive rates. These
contracts generate an extremely large aggregated call volume which allows Eckoh
to derive the best commercial contracts from carriers such as BT and C&W as well
as through Eckoh's own network. Although margins are low from its direct
activity, the division is complementary to both Speech Solutions and Advertised
Services who are able to benefit from accessing the same rate structure, as well
as cross-selling their higher margin services.
The ITV contract is arguably the largest IVR contract of its kind available in
the UK, and in April 2005 this was renewed until at least August 2006. As ITV
broadens its reach by opening new channels and launching new interactive formats
it is anticipated that this will increase the volume of telephony serviced by
Eckoh. In addition, the three-year contract with IPC Magazines to supply IVR and
SMS services to their portfolio of magazines commenced successfully in June
2005, and this activity is expected to grow over time as more of the titles
incorporate Eckoh's range of products.
Notwithstanding the competitive nature of the market, Eckoh has successfully
focused on providing high levels of service to a small number of blue-chip
clients without compromising quality. A number of contracts with smaller and
unprofitable clients have not been renewed. The recent renewal of contracts with
ITV, Trinity and Northcliffe, suggests this "80:20" approach is delivering
results, and with a reduced cost base and increased efficiency, the division is
now making an improved financial contribution to the Group.
First half turnover from Client Services was £16.1m (H1 2004/5 - £19.1m), with a
gross margin of 8% (H1 2004/5 - 8%). Direct operating expenses were £1.2m (H1
2004/5 - £1.5m). The performance in H2 is expected to improve as the Autumn ITV
television schedule delivers successful interactive shows such as "I'm a
Celebrity, get me out of here!" which have a track record of generating high
call volumes.
Looking forward, Client IVR Services will continue to concentrate its efforts on
competing for long-term, quality media and broadcast business from the major UK
players.
Symphony Telecom
On 15 September 2005, Eckoh's telecoms subsidiary, Symphony Telecom Holdings plc
floated on AIM (London Stock Exchange ticker: SMY), at the same time placing
35.36% of shares with new investors. Symphony is therefore now a 64.64%
subsidiary of Eckoh and its financial results have been fully consolidated into
Eckoh's financial statements. Symphony today released its standalone results for
the six months ended 30 September 2005, and the following are extracts from the
announcement:
"During the six months ended 30 September 2005, the (Symphony) Board has
focussed on the creation of an enlarged telecommunications services group, with
a strong balance sheet and a target of becoming the clear UK market leader in
its field. The successful integration of the Anglia business, which was acquired
on 29 April 2005, together with the IPO, has created a financially strong Group
capable of achieving sustained organic and acquisitive growth, particularly in
the area of mobile and data services. With a strong balance sheet and
like-for-like turnover of the combined businesses up by over 30% compared to
last year, the Directors are confident that a solid platform for future success
has been established."
"During the six months ended 30 September 2005 turnover increased to £29.7m
(2004: £10.2m), largely due to the acquisition of the Anglia business which
contributed £18.6m, whilst operating profits before exceptional items and
intangible asset amortisation amounted to £1.2m (2004: £0.7m). After intangible
asset amortisation of £0.9m (2004: £nil) and exceptional restructuring and
integration costs of £0.2m (2004: £nil), operating profit was £0.2m (2004:
£0.7m)."
The full text of the Symphony results for the period can be found on the Company
website, www.symphony.com
Discontinued operations
Eckoh disposed of Freecom.net Limited, its internet services company, to
eDirectory.co.uk plc ('eDirectory') on 29 July 2005. The consideration comprises
4,155,844 eDirectory ordinary shares. Further to this, subject to certain
conditions, a further £1.6 million of deferred consideration is payable in
eDirectory ordinary shares or a cash equivalent. eDirectory shares are currently
traded on Ofex.
Turnover from Freecom for the four month period up to the date of disposal on 29
July 2005 was £0.9m (H1 2004/5 - £1.7m) with a gross margin of 65% (H1 2004/5 -
71%). Direct operating expenses were £0.8m (H1 2004/5 - £1.0m). The business has
been included within discontinued operations in Eckoh's financial statements.
The accounting treatment for this transaction was to show a net nil gain, nil
loss on disposal in the profit and loss account. There is some uncertainty as to
the fair value of the Ofex listed ordinary shares received as consideration and
as such, management believe it would not be appropriate to show a profit or loss
on the disposal of this subsidiary at this time.
Operating loss and net profit
Excluding intangible asset amortisation and impairment and restructuring costs,
Eckoh generated an operating profit of £1.0m for the half year, a significant
improvement on the £0.1m generated in the comparative period. The operating loss
for the period was £0.5m (H1 2004/5 - £1.1m).
