Final Results

RNS Number : 8911X

Canisp PLC

30 June 2008

 



Canisp plc

('Canisp' or 'the Company')

Audited Preliminary Results

for the twelve months ended 31 March 2008

I present the Group's audited results for the year ended 31 March 2008 in which the Group recorded a trading income (operating profit before amortisation and impairment of intangible assets) of £48,000 (2007: loss of £60,000) and a much reduced loss before taxation on the prior year of £187,000 (2007: £2,158,000) and a loss per share of 0.18p (2007: 2.64p). No dividend is proposed.

During the period we have maintained our low cost base with a very efficient head office operation and we continue to work hard to improve administration and service to customers. 

Despite a trading environment which continued to be challenging throughout the year our strategy to focus on product innovation and customer service remains on track and the Company has made good progress with its customer relationships, improving both administration and service and is focused on product innovation. In September, the Company successfully launched its Voice Over Internet Protocol ('VOIP') offering to a limited number of customers and this service is progressing satisfactorily.

The Group's results show that the Company's net assets are less than half its called up share capital. In the circumstances, the directors of the Company are obliged by section 142 Companies Act 1985 to convene a general meeting for the purposes of considering whether any, and if so what, steps should be taken to deal with the Company's current financial position. We propose to consider this matter at the Company's annual general meeting details of which has been convened for 24 July 2008, although no resolution will be put to the meeting on this issue.

Corvus Capital Inc ('Corvus'), a major shareholder of the Company, has provided significant financial support to the Company for a number of years and the Board would like to thank Corvus for this support. In May 2008  the Company agreed with Corvus to consolidate all of its outstanding debt amounting to £1,600,000 into a single, assignable convertible loan facility. At Corvus's request, the Loan may be capitalised in whole or in part through the issue of new ordinary shares at one penny per share. If the capitalisation does not occur by 31 December 2009, the Loan and any interest accrued at two per cent. per annum, will be repayable on demand although the Loan, together with accrued interest will remain capable of being capitalised on the above terms.

Board Changes 

On 21 April 2008 Sam Glover stepped down from the board as non-executive director and I would like to thank Sam for his contribution to the Company and wish him well in the future with his other business interests.

Outlook 

The Group has continued to improve its commercial offering to new and existing customers and with the tight control of costs and reduced reliance on bank borrowings it is gradually improving its ability to tackle market challenges.

Mike Hirschfield

Chairman

27 June 2008

www.canispplc.com

Enquiries:

John Bick:         tel: [phone]

Canisp plc
Consolidated Income Statement
For the year ended 31 March 2008
			2008	2007
	Note		£'000	£'000
Revenue			2,593	2,805
Cost of sales			(1,879)	(2,032)
Gross profit			714	773
Administrative expenses  - amortisation of intangible assets			(194)	(451)
- impairment of intangible assets  - other			- (697)	(1,447) (754)
Total administrative expenses			(891)	(2,652)
Unrealised fair value gain/(loss) on financial liabilities at fair value through profit and loss			31	(79)
Loss from operations			(146)	(1,958)
Finance income			19	19
Finance costs			(60)	(219)
Loss before taxation			(187)	(2,158)
Taxation			-	-
Loss after taxation and loss attributable to the equity holders of the company			(187)	(2,158)
Total and continuing loss per ordinary share (pence)
Basic and diluted	3		(0.18)p	(2.64)p

All of the activities of the Group are classed as continuing.

Canisp plc
Consolidated Statement of Changes in Equity
For the year ended 31 March 2008
	Share     capital	Share premium	Other reserves	Retained  earnings	Total equity
	£'000	£'000	£'000	£'000	£'000
At 1 April 2006	196	4,047	-	(4,415)	(172)
Loss for the year and total and recognised income and expenses for the year		-	-	(2,158)	(2,158)
Issue of share capital	858	-	-	-	858
Cost of issue of share capital	-	(30)	-	-	(30)
On conversion of loan	-	-	129	-	129
At 31 March 2007	1,054	4,017	129	(6,573)	(1,373)
Loss for the year and total and recognised income and expenses for the year	-	-	-	(187)	(187)
At 31 March 2008	1,054	4,017	129	(6,760)	(1,560)

