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Frame 1 PLC (FRME)

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Wednesday 04 June, 2008

Frame 1 PLC

Interim Results

RNS Number : 9657V
Frame 1 PLC
04 June 2008
 



FRAME 1 PLC

INTERIM RESULTS

FOR THE 6 MONTHS' PERIOD ENDED 31 MARCH 2008



CHAIRMAN'S STATEMENT


On the 8 March 2008 the company changed its name from Crystalband PLC to Frame 1 PLC.

Turnover for the six months' period to 31 March 2008 amounted to £2,982k, an increase of £169k on the same period last year. I am delighted to report that this resulted in a gross profit of £988k compared to £697k for the same period last year. This represents an 8.4% increase in the gross margin and is wholly down to the increased efficiency of the way the business is now managed and operated. We are now, at last, seeing the benefits of the difficult decisions taken at the end of 2006 and the efforts of the new management team since then.

Given the losses sustained in the periods prior to my chairmanship, we are not yet able to declare a dividend.

Unfortunately, one of the larger Local Authority contracts that has been a valuable source of business for the company over the past couple of years has now ended. Whilst we are hoping that we may be successful in our attempts to secure future Local Authority contracts, I am happy to be able to report that this turnover has been replaced by a number of other contracts with commercial customers, many with improved margins.

The management team is also actively considering a number of other initiatives to grow the core business and further improve efficiencies. I am, therefore, very pleased to report that now we have turned the business to profitability I am confident that we can now see the business grow.

I believe the business is now in a position to expand in a controlled and manageable manner. However, I have to acknowledge that the market remains challenging and I suspect will remain difficult throughout the remainder of the current financial year. That said, I am delighted to be able to report that we are continuing to trade profitably. In the current difficult trading climate and given the difficulties we have come through since the change in management, this will be a tremendous achievement.

Alan Rothwell

Chairman

4th June 2008 


  CONSOLIDATED INCOME STATEMENT

FOR THE 6 MONTHS' PERIOD ENDED 31 MARCH 2008

______________________________________________________________________



6 months to

6 months to

Year end



31.03.08

31.03.07

30.09.07



Unaudited

Unaudited

Audited


Notes

£'000

£'000

£'000

Revenue


2,982

2,813

5,920

Cost of sales


(1,994)

(2,116)

(4,174)

Gross Profit


988

697

1,746

Other operating expenses


(828)

(864)

(1,720)

Profit/(Loss) from operations


160

(167)

26

Finance income


-

11

11

Finance costs


(63)

(83)

(156)

Profit/(Loss) Before Taxation


97

(239)

(119)

Taxation


-

-

303

Profit/(Loss)for Year/Period


97

(239)

184






Basic earnings per share (pence) for profit attributable to the equity holders

2

0.347

(0.857)

0.659


All the group's activities are derived from continuing operations.

The notes at the end of this announcement form an integral part of these interim financial statements.

  CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE 6 MONTHS' PERIOD ENDED 31 MARCH 2008

______________________________________________________________________


Share Capital

Share Premium

Retained Earnings

Total Equity


£'000

£'000

£'000

£'000

Balance at 01 October 2006

139

2,769

(2,128)

780

Profit for the period

-

-

184

184

Total recognised income and expense for the period

-

-

184

184

Balance at 30 September 2007

139

2,769

(1,944)

964







Share Capital

Share Premium

Retained Earnings

Total Equity


£'000

£'000

£'000

£'000

Balance at 01 October 2006

139

2,769

(2,128)

780

(Loss) for the period

-

-

(239)

(239)

Total recognised income and expense for the period

-

-

(239)

(239)

Balance at 31 March 2007

139

2,769

(2,367)

541







Share Capital

Share Premium

Retained Earnings

Total Equity


£'000

£'000

£'000

£'000

Balance at 01 October 2007

139

2,769

(1,944)

964

Profit for the period

-

-

97

97

Total recognised income and expense for the period

-

-

97

97

Balance at 31 March 2008

139

2,769

(1,847)

1,061







  CONSOLIDATED BALANCE SHEET

FOR THE 6 MONTHS' PERIOD ENDED 31 MARCH 2008

________________________________________________________________________



6 months to


6 months to


Year to



31.03.08


31.03.07


30.09.07



Unaudited


Unaudited


Audited





Restated


Restated



£'000


£'000


£'000

Assets







Non Current Assets







Intangible assets


2,894


2,894


2,894

Property, plant and equipment


448


514


481



3,342


3,408


3,375

Current Assets







Inventories


223


208


246

Trade and other receivables


1,642


1,135


1,606

Cash and cash equivalents


1


96


1



1,866


1,439


1,853








Liabilities







Current Liabilities







Trade and other payables


(4,147)


