Preliminary Results
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For immediate release |
26 June 2014
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SCIENCE IN SPORT PLC
("SiS" or the "Company")
PRELIMINARY RESULTS
for the TWELVE MONTHS ended 31 MARCH 2014
Science in Sport plc (AIM: SIS), a leading sports nutrition company, is pleased to announce its preliminary results for the twelve months ended 31 March 2014. These results represent the Company's maiden full year financial results as an independently quoted company following admission to AIM on 9 August 2013.
Key highlights and financial results
· Revenues increased by 24% to £6.85 million (2013: £5.52 million), reflecting strong growth across all selling channels
· Underlying operating loss* of £0.40 million in line with management expectations as the Company continues to invest in revenue growth (2013 underlying operating profit: £0.23 million)
· Appointment of European and Asia Pacific distributors during H2 FY2014
· Substantial and ongoing investment in e-commerce resulting in strong year on year online growth
· Cash and cash equivalents of £0.63 million at 31 March 2014 (2013: £0.14 million)
· Placing of £2.1 million (net) to meet working capital requirements completed post financial year end (April 2014)
· Appointment of Vivienne Sparks as Finance Director announced today - see separate release
· Loss from operations of £1.17 million (2013: £0.18 million). These losses are after charging £0.26 million (2013: £0.17 million) of non-cash depreciation and amortisation, £0.26 million (2013: £Nil) of exceptional costs in relation to the demerger and £0.25 million (2013: £0.18 million) of exceptional restructuring costs.
· Loss per share 0.05p (2013: 0.01p).
* before depreciation, amortisation and exceptional items - see note 4
Stephen Moon, Science in Sport's CEO, said: "These full year results highlight the continuing momentum in sales growth for the year, far outstripping the sector growth for the sports nutrition category. We have seen solid growth in our heartland of independent cycle, running and triathlon stores, with very strong growth in major grocers and high street chains through a combination of new distribution outlets and an increased rate of sale. Much resource and investment has been directed towards international sales and e-commerce sales and it is pleasing to report very strong performances in both these channels.
"I am pleased to say that sales momentum has carried into the new financial year, and we remain confident of achieving strong growth in the coming financial year, as we capitalise on growth opportunities including the Tour de France visiting the UK."
For further information:
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Science in Sport plc |
+44 (0) 02 7400 3700 |
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Stephen Moon, CEO |
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Cenkos Securities |
+44 (0) 20 7397 8900 |
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Bobbie Hilliam - NOMAD and Broker |
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Buchanan |
+44 (0) 20 7466 5000 |
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Mark Court / Sophie McNulty / Sophie Cowles |
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Notes for editors
About Science in Sport plc
Science in Sport plc is a leading sports nutrition company that develops, manufactures and markets sports nutrition products for professional athletes and sports enthusiasts. SiS is a strong brand in the elite athlete community - in the 2012 London Olympics, 24 medal-winning athletes or teams used SiS products.
The SiS core product ranges include: SiS GO, comprising energy powders, isotonic gels, energy bars and hydration tablets; and SiS REGO, including protein-based recovery powders and bars. SiS products are sold in a range of retail channels, including specialist sport retailers, major grocers, high street retailers and e-commerce websites.
SiS is currently the official sports nutrition supplier to professional cycling teams Rapha Condor JLT, Madison Genesis, Pro Team Astana, Team Katusha and Trek. SiS is also currently the official supplier of sports drinks and sports nutrition to the GB Rowing Team. In addition, Olympians Sir Chris Hoy MBE, Mark Cavendish MBE and Helen Jenkins are Elite Sports Consultants and brand ambassadors.
SiS was founded in 1992 and is headquartered in London. Its manufacturing and product development facility is in Nelson, Lancashire.
SiS shares are traded on the AIM market of the London Stock Exchange under the ticker symbol SIS. For further information, please visit www.scienceinsport.com
Chairman's and Chief Executive's statement
We are delighted to announce the maiden preliminary results of Science in Sport plc ("SiS") and to provide a detailed review of the progress that has been made at the Company since it joined the AIM market in August 2013.
By way of introduction, SiS is a company focused on the SiS brand of endurance sports nutrition products. These innovative products are sold into an exciting growth market underpinned by the increasing popularity of endurance sports, particularly cycling, running and rowing, together with disciplines including marathons, half-marathons and triathlons.
The SiS brand is highly trusted and differentiated in its marketplace, exemplified by its widespread use by professional and elite athletes. The SiS brand attracts a wide and growing customer base in amateur sports including cycling, running, triathlon and rowing.
SiS products are endorsed by the Company's Elite Sports Consultants, including the cyclists Sir Chris Hoy and Mark Cavendish MBE and twice Triathlon World Champion Helen Jenkins, who have an active role in new product development. The products are further endorsed by the brand's role as an official supplier to a number of professional cycling teams, to individual elite athletes and to the GB Rowing Team.
SiS products are based on continuous innovation, resulting from scientific collaborations and in-house development expertise. The products are manufactured by SiS at its own manufacturing facility, which has allowed the Company to be certified to the highest standards of banned substance control.
SiS products are designed to sustain performance and to aid recovery. The core product range comprises four key product lines:
• SiS GO isotonic powders and gels - easily digestible carbohydrates for use during exercise
• SiS hydration products - including SiS GO Hydro tablets and SiS GO Electrolyte powders
• SiS GO Bars - cereal-based food bars
• SiS REGO range - drinks and protein bars for recovery after training
SiS is an established brand, dating back to 1992. The brand was acquired by Provexis plc in 2011 and its subsequent demerger and listing as Science in Sport plc in August 2013 has provided the business with the platform and resource to exploit the potential of the brand.
Our strategy is to drive the brand's sales growth nationally and internationally through multiple retail channels, including our own e-commerce website. We are confident that we have laid the foundations for significant sales growth and that this growth will be achieved without a corresponding increase in fixed overheads, giving the Company the attraction of operational gearing.
Overview of the financial year
The financial year to 31 March 2014 was a period of considerable growth at SiS, with sales up 24% to £6.85 million (2013: £5.52 million). Growth was achieved across all of our distribution channels, including specialist sports retailers, major grocers, high street outlets, direct e-commerce, third party e-commerce and international sales.
Sales growth was particularly strong in our own e-commerce channel, which grew 90% year on year, in the high street channel, which grew 71% year on year and in international sales, which grew by 28%.
One of the highlights of the first half was the award of the Tesco 2013 Healthcare Category Supplier of the Year, recognising SiS's ability to work successfully with major customers. Our products are stocked in an increasing number of major grocers including Tesco, Sainsbury's and Waitrose. Major high street chain stockists include Halfords, Holland & Barratt, Evans Cycles and Decathlon.
Independent sports retailers represent an important foundation for the brand and business and we conducted 400 in-store training sessions for retail staff during the year, with our sales representatives making over 4,000 visits to individual stores across the UK.
The development of our e-commerce platform has been a particular focus and during the year we launched a new website with improved shopping functionality and enhanced layout and content. The trend towards consumers shopping on mobile devices continues and as a result we developed a website for shopping from tablets and smartphones, which launched in May 2014. Over half of our e-commerce site visits are now from mobile devices, and the dedicated mobile site has been well received by customers.
The improved website and mobile site are supported by a new customer relationship management system and we are continuing to invest in e-commerce through new digital and email marketing campaigns. We have also increased staff resource in the area of direct selling to consumers, and dedicated customer service representatives.
The international roll out of the SiS brand represents a major opportunity for the Company. The 28% international sales growth during the year reflected strong growth in Australia, plus extending into new territories. We announced two distribution agreements during the year to accelerate sales in Europe and in the Asia Pacific region. In December 2013, we announced an agreement with the European arm of Shimano, one of the world's largest cycling distributors and component manufacturers. The agreement, which took effect at the beginning of May this year, covers eight European companies and will see SiS products distributed in Nordic countries for the first time.
In November 2013, we announced a distribution agreement for the Asia Pacific region, which was signed with a newly created company, Science in Sport Asia Pacific ("SiSAP"). SiSAP was founded in New Zealand by a group of successful entrepreneurs with a track record in sport businesses, the food industry and logistics. They are currently working with elite athletes in the region including the New Zealand national cycling team.
We moved our head office to central London from Windsor in March this year. One of the key reasons for moving to London was to assist in the recruitment of our direct selling and customer service teams, which is progressing well. The head office also accommodates our management, finance and marketing teams.
Science & innovation
During the year, we were very active in the area of science and innovation, as this is at the heart of the brand and its reputation with elite athletes. Rigorous, evidence-based sports and nutritional science underpins our long-term innovation strategy. SiS benefits from a network of collaborations with academic institutions such as the University of Kent, Liverpool John Moores University and the Welsh National Heart Institute at Cardiff University. Current projects include the funding of a PhD student in Liverpool researching the role of protein in training and carrying out work in Cardiff on the absorption of nitrates.
We are currently in dialogue with a number of potential academic collaborators in connection with emerging areas of interest to the Company in new product development.
SiS develops and protects its intellectual property with patents on an ongoing basis, and new patents will be filed imminently for intellectual property we have developed in the area of nitrates.
