Interim Results

RNS Number : 9612O

Volvere PLC

27 September 2011

 



Press Release

27 September 2011

Volvere plc

("Volvere" or the "Group")

Interim Results for the six months ended 30 June 2011

Volvere plc (AIM:VLE) the growth and turnaround investment company, announces its Interim Results for the six months ended 30 June 2011.

Highlights

·	Consolidated net assets per share (excluding non-controlling interests) of £3.48 (30 June 2010: £3.18, 31 December 2010: £3.43)
·	Group net assets: £19.04 million (30 June 2010: £18.43 million, 31 December 2010: £20.08 million)
·	Cash and marketable securities: £18.45 million (30 June 2010: £20.77 million, 31 December 2010: £20.92 million)
·	Group revenue: £4.67 million (30 June 2010: £4.58 million, Year ended 31 December 2010: £8.98 million)
·	Group profit before tax: £0.92 million (6 months ended 30 June 2010: £0.15 million, Year ended 31 December 2010 (continuing operations): £0.94 million)
·	Investment environment challenging

For further information:

Volvere plc
Jonathan Lander, CEO	Tel: [phone]
	www.volvere.co.uk

Arbuthnot Securities Limited, Nomad and Broker
James Steel / Rebecca  Gordon	Tel: [phone]
	www.arbuthnot.co.uk

Chairman's Statement

At the AGM in June this year, I was elected by the Board to be your Chairman, following the retirement of Lord Kalms of Edgware.

We entered the second half of 2011 with £18 million of funds available for investment. This was after spending over £2 million on buying back our own shares in May.

There is no doubt that the current investment environment is challenging. Turnarounds in particular are often roller-coaster rides. However this is the kind of environment for which I think your management team is most suited, and, based on our long-term track record, I have confidence that we will, in time, deliver value for shareholders.

David Buchler

Chairman

27 September 2011

Chief Executive's Statement

I am pleased that net assets per share grew, albeit modestly, in the first half of 2011. This was a period during which our subsidiaries and our investment portfolio performed satisfactorily. 

Online marketing and data services

Interactive Prospect Targeting Limited ("IPT"), our online marketing and data services company, which is 45.5% owned by Volvere performed satisfactorily. For the first half of 2011, revenue and operating profit were £4.37 million and £0.26 million respectively (6 months ended 30 June 2010: £4.27 million and £0.63 million).  Revenues were slightly higher than the corresponding period in 2010, and also higher than the level in the second half of 2010.  Profits were lower, however, as there was significantly less List Rental revenue in the period to 30 June 2011.  This activity has the highest gross margin.  List Rental revenues tend to correlate with the general level of economic activity, and that has, at best, been lacklustre.  During the period, IPT also invested considerable amounts in a new quiz site "Quizfactor" which is not expected to contribute to revenues until 2012. IPT is not immune to the sluggish economic environment, however the company's continued profitability is testament to the hard work of the management and staff whom we continue to support.

Security solutions

The security solutions business, Sira Defence and Security Limited ("SDS") undertook a number of extensions to existing projects as well as new ones. Whilst revenues and pre-tax profits for the period were broadly static at £0.28 million and £0.04 million, the results were ahead of the second half of 2010 (Year ended 31 December 2010: £0.47 million and £0.04 million).  Although public sector spending continues to be uncertain, there has been encouraging successes on projects this year which, funding permitting, will most probably lead to follow on work.  Sales of SiraView, the digital CCTV-viewer, have continued steadily and we are continuing to enhance and develop the product.

Further information is set out in the financial review and in note 2, segmental information.

Cash and investments

At the period end, the Group had cash of £13.08 million and available for sale investments, with a valuation of £5.36 million.  During the period the Group purchased £2.05 million of its own shares.

The financial performance of each of the Group's businesses and its investments is set out in detail in the financial review below.

