Final Results

eXpansys Plc 30 July 2007 MAIDEN PRELIMINARY RESULTS eXpansys plc ('eXpansys' or the 'Group'), a leading online retailer of wireless technology which floated on AIM in April 2007, announces its audited preliminary results for the year ended 30 April 2007. Key points: * Successful flotation in April 2007 - raising £10 million before expenses * Market continues to grow strongly * Working capital constraints alleviated * EBITDA before exceptionals of £1.3 million - 18% ahead of forecast * Group well placed to continue growth both organically and through acquisition * A number of new direct manufacturer relationships secured Chairman, Barry Roberts, said: 'The year under review was one in which we consolidated our prior year acquisitions and concentrated on driving the business forward. The drivers in the market remain strong for the products that the Group supplies and our working capital constraints have been alleviated through the flotation proceeds. 'The Group continues to command a leading brand and strong market position across a number of the major markets in Europe, Scandinavia, Asia and the USA and website traffic, which is a positive gauge of consumer interest in the Group's product offerings, is increasing. 'With all this in mind, the Board believes that the Group is now well placed for growth both organically and through appropriate acquisition in the coming year.' For further information, please contact: eXpansys plc Tel: +44 (0) 161 232 3410 Roger Butterworth, CEO roger@expansys.com Investor relations website www.expansys.com/investor.aspx Rawlings Financial PR Limited Tel: +44 (0) 1756 770 376 Catriona Valentine catriona@rawlingsfinancial.co.uk About eXpansys The Group specialises in the sale of handheld electronic devices with wireless connectivity and boasts a wide offering ranging from smartphones and ultra mobile personal computers, to cameras and GPS equipment. Under the umbrella of www.expansys.com, www.nomatica.com, www.portix.com and www.mobileplanet.com, eXpansys operates some 50 websites in 12 different languages that cater to the major economies of the world and serve both retail customers and blue-chip corporate accounts including Microsoft, Oracle, The Metropolitan Police and Dell Computer. Based in Manchester, eXpansys has grown both organically and through acquisition and has a global infrastructure that allows it to service its international customer base through a network of warehouses in the UK, France, USA, Hong Kong and Australia. CHAIRMAN'S STATEMENT Introduction I am pleased to present my first report as Chairman of eXpansys plc and to report another successful year for the Group, the highlight of which was our flotation on AIM in April 2007. The float raised £10 million (before expenses of £1.4million), which has greatly helped the working capital position of the Group. The market for mobile wireless devices continues to grow strongly as does online consumer purchasing via the internet. Surfing the web on your mobile phone used to be frustrating as users of early WAP phones will know. However, great advances have been made recently both in the technology and the information sources the technology is designed to enable. It is now possible to access news headlines, watch video clips, use Google, check your e-mail, even monitor eBay auctions - all from your mobile phone. Social networking and the recently launched mobile-friendly version of the phenomenally successful Youtube website are all drivers to the growing consumer demand for access devices. Add to this the developments in Voice over IP ('VOIP') telephony integration with mobile phones and one begins to grasp the potential of the global market for such devices. eXpansys is at the forefront of these technological and social developments, not as a technology innovator but as a route to market for the technology innovators - a route to market that has enabled the Group to expand rapidly around the world. I am excited to have the opportunity to work with eXpansys, as the Group moves into the next key stage of its development as a quoted company. Financial Results The past year was, without doubt, a challenging one for the Group. The constraints on working capital impacted the ability of the business to service customer demand promptly, resulting in lost revenue and margin. Following the successful placing of our shares in April 2007, these working capital constraints have been alleviated. However, the inflow of funds came very close to the year end and therefore had no positive impact on the financial