Support for shorter-term growth initiatives in various distribution channels comes from improvements to existing products, such as new flavours and packaging formats. During the year this included apple and lemon & lime flavours of isotonic gels and the use of caffeine in the GO Hydro range.
New products, which we define as products in their first year of launch, accounted for 12% of turnover in the year to 31 March 2014 and 48% of sales growth. 14 new products were launched during the year.
Supply chain
One of the key values of the SiS brand is trust and intrinsic to this is our policy on banned substances, given the importance of this issue to professional and elite athletes. Earlier this year we became the first company in the UK to achieve Evolved Certification from Informed Sport, the quality assurance programme for nutritional products used by athletes. This Evolved Certification is highly rigorous and it gives all of our customers, particularly professional athletes, reassurance that our products are produced in a way that minimises the risk of banned substance contamination. SiS is currently the only company in the UK to have achieved this Evolved Certification from Informed Sport.
Our manufacturing facility in Nelson, Lancashire, performed well during the year and delivered an improvement in gross margin to 56.9%. The facility benefits from ample capacity to accommodate our anticipated growth and operates currently on a lean three-shift system, 24 hours a day, five days a week. During the year, we successfully implemented a new production planning and inventory control system, and our intention is to invest in e-commerce logistics at the facility in the current year.
People
We are delighted to announce the appointment of Vivienne Sparks as our Financial Director. Vivenne, who qualified as an accountant at PricewaterhouseCoopers, brings considerable international financial experience gained predominantly at publicly quoted businesses. We look forward to her input to the Company.
We have continued to develop and strengthen the SiS team during the year with the number of employees at the year end reaching 65. Recruitment in our direct selling and customer care teams in our London office has been an area of focus during the past few months. We have also recruited two athletes into full time roles with the appointment of Emma Barraclough, the international triathlete, as Senior Sports Nutritionist, and Katie Colclough, the Great Britain road and track cyclist, as Sports Marketing Manager.
We would like to take this opportunity to thank the entire team at SiS in London and Lancashire for their energy, dedication and enthusiasm throughout the year.
Financials
Sales in the financial year increased 24% to £6.85 million (2013: £5.52 million). The underlying operating loss (before depreciation, amortisation and exceptional items) was £0.40 million (2013: underlying operating profit of £0.23 million), reflecting investment in sales and marketing to drive revenue growth, together with an increase in administrative costs as a standalone business post admission to AIM.
Exceptional costs of £0.51 million (2013: exceptional costs of £0.24 million) predominantly reflect the costs of the demerger and joining the AIM market, at £0.26 million, and the cost of restructuring the business to be a standalone enterprise. The pre-tax loss for the year was £1.18 million (2013: pre-tax loss of £0.19 million). The Board does not anticipate further exceptional costs in future periods.
Net cash and cash equivalents at the year end were £0.63 million (31 March 2013: £0.14 million).
The balance sheet was significantly strengthened immediately after the year end when, in April 2014, the Company announced a share placing, which raised £2.1 million net of expenses from new and existing investors. The proceeds of the placing are being used to fund the working capital required to support the Company's growth plans.
Change of accounting reference date
The Board has taken the decision to change the Company's accounting reference date and financial year end from 31 March to 31 December. The Board has taken this decision to enable the Company's external reporting period to be better aligned with demand seasonality and subsequent resource management within the business.
As a result of this change the Company's reporting calendar will be as follows:
· Unaudited results for the 6 month period to 30 September 2014 will be announced in December 2014; and
· Audited results covering the 9 month period ended 31 December 2014 will be announced in March 2015.
As part of its audited results covering the 9 month period ended 31 December 2014 the Company will also publish unaudited pro forma numbers for the 12 month period ended 31 December 2014 and 12 month period ended 31 December 2013 in order to illustrate the underlying year on year business performance.
Outlook
The current financial year has started well with sales growth in the first three months of the year in line with management expectations. This growth has been achieved across all of the Company's distribution channels.
We are particularly excited by the UK stages of the 2014 Tour de France in early July. We have a major promotional campaign planned associated with the Tour, which includes our use of outdoor advertising and TV promotion for the first time.
We intend to continue to invest in all of our distribution channels and in new product development in the coming months and remain confident of achieving strong sales growth in the current year and beyond.
John Clarke Stephen Moon
Non-Executive Chairman Chief Executive
Financial review
SiS (Science in Sport) Ltd was demerged from Provexis plc with effect from 9 August 2013 and transferred to a newly incorporated parent company, Science in Sport plc. Pursuant to the terms of the Demerger Agreement the Company allotted and issued to the holders of ordinary shares in the capital of Provexis plc 15,188,000 ordinary shares of 10 pence each in consideration of the transfer to the Company by Provexis plc of the whole of the issued share capital of SiS (Science in Sport) Limited. Science in Sport plc was admitted to the AIM segment of the London Stock Exchange's market for listed securities as from 9 August 2013.
The transfer of SiS (Science in Sport) Limited to the new holding company, Science in Sport plc, was not a business combination involving a third party and, as such, the financial information of Science in Sport plc has been presented as a continuation of the SiS (Science in Sport) Limited and therefore presented as if SiS (Science in Sport) Limited had been owned and controlled by the Company for the full financial year. To do so the principles of reverse acquisition accounting in IFRS 3 have been applied.
Revenue
The Company generated revenues of £6,846,809 (2013: £5,522,240) in the year, ahead of market expectations, representing like for like revenue growth of 24% compared to the same period last year. Revenue growth during the year has been achieved across all of the Company's distribution channels including major grocers, high street retail chains, independent retailers and e-commerce retailers.
Sales growth was particularly strong in our own e-commerce channel, which grew 90% year on year, in the high street channel, which grew 71% year on year and in international sales, which grew by 28%.
Gross margin
The Company generated a gross margin of £3,896,444 (2013: £3,104,063) with gross margin percentage of revenue improving to 56.9% (2013: 56.2%) a 0.7 basis points improvement as a result of factory efficiencies and cost saving initiatives.
Underlying operating loss
The underlying operating loss of £394,869 (2013: £227,014 profit) is due to investment in sales and marketing to drive revenue growth together with an increase in administrative costs as a standalone business post admission to AIM.
The Company has chosen to report underlying operating loss as the Directors believe that the operating loss before depreciation, amortisation and exceptional items provides additional useful information for shareholders on underlying trends and performance. A reconciliation of underlying operating loss to loss from operations is presented on the face of the consolidated statement of comprehensive income. This measure is used for internal performance analysis.
The Company's cost base and its resources have been and will continue to be tightly managed within budgets approved and monitored by the Board.
Exceptional costs
Exceptional costs of £514,923 (2013: £239,686) predominantly reflect the costs of the demerger and joining the AIM market at £262,390 (2013: £Nil) and the cost of restructuring the business to be a standalone enterprise at £252,533 (2013: £178,583). The pre-tax loss for the year was £1,176,882 (2013: £185,855). The Board does not anticipate further exceptional costs in future periods.
Taxation
The current tax charge is £Nil (2013: £107,217, credit) due to the loss made in the year. The deferred tax credit of £218,310 (2013: £18,600) is primarily due to the recognition of a deferred tax asset in respect of taxable losses. Tax refunds totalling £68,084 in respect of prior periods were received in the year the full amount was recognised in the Company's income statement for the year ended 31 March 2013.
Losses and dividends
The loss attributable to equity holders of the parent for the year ended 31 March 2014 was £958,572 (2013: £97,238) and the basic and diluted loss per share was 0.05p (2013: 0.01p). The Directors are unable to recommend the payment of a dividend (2013: £Nil).
Capital structure and funding
On 28 June 2013 the Company announced its intention to apply for the admission to AIM of 19,380,235 ordinary shares of 10p each in the Company, pursuant to the placing of 4,192,225 ordinary shares of 10p each in the Company. These ordinary shares of the Company were admitted to AIM on 9 August 2013 and the Company received net proceeds of £1.7 million (after inter-company loan repayment of £250,000 to Provexis plc) in respect of this transaction.
On 2 October 2013 the Company raised £0.1 million net by the issue and allotment of 134,250 Ordinary Shares at a Placing Price of 74.5 pence per share.
On 9 April 2014 the Company raised net proceeds of £2.1 million by the issue and allotment of 5,111,116 Ordinary Shares at a Placing Price of 45 pence per share. The Placing was undertaken with new and existing institutional shareholders and was oversubscribed. The Placing will enable the Company to fund the working capital required to underpin further revenue growth and also to invest internally in further new revenue generating opportunities. The Directors believe the net proceeds of the Placing enable the Board to increase its revenue outlook ahead of historical year performances.
The latest Placing also introduces a number of new and significant institutional investors onto the shareholder register of the Company. The Directors believe establishing a broader institutional shareholder base is in the long term interests of the Company.
The loan agreement with HSBC Equipment Finance drawn down in September 2012 and secured against a number of assets acquired by SiS (Science in Sport) Limited for the Company's new Nelson factory continues to be repaid.
The Company renewed its £200,000 bank overdraft facility with HSBC in December 2013.
Going concern
The Company made a loss for the year attributable to owners of the parent of £958,572 (2013: £97,238) and expects to make a further loss in the period ending 31 December 2014.
The total cash outflow from operating activities in the year was £1,305,276 (2013: inflow of £85,865). At 31 March 2014 the Company had cash balances of £630,731 (2013: £138,841).