Acquisitions and future strategy

Following the period end we acquired a majority stake in Shire Foods, a manufacturer of frozen pies, pasties and sausage rolls.  We are working hard to put the business on a more solid foundation and some progress is being made in that regard, although, as in any turnaround, it is much too early to be confident of success. In August the financial markets started to fall as fears over the solvency of some European states, and banks, increased.  Falls in, and the volatility of, markets is negative for the assets and businesses that we own, but conversely is very good for assets that we seek to buy.  The current risk aversion of most investors and acquirers means that investment holding periods for us may be longer and the requirement to rely on our own sources of funding a sine qua non.  I do not see any end in the near term to this investment environment.

Jonathan Lander

Chief Executive

27 September 2011

Financial Review

This financial review covers the Group's performance during the period ended 30 June 2011.  It should be read in conjunction with the Chairman's and Chief Executive's Statements.

Revenue and operating performance

Detailed information about the Group's segments is set out in note 2 to these interim results and should be read in conjunction with this financial review.

Online marketing and data services

IPT's like-for-like revenue increased by 2.3% from £4.27 million to £4.37 million but the higher-margin List Rental business did not perform as strongly.  This, coupled with investments made in new customer acquisition channels, resulted in reduced profitability.  The profit before interest and tax was £0.26 million (30 June 2010: £0.63 million; 31 December 2010: £1.14 million).

Dividends paid by IPT in the period were £0.55 million, of which non-controlling interests received £0.3 million and Volvere £0.25 million.

Security solutions

Security solutions revenue was virtually unchanged from the prior period at £0.28 million for the period (6 months ended 30 June 2010: £0.29 million; Year ended 31 December 2010: £0.47 million).  Development work continued on key projects for clients with encouraging results.  SiraView continued to make steady progress as more police forces adopted it, with the recent riots in the UK highlighting its usefulness in reviewing CCTV footage.  Revenues improved over the second half of 2010 and, although the final result will depend on the extent to which certain client projects are funded in the second half, it is expected that overall earnings for the year as a whole will be enhanced.  The profit before tax for the period was £0.04 million  ( 6 months ended 30 June 2010: £0.05 million; Year ended 31 December 2010: £0.04 million).

Statement of financial position

Cash and cash equivalents

Cash at the period end was £13.08 million (30 June 2010: £9.95 million, 31 December 2010: £3.11 million).  The increase compared to 31 December 2010 was a result principally of the disposal of certain available for sale investments, offset by the purchase by the Group of its own shares.  The total value of shares purchased in the six months to 30 June 2011 was £2.05 million, bringing the total to date to £2.9 million.

Available for sale investments

At the period end the Group had available for sale investments with a market value of £5.36 million (30 June 2010: £10.8 million, 31 December 2010: £17.8 million); the base cost of these investments was £4.8 million (30 June 2010: £9.9 million, 31 December 2010: £16.4 million).  The investments are in a mixture of non-investment grade bank fixed income securities as well as other investment grade corporate bond and asset-backed securities funds of mainly US issuers.

Certain of the investments are denominated in US dollars (base cost $4 million, valuation $4.3 million) and the Group has entered into a foreign exchange contract for the sale of $4.25 million for sterling in November 2011.  The difference between the foreign exchange contract rate and the spot rate has resulted in an increase in the fair value of the derivative contract and hence a credit to the income statement of £95,000 has been recognised in the period.

Other financial liabilities

During the period most of the company's issued A and B shares (the "Incentive Shares") were converted into Ordinary Shares.  In prior periods, due to the treatment of the Incentive Shares as liabilities rather than equity (in accordance with International Accounting Standard 32), there existed financial liabilities of £1.38 million (30 June 2010) and £1.36 million (31 December 2010).  At 30 June 2011, this liability had been reduced to £13,000.  The credit arising from the conversion has been credited directly to reserves, with a corresponding reduction in current liabilities.

Earnings per share and share capital

The basic and diluted earnings per ordinary share were 13.35 pence and 13.31 pence respectively (6 months ended 30 June 2010: loss per share 1.74 pence; Year ended 31 December 2010: basic and diluted earnings per share 19.44 pence and 19.39 pence respectively).