year under review. The benefits of this inflow of funds will be enjoyed in the coming year. The Group retained a loss for the year of £605,000. However, this loss was considerably lower than forecast. Board Changes There were a number of changes in the composition of the Board of Directors during the year in order to establish a Board structure appropriate for AIM listed company. Roger Butterworth, Steve Muttram, Frederic Pont and Cate Hulme have been joined by Graham Dawber as Non-Executive Director and me as Chairman. Matt Kydd, who was the founder director of the Group, stepped down from the Board in March 2007. Although Matt continues as Chief Technology Officer, I think it is appropriate to thank him for his contribution to the development of the Group to date. eXpansys People With business operations spanning multiple time zones around the world, the results for this year and the progress we have made would not have been possible without the hard work and commitment of all of our employees. I would like to record the Board's appreciation for the effort and commitment shown by all our staff, wherever they were located, during the year. Ongoing Strategy developments The overall strategy for the Group is to continue to grow its market share of delivered product in the chosen technologies and markets. Creating partnerships with manufacturers of the chosen technologies and delivering a positive customer buying experience are both cornerstones of this strategy. Current Trading and Prospects The year under review was one in which we consolidated our prior year acquisitions and concentrated on driving the business forward. The growth that the Group achieved in the year was limited by working capital constraints. However, the drivers in the market remain strong for the products that the Group supplies and our working capital constraints have been alleviated through the flotation proceeds. The Group continues to command a leading brand and strong market position across a number of the major markets in Europe, Scandinavia, Asia and the USA and website traffic, which is a positive gauge of consumer interest in the Group's product offerings, is increasing. With all this in mind, the Board believes that the Group is now well placed for growth both organically and through appropriate acquisition in the coming year. Barry Roberts Non-executive Chairman 27 July 2007 CHIEF EXECUTIVE'S OPERATING REVIEW The name 'eXpansys' is a concatenation of 'eXpanding Systems' - a reference to our mission to help our customers expand their access to computer systems wherever they may be. As I look back on the year, I see that the advances we made, now place eXpansys in a much stronger position to help our customers exploit technological advances to improve their business efficiency, personal productivity and entertainment offered using wirelessly connected computing devices and content services. Direct Relationships There are considerable advantages to eXpansys in having direct relationships with the manufacturers of the products that we sell. The major manufacturers often limit the number of direct relationships they will manage and promote, often choosing to deal only with a small number of partners. eXpansys, therefore, is in a strong competitive position because of the number of direct relationships it has with manufacturers. I am pleased to report that, in the months since flotation, we have added several new direct manufacturer relationships and in a number of cases have strengthened existing relationships through our improved profile as a public company. Our primary direct relationship continues to be with HTC of Taiwan. Its range of Windows Mobile products continues to lead the market with their features, functionality and reliability, leading to strong consumer demand. Toshiba and Samsung are now also amongst our top ten direct suppliers. Both of these manufacturers have powerful and widely recognised consumer brands. E-Ten, a high technology company based in Taiwan, is developing a significant market presence through their Glowfiish brand, and eXpansys provides an important route to market for them. We have excellent relations with US companies such as Palm, OQO and Socket and we are developing better relations with mainstream phone vendors like Nokia and T-Mobile. Our partners choose eXpansys because we offer a very efficient and effective channel to market for their cutting edge products. We remain aware of that and focus on providing the best way to get high tech products into the hands of consumers. Service