As noted above, the Company raised additional equity of £2.1m (net of associated costs) on 9 April 2014.
The Directors have prepared projected cash flow information for a period including twelve months from the date of approval of this financial information on the basis that the additional cash received from the placing on 9th April provides sufficient funding for the working capital required to fund further revenue growth and also to invest internally in further new revenue generating opportunities.
Accordingly, the Directors have a reasonable expectation that taking into account the proceeds of the latest fundraising in April 2014 the Company will have sufficient cash to meet all liabilities as they fall due for a period of at least 12 months from the date of approval of this financial information. For these reasons, they continue to adopt the going concern basis of accounting in preparing the annual financial information.
Principal risks and uncertainties
In the course of its normal business the Company is exposed to a range of risks and uncertainties which could impact on the results of the Company. The Board considers that risk-management is an integral part of good business process and, on a bi-annual basis, reviews the industry, operational and financial risks facing the Company and considers the adequacy of the controls & mitigants to manage the risks.
The Directors have identified the following principal risks and uncertainties that could have the most significant impact on the Company's long-term value generation.
Food quality and safety
Accidental or malicious ingredient or raw material contamination, or supply chain contamination caused by human error or equipment fault or due to manufacturing or design faults could compromise the safety and quality of SiS products. The consequences could be severe and may include adverse effects on consumer health, loss of market share, financial costs and loss of turnover to SiS.
Where there is a product recall as a result of accidental or malicious ingredient or raw material contamination, or due to supply chain contamination caused by human error or equipment fault or due to manufacturing or design faults, a subsequent product relaunch may not successfully return the relevant brand to its previous market position. This could result in a loss of market share and loss of turnover to SiS.
The Group maintains product liability insurance cover to mitigate the potential impact of such an event.
The Group's stringent approach to food quality and safety is controlled via quality assurance procedures which are based on a risk management approach. Internal systems are reviewed continuously and potential for improvement is monitored.
The manufacturing facility at Nelson is subject to regular food safety and quality control audits. Raw materials, the Nelson facility and finished products are analysed and tested regularly for banned substances by an experienced, independent surveillance company. Earlier this year SiS (Science in Sport) Limited became the first company in the UK to achieve evolved certification from Informed Sport, the quality assurance programme for nutritional products used by athletes. This evolved certification is highly rigorous and it gives the reassurance that our products are produced in a way that minimises the risk of banned substance contamination. SiS (Science in Sport) Limited is currently the only company in the UK to have achieved this evolved certification from Informed Sport.
Commodity pricing risk
Movement in the commodity prices of raw materials and, in the case of imported raw materials and other goods, the value of Sterling against other currencies may have a corresponding impact on finished product cost. Failure to manage the Company's exposure to price increase may adversely affect the Company's financial performance.
Customers and consumers
The Company operates in a competitive market sector and its ability to compete effectively requires an on-going commitment to marketing, product development, innovation, product quality and ability to offer value for money.
The ten largest customers by revenue accounted for 65% of revenues for the year ended 31 March 2014 (2013: 65%) with the largest customer accounting for 12% (2013: 12%). The risks associated with the reliance on these main customers are recognised by the Directors and it is intended that SiS will continue to expand the number of retail outlets where SiS products can be bought and drive sales from e-commerce both in the UK and internationally. Although no single retailer accounts for more than 12% of SiS sales, the dominance of the large retail multiples and third party e-commerce retailers could force an erosion of prices and, subsequently, profit margins. Significant resources are devoted to forging strong relationships with customers.
Trademarks
The Company's success will depend in part on its ability to obtain and protect its trademarks both in the UK and internationally. The Company cannot give definitive assurance that pending or future trademark applications will be granted or that trademarks granted will not be challenged or held unenforceable. To mitigate this, the Group enters into non-disclosure agreements with employees, consultants and prospective commercial partners but cannot assure that such agreements will provide complete safeguards against unauthorised disclosure of confidential information.
People
The Company recognises that its employees are critical to the successful delivery of service to customers. The failure to retain people of high quality would have an adverse effect on Company performance. The Company has high expectations of all staff and in return strives to provide an environment that is both challenging and rewarding.
Funding and other risks
The Company may require additional funding. To the extent that the current cash resources of the Company are insufficient to cover the Company's liabilities in the longer term it may be necessary to seek additional funds through future equity or debt financings and there is no certainty that such funds would be available. Any such further financings, if available at all, may be on terms that are not favourable to the Company. Further, if adequate capital cannot be obtained, the Company's operating results and financial condition could be adversely affected.
Consolidated statement of comprehensive income
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|
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Year |
Year |
|
|
|
ended |
ended |
|
|
|
31 March |
31 March |
|
|
|
2014 |
2013 |
|
|
Notes |
£ |
£ |
|
|
|
|
|
|
Revenue |
3 |
6,846,809 |
5,522,240 |
|
Cost of goods |
|
(2,950,365) |
(2,418,177) |
|
Gross profit |
|
3,896,444 |
3,104,063 |
|
Sales and marketing costs |
|
(2,760,347) |
(1,934,218) |
|
Administrative costs |
|
(2,308,953) |
(1,352,425) |
|
|
|
|
|
|
Underlying operating (loss)/profit |
|
(394,869) |
227,014 |
|
|
|
|
|
|
Depreciation and amortisation |
|
(263,064) |
(169,908) |
|
Exceptional costs |
4 |
(514,923) |
(239,686) |
|
|
|
|
|
|
Loss from operations |
4 |
(1,172,856) |
(182,580) |
|
|
|
|
|
|
Finance income |
7 |
1,816 |
- |
|
Finance costs |
7 |
(5,842) |
(3,275) |
|
Loss before taxation |
|
(1,176,882) |
(185,855) |
|
|
|
|
|
|
Taxation |
8 |
218,310 |
88,617 |
|
Loss and total comprehensive expense for the period |
|
(958,572) |
(97,238) |
|
|
|
|
|
|
Attributable to: |
|
|
|
|
Owners of the parent |
|
(958,572) |
(97,238) |
|
Loss and total comprehensive expense for the period |
|
(958,572) |
(97,238) |
|
|
|
|
|
|
|
|
|
|
|
Loss per share to owners of the parent |
|
|
|
|
Basic and diluted - pence |
9 |
(0.05) |
(0.01) |
|
|
|
|
|
All amounts relate to continuing operations.
Consolidated statement of financial position
|
|
|
As at |
As at |
As at |
|
Company number 08535116
|
|
31 March |
31 March |
31 March |
|
|
|
2014 |
2013 |
2012‡ |
|
|
Notes |
£ |
£ |
£ |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Intangible assets |
10 |
205,916 |
155,558 |
7,297 |
|
Property, plant and equipment |
11 |
735,764 |
625,782 |
519,142 |
|
Deferred tax |
17 |
328,658 |
110,348 |
128,948 |
|
Total non-current assets |
|
1,270,338 |
891,688 |
655,387 |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Inventories |
12 |
1,024,227 |
913,387 |
635,771 |
|
Trade and other receivables |
13 |
1,371,194 |
1,148,938 |
763,178 |
|
Cash and cash equivalents |
14 |
630,731 |
138,841 |
250,363 |
|
Total current assets |
|
3,026,152 |
2,201,166 |
1,649,312 |
|
|
|
|
|
|
|
Total assets |
|
4,296,490 |
3,092,854 |
2,304,699 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
15 |
(1,682,836) |
(2,192,065) |
(1,533,317) |
|
Borrowings |
16 |
(64,774) |
(64,774) |
- |
|
Total current liabilities |
|
(1,747,610) |
(2,256,839) |
(1,533,317) |
|
Net current assets/(liabilities) |
|
1,278,542 |
(55,673) |
115,995 |
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Borrowings |
16 |
(97,122) |
(161,871) |
- |
|
Total non-current liabilities |
|
(97,122) |
(161,871) |
- |
|
|
|
|
|
|
|
Total liabilities |
|
(1,844,732) |
(2,418,710) |
(1,533,317) |
|
|
|
|
|
|
|
Total net assets |
|
2,451,758 |
674,144 |
771,382 |
|
|
|
|
|
|
|
Capital and reserves attributable to owners of the parent company |
|
|
|
|
|
Share capital |
18 |
1,951,448 |
1,518,799 |
1,518,799 |
|
Share premium reserve |
|
1,855,374 |
- |
- |
|
Other reserve |
|
(906,917) |
(1,367,580) |
(1,367,580) |
|
Retained earnings |
|
(448,147) |
522,925 |
620,163 |
|
Total equity |
|
2,451,758 |
674,144 |
771,382 |
‡ As these are the Company's first consolidated accounts, the balance sheet for 31 March 2012 has been presented in accordance with IFRS 1.
