Interim Results
Trakm8 Holdings PLC
14 December 2007
Embargoed: for release at 0700h, 14 December 2007
TRAKM8 HOLDINGS PLC
("Trakm8" or "the Company")
Half Year Results
Trakm8 today announces its half year, unaudited results for the six months to 30
September.
Summary Six months to Six months to
30 Sept 2007 30 Sept 2006
(restated)
Unaudited Unaudited
£000's £000's
Revenue 2,458 3,206
Gross Profit 988 1,177
Gross Profit % 40.2% 36.7%
Operating (Loss) / Profit (432) 155
(Loss) / Profit on ordinary activities (465) 145
before taxation
Cash and cash equivalents 416 257
Net Assets 1,271 1,503
Key points:
• Turnover and operating profit declined in part due to suspected brand
impact from our reported supplier issue and a delay in orders as customers
wait for our new platform launch
• Gross margin 3.5% increase
• Cash and cash equivalents increased
• Acquisition of PJSoft completed
• Partnership with Motorola and licence agreement with Tyco announced in
May and November 2007 respectively
• £1.1m government grant funding awarded for Trusted Road Usage &
Emissions Profiling Project announced today
For further information please contact:
Trakm8 Holdings plc
Cary Knapton, Chief Executive Officer 0870 380 0531
Tim Couling, Finance Director
Tavistock Communications 020 7920 3150
Simon Hudson
Paul Youens 07843 260 623
Arbuthnot Securities
Paul Vanstone 020 7012 2000
Copies of the full report will be available either from the Company's offices or
as a download from the Company's website from Friday 14 December 2007.
Chairman's Statement
During this half year the Group has continued its strategy to become an
integrated telematics service provider (TSP) and significant progress has been
made in a number of areas. The Group also completed the acquisition of PJSoft
s.r.o. (PJSoft) and has continued its work in the design and testing of our next
generation telematics platform, the T6.
Revenue in the period reduced 23.4% to £2.46m (2006: £3.21m) and this generated
a loss before tax of £0.47m (2006: profit £0.15m). Cash and cash equivalents
increased to £0.42m (2006: £0.26m).Turnover and operating profit declined in
part due to suspected brand impactfrom our reported supplier issue affecting T4
and Solo hardware sales and a delay in orders as customers wait for the T6
launch. However sales from Trakm8 SWIFT(R), our flagship TSP offering, have
increased and we are witnessing a firming of pricing for our hardware products.
The Company was pleased to report in May 2007 the signing of a partnership
agreement with Motorola to integrate its GPS tracking products with Motorola's
Astro radio network and, as announced on 9 November 2007, the Group entered into
a co-operation agreement with Tyco Electronics Limited (Tyco). As a result the
hardware design of the Group's new platform, and its design costs, have been
shared with Tyco and the Group looks forward to developing this relationship
further once the product is launched in the next half year.
As announced today the Group was awarded a £1.1m government grant to lead the
Trusted Road Usage & Emissions Profiling Project. This three year project will
significantly increase the speed of our R&D programme and positions the Group to
take commercial advantage of future national and regional road user charging
initiatives.
Outlook
The Trakm8 Group is committed to its transition to a fully integrated TSP
provider and I believe we are firmly on track to achieving this. As reported
above revenues from T4 & Solo hardware sales have reduced, however the pipeline
for these products is encouraging and sales of Trakm8 SWIFT(R) are expected to
continue to increase and become a substantial part of the business in the
future. Further, we expect demand for the T6, our next generation hardware
platform, to be launched by March 2008, to be strong. Consequently we expect the
second half of the financial year to demonstrate improved operating performance
resulting from a combination of increased sales and a cost cutting exercise
undertaken during the period.
These major initiatives have required significant efforts from everyone in the
Group and I would like to thank the Executive team and staff for their
continuing hard work and dedication.
