FOR IMMEDIATE RELEASE 9 August 2010
JUDICIUM PLC
AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2010
The Directors are pleased to announce the annual results of Judicium Plc for
the year ended 31 March 2010.
PRINCIPAL ACTIVITIES
The principal activity of the Judicium Plc group during the year, conducted
through its wholly owned subsidiary Judicium Consulting Ltd, was the provision
of regulatory consultancy and training services to private and public sector
organisations in the areas of employment law, health and safety, data
protection and financial services regulation.
REVIEW OF THE BUSINESS
The key financial highlights for the year are as follows:
Year ended 31 March 2008 2009 2010
£ £ £
Turnover 1,400,671 1,537,477 1,583,541
Operating profit 104,441 292,483 195,283
Interest income 3,208 4,390 325
Profit on ordinary 107,649 296,873 195,608
activities before taxation
Turnover has developed over the period as follows:
Year ended 31 March 2008 2009 2010
£ £ £
Regulatory compliance 1,337,072 1,525,025 1,581,461
Legal marketing, and other 63,599 12,452 2,080
services
Total turnover 1,400,671 1,537,477 1,583,541
Despite the difficult economic environment, the Directors are pleased to report
that trading in the year ended 31 March 2010 has been in line with expectations
as set out in the previous financial year. We have managed to maintain and
slightly increase overall revenue, but have seen a fall in one-off consultancy
projects and an increase in bad debts. These latter factors, together with an
increase in management costs, have impacted adversely but temporarily upon
earnings.
The Directors do not believe that either factor will have any lasting impact on
the overall medium term trend which is of increasing turnover and profits. In
fact, the Directors take the view that the adverse impact of the macro economic
climate upon the group's performance is now spent and the next financial year
should see a significant increase in both turnover and pre-tax profits.
FUTURE DEVELOPMENTS
Over the course of the next 12 months the company will continue with its
strategy of developing its consultancy business, with a particular focus on
employment law / HR and financial services regulation.
It considers that despite short-term adverse economic factors, the market for
regulatory consultancy is one which offers good growth potential and that there
are currently good prospects for consolidation amongst participants in the
market.
The group is in preliminary discussions with two possible acquisition targets
and aims to conclude, subject to satisfactory terms being agreed, at least one
acquisition before the end of the next financial year. The company will
continue to look for other, suitable acquisition opportunities but will
maintain its conservative position that no deal is better than a bad deal.
PRINCIPAL RISKS AND UNCERTAINTIES
Given the trend for increased regulation of the business environment, the
directors consider that the market for the group's consultancy services is
likely to show reasonable growth over the next few years. However there is
strong competition in the market and there can be no certainty that the rate of
turnover growth experienced by the group in recent years will continue. In
particular the economic downturn may have a disproportionately detrimental
effect on companies' willingness to spend on regulatory compliance.
A key challenge in our business is ensuring that we retain our clients. We seek
to achieve this through providing excellent service.
Giving advice in regulatory areas carries the risk that clients may bring legal
action against us if they think our advice is unsatisfactory. However, our
record over the last five years has been satisfactory in this respect.
The group is a small one and inevitably is dependent on a small number of
employees. If one or more of these left, it could have an adverse effect on the
business.
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as
defined by Section 418 of the Companies Act 2006) of which the group's auditors
are unaware, and each director has taken steps that he ought to have taken as a
director in order to make himself aware of any relevant audit information and
to establish that the group's auditors are aware of that information.
DIVIDENDS
The directors do not recommend the payment of a dividend.
DIRECTORS
The following directors have held office since 1 April 2009:
L de Costa
C Dufficy
S Shukla
T Bannister
P Thompson
S Mehta
DIRECTORS' INTERESTS IN SHARES
Directors' interests in the shares of the company, including family interests,
were as follows:
Ordinary Ordinary
shares of
shares of
£0.10p each
£0.10p each
31 March 2010 31 March 2009
S Shukla 564,474 564,474
L de Costa 505,400 505,400
C Dufficy 344,148 344,148
T Bannister 15,000 15,000
P Thompson 15,000 15,000
S Mehta 118,519 118,519
DISABLED PERSONS
The group policy is to give disabled workers equal opportunity to apply and be
considered for those vacancies that they are able to fill. All necessary
assistance with initial training courses is given. Once employed, a career plan
is developed so as to ensure suitable opportunities for each disabled person.
EMPLOYEE CONSULTATION
The group places considerable value on the involvement of its employees and has
continued to keep them informed on matters affecting them as employees, and on
the performance of the group, through informal meetings and communications.
POLICY ON PAYMENT OF CREDITORS
In respect of the group's suppliers, it is not the group's policy to follow any
code or standard on payment practice. It is the group's policy to settle the
terms of payment with those suppliers when agreeing the terms of each
transaction and then to abide by them. Creditor days at the balance sheet date
were 7 (2009: 12).
