Information  X 
Enter a valid email address

Vicorp Group PLC (VICP)


Friday 21 September, 2007

Vicorp Group PLC

Interim Results

Vicorp Group PLC
21 September 2007

21 September 2007


('Vicorp', 'the Group' or 'the Company')

Interim Results

Vicorp (AIM: VICP), a leading designer and developer of software tools and
professional services that enable organisations to create and manage interactive
voice services for consumers, is pleased to announce its interim results for the
six months ended 30 June 2007.


  • Loss before tax reduced by 31% to £745,466 (H1 2006: £1.1m)
  • Revenue increased 99% to £566,328 (H1 2006: £283,929)
  • Gross profit increased 140% to £546,877 (H1 2006: £228,444)
  • Significant new clients include Centrica, Littlewoods, and Barclays Bank
  • Record orders of £1.5m taken in 2007
  • Awarded UK Platinum Partner status by IBM on 19 September
  • Cash at bank as at 30 June 2007 £1.06m

Brendan Treacy, Chief Executive of Vicorp, commented, 'The first half of
2007 has been a successful period for the Group and we believe this trend will
continue through to the end of the year and beyond. We are rated by independent
market analysts as the number one tools vendor and this, coupled with a
favourable economic climate within our industry, leads us to view the future
with confidence.'

For further information, please contact:

Vicorp Group Plc 01753 660 500

Brendan Treacy, Chief Executive

SVS Securities plc 020 7638 5600

Peter Manfield

Conduit PR 020 7429 6666

Christian Taylor-Wilkinson or Charlie Geller

Zimmerman Adams International Ltd 07885 331817

David Massey

Notes to Editors:

Vicorp's chief operations are the design, development and sales of software
tools and professional services, that enable organisations to create and manage
interactive voice services for consumers. This a very topical issue as many
large organisations struggle to overhaul outdated contact centre voice
technology in an effort to retain customers.

Vicorp's tool suite (called xMP), allows advanced voice services to be
implemented in much shorter timescales than traditionally possible and can allow
clients to gain more hands-on control of this interface with consumers, which
has remained in the hands of specialist suppliers in the past.

The tools also implement speech recognition to reduce the time and resources
needed for customer queries, and depending on the callers' response, retrieves
the requested information or diverts the call to the next appropriate question.

xMP enables voice and data services to be created in a screen-based 'drag and
drop' graphical environment and allows many aspects of service creation to be
split out into simpler routines that can be managed discretely. This enables
such tasks to become open to, and used by, non-technical people, such as sales,
marketing and customer services managers, who are relatively unfamiliar with
complex telephony software. The benefits to consumer businesses with volume
telephony lines are proving significant.

Vicorp was considered 'the leading independent vendor of service creation tools
in the market' by Datamonitor in March 2007. The Company listed on AIM on 21
June 2007.


('Vicorp', 'the Group' or 'the Company')

Interim Results for the six months ended 30 June 2007

Chairman's Statement

Our results for the first six months of 2007 have come in ahead of the latest
market expectations published prior to the Company's move to the AIM market
('AIM'), which took place on 21 June. The Company also raised £1.62 million
through an institutional placing in conjunction with its move to AIM. The
projection was for a first half-year pre-tax loss of £882,000 and the actual
result was a pre-tax loss of £745,000. The outcome has been further improved by
an R&D tax reclaim of £112,000, taking the after tax figure to a loss of

The result for the first half-year does not reflect the upturn in trading which
the Company is now experiencing. Orders have been coming in steadily through the
second and third quarters. To date in this year, the company has taken orders
for £1.5 million of business (against first half revenues of £556,000) and we
expect the rate of order intake to increase in the final quarter of the year.
The impact of these orders should become visible in the results for the second
half-year. Based on present orders received and those expected imminently, the
Directors believe that the results for the second half-year will show a
significant improvement over the first half. This is also creating the stability
that the Company needs to focus on maintaining revenue growth.

As we indicated to the market on 19 July 2007, we expect to remain ahead of
market expectations with our full-year results at 31 December 2007.

The Company is now licensing its software and delivering advanced speech
applications to companies that include Centrica, Littlewoods, and Barclays Bank.
Our status as an independent and leading supplier of open standards based voice
applications and tools, is a differentiator that many large companies are still
actively seeking to find as they need to migrate from older voice applications.