Dawson Buck,
Chairman
14 December 2007
Chief Executive Officer's Report
Operational Review
Trakm8 continues to drive forward the transition strategy as outlined in the
last Annual Report. The launch of the next generation platform, to be known as
the T6, is expected to further improve the Group's competitive edge. The
continuing programme of international rollout of Trakm8(R) SWIFT is expected to
show substantially increased future revenues. This will form the next phase of
the transition to a fully integrated TSP. The Company was also pleased to report
in May 2007 the signing of a partnership agreement with Motorola to integrate
its GPS tracking products with Motorola's Astro radio network and, as announced
on 9 November 2007, the Group entered into a co-operation agreement with Tyco
Electronics Limited (Tyco). In addition, and as announced today, the Group has
been awarded a government grant totalling £1.1m over three years to lead the
Trusted Road Usage & Emissions Profiling Project. This project will accelerate
the Group's development of new hardware & service offerings and positions the
Group to take commercial advantage of future national and regional road user
charging initiatives.
Turnover and operating profit have declined in the period in part due to
suspected brand impact from our reported supplier issue impacting T4 and Solo
hardware sales and a delay in orders as customers wait for our new platform
launch. We believe that this impact has been confined to our hardware-only
revenues in the period.
However the Group is encouraged to note that whilst operating in a relatively
competitive industry our products are not materially suffering from continued
pricing and margin pressures that we have experienced in the past. Trakm8 SWIFT
(R) has seen growing sales and it therefore remains the Group's firm belief that
our products are competitive and that a proportion of revenue shortfall is
likely to have been delayed but not lost.
The Group responded to this revenue shortfall with a review of operating
expenses, which increased in the period primarily due to Trakm8 SWIFT(R) service
and airtime costs. Non-impacting savings were therefore identified which
included a reduction in contract staff and a necessary reduction in permanent
headcount. Savings from this review are expected to start to flow through to the
income statement by the financial year end.
Our research and development of new, expanded and more capable hardware
platforms has continued in the period with significant effort having been
devoted to the T6. As reported on 9 November 2007 this has been a collaborative
exercise with Tyco Electronics Limited and I am pleased to report that this
project is on track for commercial launch prior to the Company's 2008 year end.
The T6 is the result of significant customer feedback on existing products and
will include features which the Group believes will provide opportunities for
new revenue streams to be targeted.
Trakm8 SWIFT(R)
Trakm8 SWIFT(R) is our flagship TSP offering that integrates any one of our
hardware products with a customer orientated proprietary software module. This
enables us to provide our customers with a user friendly and flexible telematics
solution.
I am pleased to report that Trakm8 SWIFT(R) sales are now growing with strong
interest emerging from larger fleet buyers, who have been particularly impressed
with its combination of price and functionality. The product has now been
launched in Ireland and further international launches are planned to take place
before the end of this financial year. We have great confidence in Trakm8 SWIFT
(R) and expect it to become a substantial part of the business
Acquisition of PJSoft s.r.o.
As announced on 7 August 2007 the Group acquired PJSoft; a Czech software house
with significant expertise in cartographic technologies. This acquisition, in a
cash and shares deal, brought the last external elements of our product
intellectual property in-house and allows the Group to further leverage our
software offerings. No significant integration issues have been encountered and
I am pleased to report that the PJSoft team is already making a positive
contribution to the Group's software product development.
Financial Review
The financial information contained in this report has been prepared under
International Financial Reporting Standards (IFRS). Comparison figures have also
been restated under IFRS.
Revenue for the six months ended 30 September 2007 was £2.46m (2006: £3.21m) a
decrease of 23.4% on the same period last year. Gross profit decreased to £0.99m
(2006: £1.18m) for reasons discussed elsewhere. However gross margins improved
to 40.2% (2006: 36.7%), a 3.5% improvement. Operating expenses totalled £1.42m
(2006: £1.02m). The Group therefore reports an operating loss for the period of
£0.43m (2006: profit £0.16m).