RESEARCH AND DEVELOPMENT EXPENDITURE
The group continued to invest in existing software products and developing new
products. Research and development expenditure is written off to the profit and
loss account in the year it is incurred. The group takes advantage of research
and development taxation credits under the HM Revenue and Custom's rules, if
applicable.
AUDITORS
Lubbock Fine were appointed auditors on 25 May 2010.
Lubbock Fine are deemed to be re-appointed under section 487(2) of the
Companies Act 2006.
By order of the Board
Leon de Costa
Secretary
CONSOLIDATED PROFIT AND LOSS ACCOUNT
YEAR ENDED 31 MARCH 2010
Notes 2010 2009
£ £
TURNOVER 1,583,541 1,537,477
COST OF SALES 2 (159,057) (191,623)
GROSS PROFIT 1,424,484 1,345,854
Administrative expenses 2 (1,229,201) (1,053,371)
OPERATING PROFIT 195,283 292,483
Investment income 3 325 4,390
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 4 195,608 296,873
Taxation 6 131,421 -
PROFIT FOR THE FINANCIAL YEAR 16 327,029 296,873
Earnings per share 18 16.55p 15.02p
The operating profit for the year arises from the group's continuing
operations.
No separate statement of Total Recognised Gains and Losses has been presented
as all such gains
and losses have been dealt with in the profit and loss account.
CONSOLIDATED AND COMPANY
BALANCE SHEET
AS AT 31 MARCH 2010
Group Company Group Company
Notes 2010 2010 2009 2009
£ £ £ £
FIXED ASSETS
Intangible fixed assets 7 - - - -
Tangible assets 8 16,096 - 9,494 -
Investments 9 - 198,597 - 197,597
16,096 198,597 9,494 197,597
CURRENT ASSETS
Debtors 10 358,936 - 212,919 -
Cash at bank and in hand 644,736 - 446,998 -
1,003,672 - 659,917 -
CREDITORS: Amounts 12 (268,709) (1,000) (270,381) -
falling due within one
year
NET CURRENT ASSETS/ 734,963 (1,000) 389,536 -
(LIABILITIES)
TOTAL ASSETS LESS 751,059 197,597 399,030 -
CURRENT LIABILITIES
PROVISIONS FOR
LIABILITIES
Other provisions 13 (25,000) - - -
NET ASSETS 726,059 197,597 399,030 197,597
CAPITAL AND RESERVES
Called up share capital 14 197,597 197,597 197,597 197,597
Profit and loss account 15 528,462 - 201,433 -
SHAREHOLDERS' FUNDS 16 726,059 197,597 399,030 197,597
CONSOLIDATED CASH FLOW STATEMENT 2010 2009
FOR THE YEAR ENDED 31 MARCH 2010 £ £
Net cash inflow from operating 209,720 259,453
activities
Returns on Investments
Interest received 325 4,390
Net cash inflow from returns on 325 4,390
investment
Taxation
Taxation paid (1,586) -
Net cash outflow from taxation (1,586) -
Capital expenditure
Payments to acquire tangible and (12,273) (9,653)
intangible fixed assets
Net cash outflow from capital (12,273) (9,653)
expenditure
Increase in cash 196,186 254,190
Reconciliation of operating profit to 2010 2009
net cash inflow from operating
activities £ £
Operating profit 195,283 292,483
Depreciation 5,671 3,360
Loss on disposal of tangible fixed - 227
assets
Increase in debtors (13,005) (28,414)
Decrease in creditors (3,229) (8,203)
Increase in provisions 25,000 -
Net cash inflow from operating 209,720 259,453
activities
Analysis of changes in net funds At Cash At
1 April 2009 Flows 31 March
2010
Cash in hand and at bank 446,998 197,738 644,736
Overdraft - (1,552) (1,552)
Net funds 446,998 196,186 643,184
JUDICIUM PUBLIC LIMITED COMPANY AND SUBSIDIARY UNDERTAKINGS
ACCOUNTING POLICIES
FOR THE YEAR ENDED 31 MARCH 2010
BASIS OF ACCOUNTING
The financial statements have been prepared under the historical cost
convention and on the going concern basis.
BASIS OF CONSOLIDATION
The group accounts consolidate the accounts of the company and its interests in
subsidiaries.
No profit and loss account is presented for Judicium Plc as provided by Section
418 of the Companies Act 2006. The parent company's retained profit for the
period amounted to £nil (2009: £89,948).
INTANGIBLE FIXED ASSETS
Fixed assets are stated at historical cost.
Intellectual property including database licences and rights, trade marks,
domain names, and websites and content are being amortised over their estimated
useful lives of between one and five years.