Consolidated statement of cash flows
|
|
|
Year |
Unaudited Year |
|
|
|
ended |
ended |
|
|
|
31 March |
31 March |
|
|
|
2014 |
2013 |
|
|
Notes |
£ |
£ |
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
Loss after tax |
|
(958,572) |
(97,238) |
|
Adjustments for: |
|
|
|
|
Amortisation |
10 |
38,319 |
17,224 |
|
Depreciation |
11 |
224,745 |
152,684 |
|
Loss/(profit) on sale of fixed assets |
4 |
(1,325) |
(4,077) |
|
Net finance cost |
7 |
4,026 |
3,275 |
|
Taxation |
8 |
(218,310) |
(88,617) |
|
Share-based payment charge |
|
- |
- |
|
Operating cash outflow before changes in working capital |
|
(911,117) |
(16,749) |
|
|
|
|
|
|
Changes in inventories |
|
(110,840) |
(277,616) |
|
Changes in trade and other receivables |
|
(289,015) |
(317,676) |
|
Changes in trade and other payables |
|
(62,388) |
697,906 |
|
Total cash (outflow)/inflow from operations |
|
(1,373,360) |
85,865 |
|
|
|
|
|
|
Tax paid |
|
- |
- |
|
Tax credits received |
|
68,084 |
- |
|
Total cash (outflow)/inflow from operating activities |
|
(1,305,276) |
85,865 |
|
|
|
|
|
|
Cash flow from investing activities |
|
|
|
|
Purchase of property, plant and equipment |
11 |
(334,727) |
(260,597) |
|
Proceeds from sale of property, plant and equipment |
|
1,325 |
5,350 |
|
Purchase of intangible assets |
10 |
(88,677) |
(165,485) |
|
Interest received |
|
1,582 |
- |
|
Net cash outflow from investing activities |
|
(420,497) |
(420,732) |
|
|
|
|
|
|
Cash flow from financing activities |
|
|
|
|
Proceeds from issue of share capital |
|
2,350,096 |
- |
|
Expenses paid on share issues |
|
(62,075) |
- |
|
New borrowings |
16 |
- |
258,994 |
|
Repayment of borrowings |
|
(64,749) |
(32,374) |
|
Interest paid |
|
(5,609) |
(3,275) |
|
Net cash flow from financing activities |
|
2,217,663 |
223,345 |
|
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
491,890 |
(111,522) |
|
Opening cash and cash equivalents |
14 |
138,841 |
250,363 |
|
Closing cash and cash equivalents |
14 |
630,731 |
138,841 |
Consolidated statement of changes in equity
|
|
|
|
|
|
|
|
|
|
Share capital |
Share premium |
Preference shares |
Other reserve |
Retained earnings |
Total equity |
|
|
£ |
£ |
£ |
£ |
£ |
£ |
|
|
|
|
|
|
|
|
|
At 31 March 2011 |
1,518,799 |
- |
- |
(1,367,580) |
809,987 |
961,206 |
|
|
|
|
|
|
|
|
|
Total comprehensive expense for the year |
- |
- |
- |
- |
(189,824) |
(189,824) |
|
|
|
|
|
|
|
|
|
At 31 March 2012 |
1,518,799 |
- |
- |
(1,367,580) |
620,163 |
771,382 |
|
|
|
|
|
|
|
|
|
Total comprehensive expense for the year |
- |
- |
- |
- |
(97,238) |
(97,238) |
|
|
|
|
|
|
|
|
|
At 31 March 2013 |
1,518,799 |
- |
- |
(1,367,580) |
522,925 |
674,144 |
|
|
|
|
|
|
|
|
|
Issue of ordinary share |
1 |
- |
- |
- |
- |
1 |
|
|
|
|
|
|
|
|
|
Issue of preference shares |
- |
- |
12,500 |
- |
- |
12,500 |
|
|
|
|
|
|
|
|
|
Redemption of preference shares |
- |
- |
(12,500) |
12,500 |
(12,500) |
(12,500) |
|
|
|
|
|
|
|
|
|
Capital contribution |
- |
- |
- |
448,163† |
- |
448,163 |
|
|
|
|
|
|
|
|
|
Issue of shares - placing on 9 August 2013 |
419,223 |
1,928,424 |
- |
- |
- |
2,347,647 |
|
|
|
|
|
|
|
|
|
Issue of shares - placing on 2 October 2013 |
13,425 |
86,591 |
- |
- |
- |
100,016 |
|
|
|
|
|
|
|
|
|
Transaction costs of demerger and placings |
- |
(159,641) |
- |
- |
- |
(159,641) |
|
|
|
|
|
|
|
|
|
Total comprehensive expense for the year |
- |
- |
- |
- |
(958,572) |
(958,572) |
|
|
|
|
|
|
|
|
|
At 31 March 2014 |
1,951,448 |
1,855,374 |
- |
(906,917) |
(448,147) |
2,451,758 |
|
|
|
|
|
|
|
|
† During the period, and prior to the demerger (as described in note 1 to the financial information), the Provexis group undertook a group reorganisation resulting in a capital contribution of £448,163 being recognised in respect of the waiver of intercompany debt.
Set out below is a description of the nature and purpose of each reserve within total equity:
|
Share capital |
Amount subscribed for share capital at nominal value (note 18). |
|
Share premium |
Amount subscribed for share capital in excess of nominal value less costs directly attributable to the issue of shares. |
|
Other reserve |
The other reserve arose as a result of applying the principles of reverse acquisition accounting following the demerger of SiS (Science in Sport) Limited from Provexis plc and represents the difference between the capital reserves of Science in Sport plc (the legal acquirer) and those of SiS (Science in Sport) Limited (the legal acquiree). |
|
Retained earnings |
Cumulative net gains and losses recognised in the consolidated statement of comprehensive income. |
Notes to the preliminary results for the year ended 31 March 2014
1. Accounting policies
General information
Science in Sport plc is a public limited company incorporated and domiciled in the United Kingdom (registration number 08535116). The address of the registered office is 4th Floor, 16 - 18 Hatton Gardens, Farringdon, London EC1N 8AT.
The main activities of the Company are those of developing, manufacturing and marketing sports nutrition products for professional athletes and sports enthusiasts.
Company reorganisation and demerger
SiS (Science in Sport) Ltd was demerged from Provexis plc with effect from 9 August 2013 and transferred to a newly incorporated parent company, Science in Sport plc ("the Company"). Pursuant to the terms of the Demerger Agreement the Company allotted and issued to the holders of ordinary shares in the capital of Provexis plc 15,188,000 ordinary shares of 10 pence each in consideration of the transfer to the Company by Provexis plc of the whole of the issued share capital of SiS (Science in Sport) Ltd. The Company was admitted to the AIM segment of the London Stock Exchange's market for listed securities as from 9 August 2013.
At the date of the demerger, the Company acquired the entire issued share capital of SiS (Science in Sport) Limited in return for issuing shares to shareholders of Provexis plc. The transfer of SiS (Science in Sport) Limited to the new holding company, Science in Sport plc, was not a business combination involving a third party and, as such, the financial information of Science in Sport plc has been presented as a continuation of the SiS (Science in Sport) Limited and therefore presented as if SiS (Science in Sport) Limited had been owned and controlled by the Company for the full financial year. To do so the principles of reverse acquisition accounting in IFRS 3 have been applied.
Prior to the demerger, Provexis plc converted £448,163 of an intercompany debt into equity by way of a capital contribution. At the time of the demerger, a payment of £250,000 was made to Provexis plc to settle the remaining outstanding intercompany debt.
Basis of preparation
The financial information set out in this release does not constitute the Company's full statutory accounts for the year ended 31 March 2014 for the purposes of section 434(3) of the Companies Act 2006, but it is derived from those accounts that have been audited. Statutory accounts for 2014 will be delivered to the Registrar of Companies after the forthcoming AGM. The auditors have reported on those accounts; their report was unqualified, and did not contain statements under s498(2) or (3) of the Companies Act 2006. As the Company was incorporated during the year, there are no statutory accounts for 2013.
While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) as endorsed for the use in the European Union, this announcement does not itself contain sufficient information to comply with IFRS. The Company expects to publish full financial statements for the year ended 31 March 2014 that comply with IFRS in July 2014
The accounting policies set out below have been applied to all periods presented in this Group financial information and are in accordance with IFRS, as adopted by the European Union and International Financial Reporting Interpretations Committee ("IFRIC") interpretations that were applicable for the year ended 31 March 2014.
The following new standards, amendments to standards or interpretations have been issued and are effective for the year ended 31 March 2014, however, the Directors do not expect them to have a material effect on the Group's financial information:
· Amendments to IAS 1 - Presentation of Items of Other Comprehensive Income
· Amendments to IAS 19 - Employee Benefits
· IAS 27 - Separate Financial Statements
· IAS 28 - Investments in Associates and Joint Ventures
· Amendments to IFRS 7 - Financial Instruments: Disclosures - Offsetting Financial Assets and Financial Liabilities and IAS 32 (Amended) Financial instruments: Presentation
· IFRS 10 Consolidated Financial Statements
· IFRS 11 Joint Arrangements
· IFRS 12 Disclosure of Interests in Other Entities
· IFRS 13 - Fair Value Measurements
· Annual Improvements 2009-2011 cycle
· Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance
None of these standards has had a significant impact on the financial information of the Group.