As a result of the review of operating expenses previously commented on savings
have been made which, on an annualised basis, will amount to £0.38m.
Project costs to enable the delivery of the T6 totalled £0.12m. In accordance
with IFRS these amounts have been capitalised.
As at 30 September 2007 £0.1m of cash had been received by the Group for Trakm8
SWIFT(R) service which has yet to be recognised in the Income Statement due to
the typical service revenue contract spanning 12 months but being paid annually
in advance.
Outlook
Our products and services now span the telematics value chain and the Group
expects to derive revenues from all areas of the portfolio. The Tyco
co-operation and Motorola partnership agreements also demonstrate the Group's
commitment to and blue chip company confidence in our product offering. We
expect these developments will contribute to driving the business forward and
deliver shareholder value.
The Group has continued to carefully observe developments in government
legislation and other regulatory initiatives; where road tolling, congestion
charging, energy efficiency and Health & Safety responsibility are all rapidly
becoming key factors in the expansion of the telematics market. In addition a
requirement is emerging with business leaders to successfully manage and
mitigate in-vehicle employee related risk.
The Group continues to believe that it is well placed to take advantage of these
developments. As noted above the Group has been successful in attracting major
government grant funding and at least one other strategic opportunity is being
developed with the appropriate government department. More details of this
further collaborative programme will be announced at the appropriate time.
The Group continues to identify international sales opportunities for its Solo
and T4 hardware platforms and I am pleased to report that our pipeline currently
includes major bids in the Middle East, South Africa and South America. The
Group is also actively pursuing organic growth routes in other regions and
countries for Trakm8 SWIFT(R).
Our European strategic direction is built around the acquisition of PJSoft,
which has historically operated wholly within the Czech Republic. The Group
intends to expand PJSoft's innovative offerings in both their home and wider
European markets. This expansion will be driven under a new trade marked brand
which the Directors intend to be synonymous with cartographic software
excellence.
The Directors can report that Trakm8 has a growing order book moving into the
second half of the financial year. The imminent launch of the T6 significantly
improves our hardware product capability and the Group remains well placed to
capitalise on the opportunities presenting themselves in the market place.
Consequently we expect the second half of the financial year to demonstrate
improved operating performance resulting from the combination of increased sales
and reduced operational expenses.
The Group looks forward to the future with enthusiasm. We are on course to
complete the transition to integrated TSP and I remain confident we will deliver
our innovative products to market with increased success.
Cary Knapton
Chief Executive Officer
14 December 2007
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
for the six months to 30 September 2007
Six months to Six months to Year ended 31
30 September 30 September March 2007
Note 2007 2006(restated) (restated)
Continuing Operations £'000 £'000 £'000
Revenue 2,458 3,206 6,370
Cost of sales (1,470) (2,029) (3,940)
----------------------------------------------
Gross profit 988 1,177 2,430
Operating expenses (1,420) (1,022) (2,315)
----------------------------------------------
Operating (loss) profit (432) 155 115
Interest receivable 7 7 15
----------------------------------------------
(425) 162 130
Bank and other interest (40) (17) (39)
charges ----------------------------------------------
(Loss) profit before
taxation (465) 145 91
Taxation - (25) 18
----------------------------------------------
(Loss) profit attributable
to the equity shareholders
of the parent (465) 120 109
----------------------------------------------
Basic (loss) earnings per 3
share (4.0)p 1.1p 1.0p
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
for the six months to 30 September 2007
Six months to Six months to Year ended
30 September 30 September 31 March
2007 2006 2007
(restated) (restated)
Note £'000 £'000 £'000
Total equity at
beginning of period
(as previously
stated) 1,426 985 985
Impact of transition 2