During the period the Group purchased a further 725,284 of its ordinary shares of £0.0000001 each ("Ordinary Shares"), which were subsequently held in treasury, for a total consideration including costs of £2.05 million, representing an average price per Ordinary Share of 283 pence.

Hedging

It is not the Group's policy to enter into derivative instruments to hedge interest rate risk.

Risk factors

The Company and Group face a number of specific business risks that could affect the Company's or Group's success.  The Company invests in distressed businesses and securities, which by their nature, often carry a higher degree of risk than those that are not distressed.  The Group's businesses are principally engaged in the provision of services that are dependent on the continued employment of the Group's employees and availability of suitable profitable workload.  In addition, the online marketing and data services segment is heavily dependent on IT systems and infrastructure, the unavailability of which could impact the Group materially.

Key performance indicators

The Group uses key performance indicators suitable for the nature and size of the Group's businesses.  This is primarily monthly reports of profitability, levels of working capital and workload.  Order intake and chargeable staff utilisation is monitored weekly and reported monthly in respect of the security solutions segment.  In the online marketing and data services segment, the Group monitors traffic statistics both in terms of yield and cost as well as overall profitability.  The segmental analysis in note 2 to this interim report summarises the financial performance of each segment.

Corporate governance

The Board gives careful consideration to the principles of corporate governance as set out in the UK Corporate Governance Code issued by the Financial Reporting Council in May 2010 (the "Corporate Governance Code").  However, the Company is relatively small and it is the opinion of the Directors that not all the provisions of the Corporate Governance Code are relevant or desirable for a company of Volvere's size.

The Company has established an Audit Committee and a Remuneration Committee with formal terms of reference and which comprise the Chairman and Non-Executive Directors.  The Board meets regularly and has ultimate responsibility for the management of the Company.

Dividends

In accordance with the policy set out in the prospectus on admission to AIM, the Board does not currently intend to recommend payment of a dividend and prefers to retain profits as they arise for investment in future opportunities and to make purchases of the Company's own shares where the Directors consider these to represent value for shareholders.

Nick Lander

Chief Financial & Operating Officer

27 September 2011

Consolidated income statement

	Note	6 months to 30 June 2011	6 months to 30 June 2010	Year ended 31 December 2010
		£'000	£'000	£'000
Continuing operations
Revenue		4,668	4,581	8,979
Cost of sales		(1,845)	(1,356)	(2,739)
Gross profit		2,823	3,225	6,240
Administrative expenses		(3,086)	(3,248)	(6,224)
Operating (loss)/profit		(263)	(23)	16
Investment revenues		162	350	582
Other gains and losses	3	1,008	104	588
Finance expense	4	-	(307)	(295)
Finance income		14	21	46
Profit before tax		921	145	937
Tax		(105)	(26)	1,116
Profit for the period from continuing operations		816	119	2,053
Discontinued operations
Profit for the period from discontinued operations	5	-	100	176
Profit for the period		816	219	2,229
Attributable to:
- Equity holders of the parent		730	(99)	1,093
- Non-controlling interests	8	86	318	1,136
		816	219	2,229
Earnings/(loss) per share	6
Continuing operations
- Basic (pence)		13.35p	(3.49)p	16.31p
- Diluted (pence)		13.31p	(3.49)p	16.27p
Discontinued operations
- Basic (pence)		- p	1.75p	3.13p
- Diluted (pence)		- p	1.75p	3.12p
Total
- Basic (pence)		13.35p	(1.74)p	19.44p
- Diluted (pence)		13.31p	(1.74)p	19.39p