RELATED PARTY TRANSACTIONS
Judicium Plc has taken advantage of the exemption provided by Financial
Reporting Standard No. 8 not to disclose inter group transactions or balances
with fellow group undertakings where these have been eliminated upon
consolidation.
TANGIBLE FIXED ASSETS
Fixed assets are stated at historical cost.
Depreciation is provided on all tangible fixed assets at rates calculated to
write each asset down to its estimated residual value evenly over its expected
useful life, as follows:-
Computer equipment over 3 years
Fixtures, fittings and equipment over 3 to 5 years
FIXED ASSET INVESTMENTS
Fixed asset investments are stated at cost less any provision for any
diminution in value.
TURNOVER
Turnover represents the receivable value, net of Value Added Tax, of services
provided to customers.
LONG TERM CONTRACTS
Profit is recognised on long term contracts, if the outcome can be assessed
with reasonable certainty, by including in the profit and loss account turnover
and related costs, including the costs of winning the contract, as contract
activity progresses. Turnover is calculated by reference to the values of work
performed to date as a proportion of total contract value.
FOREIGN CURRENCIES
Monetary assets and liabilities denominated in foreign currencies are
translated at the rate of exchange ruling at the balance sheet date.
Transactions in foreign currencies are recorded at the rate ruling at the date
of the transaction. All differences are taken to the profit and loss account.
OPERATING LEASES
The costs of operating leases are charged to the profit and loss account on a
straight line basis over the period of the lease.
DEFERRED TAX
Full provision is made for deferred tax arising from timing differences between
the recognition of gains and losses in the financial statements and their
recognition in computing taxation. Deferred tax assets are recognised to the
extent that it is regarded as more likely than not that they will be recovered.
JUDICIUM PUBLIC LIMITED COMPANY AND SUBSIDIARY UNDERTAKINGS
NOTES TO THE ACCOUNTS
YEAR ENDED 31 MARCH 2010
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
The group's profit before taxation was all derived from its principal activity.
1 PROFIT ON OPERATING ACTIVITIES BEFORE TAXATION
The Group's profit before taxation was all derived from its principal activity.
2 OTHER OPERATING EXPENSES 2010 2009
£ £
Cost of sales 159,057 191,623
Selling and administration expenses 1,229,201 1,053,371
Total operating expenses 1,386,258 1,244,994
3 INVESTMENT INCOME 2010 2009
£ £
Bank and other interest receivable 325 4,390
4 PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 2010 2009
£ £
Profit on ordinary activities before taxation is
stated after
charging:
Depreciation - owned assets 5,671 3,360
Loss on sale of tangible fixed assets - 227
Auditors' remuneration 9,125 9,100
Operating lease: land and buildings 45,006 22,007
Operating lease: plant and machinery 5,020 4,874
5 EMPLOYEES 2010 2009
No. No.
The average monthly number of persons (including
directors) employed by the group during the
period was:
Sales, office and management 16 14
The average monthly number of external 18 18
consultants of the group was:
2010 2009
£ £
Staff costs for above employees (excluding
directors):
Wages and salaries 519,074 441,918
Social security costs 57,412 50,508
576,486 492,426
DIRECTORS' REMUNERATION 2010 2009
£ £
Emoluments 150,000 122,753
6 TAXATION 2010 2009
£ £
Current tax:
UK Corporation tax under provision in prior year 1,586 -
Deferred tax:
Origination and reversal of timing differences (133,007) -
(note 10)
(131,421) -
Factors affecting the tax charge for the year:
Profit on ordinary activities before taxation 195,608 296,873
Profit on ordinary activities before taxation 41,078 62,343
multiplied by standard rate of UK Corporation
tax of 21% (2009: 21%)
Non deductible expenses 52 1,798
Depreciation and amortisation 1,191 706
Capital allowances (2,768) (840)
Brought forward tax losses utilised (39,553) (64,007)
Under provision in prior year 1,586 -
Current tax charge 1,586 -
7 INTANGIBLE FIXED ASSETS
GROUP Software Intellectual Total
Cost £ Property £
£
At 1 April 2009 49,530 185,344 234,874
Disposals - (185,344) (185,344)
At 31 March 2010 49,530 - 49,530
Amortisation
At 1 April 2009 49,530 185,344 234,874
Disposals - (185,344) (185,344)
At 31 March 2010 49,530 - 49,530
Net book value
At 1 April 2009 and at 31 March - - -
2010
8 TANGIBLE FIXED ASSETS
GROUP Computer Fixtures, Total
equipment fittings and £
£ equipment
£
Cost
At 1 April 2009 46,238 29,428 75,666
Additions in the period 11,848 425 12,273
At 31 March 2010 58,086 29,853 87,939
Depreciation
At 1 April 2009 45,508 20,664 66,172
Charge for the period 2,281 3,390 5,671
At 31 March 2010 47,789 24,054 71,843
Net book value
At 31 March 2009 731 8,763 9,494
At 31 March 2010 10,297 5,799 16,096
9 FIXED ASSETS INVESTMENTS
GROUP Unlisted
investments
£
Cost
At 1 April 2009 27,147
Disposals (27,147)
At 31 March 2010 -
Provision
At 1 April 2009 27,147
On disposals (27,147)
At 31 March 2010 -
Net book value
At 1 April 2009 and 31 March 2010 -
Misterdroit.com a company incorporated in France was dissolved, this investment
had a £nil net book value and accordingly no profit or loss on disposal was
recognised.