to IFRS 57 44 44
----------------------------------------------
Total equity at
beginning of period
(restated) 1,483 1,029 1,029
(Loss) Profit for
the period (465) 120 109
IFRS 2 share based
payments 7 30 21
Net proceeds of
share issue 246 324 324
----------------------------------------------
Total equity at end
of period 1,271 1,503 1,483
----------------------------------------------
CONSOLIDATED BALANCE SHEET (UNAUDITED)
as at 30 September 2007
30 September 30 September 31 March
2007 2006 (restated) 2007
(restated)
£'000 £'000 £'000
Non-current assets
Intangible assets 1,514 937 823
Plant, property and 489 534 509
equipment
----------------------------------------------
2,003 1,471 1,332
----------------------------------------------
Current assets
Inventories 300 472 332
Trade and other
receivables 557 1,295 1,272
Cash and cash
equivalents 416 257 709
----------------------------------------------
1,273 2,024 2,313
----------------------------------------------
Current liabilities
Bank overdrafts (167) (103) (269)
Bank loans (50) (48) (13)
Trade and other
payables (926) (1,225) (951)
Obligations under
finance leases and
hire purchase
arrangements (6) (20) (12)
Current tax (25) (25) (25)
Other loans - (185) (36)
----------------------------------------------
(1,174) (1,606) (1,306)
----------------------------------------------
Current assets less
current liabilities 99 418 1,007
----------------------------------------------
Total assets less
current liabilities 2,102 1,889 2,339
----------------------------------------------
Non-current
liabilities
Bank loans (228) (252) (235)
Other loans (585) (120) (603)
Deferred tax (18) (14) (18)
----------------------------------------------
(831) (386) (856)
----------------------------------------------
Net assets 1,271 1,503 1,483
----------------------------------------------
Equity
Called up share
capital 115 110 115
Share premium 754 435 754
Shares to be issued 246 324 -
Merger reserve 510 510 510
Share based payment
reserve 36 50 29
Retained (loss)
earnings (390) 74 75
----------------------------------------------
Total equity
attributable
to the equity 1,271 1,503 1,483
shareholders of the
parent ----------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
for the six months to 30 September 2007
Six months to Six months to Year ended
30 September 30 September 31 March
2007 2006(restated) 2007
(restated)
Note £'000 £'000 £'000
Net cash from 4 293 411 425
operating
activities
----------------------------------------------
Investing
activities
Acquisition of
subsidiary (324) (170) (170)
Cash (overdraft) 5 (19) (19)
acquired on
acquisition
Proceeds on disposal of
property, plant and
equipment - - 1
Expenditure on
product development (124) (220) (220)
Purchases of
property, plant and
equipment (10) (68) (71)
----------------------------------------------
Net cash used in
investing
activities (453) (477) (479)
----------------------------------------------
Financing
activities
Repayment of loans (30) (18) (245)
Issue of loan stock - - 500
----------------------------------------------
Net cash (used in)
from financing
activities (30) (18) 255
----------------------------------------------
Net (decrease)
increase in cash
and cash
equivalents (190) (84) 201
Cash and cash equivalents
at beginning of period 439 238 238
----------------------------------------------
Cash and cash
equivalents at end
of period 249 154 439
----------------------------------------------
Notes to the financial information (unaudited)
1. The financial information contained in this interim statement has not been
audited or reviewed by the Company's auditor and does not constitute statutory
accounts as defined in section 240 of the Companies Act 1985. The financial
information for the full preceding year is extracted from the statutory accounts
for the financial year ended 31 March 2007 amended for the impact of the
adoption of International Financial Reporting Standards (IFRS). Those accounts,
upon which the auditor issued an unqualified opinion and did not contain a
statement under section 237(2) or (3) of the Companies Act 1985, have been
delivered to the Registrar of Companies. Details of the impact of the adoption
of IFRS are set out in Appendix 1 attached to this report on the Company's
website.
2. Trakm8 Holdings PLC is a public limited company incorporated in the United
Kingdom under the Companies Act 1985. The Company is domiciled in the United
Kingdom and its ordinary shares are traded on the Alternative Investment Market
("AIM").