Consolidated statement of comprehensive income

		6 months to 30 June 2011	6 months to 30 June 2010	Year ended 31 December 2010
		£'000	£'000	£'000
Profit for the period		816	219	2,229
Other comprehensive income
Available-for-sale investments
- current period (losses)/gains		(29)	675	1,521
- deferred tax on current period gains		-	-	(164)
- reclassification to profit		(825)	(138)	(450)
Other comprehensive income, net of tax		(854)	537	907
Total comprehensive income for the period		(38)	756	3,136
Attributable to:
Equity holders of the parent		(124)	438	2,000
Non-controlling interests		86	318	1,136
		(38)	756	3,136

Consolidated statement of changes in equity

Six months to 30 June 2011	Share capital £'000	Share premium £'000	Revaluation reserve £'000	Share option reserve £'000	Retained earnings £'000	Total £'000	Non-controlling interests £'000	Total £'000
Changes in equity
Total income recognised directly in equity	-	-	(854)	-	-	(854)	-	(854)
Profit for the period	-	-	-	-	730	730	86	816
Total comprehensive income for the period	-	-	(854)	-	730	(124)	86	(38)
Balance at 1 January 2011	9	3,636	1,258	-	13,947	18,850	1,228	20,078
Treasury share purchases	-	-	-	-	(2,052)	(2,052)	-	(2,052)
Conversion of shares treated as debt into equity	-	-	-	-	1,347	1,347	-	1,347
Dividends paid by subsidiaries to non-controlling interests	-	-	-	-	-	-	(300)	(300)
Balance at 30 June 2011	9	3,636	404	-	13,972	18,021	1,014	19,035

Six months to 30 June 2010	Share capital £'000	Share premium £'000	Revaluation reserve £'000	Share option reserve £'000	Retained earnings £'000	Total £'000	Non-controlling interests £'000	Total £'000
Changes in equity
Total income recognised directly in equity	-	-	537	-	-	537	-	537
Profit for the period	-	-	-	-	(99)	(99)	318	219
Total comprehensive income for the period	-	-	537	-	(99)	438	318	756
Balance at 1 January 2010	-	3,635	351	90	13,693	17,769	463	18,232
Equity share options cancelled	-	-	-	(90)	90	-	-	-
Treasury share purchases	-	-	-	-	(139)	(139)	-	(139)
Change in non-controlling share	-	-	-	-	(81)	(81)	81	-
Dividends paid by subsidiaries to non-controlling interests	-	-	-	-	-	-	(420)	(420)
Balance at 30 June 2010	-	3,635	888	-	13,464	17,987	442	18,429

Year ended 31 December 2010	Share capital £'000	Share premium £'000	Revaluation reserve £'000	Share option reserve £'000	Retained earnings £'000	Total £'000	Non-controlling interests £'000	Total £'000
Changes in equity
Total income recognised directly in equity	-	-	907	-	-	907	-	907
Profit for the year	-	-	-	-	1,093	1,093	1,136	2,229
Total comprehensive income for the year	-	-	907	-	1,093	2,000	1,136	3,136
Balance at 1 January 2010	-	3,635	351	90	13,693	17,769	463	18,232
Equity shares issued	9	1	-	-	-	10	-	10
Purchase of own shares	-	-	-	-	(880)	(880)	-	(880)
Exercise of options in subsidiary	-	-	-	(90)	41	(49)	49	-
Dividends paid by subsidiaries to non-controlling interests	-	-	-	-	-	-	(420)	(420)
Balance at 31 December 2010	9	3,636	1,258	-	13,947	18,850	1,228	20,078

