Final Results

Lo-Q PLC 10 April 2008 LO-Q PLC ('Lo-Q' or the 'Company') 10 April 2008 Preliminary Results for the year ended 31 December 2008 Chairman's Report For The Year Ended 31 December 2007 I am pleased to report that the company made progress on all fronts in 2007 with a second year of operating profit. Our profit before tax for 2007 was Â£551,235. As our staff are responsible for collecting the Q-bot rental from park guests in all of the major customer's parks in which we operate, the profit and loss statement this year includes the total income that is derived from these daily rentals. The value of our sales, at over Â£7 million, illustrates the advances that the Company has made in recent years with annual growth running in the region of 40% for each of the last three years. Based on our in depth experience over six years of operation, we have established a minimum useable life of all the major components of the system, including software, of five years. We have therefore agreed with our auditors to write down the capital and research and development cost of upgrades over a matching five-year basis. As previously required by the accounting standard we were writing off the costs as they occurred. The introduction of the new VQ2020 system into our major customer's parks in Chicago and Montreal, Canada was well received by the parks' guests. The ability to book rides using the Q-bot, from any where in the park, rather than from a booking station, has proved very popular. We have also enhanced the Q-bot's operating system so that the guest can reserve shows as well as rides, and we installed this upgraded software into Dollywood. All credit is due to our development and installation teams for getting the systems up and running in all these parks, in time for the start of the 2007 season. In 2008 our systems are now in an eighth major customer's park, in San Antonio, Texas, as well as Legoland Windsor. With the introduction of the Text-Q system in Drayton Manor on a trial basis, we have increased the number of parks in which we operate by 40%. As well as selling more of the upgraded VQ2020 systems we hope to be selling more Text-Q systems this year. Our ability to offer potential customers a choice of line management solutions is proving to be quite beneficial. We are currently talking to a number of different companies in terms of product cross-integration and we expect these discussions will be of medium and long-term benefit. We look forward to a successful summer season in 2008. Jeff McManus For further information please contact: Jeff McManus Lo-Q plc 01491 577 210 John Prior Arbuthnot Securities Limited 0207 012 2000 Consolidated Income Statement For The Year Ended 31 December 2007 2007 2006 Notes Â£ Â£ CONTINUING OPERATIONS Revenue 2 7,805,545 1,978,554 Cost of sales (6,160,589) (432,336) ------------ ----------- GROSS PROFIT 1,644,956 1,546,218 Administrative expenses (1,078,803) (1,208,753) ------------ ----------- OPERATING PROFIT BEFORE EXCEPTIONAL ITEMS 566,153 337,465 Exceptional items 4 - (663,337) ------------ ----------- OPERATING PROFIT/(LOSS) 566,153 (325,872) Finance costs 5 (19,749) (354) Finance income 5 4,831 4,618 ----------- ---------- PROFIT/(LOSS) BEFORE TAX 6 551,235 (321,608) Tax 7 (4,885) 52,400 ----------- --------- PROFIT/(LOSS) FOR THE YEAR 8 546,350 (269,208) =========== ========= Attributable to: Equity holders of the parent 546,350 (269,208) =========== ========= Earnings per share expressed in pence per share: 9 Basic 3.69 (1.83) Diluted 3.46 (1.73) === ==== All disclosures relate only to continuing operations. Statement of Recognised Income and Expense For The Year Ended 31 December 2007 2007 2006 Â£ Â£ PROFIT/(LOSS) FOR THE FINANCIAL YEAR 546,350 (269,208) ------------ ---------- TOTAL RECOGNISED INCOME AND EXPENSE RELATING TO THE YEAR 546,350 (269,208) Prior year adjustment - (5,812) Foreign exchange movement on 42,981 (42,917) consolidation ------------ ---------- TOTAL RECOGNISED INCOME AND EXPENSE 589,331 (317,937) SINCE LAST ANNUAL REPORT =========== ========= Attributable to: Equity holders of the parent 589,331 (317,937) ========== ========= Consolidated Balance Sheet 31 December 2007 2007 2006 Notes Â£ Â£ ASSETS NON-CURRENT ASSETS Intangible assets 10 479,390 - Property, plant and equipment 11 22,341 15,008 ------------ ---------- 501,731 15,008 ------------ ---------- CURRENT ASSETS Inventories 13 171,657 195,226 Trade and other receivables 14 87,376 89,199 Tax receivable 475 55,952 Prepayments 33,016 20,375 Cash and cash equivalents 15 630,854 643,968 ----------- ----------- 923,378 1,004,720 ----------- ----------- CURRENT LIABILITIES Trade and other payables 16 226,017 506,326 ----------- ----------- 226,017 506,326 ----------- ----------- NET CURRENT ASSETS 697,361 498,394 ----------- ----------- NET ASSETS 1,199,092 513,402 =========== ========== SHAREHOLDERS' EQUITY Called up share capital 17 149,292 147,658 Share premium 18 4,991,266 4,982,067 Shares to be issued reserve 18 66,250 - Capital redemption reserve 18 12,473 12,473 Other reserves 18 27,381 8,105 Retained earnings 18 (4,047,570) (4,636,901) ----------- ------------ Total equity 1,199,092 513,402 ----------- ------------ TOTAL EQUITY 1,199,092 513,402 ========== =========== Consolidated