The following new standards, amendments to standards and interpretations have been issued but are not effective for the year ended 31 March 2014. The new standards, amendments to standards and interpretations (effective for periods beginning on or after 1 January 2014 unless otherwise stated) will be relevant to the Group but have not been adopted early as the Directors do not expect these standards and interpretations to have a material effect on the consolidated financial information:
· Investment Entities - Amendments to IFRS 10, IFRS 12 and IAS 27
· Offsetting Financial Assets and Financial Liabilities - Amendments to IAS 32
· Recoverable Amount Disclosures for Non-Financial Assets (Amendments to IAS 36)
· Novation of Derivatives and Continuation of Hedge Accounting (Amendments to IAS 39)
· IFRS 9 Financial Instruments (effective periods commencing on or after 1 January 2015)
There are a number of standards, interpretations and amendments to published accounts not listed above which the Directors consider not to be relevant to the Group.
Going concern
The Directors are of the opinion that as at 26 June 2014, taking into account the Placing of ordinary shares on 9 April 2014 which raised £2.1m net, the Company and the Company's liquidity and capital resources are adequate to deliver the current strategic objectives having considered projected cash flow information for a period including twelve months from the date of approval of this financial information and that the Company and SiS (Science in Sport) Limited remain a going concern.
Basis of consolidation
The transfer of SiS (Science in Sport) Limited to the Company on 9 August 2013 has been accounted for in accordance with the principles of reverse acquisition accounting as set out in IFRS 3, Business Combinations.
This financial information is therefore presented as if SiS (Science in Sport) Limited had been owned and controlled by the Company for the full financial year. Comparatives have been prepared as if the continuing operations of the Company were in existence for the whole of the prior period.
Subsidiaries are all entities over which the Company has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are de-consolidated from the date that control ceases.
The consolidated financial information presents the results of the Company and its subsidiary, SiS (Science in Sport) Limited, as if they formed a single entity ("the Company"). Both group companies share the same reporting date, 31 March. All intra company balances are eliminated in preparing the financial information.
Revenue
Revenue comprises sale of goods to external customers at the fair value of consideration received or receivable and is shown net of value added tax or local taxes on sales.
Revenue from sales to external customers is recognised when the significant risks and rewards of ownership have been transferred to the buyer in accordance with the customer terms. This is when goods are dispatched to export customers and when the goods are delivered for other UK customers. Sales rebate and discount reserves are established based on management's best estimate of the amounts necessary to meet claims by customers in respect of these rebates and discounts. The provision is made at the time of sale and released, if unutilised, after assessment that the likelihood of such a claim being made has become remote.
All revenue originates in the United Kingdom.
Segment reporting
The Directors have determined that only one operating segment exists under the terms of International Financial Reporting Standard 8 'Operating Segments', as the Company is organised and operates as a single business unit.
Use of non-GAAP profit measure - underlying operating profit/(loss)
The Directors believe that the operating loss before depreciation, amortisation and impairment of intangibles, share based payments and exceptional items measure provides additional useful information for shareholders on underlying trends and performance. This measure is used for internal performance analysis. Underlying operating loss is not defined by IFRS and therefore may not be directly comparable with other companies' adjusted profit measures. It is not intended to be a substitute for, or superior to IFRS measurements of profit. A reconciliation of underlying operating profit to statutory operating profit is set out on the face of the Statement of Comprehensive Income.
Exceptional items
Exceptional items are those material items which, by virtue of their size or incidence, are presented in aggregate, separately in the Statement of Comprehensive Income to give a full understanding of the Company's underlying financial performance. Transactions which may give rise to exceptional items include the restructuring of business activities and acquisitions.
Foreign currency translation
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.
Employee benefits
(i) Defined contribution plans
The Company provides retirement benefits to a number of employees and Executive Directors. The assets of these schemes are held separately from those of the Company in independently administered funds. Contributions made by the Company are charged to the statement of comprehensive income in the period in which they become payable.
(ii) Accrued holiday pay
Provision has been made at the balance sheet date for holidays accrued but not taken at the salary of the relevant employee at that date.
Leased assets
Leases, which contain terms whereby the company does not assume substantially all the risks and rewards incidental to ownership of the leased item are classified as operating leases. Operating lease rentals are charged to the Statement of Comprehensive Income on a straight line basis over the lease term. The company does not hold any assets under finance leases.
Interest income
Interest income is recognised on a time-proportion basis using the effective interest rate method.
Intangible assets
Externally acquired intangible assets are initially recognised at cost less impairment and subsequently amortised on a straight line basis over their expected useful economic lives as follows:
Website design costs - 5 years
Computer software - 5 years
Research and development
Development expenditure and expenditure on the research phase of internal projects are written off as incurred and includes a proportion of salaries and other expenses relating thereto. No development costs met the criteria to be capitalised in the year.
Property, plant and equipment
Plant and equipment assets are stated at cost. Cost includes expenditure that is directly attributable to the acquisition of the items.
Depreciation is charged to Statement of Comprehensive Income on all plant and equipment at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight line basis over their estimated useful lives, which is:
Leasehold improvements - Over the length of the lease
Plant and machinery - 4 - 8 years
Fixtures and fittings - 4 years
Motor vehicles - 4 years
The assets' residual values and useful lives are determined by the Directors and reviewed and adjusted if appropriate at each balance sheet date in accordance with the Company policy for impairment of assets.
Impairment of assets
Assets that have a finite useful life but that are not yet in use and are therefore not subject to amortisation or depreciation are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment annually and when events or circumstances suggest that the carrying amount may not be recoverable an impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.
Recoverable amount is the higher of fair value, less disposal costs, and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in the Statement of Comprehensive Income, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount that would have been determined had no impairment loss been recognised for the asset in prior periods. A reversal of an impairment loss is recognised immediately in the Statement of Comprehensive Income, unless the relevant asset is carried at a revalued amount in which case the reversal of the impairment loss is treated as a revaluation increase.
The gain or loss on the disposal of an asset is accounted for in the Statement of Comprehensive Income of the period in which the disposal occurs as the difference between the net sale proceeds and the carrying amount.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is calculated as follows:
Raw materials - cost of purchase on a first in, first out basis.
Work in progress and finished goods - cost of raw materials and labour, together with attributable overheads based on the normal level of activity.
Net realisable value is based on estimated selling price less further costs to completion and disposal. A charge is made to the income statement for slow moving inventories. The charge is reviewed at each balance sheet date.
Financial instruments
Financial assets
The Company's financial assets are comprised of 'trade and other receivables' and 'cash and cash equivalents'. They are recognised, when the Company becomes a party to the contractual provisions of the instrument, initially at their fair value and subsequently at amortised cost when the Company becomes a party to the contractual provisions of the instrument. The Company will assess at each balance sheet date whether there is objective evidence that the financial asset is impaired. If an asset is judged to be impaired the carrying amount of the asset will be adjusted to its impaired valuation.
Financial liabilities
The Company's financial liabilities comprise 'trade and other payables' and 'borrowings'. These are recognised initially at fair value and subsequently at amortised cost.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand.
Taxation
Current tax is provided at amounts expected to be recovered or to be paid using the tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date. When research and development tax credits are claimed they are recognised on an accruals basis and are included as a taxation credit.
Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability on the balance sheet differs from its tax base, except for differences arising on:
· The initial recognition of goodwill;
· The initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction affects neither accounting or taxable profit; and
· Investments in subsidiaries where the Company is able to control the timing of the reversal of the difference and it is probable that the difference will not reverse in the foreseeable future.
Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profits will be available against which the difference can be utilised.
The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the deferred tax liabilities/(assets) are settled/(recovered). Deferred tax balances are not discounted.
Critical accounting estimates and judgements
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Estimates and judgements are continually made and are based on historic experience and other factors, including expectations of future events that are believed to be reasonable in the circumstances.
As the use of estimates is inherent in financial reporting, actual results could differ from these estimates. The Directors believe the following to be the key areas of estimation and judgement:
(i) Valuation of inventories
Inventories are valued at the lower of cost and net realisable value. Cost comprises direct materials, labour and, where appropriate, overheads that have been incurred in bringing the inventory to its present location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
(ii) Useful economic lives and residual values of intangible asset and property, plant and equipment
In relation to finite life intangible assets and property, plant and equipment, useful economic lives and residual values of assets have been established using historical experience and an assessment of the nature of the assets involved. Assets are assessed on an ongoing basis to determine whether circumstances exist that could lead to potential impairment of the carrying value of such assets.
(iii) Recognition of deferred tax asset
The Directors consider it appropriate to recognise a deferred tax asset in respect of tax losses on the basis that suitable taxable profits against which the losses can be utilised will be generated in the foreseeable future.
2. Financial risk management
2.1 Financial risk factors
The Company's activities inevitably expose it to a variety of financial risks: market risk (including currency risk, cash flow interest rate risk and fair value interest rate risk), credit risk and liquidity risk.
It is Company policy not to enter into speculative positions using complex financial instruments. The Company's primary treasury objective is to minimise exposure to potential capital losses whilst at the same time securing favourable market rates of interest on Company cash deposits using money market deposits with banks. Cash balances used to settle the liabilities from operating activities are also maintained in current accounts which earn interest at variable rates.
(a) Market risk
Foreign exchange risk
The Company primarily enters into contracts which are to be settled in UK pounds. However, some contracts involve other major world currencies including the US Dollar and the Euro. Where large contracts of more than £50,000 total value are to be settled in foreign currencies consideration is given to converting the appropriate amounts to or from UK pounds at the outset of the contract to minimise the risk of adverse currency fluctuations.