Consolidated statement of financial position

		30 June 2011	30 June 2010	31 December 2010
	Note	£'000	£'000	£'000
Assets
Non-current assets
Goodwill	7	305	305	305
Property, plant & equipment		224	276	266
Deferred tax asset		870	-	966
Total non-current assets		1,399	581	1,537
Current assets
Trade and other receivables		1,604	1,366	1,483
Cash and cash equivalents		13,084	9,954	3,109
Available for sale investments		5,362	10,815	17,812
Total current assets		20,050	22,135	22,404
Total assets		21,449	22,716	23,941
Liabilities
Current liabilities
Trade and other payables		(2,399)	(2,751)	(2,463)
Taxation		-	(155)	(41)
Other financial liabilities	4	(13)	(1,381)	(1,359)
Total current liabilities		(2,412)	(4,287)	(3,863)
Total liabilities		(2,412)	(4,287)	(3,863)
TOTAL NET ASSETS		19,037	18,429	20,078
Equity
Share capital		9	-	9
Share premium account		3,636	3,635	3,636
Revaluation reserve		404	888	1,258
Share option reserve			-	-
Retained earnings		13,972	13,464	13,947
Capital and reserves attributable to equity holders of the Company		18,021	17,987	18,850
Non-controlling interests	8	1,016	442	1,228
TOTAL EQUITY		19,037	18,429	20,078

Consolidated statement of cash flows

		6 months to 30 June 2011	6 months to 30 June 2011	6 months to 30 June 2010	6 months to 30 June 2010	Year ended 31 December 2010	Year ended 31 December 2010
	Note	£'000	£'000	£'000	£'000	£'000	£'000
Profit for the period			816		219		2,229
Adjustments for:
Investment revenues		(162)		(350)		(582)
Other gains and losses		(1,008)		(104)		(588)
Finance expense	4	-		307		295
Finance income		(14)		(21)		(46)
Gain arising on disposal of discontinued operations		-		(100)		(176)
Income tax expense/(credit)		105		26		(1,116)
Tax paid		(50)		-		(105)
Depreciation		95		110		232
Foreign exchange revaluation (gain)/loss		(95)		143		90
Share based payment expenses		-		-		-
			(1,129)		11		(1,996)
Operating cash flows before movements in working capital			(313)		230		233
(Increase)/decrease in trade and other receivables			(136)		67		(140)
Increase/(decrease) in trade and other payables			7		(365)		(306)
Cash used in operations			(442)		(68)		(213)
Interest paid			-		-		-
Net cash from operating activities			(442)		(68)		(213)
Investing activities
Purchase of additional shares in subsidiary		-		(2)		(3)
Disposal of subsidiary, net of costs of disposal and cash disposed		-		-		(71)
Shares issued to non-controlling interests		-		40		-
Purchase of available for sale investments		-		-		(12,141)
Income from available for sale investments		202		507		706
Disposal of available for sale investments		12,606		1,246		7,403
Purchases of property, plant and equipment		(53)		(55)		(167)
Interest received		14		21		46
Net cash generated from investing activities			12,769		1,757		(4,227)
Financing activities
Issue of share capital		-		-		40
Purchase of own shares (treasury shares)		(2,052)		(139)		(880)
Repayment of borrowings		-		(13)		(28)
Dividend paid		(300)		(420)		(420)
Net cash used in financing activities			(2,352)		(572)		(1,288)
Net increase/(decrease)  in cash and cash equivalents			9,975		1,117		(5,728)
Cash and cash equivalents at beginning of period			3,109		8,837		8,837
Cash and cash equivalents at end of period			13,084		9,954		3,109

Volvere plc

Notes forming part of the unaudited interim results for the period ended 30 June 2011

1          Financial information

The financial information for the period ended 30 June 2011 and the comparative figures for the period ended 30 June 2010 have not been reviewed or audited by the Group's auditors and have been prepared on the basis of the accounting policies adopted by the Group under IFRS.  The same accounting policies and methods of computation are followed in the interim financial report as published by the company on 31 March 2011 in its annual financial statements, which are available on the Company's website at www.volvere.co.uk.

The comparative figures for the year ended 31 December 2010 have been prepared under IFRS.  They do not constitute statutory accounts as defined by the Companies Act 2006.  The accounts for the 12 months ended 31 December 2010 received an unmodified auditor's report and have been filed with the Registrar of Companies.

The Group has estimated an annualised effective tax rate of 11%.  The effective rate is significantly lower than prevailing corporation tax rates in the UK because of the availability of accumulated tax losses in certain Group companies.