Our business is benefiting from the extension into product related services and
we were pleased to welcome Linda McCormack to Vicorp as Director of Professional
Services in August. Linda was previously Director of Professional Services for
Byte Mobile Europe and brings a wealth of experience with her.

Our product positioning remains strong and we have ambitious plans to extend the
reach of our product into several new areas over the next year or so. We plan to
address the large market for legacy voice systems that require upgrading and
will be extending our xMP product to assist in this process. We will also enable
the platform for call control functions in the network and will create a web
services interface that will allow voice services to interact with a plethora of
web based enterprise applications.

Our position has been supported by recent reports from the market analyst
company, Datamonitor, and we find that market conditions remain favourable for
the Company's technology.

Some very recent news is also worthy of note. On 19 September 2007, the Company
was awarded the IBM Platinum Partner award for 2007 in the UK. This is the
highest award for IBM's partner programme in the UK and helps signify further
joint business potential between Vicorp and IBM. Our other partner programmes,
extending to Australia, South Africa and the Czech Republic are also proving to
be beneficial and remain a key feature of our business model.

As the above notes infer, much hard work has been done to bring about these
improvements. I would like to thank all of our staff and the executive team, for
their considerable efforts. I would also like to thank our investors, new and
old for their support and encouragement.

Tim Hearley

Non-Executive Chairman

Consolidated Balance Sheet as at 30 June 2007

                                    01 Jan - 30 June 2007          01 Jan - 31 Dec 2006            01 Jan - 30 June 2006
                                    £                              £                               £
Non-current assets
Property, plant and equipment       99,044                         116,806                         145,234
Investments                         -                              -                               -
                                    ---------------------          --------------------            ---------------------
                                    99,044                         116,806                         145,234
Current assets  
Inventories                         4,866                          5,947                           7,337
Trade receivables                   759,348                        384,506                         528,115
Cash and cash equivalents           1,210,373                      49,198                          63,999
                                    ---------------------          --------------------            ---------------------
                                    1,974,587                      439,651                         599,451              
                                    ---------------------          --------------------            ---------------------
Total assets                        2,073,631                      556,457                         744,685              
                                    =====================          ====================            =====================
Equity and liabilities                                                                                                  
Equity attributable to equity 
holders of the parent
Share capital                       192,063                        104,612                         83,624
Share premium                       5,897,740                      3,495,694                       2,789,945
Retained earnings                   (5,205,618)                    (4,582,318)                     (3,622,851)
                                    ---------------------          --------------------            ---------------------
                                    884,185                        (982,012)                       (749,282)
                                    =====================          ====================            =====================
Current liabilities 
Trade and other payables            1,040,709                      1,393,297                       1,493,967
Bank overdraft and loans -due 
within a year                       148,737                        145,172                         -
                                    ---------------------          --------------------            ---------------------
Total liabilities                   1,189,446                      1,538,469                       1,493,967

                                    =====================          ====================            =====================
Total equity and liabilities        2,073,631                      556,457                         744,685              
                                    =====================          ====================            =====================

Consolidated Income Statement for the financial period ended 30 June 2007

                                    01 Jan - 30 June 2007          01 Jan - 31 Dec 2006            01 Jan - 30 June 2006
                                    £                              £                               £

Revenue                             556,328                        539,597                         283,929

Cost of sales                       (9,451)                        (43,902)                        (55,485)
                                    ---------------------          --------------------            ---------------------
Gross profit                        546,877                        495,695                         228,444

Administrative expenses             1,269,981                      2,604,622                       1,304,838
                                    ---------------------          --------------------            ---------------------

Loss from operations                (723,104)                      (2,108,927)                     (1,076,394)          
                                    =====================          ====================            =====================

Finance (costs)/income              (22,362)                       (41,592)                        3,144                
                                    =====================          ====================            =====================

Loss before tax                     (745,466)                      (2,150,519)                     (1,073,250)

Income tax income                   112,145                        228,971                         121,190
                                    ---------------------          --------------------            ---------------------

Loss for the period                 (633,321)                      (1,921,548)                     (952,060)            
                                    =====================          ====================            =====================

Loss per share diluted and undiluted 0.0029p and 0.00330p.