This interim report is the Group's first set of financial statements prepared in
accordance with International Financial Reporting Standards (IFRS) and
International Financial Reporting Committee ("IFRC") interpretations that are
expected to be applicable to the consolidated financial statements for the year
ending 31 March 2008. These standards remain subject to ongoing amendment and /
or interpretation and are therefore still subject to change. Accordingly,
information contained in these interim financial statements may need updating
for subsequent amendments to IFRS required for first time adoption or for new
standards issued post balance sheet date.
As permitted this Interim Report has been prepared in accordance with UK AIM
listing rules and not in accordance with IAS 34 "Interim Financial Reporting"
and therefore is not fully in compliance with IFRS.
The basis of preparation and accounting policies followed in this interim report
differ from those set out in the Annual Report and Accounts for the year ended
31 March 2007 which was prepared in accordance with United Kingdom accounting
standards (UK GAAP). A summary of the significant accounting policies used in
the preparation of this interim report under IFRS is provided below, however
this does not include accounting policies which are not currently expected to
change on transition from UK GAAP.
(a) Basis of preparation of the financial statements
The consolidated financial statements have been prepared in accordance with IFRS
including standards and interpretations issued by the International Accounting
Standards Board, as adopted by the European Union. They have been prepared using
the historical cost convention except for the revaluation of certain properties.
The principal accounting policies are set out below.
The preparation of the financial statements requires management to make
estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the disclosure of contingent liabilities
at the date of the financial statements. If in the future such estimates and
assumptions which are based on management's best judgement at the date of the
financial statements, deviate from the actual circumstances, the original
estimates and assumptions will be modified as appropriate in the year in which
the circumstances change. Where necessary, the comparatives have been
reclassified or extended from the previously reported results to take into
account presentational changes.
(b) First time adoption of International Financial Reporting Standards
IFRS 1, 'First-time adoption of International Financial Reporting Standards'
sets out the procedures that the Group must follow when it adopts IFRS for the
first time as the basis for preparing its consolidated financial statements. The
Group is required to establish its IFRS accounting policies as at 31 March 2008
and, in general, apply those retrospectively to determine the IFRS opening
balance sheet at its date of transition, 1 April 2006.
Certain optional exemptions to this general principle are available under IFRS 1
and the significant first time adoption choices made by the Group are as
follows:
• Business combinations completed prior to 1 April 2006 have not been
restated under IFRS 3 'Business combinations';
• Aside from freehold buildings, the opening fair values of fixed assets
have been deemed to be their accounting values as at 1 April 2006, after
reviewing for impairment as appropriate. Deemed cost for freehold buildings
is their open market value for existing use.
(c) Going concern
The Directors have prepared these accounts on the going concern basis as they
consider the Group to have the necessary cash resources to meet its liabilities
as and when they fall due. They are confident that the trading performance will
improve.
(d) Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and entities controlled by the Company (its subsidiaries) made up to
31 March (30 September for interim accounts) each year. Control is achieved
where the Company has the power to govern the financial and operating policies
of an investee entity so as to obtain benefits from its activities.
The trading results of subsidiaries acquired or disposed of during the year are
included in the consolidated income statement from the effective date of
acquisition or up to the effective date of disposal, as appropriate.
All intra-group transactions, balances, income and expenditure are eliminated on
consolidation.
(e) Property, plant and equipment
Property, plant and equipment are stated at cost less any subsequent accumulated
depreciation or impairment losses. With the exception of freehold buildings held
at 1 April 2006 (the date of transition to IFRS), cost represents purchase price
together with any incidental costs to acquisition. As permitted by IFRS 1, the
cost of freehold buildings at 1 April 2006 represents deemed cost, being the
market value of the property for existing use at that date.