COMPANY Subsidiary
undertakings
£
Cost
At 1 April 2009 197,597
Additions 1,000
At 31 March 2010 198,597
Net book value
As at 1 April 2009 and 31 March 2010 198,597
The company holds more than 20% of the equity of the following companies:
Name of company Proportion of Nature of
ordinary shares business
held
Judicium Business Services 100% Service company for group
Limited
Judicium Consulting Limited * 100% Consultancy services
Judicium Legal Marketing 100% Online marketing of legal
Limited * services
Porta Verde Financial Services 100% Financial services &
Limited regulation
On 9 June 2009, the company subscribed to 1,000 ordinary shares of £1 each in
Porta Verde Financial Services Limited at par. The company commenced trading
after 1 April 2010.
* Investments held indirectly through Judicium Business Services Limited
10 DEBTORS Group Company Group Company
2010 2010 2009 2009
£ £ £ £
Trade debtors 146,968 - 155,040 -
Other debtors 44,807 - 42,439 -
Prepayments 34,154 - 15,440 -
Deferred tax (note 11) 133,007 - - -
358,936 - 212,919 -
11 DEFERRED TAXATION
The deferred tax included in the Balance sheet is as follows:
2010 2009
£ £
Included in debtors (note 10) 133,007 -
The movement in the deferred taxation account during the year was:
2010 2009
£ £
Balance brought forward - -
Profit and loss account movement arising during 133,007 -
the year
Balance carried forward 133,007 -
The balance of the deferred taxation account consists of the tax effect of
timing differences in respect of:
2010 2009
£ £
Tax losses available 133,007 -
The deferred tax asset has been recognised since it is considered that the
group will make sufficient future profits to utilise any losses incurred by the
company.
12. CREDITORS: Amounts falling Group Company Group Company
due within one year
2010 2010 2009 2009
£ £ £ £
Bank overdraft 1,552 1,836
Trade creditors 17,046 - 28,340 -
Taxation and social 84,862 - 65,321 -
security costs
Other creditors 8,361 1,000 13,558 -
Accruals and deferred 156,888 - 161,326 -
income
268,709 1,000 270,381 -
13. OTHER PROVISIONS
Group 2010 2009
£ £
Other provisions:
Movement for year 25,000 -
The above provision relates to dilapidation costs payable upon expiration of
the lease on the property
14. SHARE CAPITAL 2010 2009
£ £
Authorised:
10,000,000 ordinary shares of 10p each 1,000,000 1,000,000
Allotted, issued and fully paid:
1,975,967 ordinary shares of 10p each 197,597 197,597
15. RESERVES Group Company 2010
2010 £
£
Balance brought forward 201,433 -
Movement in period, being group profit for the 327,029 -
period
Balance carried forward 528,462 -
16 RECONCILIATION OF MOVEMENT IN Group Company 2010
SHAREHOLDERS' FUNDS 2010 £
£
Profit for the period 327,029 -
Opening shareholder funds 399,030 197,597
Closing shareholder funds 726,059 197,597
17 COMMITMENTS UNDER OPERATING LEASES
At 31 March 2010 the group had annual commitments under non-cancellable
operating leases as follows:
2010 2009
£ £
Land & Other Land & Other
buildings buildings
£ £
£ £
Operating leases which
expire;
Within 1 year - 3,080 7,000 -
Within 2 to 5 years 7,000 2,446 - 4,874
In more than 5 years 43,550 - 44,313 -
18 EARNINGS PER SHARE
Earnings per share for the group is based on a profit for the year of £
327,029 (2009 - £296,873) and 1,957,967 shares in issue. The fully diluted
earnings per share figure are the same as the basic figure.
The financial information set out above does not constitute the Group's
statutory accounts for the years ended 31 March 2009 or 31 March 2010, but is
extracted from those accounts. Statutory accounts for 2009 have been delivered
to the Registrar of Companies in England and Wales, and those for 2010 will be
delivered shortly.
For more information, please contact:
Leon de Costa
Chief Executive Officer
020 7336 8403
Roland Cornish
Beaumont Cornish Limited
020 7628 3396
Additional information regarding the Company can be obtained from the Company's
website. The Company's website can be accessed at www.judicium.com