All of the activities of the group are classed as continuing.

Consolidated Statement of Changes in Equity for the period ended 30 June 2007

                               Share capital            Share premium            Accumulated losses           Total
                               £                        £                        £                            £

Balance at 31 December 2005    83,220                   2,751,969                (2,670,791)                  164,398
Changes   in  equity  for  the                                                                                          
period Jan - June 2006 
Loss for the period            -                        -                        (952,060)                    (952,060)
                               -------------            -------------            ------------------           --------- 
Total  recognised  income  and 
expense for the year           -                        -                        (952,060)                    (952,060) 
                               =============            =============            ==================           =========
Issue of share capital         404                      37,976                                                38,380
                               =============            =============            ==================           =========

Balance at 30 June 2006        83,624                   2,789,945                (3,622,851)                  (749,282)

Changes   in  equity  for  the 
period July - Dec 2006                                  - 
Loss for the period            -                        -                        (969,488)                    (969,488)
Share options adjustment                                                         10,021                       10,021
                               -------------            -------------            ------------------           --------- 
Total  recognised  income  and 
expense for the period         -                        -                        (959,467)                    (959,467)
                               =============            =============            ==================           =========
Issue of share capital         20,988                   705,749                                               726,737   
                               =============            =============            ==================           =========

Balance at 31 December 2006    104,612                  3,495,694                (4,582,318)                  (982,012) 
Changes in equity for 2007 

Loss for the period            -                        -                        (633,321)                    (633,321)
Share options adjustment                                                         10,021                       10,021
                               -------------            -------------            ------------------           --------- 
Total  recognised  income  and 
expense for the period         -                        -                        (623,300)                    (623,300) 
                               =============            =============            ==================           =========

Issue of share capital         87,451                   2,402,046                -                            2,489,497 
                               -------------            -------------            ------------------           ---------

Balance at 30 June 2007        192,063                  5,897,740                (5,205,618)                  884,185
                               =============            =============            ==================           =========

Condensed Consolidated Cash Flow Statement for the period ended 30 June 2007

                                       01 Jan - 30 June 2007      01 Jan - 31 Dec 2006       01 Jan - 30 June 2006
                                       £                          £                          £
Cash flow from operating activities 
Loss from operations                   (723,104)                  (2,108,927)                (1,076,394)                
Adjustments for: 
Depreciation of property, plant and 
equipment                              28,532                     71,817                     38,761
Gain on disposal of property, 
plant and equipment                    -                          703                        687
Share options adjustment               10,021                     10,021                     -
                                       ---------------------      --------------------       ---------------------
Operating  cash  flows  before  
movement  in working capital           (684,551)                  (2,026,386)                (1,036,946)                
                                       =====================      ====================       =====================

(Increase)/decrease in inventories     1,081                      10,353                     8,963
(Increase)/decrease in receivables     (374,842)                  222,121                    78,512
Increase/(decrease) in payables        (137,588)                  (123,091)                  192,579

Income taxes received                  112,145                    228,955                    121,190
Interest paid                          (23,025)                   (49,386)                   (2,491)
                                       ---------------------      --------------------       ---------------------

Net cash from/(used in) operating 
activities                             (422,229)                  288,952                    398,753
                                       =====================      ====================       =====================      
Investing activities        
Interest received                      663                        7,794                      5,635
Purchases of property, plant and 
equipment                              (10,770)                   (12,704)                   (8,076)
Acquisition of subsidiary                                         (1)                        (1)
                                       ---------------------      --------------------       ---------------------
Net cash used in investment 
activities                             (10,107)                   (4,911)                    (2,442)                    
                                       =====================      ====================       =====================
Cash flows from financing activities 
Repayments of borrowings               (215,000)                  - 
Proceeds on issue of convertible 
loan notes                             -                          215,000                    -
Issue of equity share capital          87,451                     21,392                     404
Share premium on issue of equity 
share capital                          2,402,044                  743,725                    37,976
                                       ---------------------      --------------------       ---------------------

Net cash from financing activities     2,274,495                  980,117                    38,380
                                       =====================      ====================       =====================