Depreciation is provided on all property, plant and equipment, other than
freehold land, at rates calculated to write each asset down to its estimated
residual value over its expected useful life, as follows:
Buildings 2% straight line
Furniture, fixtures and 25% reducing
equipment balance
Computer equipment 33% straight line
Assets held under finance leases or hire purchase arrangements are depreciated
over their expected useful lives on the same basis as owned assets or, where
shorter, over the term of the relevant agreement
The assets' residual values and useful lives are reviewed at each balance sheet
date and adjusted if appropriate.
(f) Goodwill
Goodwill arising on consolidation is recorded as an intangible asset and is the
surplus of the cost of acquisition over the Group's interest in the fair value
of identifiable net assets acquired. Goodwill is reviewed annually for
impairment. Any impairment identified as a result of the review is charged in
the income statement. Negative goodwill is written off in the year in which it
arises.
On disposal of a subsidiary, associate or jointly controlled entity, the
attributable amount of goodwill is included in the determination of the profit
or loss on disposal.
(g) Intangible assets other than goodwill
An intangible asset, which is an identifiable non-monetary asset without
physical substance, is recognised to the extent that it is probable that the
expected future economic benefits attributable to the asset will flow to the
Group and that its cost can be measured reliably. Such intangible assets are
carried at cost less amortisation. Amortisation is charged on a straight line
basis over the intangible assets' useful economic life (1-10 years).
Expenditure on research activities is recognised as an expense in the period in
which it is incurred.
Development expenditure is capitalised as an intangible asset only if the
following conditions are met:
• an asset is created that can be identified;
• it meets the company's criteria for technical feasibility;
• it is probable that the asset created will generate future economic
benefit;
• the development cost of the asset can be measured reliably; and
• sufficient resources are available to complete the development to either
sell or use as an asset.
Development expenditure thus capitalised is amortised on a straight-line basis
over its useful life. Where the criteria are not met, development expenditure is
recognised as an expense in the income statement.
(h) Leased assets
Assets held under finance leases, which are leases where substantially all the
risks and rewards of ownership of the asset have been transferred to the Group,
are capitalised in the balance sheet and depreciated over the shorter of the
lease term or their useful lives. The asset is recorded at the lower of its fair
value and the present value of the minimum lease payments at the inception of
the lease. The capital elements of future obligations under finance leases are
included in liabilities in the balance sheet and analysed between current and
non-current amounts. The interest elements of future obligations under finance
leases are charged to the income statement over the periods of the leases and
represent a constant proportion of the balance of capital repayments outstanding
in accordance with the effective interest rate method.
Leases where the lessor retains substantially all the risks and rewards of
ownership are classified as operating leases. The cost of operating leases (net
of any incentives received from the lessor) is charged to the income statement
on a straight line basis over the periods of the leases.
(i) Impairment of long-term assets
When the recoverable amount of an asset, being the higher of its net selling
price and its value in use, is less than its carrying amount, then the carrying
amount is reduced to its recoverable value. This reduction is reported in the
income statement as an impairment loss. Value in use is calculated using
estimated cash flows. These are discounted using an appropriate long-term
pre-tax interest rate. When an impairment arises, the useful life of the asset
in question is reviewed and, if necessary, the future depreciation/amortisation
charge is accelerated.
(j) Taxes
Income taxes include all taxes based upon the taxable profits of the company.
Other taxes not based on income, such as property and capital taxes, are
included within operating expenses or financial expenses according to their
nature.
Deferred income tax is provided, using the liability method, on temporary
differences between the tax bases of assets and liabilities and their carrying
amounts, in the financial statements. Deferred income tax assets relating to the
carry-forward of unused tax losses are recognised to the extent that it is
probable that future taxable profit will be available against which the unused
tax losses can be utilised.
Current and deferred income tax assets and liabilities are offset when the
income taxes are levied by the same taxation authority and when there is a
legally enforceable right to offset them.