Revenue Since our flotation, we have been able to expand our service offerings considerably and by September 2007 we will be offering an own brand VOIP service, optimised for mobiles, alongside our traditional service offerings from the legacy mobile phone carriers, as well as a hosted exchange e-mail service and extended warranty and insurance services for devices. Market and outlook New devices have lifted our market profile and with it our sales revenues. Since the year end, products in demand such as the HTC Touch, HTC S710, Toshiba G900 and the OQO Model 2 have been available at eXpansys.com before anywhere else and in greater supply quantities. We look forward with considerable anticipation to the release of the Nokia N90, the HTC Shift and the Apple i-Phone (in the UK) which should all generate considerable consumer interest. Strategy Our strategy is to continue focusing closely on the market for mobile computing devices with wireless connectivity. We will seek to expand our product set through acquisition and through new relationships with manufacturers where appropriate. Fixed costs make up a large proportion of our costs and therefore our business model is highly scaleable as gross margins increase. Hence, we will seek to improve profitability by increasing the scale of the business both organically and through acquisition. In conclusion The eXpansys business now stands on a firm financial footing and we are ready to continue our significant track record of growth. Our business model is proven and, while it has been widely copied, we remain the leader in our field. Roger Butterworth Chief Executive Officer 27 July 2007 CHIEF FINANCIAL OFFICER'S REVIEW Rapid growth and investment in infrastructure The previous three years have seen eXpansys grow rapidly with turnover increasing by 137%, whilst maintaining a healthy 22% gross profit margin. At the same time, we have invested heavily in building our infrastructure. We now have five warehouses and 11 sales offices, all of which operate on our proprietary software and bespoke IT systems and VOIP network. Strong demand leading to working capital constraints The growth that we enjoyed over this period was driven by strong demand for our products. However, during the last six months of year ended April 2007, we struggled to meet this demand due to working capital constraints. Turnover increased in the first half of the year by 14% on the comparative period during year ended April 2006, whereas there was a 14% decrease in the six months ended April 2007 - compared to the six months ended October 2006. At 30 April 2006, 73% of the Group's funding was provided by our suppliers. At flotation, the business changed its primary funding source from its suppliers to its shareholders. Whilst suppliers continue to provide significant working capital through the provision of trade credit, the business is no longer reliant upon them to the same extent and at 30 April 2007 38% of the Group's funding was supplier provided. We were encouraged to see an increase in gross margin from 22% in the six months to October 2006 to 23% in the six months to April 2007, as a result of all our efforts to improve our relationships with manufacturers, and we believe that we can increase this further in the coming year. Scaleable business model Our distribution costs tend to be proportional to revenue, although due to our efforts on cost control in this area we have seen a reduction from 5.6% of turnover during the year ended April 2006 to 5.5% during the year ended April 2007. Our administration costs are fixed and represent the significant investment we have made historically in ensuring we have infrastructure in place before it is required for growth, leading to a very scaleable business for future growth. Operating loss decreased from £695,000 in 2006 to £225,000 in 2007, after deducting exceptional expenses of £540,000 (2006: £637,000). Operating profit before exceptionals for the year was £315,000, an increase of £373,000 on the previous year. Full details of exceptional expenses are included in note 3. Strong balance sheet We were admitted to AIM on 11 April 2007, raising £10 million, and as a result we now have a strong balance sheet which is a significant asset for us. With the flotation funds significantly improving our working capital, we believe that we are well placed to benefit from opportunities as they arise. Accounting standards The Group will be adopting International Financial Reporting Standards (IFRS) with effect from 1 May 2007 and when the 2008 results