During the period under review, there were three exceptional gains. A gain of
£1.5m arose from the 35% disposal as a result of the flotation of Symphony,
£0.1m was received in respect of contingent consideration following the disposal
of the hardware services operation in a prior year and £0.1m was generated from
the disposal of investment shares held in Felix Group plc.
A net profit of £1.0m has been made in the period (H1 2004/5 - loss £1.1m).
Basic and diluted earnings per share is 0.4p (H1 2004/5 - loss per share 0.4p).
Group analysis
Eckoh currently holds a 64.64% shareholding in Symphony but it is anticipated
that the shareholding will be diluted over time to less than 50%, at which
point, the financial results of Symphony will no longer be consolidated within
those of the Eckoh Group. The table below separates the results of Symphony and
the discontinued operation of Freecom from the results of Eckoh to provide
clarification of the Eckoh results in isolation.
Eckoh Symphony Freecom Total
H1 06 H1 05 H1 06 H1 05 H1 06 H1 05 H1 06 H1 05
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Turnover 24,448 27,476 29,679 10,244 880 1,696 55,007 39,416
Gross profit 5,128 5,178 5,798 3,107 570 1,201 11,496 9,486
Gross profit% 21% 19% 20% 30% 65% 71% 21% 24%
Direct
expenses (3,477) (3,724) (4,473) (2,343) (784) (1,028) (8,734) (7,095)
Indirect
expenses (1,264) (1,674) - - - - (1,264) (1,674)
Depreciation (428) (523) (101) (79) (19) (36) (548) (638)
Total
administrative
expenses (5,169) (5,921) (4,574) (2,422) (803) (1,064) (10,546) (9,407)
Operating
profit (41) (743) 1,224 685 (233) 137 950 79
Net interest 212 162 (306) - - - (94) 162
Adjusted PBT* 171 (581) 918 685 (233) 137 856 241
* Profit before taxation, intangible asset amortisation and impairment,
restructure costs and exceptional items
The direct operating expenses have been discussed in some detail above. The
indirect operating expenses are largely fixed in nature and include corporate
costs such as the board of directors, legal, secretarial, audit, registrar,
professional advisors, insurance and other plc-related costs. They also include
the cost of Eckoh support functions such as finance, IT and its Hemel Hempstead
head office occupation costs.
There has been a significant reduction in the indirect operating expenses within
Eckoh. The creation of the Symphony group required formal allocations of costs
such as property, insurance and finance. These items are now reported within the
direct costs of Symphony and have consequently reduced the indirect operating
expenses in Eckoh.
Cash and short-term investments
Cash and short-term investments as at 31 September 2005 reduced to £12.5m (31
March 2005 - £13.3m) despite a cash inflow from operating activities, before
working capital movements, of £1.3m for the half year (H1 2004/5 - cash inflow
£0.7m). The significant cash movements in the period other than from operating
activities were the acquisition of Anglia (£9.0m net outflow), net loan proceeds
from RBS (£5.2m inflow) and the net proceeds from the IPO of Symphony (£3.9m
inflow).
Board changes
On 1 August 2005 Adam Moloney was appointed Group Finance Director. Prior to his
appointment, and following the departure of the previous Group Finance Director,
Adam was Acting Group Finance Director.
Strategy of the continuing Eckoh Group and current trading
The Directors are continuing with their strategic review of the Eckoh Group,
with a view to maximising long-term value for shareholders. This review - which
resulted in the acquisition of Anglia Telecom on 29 April 2005, disposal of
Freecom on 29 July 2005 and AIM flotation of Symphony Telecom on 15 September
2005 - has already delivered improvements in operational and financial
performance across the Group with pre-tax profits of over £1m being generated in
the first half of the financial year on increased turnover of £55m, and the
potential for significant increases in the value of Eckoh's investments arising
from these transactions.
In particular, Eckoh has converted its Symphony telecommunications division into
a 64.64% shareholding in an enlarged AIM-listed company, Symphony Telecom
Holdings plc, which also reported its maiden half year results today. Symphony
has seen like-for-like turnover increase by over 30% to £30m for the half year
and the Directors are confident that Symphony will continue to make good
progress as an independent entity. Eckoh's shareholding is currently valued at
£7.1m.
The Directors are also continuing to explore options designed to accelerate the
development of Eckoh's Speech Solutions business, and ensure that it remains a
European market leader. It is essential that this business not only continues to
develop organically, but is also capable of pro-actively participating in
industry consolidation. Further progress is expected by the end of the financial
year.