The Directors consider that the Company incurred minimal expenditure in foreign currencies during the year, and the prior year, and consequently there is currently no material exposure to foreign currency rate risk, although this may change in the future as export markets are developed.
Cash flow and fair value interest rate risk
The Company's interest rate risk arises from medium term and short term money market deposits. Deposits which earn variable rates of interest expose the Company to cash flow interest rate risk. Deposits at fixed rates expose the Company to fair value interest rate risk. The Company had no fixed rate deposits during the year. The Company analyses its interest rate exposure on a dynamic basis throughout the year.
Due to the relatively low level of the Company's borrowings no interest rate swaps or other forms of interest risk management have been undertaken. There is no cash flow risk associated with these borrowings which are at fixed interest rates and an agreed payment schedule.
(b) Credit risk
Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions as well as credit exposure in relation to outstanding receivables. Company policy is to place deposits with institutions with investment grade A2 or better (Moody's credit rating) and deposits are made in sterling only. The Company does not expect any losses from non-performance by these institutions. Management believes that the carrying value of outstanding receivables and deposits with banks represents the Company's maximum exposure to credit risk.
(c) Liquidity risk
Liquidity risk arises from the Company's management of working capital; it is the risk that the Company will encounter difficulty in meeting its financial obligations as they fall due. Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents and management monitors rolling forecasts of the Company's liquidity on the basis of expected cash flow.
The Company had trade and other payables at the statement of financial position date of £1,682,836 (2013: £2,192,065, 2012: £1,533,317) as disclosed in note 15.
2.2 Capital risk management
The Company considers its capital to comprise its ordinary share capital, share premium, other reserve and accumulated retained earnings as disclosed in the consolidated statement of financial position.
The Company remains funded primarily by equity capital. The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to provide returns for equity holders of the Company and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The Company also has an asset loan agreement secured over plant and equipment for a four year term expiring in September 2016 at a fixed interest rate of 3.96%.
3. Segmental reporting
The Directors have determined that only one operating segment exists under the terms of IFRS 8 Operating Segments, as the Group is organised and operates as a single business unit.
Revenues of £851,609 from one customer individually exceeds 10% of Group revenue (2013: three, respectively £651,768, £648,988 and £588,760). These major customers purchase goods from the Company.
|
Turnover by geographic destination may be analysed as follows: |
Year ended 31 March 2014 |
Year ended 31 March 2013 |
||||
|
|
|
£ |
£ |
|||
|
|
|
|
|
|
||
|
United Kingdom |
|
5,929,678 |
4,804,440 |
|||
|
EU excluding the UK |
|
689,774 |
642,479 |
|||
|
Rest of the World |
|
227,357 |
75,321 |
|||
|
|
|
6,846,809 |
5,522,240 |
|||
4. Loss from operations
|
Loss from operations is stated after charging/(crediting): |
Year ended 31 March 2014 |
Year ended 31 March 2013 |
|
|
£ |
£ |
|
|
|
|
|
Depreciation of property, plant and equipment |
224,745 |
152,684 |
|
Amortisation and impairment of intangible assets |
38,319 |
17,224 |
|
Research and development costs |
227,807 |
151,085 |
|
Foreign exchange (gains)/losses |
3,537 |
(5,054) |
|
Profit on disposal of property, plant and equipment |
(1,325) |
(4,077) |
|
Operating lease costs |
199,657 |
124,045 |
|
Exceptional operating costs which comprise; |
514,923 |
239,686 |
· Professional costs of admission to AIM totalled £262,390 (2013: £Nil).
· Restructuring costs of £252,533 (2013: £178,583) were incurred as part of the reorganisation of the SiS business.
· Other exceptional costs incurred in 2013 included a write down of inventory of £61,103 on acquisition of SiS (Science in Sport) Limited by Provexis plc.
|
The total fees for services provided by the Company's auditor are analysed below:
|
|
Year ended 31 March 2014 |
Year ended 31 March 2013 |
|
|
|
£ |
£ |
|
Audit services |
|
|
|
|
Parent company |
|
15,000 |
- |
|
Subsidiary |
|
20,000 |
10,000 |
|
Tax services - compliance |
|
|
|
|
Parent company |
|
- |
- |
|
Subsidiary |
|
5,000 |
3,500 |
|
Other services |
|
|
|
|
Review of interim statement |
|
2,500 |
- |
|
Advisory services - share option/long term incentive scheme |
|
37,500 |
- |
|
Corporate finance - tax advisory services |
|
25,000 |
- |
|
Corporate finance - Reporting Accountant on AIM Admission |
|
55,000 |
- |
|
Total fees |
|
160,000 |
13,500 |
5. Wages and salaries
The average monthly number of persons (including Directors) employed by the Company during the year was as follows:
|
|
Year ended 31 March 2014 |
Year ended 31 March 2013 |
|
|
|
|
|
Sales, e-commerce and marketing |
17 |
12 |
|
Manufacturing |
32 |
32 |
|
Administration |
5 |
4 |
|
Directors |
3 |
- |
|
|
57 |
48 |
Their aggregate emoluments were:
|
|
£ |
£ |
|
|
|
|
|
Wages and salaries |
1,616,192 |
1,309,994 |
|
Directors' fees |
22,583 |
- |
|
Social security costs |
170,523 |
122,444 |
|
Other pension costs |
40,588 |
20,180 |
|
Total cash settled emoluments |
1,849,886 |
1,452,618 |
|
Share based payments |
- |
- |
|
Total emoluments |
1,849,886 |
1,452,618 |
6. Directors' remuneration
|
Amounts paid to the Directors of the parent company.
|
Year ended 31 March 2014 |
Year ended 31 March 2013 |
|
|
£ |
£ |
|
Directors |
|
|
|
Aggregate emoluments and fees |
136,210 |
- |
|
Company pension contributions |
5,643 |
- |
|
Total cash settled emoluments |
141,853 |
- |
|
Share based payment remuneration charge: equity settled |
- |
- |
|
Total Directors' emoluments |
141,853 |
- |
In the year ended 31 March 2013 the Directors received no remuneration from the Company or SiS (Science in Sport) Limited; S N Moon and C D Buck were remunerated by Provexis plc in that period.
During the year, one Director participated in defined contribution pension schemes (2013: none).
Directors' emoluments include amounts attributable to benefits in kind comprising private medical insurance on which the Directors are assessed for tax purposes. The amounts attributable to benefits in kind are stated at cost to the Company, which is also the tax value of those benefits.
7. Finance income and costs
|
|
Year ended 31 March 2014 |
Year ended 31 March 2013 |
|
|
£ |
£ |
|
Finance income |
|
|
|
Bank interest receivable |
1,582 |
- |
|
Other interest received |
234 |
- |
|
|
1,816 |
- |
|
Finance costs |
|
|
|
Interest payable on bank loans and overdrafts |
572 |
190 |
|
Interest payable on asset loans |
5,270 |
3,085 |
|
|
5,842 |
3,275 |
8. Taxation
|
|
Year ended 31 March 2014 |
Year ended 31 March 2013 |
|
|
£ |
£ |
|
|
|
|
|
Current tax income |
|
|
|
United Kingdom corporation tax |
- |
- |
|
Adjustment in respect of prior period |
|
|
|
United Kingdom corporation tax - other adjustments |
- |
107,217 |
|
Total current tax income |
- |
107,217 |
|
Deferred tax |
|
|
|
Effect of change in tax rates |
(14,393) |
- |
|
Origination and reversal of temporary differences |
232,703 |
(18,600) |
|
Tax on loss for the year |
218,310 |
88,617 |
The tax assessed for the year is different from the standard rate of corporation tax in the UK. The differences are explained below:
|
|
Year ended 31 March 2014 £ |
Year ended 31 March 2013 £ |
|
|
|
|
|
Loss before tax |
1,176,882 |
185,855 |
|
|
|
|
|
Loss before tax multiplied by the standard rate of corporation tax in the UK of 20% (2013: 24%) |
235,377 |
44,605 |
|
Effects of: |
|
|
|
Expenses not deductible for tax purposes |
(45,963) |
(4,604) |
|
Additional deduction for R&D expenditure |
43,289 |
74,602 |
|
Adjustments in respect of prior years |
- |
(21,189) |
|
Effect on deferred tax balances due to changes in tax rate |
(14,393) |
(4,797) |
|
Total tax credit for the year |
218,310 |
88,617 |
At 31 March 2014 UK tax losses of the Company available to be carried forward are estimated to be £1,845,470 (2013: £566,393).
Whilst the reduction in the main rate of corporation tax from 24% to 23% effective from 1 April 2013 was substantively enacted on 2 July 2013 deferred tax was provided for at a rate of 24% in respect of the 31 March 2013 results. Since the date that legislation was enacted, it has been confirmed that the rate will be reduced to 21% as of 1 April 2014, with a further reduction to 20% from 1 April 2015. Accordingly, deferred tax balances have been revalued to the lower rate of 20% in these accounts to the extent that timing differences are expected to reverse after this later date.
9. Loss per share
Basic and diluted loss per share amounts are calculated by dividing the loss attributable to owners of the parent by the weighted average number of ordinary shares in issue during the period.