Cash Flow Statement For The Year Ended 31 December 2007 2007 2006 Notes Â£ Â£ Cash flows from operating activities Cash generated from operations 24 378,956 (44,831) Interest paid (19,749) (354) Tax received 55,477 46,608 ----------- ----------- Net cash from operating activities 414,684 1,423 ----------- ----------- Cash flows from investing activities Purchase of intangible fixed assets (427,666) - Purchase of tangible fixed assets (15,796) (14,132) Interest received 4,831 4,618 ------------ ----------- Net cash from investing activities (438,631) (9,514) ------------ ----------- Cash flows from financing activities Share issue 10,833 14,630 ------------ ----------- Net cash from financing activities 10,833 14,630 ------------ ----------- ------------ ----------- (Decrease)/Increase in cash and cash (13,114) 6,539 equivalents Cash and cash equivalents at beginning of year 25 643,968 637,429 ---------- ----------- Cash and cash equivalents at end of year 25 630,854 643,968 ========= ========== Notes to the Financial Statements For The Year Ended 31 December 2007 1. ACCOUNTING POLICIES STATEMENT OF COMPLIANCE WITH IFRS'S The group's financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 1985. The principal accounting policies adopted by the group are set out below. New standards and interpretations not yet adopted A number of new standards, amendments to standards and interpretations are not effective for 2007 and therefore have not been applied in preparing these accounts: IAS 1 Presentation of Financial Statements (revised 2007) (effective 1 January 2009) IAS 23 Borrowing Costs (revised 2007) (effective 1 January 2009) IAS 27 Consolidated and Separate Financial Statements (revised 2008) (effective 1 July 2009) Amendment to IFRS 2 Share-based Payment - Vesting Conditions and Cancellations (effective 1 January 2009) IFRS 3 Business Combinations (revised 2008) (effective 1 July 2009) IFRS 8 Operating Segments (effective 1 January 2009) IFRIC 11 IFRS 2 Group and Treasury Share Transactions (effective 1 March 2007) IFRIC 12 Service Concessions Arrangements (effective 1 January 2008) IFRIC 13 Customer Loyalty Programmes (effective 1 July 2008) IFRIC 14 IAS 19 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction (effective 1 January 2008) The group has considered the above new standards, interpretations and amendments to published standards that are not yet effective and concluded that they are either not relevant to the Group or that they would not have a significant impact on the Group's Financial Statements, apart from additional disclosures. Basis of Consolidation The consolidated financial statements incorporate the results of Lo-Q plc and all of its subsidiary undertakings as at 31 December 2007 using the acquisition method of accounting. The results of subsidiary undertakings are included from the date of acquisition. Revenue Recognition All turnover arises from the development and application of virtual queue technologies and represents sales to external customers less value added tax or local taxes on sales. As distinct from prior accounting periods Lo-Q staff are now responsible for renting Q-bots directly to the public and hence the total income derived from these daily rentals is recognised on the income statement. The costs directly attributable to these rentals are recognised separately as cost of sales. Turnover also includes revenue from the sale of certain installation costs of the Q-bot system upon its introduction to a new theme park. The system is then leased back to the company with the lease costs being recognised within cost of sales during the year as they fall due. Interest expense recognition Expense is recognised as interest accrues, using the effective interest method, to the net carrying amount of the financial liability. Employee expenses The Group has applied the requirements of IFRS 2 Share-Based Payment. In accordance with the transitional provisions, IFRS2 has been applied to all grants of equity instruments after 7 November 2002 that were unvested as of 1 January 2006. The Group issues equity-settled share-based payments to full time employees. Equity settled share-based payments are measured at the fair value at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that will eventually vest. Fair value is measured by use of a Black-Scholes model for all share options in issue. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations. Exceptional items Exceptional items are presented in the financial statements where there are material items of income and expense which, because of their nature and the expected rarity of the circumstances, which generate them, they should be presented separately to shareholders so as to enhance their judgement of the current year's financial performance and its comparability with prior years. Commitments under operating leases Operating leases payments are recognised as an expense in the consolidated income statement on a straight-line basis over the lease term. Property, plant and equipment Items of property, plant and equipment are stated at cost of acquisition or production cost less accumulated depreciation and impairment losses. Depreciation is charged so as to write off the cost of assets over their estimated useful