are reported the 2007 results will be restated under IFRS. The first statements to be produced under IFRS will be the interim financial statements for the half year to October 2007. We have been working with our advisors to assess the impact of IFRS on our financial statements at a high level. We have not yet fully quantified the impact but we expect the biggest area to be affected will be goodwill due to the need to reconsider the goodwill relating to recent business acquisitions and the requirement for annual impairment reviews, rather than systematic amortisation of the goodwill balance. Cate Hulme Chief Financial Officer 27 July 2007 GROUP PROFIT AND LOSS ACCOUNT For the year ended 30 April 2007 Notes 2007 2006 £000 £000 Turnover 2 54,192 54,522 -------- -------- Exceptional cost of sales 3 - (256) Other cost of sales (41,815) (42,779) -------- -------- Total cost of sales (41,815) (43,035) -------- -------- Gross profit 12,377 11,487 -------- -------- Exceptional distribution costs 3 (223) - Other distribution costs (2,928) (2,983) -------- -------- Total distribution costs (3,151) (2,983) -------- -------- Exceptional administrative expenses 3 (317) (381) Other administrative expenses (9,134) (8,818) -------- -------- Total administrative expenses (9,451) (9,199) -------- -------- Operating loss (225) (695) -------- -------- Exceptional operating loss 3 (540) (637) Other operating profit / (loss) 315 (58) -------- -------- Bank interest receivable 91 13 Interest payable (793) (221) -------- -------- Loss before taxation (927) (903) Tax on loss on ordinary activities 4 310 (136) Loss after taxation 6 (617) (1,039) Equity minority interest 6 12 52 -------- -------- Loss attributable to members of the parent company (605) (987) ======== ======== Basic loss per share 7 (2.7)p (4.6)p Diluted loss per share 7 (2.7)p (4.6)p ======== ======== GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES For the year ended 30 April 2007 Notes 2007 2006 £000 £000 Loss for the financial year attributable to members of the parent company (605) (987) -------- -------- Exchange differences on retranslation of net assets of subsidiary undertakings 6 303 (18) -------- -------- Total recognised gains and losses relating to the year (302) (1,005) ======== ======== GROUP BALANCE SHEET As at 30 April 2007 Notes 2007 2006 £000 £000 Fixed assets Intangible assets: Positive goodwill 3,510 3,677 Trade marks 171 176 -------- -------- 3,681 3,853 Tangible assets 2,213 2,114 -------- -------- 5,894 5,967 -------- -------- Current assets Stocks 5,736 6,674 Debtors 5,266 3,820 Cash at bank and in hand 739 896 -------- -------- 11,741 11,390 Creditors: amounts falling due within one year (7,784) (14,263) -------- -------- Net current assets / (liabilities) 3,957 (2,873) -------- -------- Total assets less current liabilities 9,851 3,094 -------- -------- Creditors: amounts falling due after more than one year (396) (1,926) -------- -------- Provisions for liabilities (39) (27) -------- -------- 9,416 1,141 -------- -------- Equity minority interests - 5 -------- -------- 9,416 1,146 ======== ======== Capital reserves Share capital 5,6 101 53 Share premium 6 8,664 145 Merger reserve 6 750 750 Profit and loss account 6 (99) 198 -------- -------- Equity shareholders' funds 6 9,416 1,146 ======== ======== GROUP STATEMENT OF CASH FLOWS For the year ended 30 April 2007 Notes 2007 2006 £000 £000 Net cash (outflow)/inflow from operating activities 8 (3,928) 1,449 -------- -------- Returns on investments and servicing of finance Net interest paid (702) (208) -------- -------- Taxation Corporation tax paid (50) (133) -------- -------- Capital expenditure and financial investment Payments to acquire intangible fixed assets (36) (234) Payments to acquire tangible fixed assets (755) (957) -------- -------- (791) (1,191) -------- -------- Acquisitions Refund of consideration - Mobile Planet - 379 Purchase of subsidiary undertaking - Portix USA Inc - (5) Purchase of minority interest (30) (45) -------- -------- (30) 329 -------- -------- Net cash (outflow)/inflow before financing (5,501) 246 -------- -------- Financing Issue of share capital 10,015 - Share issue costs (1,443) - New long term borrowings 235 - Repayment of long term borrowings (2,289) (229) Repayments of capital element of finance leases (135) (164) -------- -------- 6,383 (393) -------- -------- Increase / (decrease) in cash 8 882 (147) ======== ======== RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT for the year ended 30 April 2007 Notes 2007 2006 £000 £000 Increase / (decrease) in cash 8 882 (147) Repayment of capital element of finance leases 8 135 164 New long term borrowings 8 (235) - Repayment of long term borrowings 8 2,289 229 -------- -------- Change in net debt resulting from cash flows 8 3,071 246 New finance leases 8 (168) (144) -------- -------- Movement in net debt 2,903 102 Net debt at the beginning of the year 8 (2,906) (3,008) -------- -------- Net debt at the end of the year 8 (3) (2,906) ======== ======== NOTES 1. Basis of preparation The preliminary results of eXpansys plc are prepared under the historical cost convention, and in accordance with United Kingdom Generally Accepted Accounting Practice (UK GAAP). In preparing the preliminary results for the current year, the Group has adopted Financial Reporting Standard 20 'Share-based payments' (FRS 20). The adoption of FRS 20 has resulted in a change in accounting policy for share-based payment transactions. FRS 20 requires the fair value of options and share awards which ultimately vest to be charged to the profit and loss account over the vesting period or performance period. For equity-settled transactions the fair value is determined at the date of the grant using an appropriate pricing model. As there was no share based payment plan in place during the 2006 financial year, the adoption of the standard has not resulted in the re-statement of the comparative figures. With the exception of the adoption of FRS 20 the preliminary announcement has been prepared on the same basis as set out in the previous year's annual accounts. This preliminary statement was approved by the directors on 27 July 2007. The financial information set out above does not constitute the Group's statutory financial statements for the year ended 30 April 2007 but is derived from those financial statements. The comparative figures are those of the financial statements for the year ended 30 April 2006. The report of the auditors was unqualified and did not contain a statement under s.237 (2) or (3) Companies Act 1985. The statutory financial statements for the year ended 30 April 2007 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. The financial information contained in this Preliminary Statement does not constitute statutory accounts as defined by Section 240 of the Companies Act. 2. Segmental analysis The primary segment reporting format is determined to be geographical segments by origin as the Group's risks and rates of return are affected predominantly by differences in geographic location. 2007 2006 Turnover £000 £000 United Kingdom and rest of the world 24,379 24,315 European Union 12,100 9,489 United States and Canada 13,899 17,428 Far East 3,814 3,290 -------- -------- 54,192 54,522 ======== ======== 2007 2006 Loss before taxation £000 £000 United Kingdom and rest of the world 546 (271) European Union 500 307 United States and Canada (469) 68 Far East (240) (150) -------- -------- Total 337 (46) Common costs (562) (649) -------- -------- Group operating loss (225) (695) Net interest payable (702) (208) -------- -------- Loss before taxation (927) (903) ======== ======== 2. Segmental analysis continued 2007 2006 Net assets £000 £000 United Kingdom and rest of the world 2,632 1,704 European Union 296 81 United States and Canada (2,836) (1,811) Far East (626) (319) -------- -------- Total (534) (345) Unallocated 9,950 1,486 -------- -------- Minority interest 9,416 1,141 - 5 -------- -------- Net assets 9,416 1,146 ======== ======== 3. Exceptional costs 2007 2006 £000 £000 One off stock write offs, deemed exceptional by virtue of their size - 256 Non recoverable distribution expenses 223 - Legal costs for renegotiation of participation in supplier distribution network - 105 Directors bonuses relating to acquisition and integration of Mobile Planet Inc - 177 Costs relating to closure of sales office in Mobile Planet Inc - 79 Costs relating to redundancies in Portix Group Limited - 20 Costs relating to renegotiation of covenants 31 - Costs in relation to redundancies in eXpansys Nomatica SAS 286 - -------- -------- Total exceptional costs 540 637 ======== ======== 4. Tax (a) Analysis of (credit)/charge in the year 2007 2006 £000 £000 UK corporation tax on profits for the year 35 26 Foreign tax 12 106 Adjustments in respect of previous periods (3) (23) -------- -------- Total current tax 44 109 Deferred tax (354) 27 -------- -------- Tax (credit) / charge (310) 136 ======== ======== (b) Factors affecting the tax charge for the year The tax charge is different from the standard rate of corporation tax in the UK