Copies of this statement will be available to members of the public at the Company's registered office: York House, 74-82 Queen Victoria Street, London, EC4N 4SJ and on its website www.volvere.co.uk.

2          Segmental information

All revenue arose through services rendered in the principal activities of online marketing and data services, security solutions and investing and management services.

The Group's primary reporting format for reporting segment information is business segments.

Six months ended 30 June 2011
	Online marketing & data services £'000	Security solutions £'000	Investing and management services £'000	Eliminations £'000	Total £'000	Discontinued activities £'000
Revenue
External	4,365	282	21	-	4,668	-
Inter-segment	-	-	82	(82)	-	-
Total	4,365	282	103	(82)	4,668	-
Segment profit/(loss) (note (a))	258	39	(560)	-	(263)	-
Loss from operations					(263)	-
Investment revenues					162	-
Other gains and losses					1,008	-
Net finance income					14	-
Profit on ordinary activities before tax					921	-
Gain on disposal of discontinued operation (note 5)					-	-
Profit for the year before tax					921	-
Income tax					(105)	-
Profit for the period					816	-

	Online marketing & data services £'000	Security solutions £'000	Investing and management services £'000	Eliminations £'000	Total £'000
Statement of financial position (note (b))
Assets	3,313	197	17,939	-	21,449
Liabilities	(1,672)	(226)	(514)	-	(2,412)
Net assets	1,641	(29)	17,425	-	19,037
Other
Capital expenditure	52	-	1	-	53
Depreciation	88	2	5	-	95

Six months ended 30 June 2010
	Online marketing & data services £'000	Security solutions £'000	Investing and management services £'000	Eliminations £'000	Total £'000	Discontinued activities £'000
Revenue
External	4,265	287	29	-	4,581	-
Inter-segment	-	-	86	(86)	-	-
Total	4,265	287	115	(86)	4,581	-
Segment profit/(loss) (note (a))	633	52	(708)	-	(23)	-
Loss from operations					(23)	-
Investment revenues					350	-
Other gains and losses					104	-
Net finance expense					(286)	-
Profit on ordinary activities before tax					145	-
Gain on disposal of discontinued operation (note 5)					-	100
Profit for the year before tax					145	100
Income tax					(26)	-
Profit for the period					119	100

	Online marketing & data services £'000	Security solutions £'000	Investing and management services £'000	Eliminations £'000	Total £'000
Statement of financial position (note (b))
Assets	2,243	189	20,284	-	22,716
Liabilities	(1,657)	(143)	(2,487)	-	(4,287)
Net assets	586	46	17,797	-	18,429
Other
Capital expenditure	54	1	-	-	55
Depreciation	100	3	7	-	110

2          Segment information (continued)

Year ended 31 December 2010
	Online marketing & data services £'000	Security solutions £'000	Investing and management services £'000	Eliminations £'000	Total £'000	Discontinued activities £'000
Revenue
External	8,452	472	55	-	8,979	-
Inter-segment	-	-	203	(203)	-	-
Total	8,452	472	258	(203)	8,979	-
Segment profit/(loss) (note (a))	1,139	39	(1,162)	-	16	-
Profit from operations					16	-
Investment revenues					582	-
Other gains and losses					588	-
Net finance expense					(249)	-
Profit on ordinary activities before tax					937	-
Gain on disposal of discontinued operation (note 5)					-	176
Profit for the year before tax					937	176
Income tax					1,116	-
Profit for the year					2,053	176

	Online marketing & data services £'000	Security solutions £'000	Investing and management services £'000	Eliminations £'000	Total £'000
Statement of financial position (note (b))
Assets	3,800	260	19,881	-	23,941
Liabilities	(1,766)	(270)	(1,827)	-	(3,863)
Net assets	2,034	(10)	18,054	-	20,078
Other
Capital expenditure	161	3	3	-	167
Depreciation	212	6	14	-	232

Note (a):  The segment result has been stated before tax, interest, amortisation of intangible assets and Group management charges.