As a result of the demerger, the Company became the new parent company of SiS (Science in Sport) Limited. Therefore the weighted average number of ordinary shares outstanding has been calculated using the number of ordinary shares issued by the Company to the shareholders of Provexis plc at the date of the demerger (9 August 2013) and adjusted for:
· movements in the number of ordinary shares of SiS (Science in Sport) Limited in the period prior to 31 March 2013 and from 31 March 2013 to the date of demerger; and
· movements in the number of ordinary shares from the demerger date to 31 March 2014 using the actual number of ordinary shares of the Company outstanding during that period.
|
|
Year ended |
Year ended |
|
|
31 March |
31 March |
|
|
2014 |
2013 |
|
|
|
|
|
Loss for the year attributable to owners of the parent - £ |
(958,572) |
(97,238) |
|
Weighted average number of shares |
17,941,824 |
15,188,000 |
|
Basic and diluted loss per share - pence |
(0.05) |
(0.01) |
The company has issued further equity since the period end - see note 22.
10. Intangible assets
|
|
Software |
Website development costs |
Total |
|
|
£ |
£ |
£ |
|
Cost |
|
|
|
|
At 1 January 2011 |
13,560 |
15,925 |
29,485 |
|
Additions |
- |
5,627 |
5,627 |
|
Disposals |
- |
(15,925) |
(15,925) |
|
|
|
|
|
|
At 1 April 2012 |
13,560 |
5,627 |
19,187 |
|
Additions |
1,636 |
163,849 |
165,485 |
|
|
|
|
|
|
At 1 April 2013 |
15,196 |
169,476 |
184,672 |
|
Additions |
5,135 |
83,542 |
88,677 |
|
At 31 March 2014 |
20,331 |
253,018 |
273,349 |
|
|
|
|
|
|
Amortisation |
|
|
|
|
At 1 January 2011 |
9,040 |
1,394 |
10,434 |
|
Charge for period |
2,712 |
4,797 |
7,509 |
|
Released on disposals |
- |
(6,053) |
(6,053) |
|
|
|
|
|
|
At 1 April 2012 |
11,752 |
138 |
11,890 |
|
Charge for year |
1,944 |
15,280 |
17,224 |
|
|
|
|
|
|
At 1 April 2013 |
13,696 |
15,418 |
29,114 |
|
Charge for year |
925 |
37,394 |
38,319 |
|
Impairment |
- |
- |
- |
|
At 31 March 2014 |
14,621 |
52,812 |
67,433 |
|
|
|
|
|
|
Net book value |
|
|
|
|
At 31 March 2014 |
5,710 |
200,206 |
205,916 |
|
At 31 March 2013 |
1,500 |
154,058 |
155,558 |
|
At 31 March 2012 |
1,808 |
5,489 |
7,297 |
|
|
|
|
|
11. Property, plant and equipment
|
|
Leasehold improvements |
Plant and machinery |
Fixtures, fittings and computer equipment |
Motor vehicles |
Total |
|
|
£ |
£ |
£ |
£ |
£ |
|
Cost |
|
|
|
|
|
|
At 1 January 2011 |
- |
291,407 |
152,563 |
151,783 |
595,753 |
|
Additions |
219,247 |
246,595 |
18,021 |
- |
483,863 |
|
Disposals |
- |
- |
- |
(48,612) |
(48,612) |
|
|
|
|
|
|
|
|
At 1 April 2012 |
219,247 |
538,002 |
170,584 |
103,171 |
1,031,004 |
|
Additions |
11,709 |
146,626 |
102,262 |
- |
260,597 |
|
Disposals |
- |
(4,700) |
- |
(59,332) |
(64,032) |
|
|
|
|
|
|
|
|
At 1 April 2013 |
230,956 |
679,928 |
272,846 |
43,839 |
1,227,569 |
|
Additions |
73,934 |
74,190 |
186,603 |
- |
334,727 |
|
Disposals |
- |
- |
- |
(23,170) |
(23,170) |
|
At 31 March 2014 |
304,890 |
754,118 |
459,449 |
20,669 |
1,539,126 |
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
|
|
At 1 January 2011 |
- |
248,102 |
98,395 |
131,626 |
478,123 |
|
Charge for the period |
10,707 |
31,520 |
27,288 |
12,836 |
82,351 |
|
Disposals |
- |
- |
- |
(48,612) |
(48,612) |
|
|
|
|
|
|
|
|
At 1 April 2012 |
10,707 |
279,622 |
125,683 |
95,850 |
511,862 |
|
Charge for the year |
48,000 |
71,047 |
28,469 |
5,168 |
152,684 |
|
Disposals |
- |
(3,427) |
- |
(59,332) |
(62,759) |
|
|
|
|
|
|
|
|
At 1 April 2013 |
58,707 |
347,242 |
154,152 |
41,686 |
601,787 |
|
Charge for the year |
55,542 |
85,683 |
81,367 |
2,153 |
224,745 |
|
Disposals |
- |
- |
- |
(23,170) |
(23,170) |
|
At 31 March 2014 |
114,249 |
432,925 |
235,519 |
20,669 |
803,362 |
|
|
|
|
|
|
|
|
Net book value |
|
|
|
|
|
|
At 31 March 2014 |
190,641 |
321,193 |
223,930 |
- |
735,764 |
|
At 31 March 2013 |
172,249 |
332,686 |
118,694 |
2,153 |
625,782 |
|
At 31 March 2012 |
208,540 |
258,380 |
44,901 |
7,321 |
519,142 |
The carrying amount of fixtures, fittings, plant and equipment includes an amount of £200,594 (2013: £245,266; 2012: £Nil) in respect of assets provided as security under a loan agreement.
12. Inventories
|
|
31 March 2014 |
31 March 2013 |
31 March 2012 |
|
|
£ |
£ |
£ |
|
|
|
|
|
|
Raw materials |
637,634 |
503,093 |
351,744 |
|
Finished goods |
386,593 |
410,294 |
284,027 |
|
|
1,024,227 |
913,387 |
635,771 |
There is a provision of £14,047 included within inventories in relation to the impairment of inventories (2013: £27,328; 2012: £Nil).
During the year inventories of £2,149,320 (2013: £1,798,486; 2012: £2,175,525) were recognised as an expense within cost of sales.
13. Trade and other receivables
|
|
31 March 2014 |
31 March 2013 |
31 March 2012 |
|
|
£ |
£ |
£ |
|
|
|
|
|
|
Trade receivables |
1,102,834 |
755,106 |
600,649 |
|
Less: provision for impairment of trade receivables |
(42,383) |
(32,233) |
(32,101) |
|
Trade receivables - net |
1,060,451 |
722,873 |
568,548 |
|
Corporation tax |
- |
68,084 |
- |
|
Other receivables |
82,143 |
72,596 |
131,347 |
|
Total financial assets other than cash and cash equivalents classified as loans and receivables |
1,142,594 |
863,553 |
699,895 |
|
Prepayments and accrued income |
228,600 |
285,385 |
63,283 |
|
Total trade and other receivables |
1,371,194 |
1,148,938 |
763,178 |
Trade receivables represent debts due for the sale of goods to customers. The provision for impairment of receivables is estimated by the Company's management based on prior experience.
Trade receivables are denominated in Sterling. The Directors consider that the carrying amount of these receivables approximates to their fair value. Trade and other receivables are categorised as loans and receivables under IAS 39.
All amounts shown under receivables fall due for payment within one year.
The Company does not hold any collateral as security.
As at 31 March 2014 trade receivables of £113,439 (2013: £125,319; 2012: £154,902) were past due but not impaired. They relate to customers with no default history. The ageing analysis of these receivables is as follows:
|
|
31 March 2014 |
31 March 2013 |
31 March 2012 |
|
|
£ |
£ |
£ |
|
|
|
|
|
|
Up to 3 months |
113,439 |
125,319 |
154,902 |
|
|
113,439 |
125,319 |
154,902 |
As at 31 March 2014 trade receivables of £42,383 (2013: £32,233; 2012: £32,101) were past due and impaired. The amount of the provision as at 31 March was £42,383 (2013: £32,233; 2012: £32,101).
Movements on the Company provision for impairment of trade receivables are as follows
|
|
31 March 2014 |
31 March 2013 |
31 March 2012 |
|
|
£ |
£ |
£ |
|
|
|
|
|
|
At beginning of year |
32,233 |
32,101 |
32,101 |
|
Provided during year |
13,680 |
5,750 |
- |
|
Unused amounts reversed |
(3,530) |
(5,618) |
- |
|
|
42,383 |
32,233 |
32,101 |
The movement on the provision for impaired receivables has been included in administrative expenses in the consolidated statement of comprehensive income.
Other classes of financial assets included within trade and other receivables do not contain impaired assets.