(4,220)


(2,631)








Net Current Liabilities


(2,281)


(2,781)


(778)








Non Current Liabilities







Interest bearing borrowings




(86)


(1,633)

Net assets


1,061


541


964








Capital and reserves attributable to the equity holders of the company







Ordinary shares


139


139


139

Share premium 


2,769


2,769


2,769

Retained profits


(1,847)


(2,367)


(1,944)

Total equity


1,061


541


964









  CONSOLIDATED CASHFLOW STATEMENT

FOR THE 6 MONTHS' PERIOD ENDED 31 MARCH 2008

______________________________________________________________________



6 months to

6 months to

Year end



31.03.08

31.03.07

30.09.07



Unaudited

Unaudited

Audited




Restated

Restated



£'000

£'000

£'000

Cash Flows from Operating Activities





Profit / (loss) before tax


97

(239)

(119)






Non Cash Adjustments





Depreciation


33

36

71

Cash Flows before changes in working capital


130

(203)

(48)






Decrease in inventories


23

44

7

(Increase)/ Decrease in trade receivables


(37)

1,833

1,684

(Decrease) in trade payables


(115)

(1,657)

(1,484)



(129)

220

207






Cash flows from investing activities





Payments to acquire property, plant and equipment


-

(14)

(18)

Cash Inflow Before Financing


1

3

141






Financing





Proceeds from new short term loans



250

0

Principal payment on hire purchase agreements


(42)

(41)

(81)

Net Cash (Outflow)/ Inflow from Financing


(42)

209

(81)

Net (Decrease)/ Increase in Cash and cash equivalents


(41)

212

60






Cash and cash equivalents as at 01 October 2007


(56)

(116)

(116)

Cash and cash equivalents as at 31 March 08


(97)

96

(56)


  NOTES TO THE ACCOUNTS

FOR THE 6 MONTHS' PERIOD ENDED 31 MARCH 2008

______________________________________________________________________

1.  Accounting Policies

The Group's interim financial statements for the six months ended 31 March 2008 are prepared in accordance with IFRS and the comparatives for those periods are restated to reflect IFRS, except where otherwise required or permitted by IFRS 1, 'First Time Adoption of IFRS'.


2. Earnings Per Share


6 months to

6 months to

Year end


31.03.08

31.03.07

30.09.07


Unaudited

Unaudited

Audited



Restated

Restated


£'000

£'000

£'000





Net profit / (loss) attributable to equity shareholders for basic earnings per share

97

(239)

184










6 months to

6 months to

Year end


31.03.08

31.03.07

30.09.07


Unaudited

Unaudited

Audited





Earnings per ordinary share

0.347

(0.857)

0.659

Earnings per share have been calculated on the net basis on the profit on ordinary activities after taxation using the weighted average number of ordinary shares in issue 27,886,401.


3. Transition to IFRS

The International Accounting Standards Board (IASB) issued IFRS 1 'First Time Adoption of International Financial Reporting Standards' to establish requirements for the first time adoption of IFRS. In general a company is required to select an accounting policies that comply with IFRS and apply these accounting policies retrospectively to all the periods presented in the first IFRS financial statements. The opening IFRS balance sheet is to be prepared at the date of transition to IFRS based upon the selected accounting policies under IFRS. The transition date is the start of the earliest period for which full comparative information is presented in accordance with IFRS. The Group's transition date is 01 October 2006. 

The Group has elected to take advantage of provisions within IFRS1 'First Time Adoption of International Financial Reporting Standards' which offers certain exemptions from applying IFRS to the opening sheet prepared at 30 September 2007.

The comparative figures shown in this report have been restated to reflect the new accounting policies under IFRS. Reconciliations and explanations of the effects of adopting the new policies on the Group's equity, profits and cash flows are shown below:

  • IFRS3 'Business combinations' has not been applied to business combinations prior to 01 April 2007. The carrying amount of the opening IFRS balance sheet at 01 April 2007 is therefore its carrying amount under UK GAAP.