Net increase/(decrease) in cash and 
cash equivalents                       1,157,608                  (762,228)                  (602,255)

Cash and cash equivalents at 
beginning of year                      (310,974)                  666,254                    666,254
Net cash outflow / (inflow) from 
debentures                             215,000                    (215,000)                  -
                                       ---------------------      --------------------       ---------------------

Cash and cash equivalents at end 
of year                                1,061,634                  (310,974)                  63,999
                                       =====================      ====================       =====================

Bank balances and cash                 1,061,634                  (310,974)                  63,999
                                       =====================      ====================       =====================


1 Accounting policies

These interim financial statements have been prepared in accordance with the
requirements of IAS 34 Interim Financial Reporting, using accounting policies
consistent with those set out in the Annual Report and Accounts of Vicorp Group
Plc for the year ended 31 December 2006. Copies of the 2006 Annual Report are
available on request from Vicorp or its advisors.

The annual financial statements of Vicorp Group plc for the year ending 31
December 2007 will be prepared in accordance with the requirements of IFRS1, &
lsquo;First Time Adoption of International Reporting Standards’. These
Interim Accounts have also been prepared to take account, for the first time, of
the provisions of International Financial Reporting Standards (IFRS). In
bringing the Group into IFRS compliance only two changes in accounting treatment
were necessary and both are covered in more detail.

2 IFRS2 concerning share-based payments

The IFRS2 standard affects the Group insofar as it needs to account for the
effect of share options in issue. In these interim financial statements a charge
to profit and loss of £10,021 has been made arising from the implementation of
IFRS2 and a similar charge has been made in the preceding period. The
corresponding credits have been included in general reserves on the Balance
Sheet. Full disclosure for IFRS2 will appear in the 2007 Annual Report.

3. IAS 38 treatment of development costs

The Vicorp Group accounting policy for the treatment of software development is
now in accordance with IAS38.

The criteria for capitalising expenditure on software development are as

  • Any capitalised expenditure must be asset specific and identifiable.
    Vicorp adopts the same cost identification for IAS as it does for the
    measurement of research and development tax claims
  • Vicorp must retain full control of asset IPR
  • Future net economic benefit must be identifiable. This means being able to
    identify or reasonably predict net economic benefits over the useful life of
    the asset.

Amortisation basis

  • Straight line basis over the identified period for the useful economic
    life of the asset
  • Annual reassessment of the useful economic life after adjusting for any
    impairment in carried value

Carried value

The carried value of software development will be annually assessed. Examples of
factors which could cause impairment are: a) new competitive products; b) end of
life for contracted revenues.

Note regarding the treatment adopted for xMP software development

The directors of the Group regard xMP as the main asset of the business.
Virtually all of the historical research and development costs since 2002 are
directly attributable to xMP. In gross expenditure terms the company has
expended approximately £ 11 Million from March 2002 to 30 June 2007 on the xMP
product suite. Of this total, the directors regard 40% of the feature build as
being current. This results in an opening identified carried cost for xMP at 30
June 2007 (version 4.1.5) of £ 4.4m.

In the period from 2002 to the end of June 2007, the directors’ opinion
was that there was no valid basis for capitalising the xMP asset because the
company was still in a development phase and was reliant on continued equity
funding. Accordingly the carried cost of £4.4M has been valued down to nil on
the basis of the identifiable future economic benefit being insufficiently
certain at the point in time.

During June 2007 the Group raised £ 1.3m of net funding and, in the opinion of
the directors, the overall position of the group is that it now has a long-term
economic future. This is not solely attributable to xMP license sales but to a
combination of product and service income, derived from a spread of customers.
The future value of xMP remains in its potential to leverage voice and other
applications on a scale that is still too early to assess with the degree of
certainty that would support any annuity value for the product (and hence a
carried value as an asset) but as sales increase and support incomes grow this
position should become clearer. The directors will thus assess the applicability
of carrying product development costs again at the end of 2007 and will
establish the policy for assessing the carried value at that time.

4 Audit

The Interim financial statements are unaudited and do not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985. The Group&
rsquo;s auditors have reviewed the information and their report is set out on
page 3.

A copy of the interim report card will be posted to shareholders on 24th
September 2007.

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

a d v e r t i s e m e n t