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Paycorp PLC (PPSP)

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Wednesday 30 September, 2009

Paycorp PLC

Half Yearly Report

RNS Number : 9059Z
Paycorp PLC
30 September 2009
 




PAYCORP PLC


('Paycorp' or the 'Company')


Interim Results


Six Months ended 30 June 2009


Chairman's Statement


I am pleased to announce the interim results of Paycorp Plc ('the Group') for the six month period ended 30 June 2009. The Group is a payments service provider delivering bank independent payments processingelectronic bill presentment, receivables management, hosted payment platforms and PCI DSS card data security solutions to financial institutions, government departments and other enterprises across Australia and New Zealand.


The Group loss for the period was £31,000 (six month period ended 30 June 2008 - £82,000 loss) based on Group revenues of £1,232,000 (six month period ended 30 June 2008 - £1,239,000). Cash and cash equivalents at 30 June 2009 were £317,000 (30 June 2008 - £1,087,000) and there were short term borrowings of £225,000 (30 June 2008 - £249,000). These results are broadly in line with the Board's expectations.


The financial benefits to the Group arising from the cost reduction programme undertaken in the latter part of the 2008 financial year and the first quarter of the 2009 financial year, are now being seen. Accordingly, the financial results for the year ending 31 December 2009 are expected to continue to improve. In the meantime, the Board remains conscious of the need to keep a tight control over Group costs.

  

There have been no significant changes in the going concern status of the Group since the release of the audited financial statements for the eighteen month period ended 31 December 2008. Accordingly, the Board has prepared the interim report on the going concern basis.


The financial benefits of the recently developed PCI Risk Management Solution 'Card Vault' will begin to be seen during the second half of the current financial year and beyond, and this product has already attracted strong interest from a broad range of enterprise level businesses. Given the development and introduction of new products and the continued demand for our existing suite of innovative payment and risk management solutions, the Board believes that the Group is well positioned for growth, particularly in light of the fact that in the current economic climate, out target clients need to reduce overheads, increase efficiency and optimise cash flow and as such we are well placed to win new orders and to enable them to achieve their goals.


As notified on 7 August 2009, at the AGM shareholders did not approve the re-election of David Southworth (who had earlier in the day notified the Board of his intention to resign) or Adrian Roche to the Board.  Discussions are ongoing with Adrian Roche and his advisers.  


I agreed to become Executive Chairman following the AGM with immediate effect and have assumed full day to day responsibility for the operation of the Group. Michael Edelson and I are looking to make further Executive and Non-Executive appointments as we restructure the Boards of the Company and its operating subsidiaries in due course and we will keep shareholders fully informed.  



J P Caliguri

Chairman

30 September 2009


The Directors of Paycorp accept responsibility for this announcement.

For further information please contact:


Paycorp Plc

Michael Edelson Tel: 0161 975 5757

Ian Aspinall


Zeus Capital

Ross Andrews Tel 0161 831 1512


Condensed Consolidated Statement of Comprehensive Income for the six months ended 30 June 2009




1 January

2009

to

1 January

 2008

to

1 July 

2007

to


30 June

2009

(unaudited)

£000

30 June

2008

(unaudited)

£000

31 December

2008

(audited)

£000





Revenue 

1,232

1,239

3,093

Administrative expenses

(1,226)

(1,270)

(3,534)





Operating profit/(loss)

6

(31)

(441)

Investment income

1

8

29  

Finance costs

(38)

(59)

  (110)





Loss before tax

(31)

(82)

(522)

Tax credit

-

-

  131





Loss for the financial period

(31)

(82)

 (391)





Other comprehensive income




Foreign currency translation differences for foreign operations


-


80


9

Total comprehensive loss for the period

(31)

(2)

(382)









Loss per share - basic and diluted 

(0.00p)

(0.01p)

(0.04p)






Condensed Consolidated Statement of Changes in Total Equity for the six months ended 30 June 2009



1 January

2009

to

1 January

 2008

to

1 July 

2007

to


30 June

2009

(unaudited)

£000

30 June

2008

(unaudited)

£000

31 December

2008

(audited)

£000





Balance at start of period

2,393

(453)

(231)





Total comprehensive loss for the period




Loss for the period

(31)

(2)

(382)





Other comprehensive income/(expense)




Foreign exchange translation differences

(11)

(61)

(53)

Effects of reverse acquisition

-

3,059

3,059





Balance at end of period

2,351

2,543

2,393


Condensed Consolidated Statement of Financial Position as at 30 June 2009



As at

30 June

2009

(unaudited)

£000

As at

30 June

2008

(unaudited)

£000

As at

31 December

2008

(audited)

£000





Non-current assets




Intangible assets

383

416

387

Goodwill

2,591

2,591

2,591

Property, plant and equipment

67

113

87






3,041

3,120

 3,065





Current assets




Trade and other receivables

241

128

231

Current tax assets

138

-

136

Cash and cash equivalents

317

1,087

503


696

1,215

870


Total assets


3,737


4,335


3,935





Current liabilities




Trade and other payables

(440)

(489)

(492)

Current borrowings

(225)

(249)

  (233)





Total current liabilities

(665)

(738)

(725)





Net current assets

31

477

145





Non-current liabilities




Non-current borrowings

(721)

(1,054)

   (817)  


(721)

(1,054)

(817)





Total liabilities

(1,386)

(1,792)

(1,542)


Net assets


2,351


2,543

 

  2,393





Equity




Called up share capital

1,116

1,116

1,116

Share premium account

1,516

1,516 

1,516

Reverse acquisition reserve

427

427 

427

Other reserves

(64)