Reconciliation of financial impacts on reported net assets and profit



30 September 2007

31 March 2007



£'000

£'000

UK GAAP net assets as previously reported


461

804

Business combinations 


80

160

IFRS net assets


541

964

The financial impact on profit for the period is as follows;



30 September 2007

31 March 2007



£'000

£'000

UK GAAP (loss) / profit as previously reported


(319)

24

Business combinations - Goodwill amortisation


80

160

IFRS profit


(239)

184


Reconciliation of income statements from UK GAAP to IFRS

Year Ended 30 September 2007



GAAP differences




UK GAAP

Business Combinations

IFRS



Audited

Unaudited

Unaudited



£'000

£'000

£'000

Revenue


5,920

-

5,920

Cost of sales


(4,174)

-

(4,174)

Gross Profit


1,746

-

1,746






Other operating expenses


(1,880)

160

(1,720)

(Loss)/ Profit from operations


(133)

160

28

Finance income


11

-

11

Finance costs


(156)

-

(156)

(Loss)/ Profit Before Taxation


(279)

160

(119)






Taxation


303

-

303

Profit for Year/Period


24

160

184






Basic earnings per share (pence) for profit attributable to the equity holders


0.09p

-

0.659p





Reconciliation of income statements from UK GAAP to IFRS

Period ended 31 March 2007



GAAP differences





UK GAAP

Business Combinations


IFRS



Unaudited

Unaudited

Unaudited



£'000

£'000

£'000

Revenue


2,813

-

2,813

Cost of sales


(2,116)

-

(2,116)

Gross Profit


697

-

697






Other operating expenses


(944)

80

(864)

Profit/(Loss) from operations


(247)

80

(167)






Finance income


11

-

11

Finance costs


(83)

-

(83)

Profit/(Loss) Before Taxation


(319)

80

(239)






Taxation


-

-

-

Profit/(Loss)for Year/Period


(319)

80

(239)






Basic earnings per share (pence) for profit attributable to the equity holders


(1.1)p


(0.857)p





Reconciliation of balance sheets for UK GAAP to IFRS

Year Ended 30 September 2007



GAAP differences




UK GAAP

Business Combinations

IFRS




Audited

Unaudited

Unaudited




£'000

£'000

£'000


Assets






Non Current Assets






Intangible assets


2,734

160

2,894


Property, plant and equipment


481

-

481




3,215

160

3,375


Current Assets






Inventories


246

-

246


Trade and other receivables


1,606

-

1,606


Cash and cash equivalents


1

-

1




1,853

-

1,853








Liabilities






Current Liabilities






Trade and other payables


(2,631)

-

(2,631)


Net Current Liabilities


(778)

-

(778)








Non Current Liabilities






Interest bearing borrowings


(1,633)

-

(1,633)








Net assets


804

160

964








Capital and reserves attributable to the equity holders of the company






Ordinary shares


139

-

139


Share premium 


2,769

-

2,769


Retained profits


(2,104)

160

(1,944)


Total equity


804

160

964






Reconciliation of balance sheets for UK GAAP to IFRS

Period ended 31 March 2007



GAAP differences




UK GAAP

Business Combinations

IFRS



Unaudited

Unaudited

Unaudited



£'000

£'000

£'000

Assets





Non Current Assets





Intangible assets

i

2,814

80

2,894

Property, plant and equipment


514

-

514



3,328

80

6,322

Current Assets





Inventories


208

-

208

Trade and other receivables


1,135

-

1,135

Cash and cash equivalents


96

-

96



1,439

-

1,439






Liabilities





Current Liabilities





Trade and other payables


(4,220)

-

(4,220)

Interest bearing borrowings





Net Current Liabilities


(2,781)

-

(2,781)






Non Current Liabilities





Interest bearing borrowings


(86)

-

(86)

Net assets


461

80

541






Capital and reserves attributable to the equity holders of the company





Ordinary shares


139

-

139

Share premium 


2,769

-

2,769

Retained profits


(2,447)

80

(2,367)






Total equity


461

80

541






i) Goodwill

Goodwill recognised under UK GAAP prior to the date of transition is recognised as its net book value at the transition date as allowed under IFRS 1 and then tested annually for impairment.

Impairment of Goodwill

Goodwill is not amortised but is reviewed for impairment on an annual basis for changes in circumstances that indicate the carrying value may be impaired. This is done by estimating the future cash flows and choosing a suitable discount rate in order to calculate the present value of the cash flows. No impairment loss was recognised.


The board of directors

A Rothwell

G Dallimore

G Torr


Chairman

A Rothwell


Company secretary

S Stembridge


Registered office

Unit 22 Castle Park Industrial Estate 

Flint

CH6 5XA


Auditors

Cowgill Holloway LLP

Regency House

45-51 Chorley New Road

Bolton

Lancs

BL1 4QR


Bankers

National Westminster Bank Plc

22 Castle Street

Liverpool

L2 0UP


Nomad

W H Ireland 

11 St James's Square

Manchester

M2 6WH


Solicitors

Atticus Legal LLP

Steam Packet House

76 Cross Street

Manchester

M2 4JU

For further information please contact;

Sharon Stembridge, Frame 1 PLC - Tel 01352 763333

Daniel Bate, WH Ireland - Tel 0161 832 2174



This information is provided by RNS
The company news service from the London Stock Exchange
 
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