of 30% (2006: 30%). The differences are reconciled below: 2007 2006 £000 £000 Loss before taxation (927) (903) ======== ======== Loss before taxation multiplied by 30% (2006: 30%) (278) (271) Effect of: Disallowed expenses and non taxable income 54 186 Capital allowances in excess of depreciation (26) (52) Other short term timing differences 5 (19) Adjustments in respect of prior periods (3) (23) Utilisation of tax losses of prior periods (149) (8) Tax losses not relievable against current tax 487 258 Tax rate difference 4 38 Other (50) - -------- -------- Current tax charge for the year (note 4(a)) 44 109 -------- -------- 5. Share capital 2007 2006 £000 £000 Authorised: 10,000,000 Ordinary shares of 1p each - 100 80,000,000 Ordinary shares of 0.25p each 200 - -------- -------- 200 100 ======== ======== 2007 2006 £000 £000 Allotted and called up: 5,316,545 fully paid Ordinary shares of 1p each - 53 40,353,907 fully paid Ordinary shares of 0.25p each 101 - -------- -------- 101 53 ======== ======== On 13 December 2006, 398,740 1p ordinary shares were issued in a share for share exchange for the whole of the minority interest share capital in Portix Group Limited (and indirectly in Portix USA Inc). Merger relief was taken and therefore no share premium was recognised. On 7 February 2007, 53,165 1p ordinary shares were issued in a share for share exchange for the whole of the minority interest share capital in eXpansys DE Limited (and indirectly in eXpansys GmbH). Merger relief was taken and therefore no share premium was recognised. On 7 February 2007, 9,682 1p ordinary shares were issued for cash at a premium of £9,000. On 6 March 2007, the Group adopted the eXpansys plc Enterprise Management Incentives and Unapproved Share Scheme and the following equity settled share options were granted: Number of Exercise price shares under (pence) option Cate Hulme (director) 425,320 10.25 Three employees 595,320 29.00 Thirteen employees 260,000 46.40 Consultant 40,000 29.00 ========== ========== The share options were conditional upon the company's shares being floated on AIM by 31 May 2007 and are exercisable, at the discretion of the option holder, for up to two years from issue date. The options vested on 11 April 2007, when the company floated on AIM. The weighted average exercise price is 26.39pence (2006: nil) for the 1,320,640 shares (2006: nil) under option at 30 April 2007. The fair value of equity settled share options granted is estimated as at the date of the grant using the Black-Scholes-Merton model, taking into account the terms and conditions upon which the options were granted. The following table lists the inputs to the model for the year ended 30 April 2007. 2007 Dividend yield (%) 0 Expected share price volatility (%) 13.2 Risk free interest rate (%) 5.2 Expected life of option (years) 2 ======= The expected volatility reflects the assumption that the AIM index is indicative of future trends, which may also not necessarily be the actual outcome. The expense to the profit and loss account during the year ended 30 April 2007 was £5,000 (2006: £nil). There were no cash settled share options and no share options were exercised during the year. On 12 March 2007 the 100,000 1p ordinary shares currently in issue were subdivided into 0.25p shares and the authorised share capital was increased to £200,000. On 11 April 2007 17,241,379 0.25p ordinary shares were issued at 58p each, resulting in a premium of £8,519,000 net of share issue costs. On 4 April 2007 a warrant to subscribe to 403,539 0.25p ordinary shares at 58p each was issued to Cenkos Securities plc, the company's Nominated Advisor and Broker. The transaction has been measured at the fair value of the equity instruments (as set out above) as there was no additional service performed in exchange for these options. The fair value of this award was not material. 6. Reconciliation of shareholders' funds and movements on reserves Profit Total Share Share Merger and loss shareholders capital premium reserve account funds £000 £000 £000 £000 £000 At 1 May 2005 10 145 - 1,246 1,401 Issue of shares - - 750 - 750 Reserves transfer for bonus issue 43 - - (43) - Loss for the year - - - (1,039) (1,039) Minority interest - - - 52 52 Exchange differences on retranslation of net assets of subsidiary undertakings - - - (18) (18) ------- ------- ------- ------- -------- At 30 April 2006 53 145 750 198 1,146 Issue of shares 48 8,519 - - 8,567 Share based payment - - - 5 5 Loss for the year - - - (617) (617) Minority interest - - - 12 12 Exchange differences on retranslation of net assets of subsidiary undertakings - - - 303 303 ------- ------- ------- ------- -------- At 30 April 2007 101 8,664 750 (99) 9,416 ======= ======= ======= ======= ======== As a result of the acquisition of eXpansys Nomatica SAS in a share for share exchange, merger relief was taken and no share premium was recognised, rather the premium arising was credited to merger reserve. 