(61)

(53)

Retained losses

(644)

(455)

  (613)





Total equity

2,351

2,543

  2,393



Condensed Consolidated Statement Cash Flows for the six months ended 30 June 2009



1 January

2009 to

30 June

2009

(unaudited)

£000

1 January

2008 to

30 June

2008

(unaudited)

£000

1 July

2007 to

31 December

2008

(audited)

£000





Cash flows from operating activities




Loss after tax

(31)

(82)

(391)

Adjustments for:




  Loss on disposal of property, plant and equipment

-

-

6

  Depreciation and amortisation

91

71

181

  Investment income

(1)

(8)

(29)

  Finance costs

38

59

110

  Tax receipts

-

140

140





Operating cash flows before movements in working capital


97


180


17

  (Increase)/decrease in trade and other receivables

(10)

257

1,499

  Decrease in trade and other payables

(52)

(289)

(1,385)





Net cash from operating activities

35

148

131


Cash (used in)/from investing activities

Purchase of business, net of cash acquired



-



938



938 

Investment income received

1

8

29

Purchase of property, plant and equipment

-

(5)

(69)

Purchase of intangible assets

(67)

-

(5)





Net cash (used in)/from investing activities

(66)

941

 893





Cash used in financing activities




Repayment of borrowings

(104)

(104)

(285)

Finance costs paid 

(38)

(59)

  (110)





Net cash used in financing activities

(142)

(163)

   (395)





Net (decrease)/increase in cash and cash equivalents


(173)


926 


629

Cash and cash equivalents at the beginning of the period


503


122


18

Foreign exchange differences

(13)

39

(144)

Cash and cash equivalents at the end of the period

317

1,087

   503


1.         Reporting entity

Paycorp plc (the 'Company') is a company registered in England and Wales. These condensed consolidated interim financial statements of the Company for the six month period ended 30 June 2009 comprise the Company and its subsidiaries (together the 'Group').


The consolidated financial statements of the Group for the period ended 31 December 2008 are available upon request from the Company's registered office by writing to the Company Secretary, Paycorp plc, Number 14 The Embankment, Vale Road, Heaton Mersey, Stockport SK4 3GN or can be obtained from the Company's website which is http://www.paycorpplc.com. 


2.         Statement of compliance

These condensed consolidated interim financial statements have been prepared on the basis of the recognition and measurement requirements of IFRS in issue that are either endorsed by the EU and effective (or available for early adoption) at 31 December 2009.


These condensed consolidated interim financial statements should be read in conjunction with the Report and Accounts for the period ended 31 December 2008, which were approved for issue by the Board of Directors on 25 June 2009, as it provides an update of previously reported information. The comparative figures for the period ended 31 December 2008 are not the Company's statutory accounts for that financial period.


The comparative figures for the period ended 31 December 2008 were derived from the statutory accounts for that period which have been delivered to the Registrar of Companies. Those accounts received an unqualified audit report which did not contain statements under sections 498 (2) or (3) of the Companies Act 2006.


These condensed consolidated interim financial statements were approved by the Board on 30 September 2009. The financial information contained therein for the six month period ended 30 June 2009 and similarly the six month period ended 30 June 2008 has neither been audited nor reviewed.  


3.         Significant accounting policies

The accounting policies used in the presentation of these condensed consolidated interim financial statements are consistent with those used in the consolidated financial statements for the period ended 31 December 2008.


4.         Estimates

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.


In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the period ended 31 December 2008.


5.         Operating segments

The Group's business segments are its payment processing operations in Australia and its head office in the United Kingdom. This is the basis on which the Group reports its primary segmental information. In the table below, all revenues are generated by sales to external parties.        


Payment

processing

Paycorp

plc

Total


£000

£000

£000

Performance by activity:





Revenue:




- six months ended 30 June 2009

1,232

-

1,232

- six months ended 30 June 2008

1,239

-

1,239

- period ended 31 December 2008

3,093

-

3,093





Operating profit/(loss):




- six months ended 30 June 2009

100

(94)

6

- six months ended 30 June 2008

(4)

(27)

(31)

- period ended 31 December 2008

(333)

(108)

(441)





Total assets:




- 30 June 2009

1,452

2,285

3,737

- 30 June 2008

1,325

3,010

4,335

- 31 December 2008

1,478

2,457

3,935


The Group operates in a sector where no significant seasonal or cyclical variations in revenues and operating results are experienced during the financial year.


6.         Financial risk management

The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements for the period ended 31 December 2008.


7.         Loss per share

Basic loss per share has been calculated using the loss for the period of £31,000 (£82,000 loss for the six month period ended 30 June 2008 and £391,000 loss for the eighteen month period ended 31 December 2008) and a weighted average number of ordinary shares in issue during the period of 1,116,000,000 (952,307,692 for the six month period ended 30 June 2008 and 972,843,636 for the eighteen month period ended 31 December 2008).  


Diluted loss per share is calculated by adjusting the weighted average number of ordinary shares in issue assuming conversion of all dilutive potential ordinary shares.  The Company's potential ordinary shares consist of share options, warrants and deferred consideration.  Due to losses in the current and comparative periods there are no dilutive ordinary shares.


8.         Dividends

No dividend is proposed for the six month period ended 30 June 2009. No dividend was paid in or proposed for the period ended 31 December 2008.


9.         Copies of this Interim Report

Copies of this interim report will be posted to all the Company's shareholders. Further copies can be provided by writing to The Company Secretary, Paycorp plc, Number 14, The Embankment, Vale Road, Haeaton Mersey, Stockport, Cheshire SK4 3GN, England.






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