lives, using the straight-line method, on the following bases: Plant and machinery 33.3% Office equipment 33.3% Furniture and fixtures 20.0% Financial instruments Group Company 2007 2006 2007 2006 Â£ Â£ Â£ Â£ Financial assets Cash and cash equivalents 630,854 643,968 79,249 179,016 Trade and other receivables 87,376 89,199 1,065,708 401,718 Financial liabilities Trade and other payables (226,017) (506,326) (206,316) (121,116) Other than short-term debtors and creditors that arise directly from operations, the group's financial instruments comprise cash and bank balances. The fair values of these instruments are not materially different to their book values. The objective of holding financial instruments is to raise finance for the group's operations and manage related risks. The main risk arising from holding these instruments is currency risk. Currency Risk The group's overseas operations are in the USA and Canada. The main operating currencies of its operations are therefore in sterling, US and Canadian Dollars. The group's currency exposure comprises the monetary assets and liabilities of the group that are not denominated in the operating or 'functional' currency of the operating unit involved. At the period end Lo-Q plc, which operates in sterling had bank balances of Â£395,778 (2006 - Â£568,608) denominated in US dollars and Â£155,468 (2006 - Â£0) denominated in Canadian dollars. Inventories Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Raw materials costs are calculated on a weighted average basis. Work in progress is valued on the basis of the cost of raw materials and labour plus attributable overheads. Net realisable value is based on estimated selling price less additional costs to completion and disposal. Deferred Tax Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profits ('temporary differences') and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences. Where there are taxable temporary differences arising on subsidiaries, deferred tax liabilities are recognised. Deferred tax assets are generally recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Where there are deductible temporary differences arising on subsidiaries, deferred tax assets are recognised only where it is probable that they will reverse in the foreseeable future and taxable profits will be available against which the temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient tax profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Research and development In accordance with IAS 38 'Intangible Assets', expenditure incurred on research and development is distinguished as relating either to a research phase or to a development phase. All advanced research phase expenditure is charged to the income statement. For development expenditure, this is capitalised as an internally generated intangible asset, only if it meets strict criteria, relating in particular to technical feasibility and generation of future economic benefits. Development expenditure capitalised is amortised over its useful economic life, which is considered to be up to a maximum of 5 years from the point at which it is incurred. Intellectual property rights Intellectual property rights comprise assets acquired relating know how, to patents and licences and have been capitalised at the fair value of the assets acquired and are amortised through the income statement in equal annual instalments over their estimated useful economic life of 5 years. Foreign currency exchange Transactions in currencies other than the functional currency of the group are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Gains and losses arising on retranslation are included in net profit or loss for the period, except for exchange differences arising on non-monetary assets and liabilities where the changes in fair value are recognised directly in equity. On consolidation, the assets and liabilities of the group's overseas operations are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period unless exchange rates fluctuate significantly. Exchange differences arising, if any, are classified as equity and movement shown in reserves. Pension Costs Contributions to the group's defined contribution pension scheme are charged to the profit and loss account in the year in which they become due. Trade and other receivables Trade and other receivables are recognised by the group and carried at original invoice amount less an allowance for any uncollectible or impaired amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off when they are identified as being bad. Other receivables are recognised at fair value. Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand and short term deposits. Short-term deposits are defined as deposits with an initial maturity of three months or less. Bank overdrafts that are repayable on demand and form an integral part of the group's cash management are included as a component of cash and cash equivalents for the purposes of the consolidated cash flow statement. 2. SEGMENTAL REPORTING Segment information is presented in respect of the Group's geographical and business segments. The primary format, geographical segments, is based on the geographical location of customers. Inter-segment pricing is determined on an arm's length basis. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and intangible assets. Geographical segments In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers. Segment assets and liabilities are based on the geographical location of the assets. The Group comprises the following main geographical segments: â€¢ United Kingdom â€¢ North America Business segments The Group comprises two business segments: â€¢ Rental of Q-bots â€¢ Sale and leaseback of Q-bot technology to theme parks Geographical segments (primary format) i) Segment revenue based on geographical location of customers 2007 2006 Â£ Â£ North America 7,201,102 1,978,554 United Kingdom 604,443 - ------------------------- 7,805,545 1,978,554 ========== ========= ii) Geographical segments based on asset location: United Kingdom North America Consolidated 2007 2006 2007 2006 2007 2006 Â£ Â£ Â£ Â£ Â£ Â£ Results from operating activities 783,984 (214,965) (227,601) (110,907) 566,153 (325,872) All finance costs and income relate to the UK and the tax credit to North America ------------------------------------------------------------------------------------------ Profit/(loss) for year 769,066 (158,301) (222,716) (110,907) 546,350 (269,208) ------------------------------------------------------------------------------------------ Segment assets 1,242,709 777,774 319,331 226,946 923,378 1,004,720 Segment liabilities (206,316) (121,116) (19,701) (385,210) (226,017) (506,326) Capital expenditure 14,525 9,776 4,496 4,356 19,021 14,132 Depreciation 7,643 7,013 4,045 7,119 11,688 7,643 Amortisation 31,078 - 29 - 31,107 - of intangible assets ------------------------------------------------------------------------------------------ Business segments (secondary format) Revenue for business segments: 2007 2006 Â£ Â£ Rental of Q-bots 7,201,102 1,978,554 Sale and leaseback of Q-bot technology 604,443 - to theme parks ----------- ---------- 7,805,545 1,978,554 =========== ========== 3. EMPLOYEES AND DIRECTORS 2007 2006 Â£ Â£ Wages and salaries 1,282,341 890,671 Social Security costs 136,451 94,296 Defined contribution Pension Costs 28,700 26,647 Share based payment transactions 2,694 2,293 ---------- ---------- 1,450,186 1,013,907 ========== ========== The average monthly number of employees during the year was made up as follows: Staff numbers by activity 2007 2006 Research & development 6 5 Management and finance 3 3 Production and administration 12 5 Part Time Seasonal staff 127 31 --------- --------- 148 44 ========= ======== The directors' aggregate emoluments in respect of qualifying services were: 2007 2006 Â£ Â£ Directors' emoluments 319,788 331,468 ======== ======== Directors' contributions to money purchase schemes 13,200 11,892 ========= ======== During the year the following number of directors: Money purchase schemes 2 2 ========= ======== Information regarding the highest paid director is as follows: 2007 2006 Â£ Â£ Emoluments 124,530 134,876 Amount of money and other net assets (excluding shares and share options) receivable under long-term incentive plans 6,400 5,307 ======== ======= Share Option Scheme The share options of the directors are set out below: The share options of J Lillywhite, and A Bone are held under the Lo-Q plc Unapproved Share Option Scheme and the share options of S Drake are held under the Lo-Q plc EMI Share Option Scheme. 31 Granted/ 31 December exercised) December Date from 2006 in the 2007 Exercise which Expiry Number period Number Price exercisable Date Number J Lillywhite 209,000 - 209,000 3.5p 27/9/2004 28/03/2010 A Bone 182,875 - 182,375 3.5p 27/9/2004 28/03/2010 S Drake 4,903 - 4,903 100.5p 22/10/2002 21/01/2011 6,018 - 6,018 18p 08/10/2003 07/10/2012 50,000 - 50,000 6p 06/04/2005 05/04/2014 100,000 - 100,000 3.5p 29/03/2006 28/03/2015 35,000 - 35,000 8.25p 09/05/2007 08/05/2016 4. EXCEPTIONAL ITEMS 2007 2006 Â£ Â£ Litigation costs - (459,512) Professional fees on litigation - (203,825) ----------- ---------- - (663,337) It was alleged that Lo-Q had been contravening a patent owned by Palmtop Productions Inc. ('Palmtop'). The Company's lawyers and specialist patent attorneys believe this is not to be the case. As a result, it had been the view of the Board that this claim could be successfully defended. After weighing the balance of risk present in any USA patent law case, the Company made the decision to pursue an out of court agreement to settle the case expediently. The Company recognises that this has the advantage of releasing a significant amount of management time and avoids the potential costs if any defence case were to become protracted. 5. NET FINANCE COSTS 2007 2006 Â£ Â£ Finance income: Bank interest received 4,831 4,618 ========= ========= Finance costs: Bank interest 617 90 Loan interest paid 19,132 264 --------- --------- 19,749 354 ========= ========= Net finance costs 14,918 (4,264) ========= ========= 6. PROFIT/(LOSS) BEFORE TAX The profit before tax (2006 - loss before tax) is stated after charging: 2007 2006 Â£ Â£ Hire of plant and machinery 3,550 4,141 Other operating leases 71,629 71,911 Depreciation - owned assets 8,463 17,428 Development costs amortisation 31,107 - Auditors' remuneration 15,500 15,025 Auditors' remuneration for non audit work 9,463 9,060 Foreign exchange differences 28,913 42,180 ========== ======== Auditor's fees Included in the audit fee above is Â£15,500 (31 December 2006 Â£15,025), which relates to the company. 