7. Earnings per share Basic earning per share amounts are calculated by dividing net profit/(loss) for the year attributable to ordinary share holders of the parent by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share amounts are calculated by dividing the net profit / (loss) attributable to ordinary share holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares. The following reflects the income and share data used in the basic and diluted earnings per share computations: 2007 2006 £000 £000 Net loss attributable to equity holders of the parent (605) (987) ====== ====== Restated 2007 2006 thousands thousands Basic weighted average number of shares 22,646 21,266 Dilutive potential ordinary shares: Employee and consultant options 52 - Warrants over options 16 - ------- ------- Diluted weighted average number of shares 22,714 21,266 ======= ======= Basic loss per share (2.7)p (4.6)p ======= ======= Diluted loss per share (2.7)p (4.6)p ======= ======= The basic weighted average number of shares for year ended April 2006 has been restated during 2007 to reflect the subdivision of each 1p ordinary shares into four 0.25p ordinary shares on 12 March 2007. There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of these financial statements. Earnings per share from operations before exceptional items The group presents as exceptional items on the face of the profit and loss account, those material items of income and expense which, because of the nature and expected infrequency of the events giving rise to them, merit separate presentation to allow shareholders to understand better element of financial performance for the period, so as to facilitate comparison with prior periods and to assess better trends in financial performance. To this end, basic earnings per share is also presented on this basis and using the weighted average number of ordinary shares as per the table above. Net profit before exceptional items before exceptional items and attributable to equity holders of the parent is derived follows: 2007 2006 £000 £000 Net loss attributable to equity holders of the parent (605) (987) Exceptional items after tax attributable to equity holders of the parent 540 637 ------ ------- Net loss before exceptional items attributable to equity holders (65) (350) of the parent ------ ------- Basic loss per share before exceptional items (0.3)p (1.6)p ====== ======= Diluted loss per share before exceptional items (0.3)p (1.6)p 8. Note to the group statement of cash flows (a) Reconciliation of operating loss to net cash (outflow) / inflow from operating activities 2007 2006 £000 £000 Operating loss (225) (695) Depreciation 786 641 Amortisation 249 167 Loss on sale of fixed assets 18 - Issue of share options 5 - Currency movements 21 - Change in debtors (1,080) (2,110) Change in creditors (4,640) 5,734 Change in stocks 938 (2,288) ------ ------- Net cash (outflow)/inflow from operating activities (3,928) 1,449 ====== ======= (b) Analysis of net debt At New At 1 April Cash finance 30 April 2006 flow lease 2007 £000 £000 £000 £000 Cash at bank and in hand 896 (157) - 739 Bank overdrafts (1,039) 1,039 - - ------ ------- ------- ------- (143) 882 - 739 Finance leases (459) 135 (168) (492) Bank loans (2,304) 2,054 - (250) ------ ------- ------- ------- (2,906) 3,071 (168) (3) ====== ======= ======= ======= (c) Cash flows relating to operating exceptional items Net cash (outflow) / inflow from operating activities includes the following exceptional cash flows: 2007 2006 £000 £000 Legal costs for negotiation of participation in supplier distribution network - 105 Directors' bonuses relating to acquisition and integration of Mobile Planet Inc - 177 Costs relating to closure of sales office in Mobile Planet Inc - 79 Costs relating to redundancies in Portix Group Limited - 20 Costs relating to renegotiation of covenants 31 - Costs relating to redundancies in eXpansys Nomatica SARL 286 - ------- -------- 317 381 ======= ======== This information is provided by RNS The company news service from the London Stock Exchange

Companies

XPS Pensions Group (XPS)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today