Current trading indicates further improvements in Group financial performance at
the start of the second half of the financial year, and which is in line with
market expectations.
Consolidated profit and loss account
for the six months ended 30 September 2005
Note 6 months 6 months Year
ended ended ended
30 Sept 30 Sept 31 Mar
2005 2004 2005
unaudited unaudited audited
£'000 £'000 £'000
Turnover 55,007 39,416 79,720
Continuing
operations 35,561 37,720 76,529
Acquisitions 18,566 - -
Total
continuing
operations 54,127 37,720 76,529
Discontinued
operations 880 1,696 3,191
Cost of sales (43,511) (29,930) (59,675)
Gross profit 11,496 9,486 20,045
Administrative
expenses
before
intangible
asset
amortisation
and impairment
and
restructure
costs (10,546) (9,407) (19,533)
Amortisation
of intangible
assets (998) (1,211) (2,539)
Impairment of
intangible
assets (232) - (7,756)
Restructure
costs (198) - -
Total
administrative
expenses (11,974) (10,618) (29,828)
Operating
profit/(loss)
before
intangible
asset
amortisation
and impairment
and
restructuring
costs 950 79 512
Continuing
operations 326 (41) 455
Acquisitions 857 - -
Total
continuing
operations 1,183 (41) 455
Discontinued
operations (233) 120 57
Operating
(loss)/profit (478) (1,132) (9,783)
Continuing
operations 139 (1,252) (9,840)
Acquisitions (152) - -
Total
continuing
operations (13) (1,252) (9,840)
Discontinued
operations (465) 120 57
Gain on part
disposal of
subsidiary
undertaking 1,547 - -
Gain on
disposal of
fixed asset
investment 141 - -
Gain on
disposal of
hardware
services
operation 110 - -
Net interest
(payable)/receivable and
other similar
items (94) 162 372
Profit/(loss)
on ordinary
activities
before
taxation 1,226 (970) (9,411)
Taxation (135) - (6)
Profit/(loss)
on ordinary
activities
after taxation 1,091 (970) (9,417)
Minority
interests (122) (121) (23)
Profit/(loss)
for the period 969 (1,091) (9,440)
Earnings/(loss) per ordinary
share 2
Basic and
diluted
earnings/(loss) per share 0.4p (0.4p) (3.5p)
Statement of total recognised gains and losses
for the six months ended 30 September 2005
6 months 6 months Year
ended ended ended
30 Sept 30 Sept 31 Mar
2005 2004 2005
unaudited unaudited audited
£'000 £'000 £'000
Profit/(loss)
for the period 969 (1,091) (9,440)
Exchange
adjustments
offset in
reserves 22 (17) (8)
Total
recognised
gains/(losses)
for the period 991 (1,108) (9,448)
Consolidated balance sheet
as at 30 September 2005
30 Sept 30 Sept 31 Mar
2005 2004 2005
unaudited unaudited audited
Note £'000 £'000 £'000
Fixed assets
Intangible fixed assets 9,546 9,398 918
Tangible fixed assets 1,454 1,627 1,571
Investment 306 - -
11,306 11,025 2,489
Current assets
Stock 766 105 22
Debtors 17,458 11,725 11,021
Short term investments 2,000 6,500 7,000
Cash at bank and in hand 10,501 2,583 6,296
30,725 20,913 24,339
Creditors: amounts falling due
within one year (26,146) (14,236) (17,353)
Net current assets 4,579 6,677 6,986
Total assets less current
liabilities 15,885 17,702 9,475
Creditors: amounts falling due
after more than one year (3,278) (56) (65)
Provisions for liabilities and
charges (269) (216) (152)
Net assets 12,338 17,430 9,258
Capital and reserves 3
Called up share capital 680 678 679
Share premium account 197 132 147
Merger reserve - 5,979 -
Profit and loss account 9,116 10,486 8,125
Total equity shareholders'
funds 4 9,993 17,275 8,951
Minority interests 2,345 155 307
Capital employed 12,338 17,430 9,258
Consolidated cash flow statement
for the six months ended 30 September 2005
Note 6 months 6 months Year
ended ended ended
30 Sept 30 Sept 31 Mar
2005 2004 2005
unaudited unaudited audited
£'000 £'000 £'000
Net cash
(outflow)/inflow from
operating
activities 5 (66) (560) 4,475
Return on investments and servicing of
finance
Net interest (94) 162 372
Loan issue
costs (257) - -
(351) 162 372
Taxation (362) (8) -
Capital expenditure and financial
investment
Purchase of
tangible fixed
assets (376) (544) (1,167)
Expenditure on
intangible
fixed assets (106) (190) (290)
Proceeds on
disposal of
fixed asset
investment 141 - -
(341) (734) (1,457)