2007 2006 Â£ Â£ Audit 15,500 15,025 Review of interim accounts 1,425 1,250 Taxation compliance 4,500 4,000 Business consultancy 3,538 3,810 -------- -------- 24,963 24,085 ======== ======= 7. TAXATION ON ORDINARY ACTIVITIES The tax charge comprises: 2007 2006 Â£ Â£ (a) Current tax: Analysis of the tax charge/(credit): Current tax (credit) 4,885 (52,400) ========= ========= (b) Reconciliation of tax charge 2007 2006 Â£ Â£ Profit/(loss) on ordinary activities before tax 551,235 (321,608) ========= ========= Tax at the UK corporation tax rate of 30% 165,370 (96,482) (2006 - 30%) Effects of: Expenses not deductible for tax 2,196 78 Capital allowances in excess of depreciation (427) (32,285) Utilisation of tax losses (156,505) 128,839 Share scheme deduction (10,634) - Income not chargeable for tax purposes - (150) Research & development tax credit - (52,400) --------- -------- Total current tax (note 7(a)) 4,885 (52,400) ========= ======== The UK deferred tax asset of Â£777,449 (2006 - Â£1,054,961) on losses carried forward has not been recognised in the balance sheet due to the uncertainty over the timing of its recovery. It will be recognised when sufficient trading history has been established. 8. PROFIT OF PARENT COMPANY As permitted by Section 230 of the Companies Act 1985, the profit and loss account of the parent company is not presented as part of these financial statements. The parent company's profit for the financial year was Â£769,066 (2006 - (Â£158,301) loss). 9. EARNINGS PER SHARE Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary shareholders after adjustments for instruments that dilute basic earnings per share by the weighted average of ordinary shares outstanding during the year (adjusted for the effects of dilutive instruments). The following reflects the income and share data used in the total operations basic and diluted earnings per share computations. 2007 Weighted average number Per-share Earnings of amount Â£ shares pence Basic EPS Earnings attributable to ordinary shareholders 546,350 14,793,674 3.69 Effect of dilutive securities Options - 1,012,367 - -------- ---------- ----- Diluted EPS Adjusted earnings 546,350 15,806,041 3.46 ========= ========== ===== 2006 Weighted average number Per-share Earnings of amount Â£ shares pence Basic EPS Earnings attributable to ordinary shareholders (269,208) 14,689,108 -1.83 Effect of dilutive securities Options - 865,113 - ---------- ----------- -------- Diluted EPS Adjusted earnings (269,208) 15,554,221 -1.73 ========== ============ ======== 10. INTANGIBLE ASSETS Group Intellectual Development Property rights costs Totals Â£ Â£ Â£ COST Additions 209,199 301,298 510,497 ---------- ----------- --------- At 31 December 2007 209,199 301,298 510,497 ----------- ----------- ------- AMORTISATION Amortisation for year - 31,107 31,107 ------------ ---------- --------- At 31 December 2007 - 31,107 31,107 ------------ ----------- -------- NET BOOK VALUE At 31 December 2007 209,199 270,191 479,390 ============ =========== ========= Company Intellectual Development Property rights costs Totals Â£ Â£ Â£ COST Additions 209,199 300,642 509,841 ----------- ---------- --------- At 31 December 2007 209,199 300,642 509,841 ----------- --------- --------- AMORTISATION Amortisation for year - 31,078 31,078 ----------- --------- --------- At 31 December 2007 - 31,078 31,078 ----------- --------- --------- NET BOOK VALUE At 31 December 2007 209,199 269,564 478,763 =========== ========= ========= There were no intangible assets at 31 December 2005 or 31 December 2006. 11. PROPERTY, PLANT AND EQUIPMENT Group Plant and Office Furniture machinery Equipment & fixtures Totals Â£ Â£ Â£ Â£ COST At 1 January 2007 33,199 131,780 19,795 184,774 Additions 3,225 13,615 2,181 19,021 Disposals - (8,266) - (8,266) -------- --------- -------- -------- At 31 December 2007 36,424 137,129 21,976 195,529 -------- --------- -------- -------- DEPRECIATION At 1 January 2007 30,861 121,440 17,465 169,766 Charge for year 2,183 8,510 995 11,688 Eliminated on disposal - (8,266) - (8,266) -------- ------- -------- -------- At 31 December 2007 33,044 121,684 18,460 173,188 ------- --------- -------- ------- NET BOOK VALUE At 31 December 2007 3,380 15,445 3,516 22,341 ======== ======== ======== ======= At 31 December 2006 2,338 10,340 2,330 15,008 ======== ======== ======== ======= Company Plant and Office Furniture machinery Equipment & fixtures Totals Â£ Â£ Â£ Â£ COST At 1 January 2007 4,495 96,142 18,891 119,528 Additions 3,225 10,720 580 14,525 Disposals - (8,266) - (8,266) -------- -------- -------- -------- At 31 December 2007 7,720 98,596 19,471 125,787 -------- --------- --------- -------- DEPRECIATION At 1 January 2007 4,374 88,425 16,851 109,650 Charge for year 453 6,540 650 7,643 Eliminated on disposal - (8,266) - (8,266) ------- -------- ------- -------- At 31 December 2007 4,827 86,699 17,501 109,027 ------- -------- -------- -------- NET BOOK VALUE At 31 December 2007 2,893 11,897 1,970 16,760 ======== ========= ======== ======== At 31 December 2006 121 7,717 2,040 9,878 ========= ========= ======== ======== Group Plant and Office Furniture