(k) Financial instruments
Financial assets and financial liabilities are recognised in the Group's balance
sheet when the Group becomes a party to the contractual provisions of the
instrument.
Trade receivables
Trade receivables do not carry any interest and are initially recognised at fair
value and subsequently at amortised cost using the effective interest method
less any provision for impairment.
Cash and cash equivalents
Cash and cash equivalents as stated in the cashflow statement include the
Group's cash balances and overdrafts.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. An equity instrument is
any contract that evidences a residual interest in the assets of the group after
deducting all of its liabilities.
Bank borrowings
Interest-bearing bank loans and overdrafts are recorded at the proceeds
received, net of direct issue costs. Finance charges, including premiums payable
on settlement or redemption, are accounted for on an accrual basis and are added
to the carrying amount of the instrument to the extent that they are not settled
in the period in which they arise.
Trade payables
Trade payables are not interest bearing and are initially recognised at fair
value and subsequently at amortised cost using the effective interest method.
3. (Loss) earnings per ordinary share
Six months to Six months to Year ended
30 September 30 September 31 March
2007 2006(restated) 2007
(restated)
£'000 £'000 £'000
(Loss) profit (465) 120 109
after taxation
----------------------------------------------
Weighted average number of ordinary shares in issue
No. No. No.
'000 '000 '000
Basic 11,472 11,026 11,175
The diluted loss per share has not been calculated as this would reduce the
reported loss per share.
4. Reconciliation of cash flows from operating activities:
Six months to Six months to Year ended
30 September 30 September 31 March
2007 2006 2007
(restated) (restated)
£'000 £'000 £'000
Net (loss) profit before
taxation (465) 145 91
Adjustments for:
Depreciation 36 28 55
Bank and other interest
charges 33 10 24
Amortisation of
intangible assets 66 - 11
Negative goodwill
written off - (14) (14)
Share based payment
expense 7 30 21
----------------------------------------------
Net (loss) profit before
changes in working
capital (323) 199 292
Decrease (increase) in
inventories 35 (32) 107
Decrease (increase) in
trade and other
receivables 736 (185) (159)
(Decrease) increase in
trade and other payables (122) 439 166
----------------------------------------------
Cash generated from
operations 326 421 406
Interest paid (40) (17) (39)
Interest received 7 7 15
Income taxes received - - 43
----------------------------------------------
Net cash from operating 293 411 425
activities
----------------------------------------------
5. On 7 August 2007 the Company acquired the entire issued share capital of
PJSoft s.r.o. The consideration was €385,000 in cash paid to the vendors on
7 August 2007, €150,000 in cash to be paid on 7 August 2008, 340,136
Ordinary shares to be allotted to and issued to the vendors on 7 August 2008
and 453,516 Ordinary shares to be allotted and issued to the vendors on 7
August 2009. The Ordinary shares have been valued using the Trakm8 mid
market closing share price of 31.0p on 7 August 2007. The transaction has
been accounted for by the purchase method of accounting as detailed by IFRS
3 (Business Combinations).
The following assets and liabilities were acquired at the date of acquisition:
Book value as at Fair value as
August 2007 at August 2007
(unaudited) (unaudited)
£'000 £'000
Intangible assets - 633
Property, plant & equipment 6 6
Inventories 3 3
Trade and other receivables 21 21
Cash and cash equivalents 5 5
Trade and other payables (4) (4)
---------------------------------------
31 664
--------------------
Goodwill -
------------------
Total consideration 664
------------------
Satisfied by:
Cash 259
Deferred cash 94
Costs of acquisition 65
Fair value of shares to be 246
issued
------------------
664
------------------
6. The report containing the unaudited Interim Report is to be sent direct to
shareholders. Copies of the report are available to the public from the
registered office of Trakm8 Holdings PLC. The address of the registered
office is Lydden House, Wincombe Business Park, Shaftesbury, Dorset,
SP7 9QJ.
This information is provided by RNS
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