14. Cash and cash equivalents
|
|
31 March 2014 |
31 March 2013 |
31 March 2012 |
|
|
£ |
£ |
£ |
|
|
|
|
|
|
Cash at bank and in hand |
630,731 |
138,841 |
250,363 |
|
|
630,731 |
138,841 |
250,363 |
15. Trade and other payables
|
|
31 March 2014 |
31 March 2013 |
31 March 2012 |
|
|
£ |
£ |
£ |
|
|
|
|
|
|
Trade payables |
749,353 |
889,541 |
820,053 |
|
Other payables |
2,745 |
742,573 |
315,745 |
|
Accruals |
865,408 |
523,540 |
330,847 |
|
Total financial liabilities measured at amortised cost |
1,617,506 |
2,155,654 |
1,466,645 |
|
Corporation tax |
- |
- |
39,133 |
|
Other taxes and social security |
65,330 |
36,411 |
27,539 |
|
Total trade and other payables |
1,682,836 |
2,192,065 |
1,533,317 |
Other payables includes £Nil (2013: £738,168, 2012: £308,100) owed to Provexis plc, a related party (see note 21). Of the amount owing at 31 March 2013, £448,163 was capitalised and the balance was repaid under the demerger agreement.
The Directors consider that the carrying amount of these liabilities approximates to their fair value.
All amounts shown fall due within one year.
16. Borrowings
|
|
31 March 2014 |
31 March 2013 |
31 March 2012 |
|
|
£ |
£ |
£ |
|
|
|
|
|
|
Secured borrowings at amortised cost |
|
|
|
|
Asset loan agreement at fixed rate |
161,896 |
226,645 |
- |
|
|
161,896 |
226,645 |
- |
|
Amounts due for settlement within 12 months |
64,774 |
64,774 |
- |
|
Amounts due for settlement after 12 months |
97,122 |
161,871 |
- |
|
|
161,896 |
226,645 |
- |
The asset loan agreement was provided in September 2012 by HSBC Asset Finance (UK) Limited and is secured over plant and equipment. The asset loan is for a four year term, expiring in September 2016 at a fixed interest rate of 3.96%.
17. Deferred tax
Deferred tax is calculated in full on temporary differences under the liability method using a tax rate of 20% (2013: 24%; 2012: 24%). Details of the deferred tax asset and liability, amounts recognised in profit or loss and amounts recognised in other comprehensive income are as follows:
|
|
Asset 2014 |
Liability 2014 |
Net 2014 |
(Charged)/ credited to profit or loss 2014 |
|
|
£ |
£ |
£ |
£ |
|
|
|
|
|
|
|
At 1 April 2012 |
128,948 |
- |
128,948 |
|
|
Depreciation in excess of capital allowances |
- |
(34,696) |
(34,696) |
(34,696) |
|
Other short term timing differences |
13,547 |
- |
13,547 |
13,547 |
|
Unutilised tax losses |
2,549 |
- |
2,549 |
2,549 |
|
|
|
|
|
|
|
At 1 April 2013 |
145,044 |
(34,696) |
110,348 |
(18,600) |
|
Depreciation in excess of capital allowances |
- |
(17,225) |
(17,225) |
(17,225) |
|
Other short term timing differences |
(2,944) |
- |
(2,944) |
(2,944) |
|
Unutilised tax losses |
238,479 |
- |
238,479 |
238,479 |
|
At 31 March 2014 |
380,579 |
(51,921) |
328,658 |
(218,310) |
A deferred tax asset of £328,658 (2013: £110,348; 2012: £128,948) has been recognised in respect of tax losses and other temporary differences where the Directors believe it is probable that these assets will be recovered. The Directors have made this assessment based on the evidence available from projected forecasts of profitability.
18. Share capital
SiS (Science in Sport) Ltd was demerged from Provexis plc with effect from 9 August 2013 and transferred to a new parent company, Science in Sport plc ("the Company"). The Company was admitted to the AIM segment of the London Stock Exchange's market for listed securities as from 9 August 2013.
At the date of the demerger, the Company acquired the entire issued share capital of SiS (Science in Sport) Limited in return for issuing shares to the shareholders of Provexis plc.
The transfer of SiS (Science in Sport) Limited to the new holding company, Science in Sport plc, was not a business combination involving a third party and, as such, the financial information of Science in Sport plc has been presented as a continuation of the SiS (Science in Sport) Limited and therefore presented as if SiS (Science in Sport) Limited had been owned and controlled by the Company for the full financial year. To do so the principles of reverse acquisition accounting in IFRS 3 have been applied.
Full details of the share re-organisation were provided in a circular to shareholders of Provexis Plc on 28 June 2013. The Admission Document is available to download from the Company's website www.scienceinsport.com.
The main principles used in the presentation of share capital and other reserves of the Company are as follows:
· The equity instruments of the Company were initially recognised at their fair value on the date of demerger.
· The movements in share capital prior to 9 August 2013 reflect the movements in the share capital of SiS (Science in Sport) Limited.
|
Allotted, called up and fully paid (except as disclosed) |
Ordinary 10p shares |
Preference £1 shares |
Total |
|
|
number |
number |
number |
|
|
|
|
|
|
At 31 March 2012 |
15,187,990 |
- |
15,187,990 |
|
|
|
|
|
|
At 31 March 2013 |
15,187,990 |
- |
15,187,990 |
|
|
|
|
|
|
Issued on 17 May 2013- £1 ordinary share |
1 |
- |
1 |
|
Subdivision to 10p ordinary shares on 20 June 2013 |
9 |
- |
9 |
|
Issued on 20 June 2013 |
- |
50,000 |
50,000 |
|
Redeemed and cancelled |
- |
(50,000) |
(50,000) |
|
Issued on placing on 9 August 2013 |
4,192,225 |
- |
4,192,225 |
|
Issued on placing on 2 October 2013 |
134,250 |
- |
134,250 |
|
At 31 March 2014 |
19,514,475 |
|
19,514,475 |
|
|
Ordinary 10p shares |
Preference £1 shares |
Total |
|
|
£ |
£ |
£ |
|
|
|
|
|
|
At 31 March 2012 |
1,518,799 |
- |
1,518,799 |
|
|
|
|
|
|
At 31 March 2013 |
1,518,799 |
- |
1,518,799 |
|
|
|
|
|
|
Issued on 17 May 2013- £1 ordinary share |
1 |
- |
1 |
|
Subdivision to 10p ordinary shares on 20 June 2013 |
- |
- |
- |
|
Issued on 20 June 2013- 25% paid |
- |
12,500 |
12,500 |
|
Redeemed and cancelled |
- |
(12,500) |
(12,500) |
|
Issued on placing on 9 August 2013 |
419,223 |
- |
419,223 |
|
Issued on placing on 2 October 2013 |
13,425 |
- |
13,425 |
|
At 31 March 2014 |
1,951,448 |
- |
1,951,448 |
During the year ended 31 March 2014 the Company issued ordinary shares of 10p each as follows:
|
Date |
Reason for issue |
Shares issued |
|
|
|
|
£ |
Number |
|
|
|
|
|
|
9 August 2013 |
Placing |
401,800 |
4,018,000 |
|
9 August 2013 |
Placing |
17,423 |
174,225 |
|
2 October 2013 |
Placing |
13,425 |
134,250 |
|
|
|
432,648 |
4,326,475 |
19. Pension costs
The pension charge represents contributions payable by the Company to independently administered funds which during the year ended 31 March 2014 amounted to £40,588 (2013: £20,180). Pension contributions payable but not yet paid at 31 March 2014 totalled £11,847 (2013: £9,057), in respect of pension contribution entitlements where employees had not yet provided details of the funds to which the contributions should be made.
20. Operating lease commitments
Future minimum rentals payable under non-cancellable operating leases are as follows:
|
|
31 March 2014 |
31 March 2013 |
|
|
£ |
£ |
|
|
|
|
|
Due within 1 year |
206,640 |
152,406 |
|
Due between 1 year and 2 years |
213,416 |
143,175 |
|
Due between 2 years and 5 years |
249,472 |
186,762 |
|
|
669,528 |
482,343 |
Operating lease payments primarily represent rentals payable by the Company for various offices. The leases have various terms, escalation clauses and renewal rights typical of lease agreements for the class of asset.
21. Related party transactions
Transactions with Provexis plc prior to demerger
All transactions between the Company and its subsidiary with the Provexis plc group of companies prior to the demerger have been considered related party transactions on the basis of common control.
Following the acquisition of SiS (Science in Sport) Limited by Provexis plc on 24 June 2011 that company had provided working capital and funds to support the company's capital expenditure program as part of the factory move in 2012 for SiS (Science in Sport) Limited by way of intra group loans.
Other payables includes £Nil (2013: £738,168, 2012: £308,100) owed to Provexis plc, a related party (see note 15). Of the amount owing at 31 March 2013, £448,163 was capitalised and the balance was repaid under the demerger agreement.
Key management compensation
The Directors represent the key management personnel. Details of their compensation are given in note 6.
22. Post balance sheet events
On 9 April 2014 the Company raised £2.1 million net proceeds by the issue and allotment of 5,111,116 Ordinary Shares at a Placing Price of 45 pence per share. The Placing was undertaken with new and existing institutional shareholders and was oversubscribed. The Placing will enable the Company to fund the working capital required to fund further revenue growth and also to invest internally in further new revenue generating opportunities. The Directors believe the net proceeds of the Placing enable the Board to increase its revenue outlook ahead of historical year performances.
The latest Placing also introduces a number of new and significant institutional investors onto the shareholder register of the Company. The Directors believe establishing a broader institutional shareholder base is in the long term interests of the Company.
This information is provided by RNS
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