machinery Equipment & fixtures Totals Â£ Â£ Â£ Â£ COST At 1 January 2006 33,199 134,691 19,795 187,685 Additions - 14,132 - 14,132 Disposals - (17,043) - (17,043) -------- --------- --------- --------- At 31 December 2006 33,199 131,780 19,795 184,774 -------- ---------- --------- -------- DEPRECIATION At 1 January 2006 27,755 127,462 14,166 169,383 Charge for year 3,106 11,022 3,299 17,427 Eliminated on disposal - (17,044) - (17,044) --------- --------- -------- -------- At 31 December 2006 30,861 121,440 17,465 169,766 -------- --------- --------- -------- NET BOOK VALUE At 31 December 2006 2,338 10,340 2,330 15,008 ======== ========= ========= ======= At 31 December 2005 5,444 7,229 5,630 18,304 ======== ========= ========= ======= Company Plant and Office Furniture machinery Equipment & fixtures Totals Â£ Â£ Â£ Â£ COST At 1 January 2006 4,495 86,366 18,891 109,752 Additions - 9,776 - 9,776 Disposals - - - - --------- --------- --------- -------- At 31 December 2006 4,495 96,142 18,891 119,528 --------- -------- --------- -------- DEPRECIATION At 1 January 2006 3,161 84,853 14,624 102,637 Charge for year 1,213 3,572 2,228 7,013 Eliminated on disposal - - - - --------- -------- -------- --------- At 31 December 2006 4,374 88,425 16,851 109,650 --------- -------- -------- --------- NET BOOK VALUE At 31 December 2006 121 7,717 2,040 9,878 ========= ========= ======== ========= At 31 December 2005 1,334 1,513 4,268 7,115 ========== ========= ======== ========= 12. INVESTMENTS Company Investment in subsidiaries Â£ COST At 1 January 2007 691 Additions 44 ------ At 31 December 2007 735 ------- NET BOOK VALUE At 31 December 2007 735 ======= At 31 December 2006 691 ======= Name Country of % Ownership % Voting incorporation interest rights Lo-Q Virtual Queuing Inc United States of America 100 100 Lo-Q Service Canada Inc Canada 100 100 Lo-Q Trustees Limited United Kingdom 100 100 The trade for both Lo-Q Virtual Queuing Inc and Lo-Q Service Canada Inc is that of the application of virtual queue technologies. Lo-Q Trustees Limited is dormant. 13. INVENTORIES Group Company 2007 2006 2007 2006 Â£ Â£ Â£ Â£ Stocks 143,277 171,170 56,432 112,465 Park installation 22,001 22,277 4,219 6,224 Work-in-progress 6,379 1,779 6,379 1,779 -------- -------- ------- ------- 171,657 195,226 67,030 120,468 ======== ======== ======= ======= There is no material difference between the replacement cost of stocks and the amount stated above. 14. TRADE AND OTHER RECEIVABLES Group Company 2007 2006 2007 2006 Â£ Â£ Â£ Â£ Current: Trade debtors 78,912 39,677 - 39,677 Amounts owed by group undertakings - - 1,057,669 361,258 Other debtors - 794 - 783 Deposits 2,093 2,350 - - VAT 6,371 - 8,039 - Accrued Income - 46,378 - - ------- -------- -------- ------- 87,376 89,199 1,065,708 401,718 ======== ======== ========== ======== 15. CASH AND CASH EQUIVALENTS Group Company 2007 2006 2007 2006 Â£ Â£ Â£ Â£ Cash in hand 6,015 894 1,257 792 Bank accounts 624,839 643,074 77,992 178,224 -------- -------- ------- -------- 630,854 643,968 79,249 179,016 ======= ======== ======= ======== 16. TRADE AND OTHER PAYABLES Group Company 2007 2006 2007 2006 Â£ Â£ Â£ Â£ Current: Trade creditors 95,525 62,529 101,444 35,143 Social security and other 32,650 32,494 31,649 32,494 taxes Other creditors - 321,658 - - Accrued expenses 92,957 89,645 73,223 53,479 Corporation tax 4,885 - - - -------- -------- -------- --------- 226,017 506,326 206,316 121,116 ========= ========= ========= ========= 17. CALLED UP SHARE CAPITAL Authorised: Number: Class: Nominal 2007 2006 value: Â£ Â£ 1,100,000,000 Ordinary Share Capital Â£0.01 11,000,000 11,000,000 ========== =========== (2006 - 1,100,000,000) Allotted, issued and fully paid: Number: Class: Nominal 2007 2006 value: Â£ Â£ 14,929,226 Ordinary Share Capital Â£0.01 149,292 147,658 ======== ======== (2006 - 14,765,837) The following fully paid shares were allotted during the year at a premium as shown below: 163,389 Ordinary Share Capital shares of Â£0.01 each at 0.0562989 per share. Share Option Schemes At 31 December 2007 the following share options were outstanding in respect of the ordinary shares: Number of Price per Scheme shares Period of option share EMI Scheme 61,504 22 January 2002 to 21 January 2011 100.5p 19,866 8 October 2003 to 7 October 2012 18p 102,000 6 April 2005 to 5 April 2014 6p 240,000 29 March 2006 to 28 March 2015 3.5p 86,000 9 May 2007 to 8 May 2016 8.25p Directors un-approved share 391,875 27 September 2004 to 28 March 2010 3.5p option scheme US Scheme 4,755 22 October 2002 to 21 October 2011 100.5p 41,000 6 April 2005 to 5 April 2014 6p 140,000 29 March 2006 to 28 March 2015 3.5p 45,500 9 May 2007 to 8 May 2016 8.25p Other Scheme 40,000 12 November 2008 to 12 November 2010 40.0p 18. EQUITY RESERVES Group Capital Share based Share Retained Share redemption payment Shares to capital earnings premium reserve reserve be issued Total Â£ Â£ Â£ Â£ Â£ Â£ Â£ Balance at 1 January 2007 147,658 (4,636,901) 4,982,067 12,473 8,105 - 513,402 Profit for year 546,350 - - - - 546,350 Foreign exchange 42,981 42,981 Issue of share capital 1,634 - 9,199 - - - 10,833 Recognition of share-based payments - - - 19,276 - 19,276 Recognition of shares yet to be issued - - - - 66,250 66,250 -------- -------- --------- -------- --------- -------- ----------- Balance