Acquisitions and disposals
Purchase of
subsidiary
undertaking (9,707) - (250)
Net cash
acquired with
subsidiary
undertaking 792 - -
Disposal of
subsidiary
undertaking (29) - -
Net cash
disposed with
subsidiary
undertaking (107) - -
Proceeds on
disposal of
hardware
services
operation 110
Proceeds on
part disposal
of subsidiary
undertaking 3,878 - -
(5,063) - (250)
Cash
(outflow)/inflow before use
of liquid
resources and
financing (6,183) (1,140) 3,140
Management of liquid resources
Decrease/(incr
ease) in
short-term
investments 5,000 - (500)
Financing
Issue of
shares (51) 10 26
Loan issue 6,000
Loan
repayments (540) - (80)
Capital
element of
finance lease
payments (21) (26) (29)
5,388 (16) (83)
Increase/(decrease) in cash
in the period 4,205 (1,156) 2,557
Notes to the half-year results
1. Basis of preparation
The financial statements for the six months ended 30 September 2005 have been
prepared using accounting policies consistent with those set out in the
Company's consolidated 2005 statutory accounts. These statements do not
constitute statutory accounts within the meaning of section 240 of the Companies
Act 1985 and are unaudited.
Financial information for the six months ended 30 September 2004 has been
extracted from the accounting records of the Group.
The balances as at 31 March 2005 and the results for the year then ended have
been extracted from the statutory accounts, which 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 of the Companies Act 1985.
The results for the six months ended 30 September 2005 were approved by the
Board on 25 November 2005 and will be posted on the Company's web site,
www.eckoh.com, on 28 November 2005.
The Symphony Telecom Holdings plc results will be posted on the Symphony
website, www.symphony.com on 28 November 2005.
2. Earnings/(loss) per ordinary share of 0.25p each
6 months 6 months Year
ended ended ended
30 Sept 30 Sept 31 March
2005 2004 2005
£'000 £'000 £'000
Profit for the
period before
the following: 2,397 120 855
Intangible
asset
amortisation (998) (1,211) (2,539)
Intangible
asset
impairment (232) - (7,756)
Restructuring
costs (198) - -
Profit/(loss)
for the period 969 (1,091) (9,440)
Weighted average number of shares in the period:
Basic and
diluted 271,628,649 271,175,818 271,226,435
Basic
earnings/(loss) per share
before intangible
asset amortisation
and impaiment and
restructuring costs 0.9p 0.0p (3.5p)
Intangible
asset
amortisation (0.4p) (0.4p) (0.9p)
Intangible
asset
impairment (0.1p) - (2.9p)
Restructure
costs (0.0p) - -
Basic and
diluted
earnings/(loss) per share 0.4p (0.4p) (0.3p)
None of the share options in issue give rise to a dilution in the loss per
share.
3. Share capital and reserves
Ordinary Share Profit
share premium and loss
capital account account
£'000 £'000 £'000
At 1 April
2005 679 147 8,125
Profit for the
period - - 969
Exchange
adjustments
offset in
reserves - - 22
Shares issued
in respect of
share options
exercised 1 50 -
At 30
September 2005 680 197 9,116
4. Reconciliation of movement in equity shareholders' funds
6 6 months Year
months ended ended 31
ended 30 Sept March
30 Sept 2004 2005
2005
£'000 £'000 £'000
Opening equity
shareholders'
funds 8,951 18,373 18,373
Profit/(loss)
for the period 969 (1,091) (9,440)
Employee share
options
exercised 51 10 26
Exchange
adjustments
offset in
reserves 22 (17) (8)
Closing equity
shareholders'
funds 9,993 17,275 8,951
5. Net cash inflow/(outflow) from operating activities
6 6 Year
months months ended 31
ended ended March
30 Sept 30 Sept 2005
2005 2004
£'000
£'000 £'000
Operating loss (478) (1,132) (9,783)
Depreciation
and impairment
of tangible
fixed assets 548 638 1,319
Amortisation
and impairment
of intangible
fixed assets 1,230 1,211 10,295
Loss on
disposal of
tangible fixed
assets - - 7
(Increase)/decrease in stock (172) (43) 40
(Increase)/decrease in
debtors (3,660) (852) (148)
Increase/(decrease) in
creditors/provisions 2,466 (382) 2,745
(66) (560) 4,475
This information is provided by RNS
The company news service from the London Stock Exchange
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