Note (b): Segment assets and liabilities have been stated excluding inter-segment balances.

	External revenue by location of customers			Non-current assets (excluding deferred tax) by location of assets
	6 months to 30 June 2011	6 months to 30 June 2010	Year ended 31 December 2010	30 June 2011	30 June 2010	31 December 2010
	£'000	£'000	£'000	£'000	£'000	£'000
UK	4,490	4,241	8,257	529	581	571
Rest of Europe	152	264	599	-	-	-
USA	-	26	2	-	-	-
Other	26	50	121	-	-	-
	4,668	4,581	8,979	529	581	571

3          Other gains and losses

Other gains and losses are the gains and losses arising on investments disposed of in the period as part of the Company's treasury management activities.

4          Finance expense

The Company's finance expense relates to the movement in the fair value of the Company's A and B shares.  During the period almost all of these were converted into equity and the resulting credit has been taken directly to reserves.  The fair value of the remaining A and B shares has been included under current liabilities (£0.01 million, 30 June 2010: £1.38 million, 31 December 2010: £1.36 million).

5          Discontinued operations

Discontinued operations referred to in the 2010 results related to the activities of Sira Certification, which was sold on 3 July 2009.

6          Earnings per share

The calculation of the basic and diluted earnings per share is based on the following data:

	6 months to 30 June 2011 £'000	6 months to 30 June 2010 £'000	Year ended 31 December 2010 £'000
Earnings for the purposes of earnings per share:
From continuing operations	730	(199)	917
From discontinued operations	-	100	176
	730	(99)	1,093
	No.	No.	No.
Weighted average number of ordinary shares for the purposes of earnings per share:
Weighted average number of ordinary shares in issue	5,469,949	5,701,234	5,623,258
Dilutive effect of potential ordinary shares	13,708	-	12,754
Weighted average number of ordinary shares for diluted EPS	5,483,657	5,701,234	5,636,012

In the period to 30 June 2010 there was no dilutive effect from share options in issue in view of the loss from continuing operations.  Employee share options totalling 35,166 were therefore excluded at that time.  At 30 June 2011 a total of 34,000 share options remained outstanding.

7          Goodwill

	30 June 2011 £'000	30 June 2010 £'000	31 December 2010 £'000
Cost
At 1 January	305	305	305
Revisions to fair value	-	-	-
At period end	305	305	305
Accumulated impairment losses
At 1 January	-	-	-
Impairment losses for period	-	-	-
At period end	-	-	-
Carrying amount	305	305	305

Goodwill represents that arising from the acquisition of Interactive Prospect Targeting Limited, being the difference between the fair value of the consideration paid and the fair value of the net assets acquired.

8          Non-controlling interests

The non-controlling interests of £1.02 million relate to the net assets attributable to the shares not held by the Group at 30 June 2011 in the following subsidiary undertakings:

	30 June 2011 £'000	30 June 2010 £'000	31 December 2010 £'000
NMT Group Limited	120	123	122
Interactive Prospect Targeting Limited	896	319	1,106
	1,016	442	1,228

9          Purchase of own shares

Pursuant to the authority granted by shareholders in February 2010 for the Company to make market purchases of its own shares, the Company purchased a further 725,284 ordinary shares of £0.0000001 ("Ordinary Share") at an average price of £2.83 per Ordinary Share during the period.  This brought total shares purchased (net of 666 Ordinary Shares used to satisfy share options) to 1,022,618 Ordinary Shares, which are being held in treasury.

10        Investment in Shire Foods Limited

On 29 July 2011 the Company invested £0.5 million in, and agreed to make up to a further £0.5 million available for working capital to, frozen food manufacturer Shire Foods Limited in return for 54% of the equity.

11        Dividend

The Board is not recommending the payment of an interim dividend for the period ended 30 June 2011.

- Ends -

 

END

 

 

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