at 31 December 2007 149,292 (4,047,570) 4,991,266 12,473 27,381 66,250 1,199,092 ======== ========== ========= ======= ========= ======== ========= Capital Share based Share Retained Share redemption payment Shares to capital earnings premium reserve reserve be issued Total Â£ Â£ Â£ Â£ Â£ Â£ Â£ Balance at 1 January 2006 143,478 (4,324,776) 4,971,617 12,473 5,812 - 808,604 Loss for year (269,208) - - - - (269,208) Foreign exchange (42,917) (42,917) Issue of share capital 4,180 - 10,450 - - - 14,630 Recognition of share-based payments - - - 2,293 - 2,293 -------- ---------- ---------- --------- --------- --------- --------- Balance at 31 December 2006 147,658 (4,636,901) 4,982,067 12,473 8,105 - 513,402 ======== =========== =========== ========= ========= ========= ========== Company Capital Share based Share Retained Share redemption payment Shares to capital earnings premium reserve reserve be issued Total Â£ Â£ Â£ Â£ Â£ Â£ Â£ Balance at 1 January 2007 147,658 (4,483,077) 4,982,067 12,473 8,105 - 667,226 Profit for year 769,066 - - - - 769,066 Issue of share capital 1,634 - 9,199 - - - 10,833 Recognition of share-based payments - - - 19,276 - 19,276 Recognition of shares yet to be issued - - - - 66,250 66,250 --------- ---------- ---------- --------- ----------- -------- --------- Balance at 31 December 2007 149,292 (3,714,011) 4,991,266 12,473 27,381 66,250 1,532,651 ========= ========== ========== ========= =========== ========= ========= Capital Share based Share Retained Share redemption payment Shares to capital earnings premium reserve reserve be issued Total Â£ Â£ Â£ Â£ Â£ Â£ Â£ Balance at 1 January 2006 143,478 (4,324,776) 4,971,617 12,473 5,812 - 808,604 Loss for year (158,301) - - - - (158,301) Issue of share capital 4,180 - 10,450 - - - 14,630 Recognition of share-based payments - - - 2,293 - 2,293 ---------- --------- --------- -------- --------- --------- --------- Balance at 31 December 2006 147,658 (4,483,077) 4,982,067 12,473 8,105 - 667,226 ========== ========== ========== ========= ======== ========= ========== 19. RETIREMENT BENEFITS The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension charge represents contributions payable by the group to the fund and amounted to Â£28,700 (2006 - Â£26,647). Contributions amounting to Â£nil (2006 - Â£nil) were payable to the fund and are included in creditors. 20. OTHER FINANCIAL COMMITMENTS As part of the sale agreement of the park installations during 2003 the Group guaranteed the lease payments to be made by the theme park group. In the event that the theme park group is unable to meet the instalments due, the Group would be liable for meeting the payments, up to a maximum of $459,876 per annum until October 2008. As part of the sale agreement of the park installations during 2007 the Group guaranteed the lease payments to be made by the theme park group. In the event that the theme park group is unable to meet the instalments due, the Group would be liable for meeting the payments, up to a maximum of $437,020 per annum until October 2009. In a similar situation as part of the sale agreement of the park installations during 2004 the Group would be liable for meeting the payments, up to a maximum of $83,612 per annum until November 2008. At the year end the company had committed to expenditure in the ordinary course of business amounting to Â£338,245 during the following year. 21. RELATED PARTY DISCLOSURES Ultimate controlling party There is no ultimate controlling party. Subsidiaries Management charges of Â£1,431,434 (2006 - Â£1,263,990) were received from Lo-Q Virtual Queuing Inc and Â£408,000 (2006 - Nil) from Lo-Q Service Canada Inc during the year, both 100% subsidiaries of Lo-Q plc. Other related parties IXXI Limited, a company in which A Bone, a Lo-Q plc director, is a director invoiced the company in respect of directors fees Â£12,667 (2006 - Â£12,860) of which Â£1,734 (2006 - Â£2,512) was outstanding at the year end. Jeff McManus Limited, a company in which J McManus, a Lo-Q plc director, is a director invoiced the company in respect of directors fees Â£70,950 (2006 - Â£47,673) of which Â£9,085 (2006 - Â£5,644) was outstanding at the year end. Barnwell Limited, a company in which J Lillywhite, a Lo-Q plc director, is a director invoiced the company in respect of directors fees Â£12,667 (2006 - Â£13,000) of which Â£1,062 (2006 - Â£2,399) was outstanding at the year end. All of the above outstanding amounts are included within trade creditors. Key management compensation The key management staff are considered to be the directors and their remuneration is disclosed in note 3 to the accounts. 