Canisp plc
Consolidated Balance Sheet
As at 31 March 2008
			2008	2007
			£000	£000
ASSETS
Non-current assets
Intangible assets			656	850
Property, plant and equipment			11	-
			667	850
Current assets
Trade and other receivables			340	316
Total current assets			340	316
Total assets			1,007	1,166
LIABILITIES
Current liabilities
Bank overdrafts			162	160
Bank loans			-	325
Other loans			1,041	629
Convertible loan			528	528
Trade and other payables			788	818
Financial liabilities at fair value through profit or loss			48	79
Total current liabilities			2,567	2,539
Total liabilities			2,567	2,539
EQUITY
Share capital			1,054	1,054
Share premium			4,017	4,017
Other reserves			129	129
Retained earnings			(6,760)	(6,573)
Total equity attributable to equity holders of the Company			(1,560)	(1,373)
Total equity and liabilities			1,007	1,166

Canisp plc
Consolidated Cash Flow Statement
For the year ended 31 March 2008
			2008	2007
			£000	£000
Cash flows from operating activities
Loss after taxation			(187)	(2,158)
Amortisation			194	426
Impairment of intangibles and goodwill			-	1,472
Depreciation			4	-
On conversion of loan			-	129
Unrealised fair value (gain)/loss on financial liabilities at fair value through profit and loss			(31)	79
Finance costs			60	219
Finance income			(19)	(19)
(Increase)/decrease in trade and other receivables			(24)	173
(Decrease) in trade and other payables			(30)	(397)
			(33)	(76)
Finance costs			(60)	(219)
Net cash outflow from operating activities			(93)	(295)
Cash flows from investing activities
Purchase of property, plant and equipment			(15)	-
Finance income			19	19
Net cash inflow from investing activities			4	19
Cash flows from financing activities
Proceeds from issue of share capital			-	600
Share issue costs			-	(30)
New loans			412	528
Repayment of loans			(325)	(717)
Capital element of hire purchase agreements			-	(5)
Net cash inflow from financing activities			87	376
Net change in cash and cash equivalents			(2)	100
Cash and cash equivalents at beginning of period			(160)	(260)
Cash and cash equivalents at end of period			(162)	(160)

1. basis of preparation

The group financial statements have been prepared under the historical cost convention except for embedded derivatives, which are measured at fair value and in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS).

The transition to IFRS has resulted in a number of changes in the reported financial statements, notes thereto and accounting policies compared to the previous annual report. The effect of the transition to IFRS is detailed in the Group's annual report and financial statements.

The principal accounting policies are detailed in the Group's annual report and financial statements.

Going concern

The Directors have prepared cash flow forecasts for the period ending 31 March 2011. The Directors have also secured confirmation from Corvus Capital Inc. (Corvus), a significant shareholder in the Company, that it will not seek repayment of the debt due to it within the next twelve months and, in addition, that a further working capital facility of up to £100,000 will be provided if required. The forecasts supported by the agreement and facility from Corvus, together with existing bank facilities, demonstrate that the Group has sufficient finance facilities available to allow it to continue in business for a period of at least twelve months from the date of approval of these financial statements. Accordingly, the accounts have been prepared on a going concern basis.

2. segmental information

a)    Primary reporting format - business segment

As defined under International Accounting Standard 14 'Segment Reporting' (IAS 14), the only material business segment the Group has is that of telecommunications.

b)    Secondary reporting format - geographical segment

Under the definitions contained in IAS 14 the only material geographic segment that the Group operates in is the UK.

3. LOSS PER SHARE

The calculation of the basic loss per share is based on the loss after taxation of £187,000 (2007: £2,158,000) divided by the weighted average number of ordinary shares in issue during the year of 105,397,275 (2007: 81,669,193).

The impact of the convertible loan on the loss per share is anti dilutive.

          4. publication of non-statutory accounts

The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 240 of the Companies Act 1985.

The summarised consolidated balance sheet at 31 March 2008 and the summarised consolidated income statement, summarised consolidated cash flow statement and associated notes for the year then ended have been extracted from the Group's 2008 statutory financial statements upon which the auditor's opinion is unqualified and does not include any statement under Section 237 of the Companies Act 1985.

Those financial statements have not yet been delivered to the registrar of companies.

 

END

 

 

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