22. CONSOLIDATED STATEMENTOF CHANGES IN SHAREHOLDERS' EQUITY Group 2007 2006 Â£ Â£ Profit/(Loss) for the financial year 546,350 (269,208) Issued Share Capital 1,634 4,180 Share Premium 9,199 10,450 Shares to be issued 66,250 - Share based payment 19,276 2,293 Foreign Exchange 42,981 (42,917) --------- --------- Net addition/(reduction) to shareholders' funds 685,690 (295,202) Opening shareholders' funds 513,402 808,604 --------- -------- Closing shareholders' funds 1,199,092 513,402 ========== ======== Company 2007 2006 Â£ Â£ Profit/(Loss) for the financial year 769,066 (158,301) Issued Share Capital 1,634 4,180 Shares to be issued 66,250 - Share Premium 9,199 10,450 Share based payment 19,276 2,293 -------- -------- Net addition/(reduction) to shareholders' funds 865,425 (141,378) Opening shareholders' funds 667,226 808,604 --------- -------- Closing shareholders' funds 1,532,651 667,226 ========== ======== 23. SHARE-BASED PAYMENT TRANSACTIONS Equity settled share option schemes For details of share option schemes in place during the year see note 17. Details of the number of share options and the weighted average exercise price (WAEP) outstanding during the year are as follows: 2007 2006 WAEP WAEP No (pence) No (pence) Outstanding at the beginning of the year 1,383,185 10.26 1,626,185 8.74 Granted during the year 40,000 40.00 175,000 8.25 Leavers (87,296) 16.62 - - Exercised during the year (163,389) 6.45 (418,000) 3.50 ----------- ------- ---------- ------ Outstanding at the end of the year 1,172,500 11.31 1,383,185 10.26 ========== ======== ========== ======= Exercisable at the end of the year 1,132,500 9.95 1,208,185 10.55 ========== ======= =========== ====== The weighted average share price at the date of exercise for share options exercised during the year was Â£0.281 (2006 - Â£0.054). The fair values were calculated using the Black-Scholes valuation method. The inputs to the model were as follows: 2007 2006 Weighted average share price (pence) 18.18 17.901 Expected volatility 75.00 75.00 Expected life 2.00 2.00 Risk free rate (%) 4.60 4.60 Dividend yield (%) 0 0 Expected volatility was determined by calculating the historic volatility of the Groups share price over the period since flotation. 24. RECONCILIATION OF PROFIT BEFORE TAX TO CASH GENERATED FROM OPERATIONS Group 2007 2006 Â£ Â£ Profit before tax 551,235 (321,608) Depreciation charges 39,570 17,427 Share based payment 2,692 2,293 Foreign Exchange 42,981 (42,917) Finance costs 19,749 354 Finance income (4,831) (4,618) ---------- --------- 651,396 (349,069) Decrease in inventories 23,569 12,898 Increase in trade and other receivables (10,818) (66,089) (Decrease)/Increase in trade and other payables (285,191) 357,429 ---------- -------- Cash generated from operations 378,956 (44,831) ========== ========== Company 2007 2006 Â£ Â£ Profit before tax 767,087 (210,731) Depreciation charges 35,496 7,013 Share based payment 2,692 2,293 --------- -------- 805,275 (201,425) Decrease in inventories 53,438 32,369 Increase in trade and other receivables (674,381) (51,320) (Decrease)/Increase in trade and other payables 85,858 (6,029) ----------- --------- Cash generated from operations 270,190 (226,405) =========== ========= 25. CASH AND CASH EQUIVALENTS The amounts disclosed on the cash flow statement in respect of cash and cash equivalents are in respect of these balance sheet amounts: Group Year ended 31 December 2007 2007 2006 Â£ Â£ Cash and cash equivalents 630,854 643,968 ======== ======= Year ended 31 December 2006 2007 2006 Â£ Â£ Cash and cash equivalents 643,968 637,429 ========= ======= Company Year ended 31 December 2007 2007 2006 Â£ Â£ Cash and cash equivalents 79,249 179,016 ======== ======== Year ended 31 December 2006 2007 2006 Â£ Â£ Cash and cash equivalents 79,249 179,016 ======== ======== 26. ACQUISITION OF BUSINESS TEXT-Q RESERVATIONS SYSTEM The company purchased all the intellectual property rights to a system, which allows mobile phone users to reserve a place in line for participating attractions, from Avius Experience Limited. Known as Text-Q, this system expands the range of reservation solutions the Company can offer to the leisure industry. The consideration to Avius, a proportion of which is deferred subject to certain conditions being satisfied, is to be satisfied through cash, the issue of Lo-Q shares and options in Lo-Q shares. As part of this, 125,000 new ordinary shares in the Company have been issued. The investment in this intellectual property has been capitalised as an intangible fixed asset. A breakdown of the consideration paid is shown below: 2007 Â£ Cash 105,000 Shares in Lo-Q plc 66,250 Share options in Lo-Q plc 16,582 Legal fees capitalised 21,368 -------- 209,200 ======= 27. COMMITMENTS UNDER OPERATING LEASES At 31 December 2007 the group had annual commitments under non-cancellable operating leases as set out below Group 2007 2006 Land and buildings Â£ Â£ Less than one year 58,425 46,876 Within 2 to 5 years 21,633 37,020 -------- ------- 80,058 83,896 ======== ======== Company 2007 2006 Land and buildings Â£ Â£ Less than one year 40,735 45,454 Within 2 to 5 years - 37,020 -------- ------- 40,735 87,424 ======== ======== This preliminary statement does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The figures for the year ended 31 December 2006 have been extracted from the statutory financial statements, which have been filed with the Registrar of Companies. The auditors' report on those financial statements was unmodified. The audited financial statements will be posted to shareholders shortly and will be available from the registered office of the Company, 42 Portman Road, Reading Berkshire RG30 1EA and on the Company's website, www.lo-q.com. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Accesso Technology Group (ACSO)

Full Archive

UK 100

Latest directors dealings

All directors dealings today