Information  X 
Enter a valid email address

Vicorp Group PLC (VICP)

  Print   

Tuesday 16 September, 2008

Vicorp Group PLC

Interim Results

RNS Number : 4476D
Vicorp Group PLC
16 September 2008
 





Embargo for 7.00am 16 September 2008


Vicorp Group Plc

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


Interim Accounts for the period ending 30 June 2008 and 

Trading Update


 


Interim Results

The company announced that year on year revenues rose by £248,000 for the first half of 2008 but investment in sales and expansion of the Professional Services team increased costs by £297,000. The loss from operations was £801,474 (£723,104) and the post tax loss was £687,710 (£633,321). The year on year reduction in total assets to 30 June was £965,000.  


Brendan Treacy, Chief Executive of Vicorp, commented:  'The first half trading for 2008 has been slower than the Board expected but should be revealed in time as a temporary slowdown. The company invested heavily in selling and has created a good pipeline of opportunities, many of which are late stage. Our challenge is to return to positive trading in the second half of 2008 and we are close to reaching that position'.


A copy of the interim results is available on the company website www.vicorp.com 


Issue of debt 

Vicorp has agreed a £275,000 nine month term loan. The Loan will be repaid in monthly annuity installments beginning on 30 November 2008 and ending on 30 April 2009. The Lender has also been granted warrants to subscribe for up to 500,000 Ordinary Shares in the Company, exercisable at a price of 0.9 pence per share at any point up to August 2012 (the current value of the warrants is less than £3,000).


Research Note

Edison Investment Research have today published a note on the Company that is available on the Company website   www.vicorp.com




-ends-


For further information, please contact:


Brendan Treacy, Chief Executive, Vicorp Group PLC                                             01753 660 500


Peter Manfield, SVS Securities PLC                                                                        0207 638 5600


Ray Zimmerman/Jonathan Evans, Zimmerman Adams International Limited        0207 060 1760







Chairman's Statement


Our results for the first six months of 2008 have been below the expectations of the Board. The company has experienced a slow take up of project work resulting in a reduction in the expected licensing revenue from placing applications into live production. The Board does not attribute the slowness to credit or economic conditions but to the size of the current Vicorp client base.


The loss of £687,000 after tax (£633,000 loss H1 2007) was affected by the decision to place greater resources into growing revenue by increasing the sales team and taking on board some key skills to augment the professional services organisation. As a result, the group operating costs rose by some £297,000 over H1 of 2007. However, it should be noted that in 2007 the company did not have a defined professional services organisation. The loss has contributed to a reduction in net assets of £1.0M since the end of June 2007.


Revenues of £804,229 were approximately £248,000 higher compares to H1 2007, principally reflecting the investment in services capability, albeit below target.


Looking forward, and taking into account the actions of the Board to invest in sales resources, the company has now built a strong list of sales opportunities that are greater than at any previous stage of the company's development. More recently, operating costs have been trimmed back to reduce the annual run rate of expenditure to some £600,000 below the rate at the start of H2 2008 and in the absence of any revenue impact from this decision, the company intends to maintain costs at the current level (approximately £2.6M of annual costs) well into 2009.  


In August 2008 the company accepted a commercial term loan of £275,000 for a period of nine months to assist it in bridging any delay between start times on H2 2008 projects and the project payment cycles. The directors will continue to assess the status of working capital carefully throughout the remainder of 2008 and into 2009 and will look to take any necessary steps to ensure that the Group has sufficient cash resources to realise the opportunities that it has now created.

 

The Group experienced a strong revenue uplift in H2 of 2007 and the directors believe that H2 of this year will also be a strong improvement over the first half year. Any vulnerability in connection with H2 revenues lies principally with project start dates and not with the identification and winning of short-term business.


The product development team is just about to release version 5.0 of the xMP product, which marks a significant plateau for the xMP features and improved benefits from using Vicorp tooling in the speech market. Our product positioning and continuing innovation remain strong and still act as the key differentiator for the company.


Our professional services team continues to add strength to the Group and during September 2008 the company was awarded 'Best Professional Services' Award at the annual SpeechTEK 2008 conference in New York. This is a great achievement only a year or so after establishing the professional service team and is now highly visible to the industry.


Whilst conditions have been generally slow, the voice application market is one that is not currently contracting in volume but is seeing growth from the ever present need to provide cost effective and high quality customer response capability in most major enterprises. We at Vicorp are set to continue on an upward path and would like to thank all of the many people inside and outside the Group that are contributing towards our steady growth.



Tim Hearley

Non-Executive Chairman 




Condensed Consolidated Balance Sheet at 30 June 2008



01 Jan - 30 June 2008

01 Jan - 31 Dec 2007

01 Jan - 30 June 2007


£

£

£

Assets




Non-current assets




Property, plant and equipment

76,728

90,870

99,044

Other intangible assets

649,906

570,779

441,668

Investments

-

-

-


-------------------------------------

-------- -----------------------------

---------------------------------------


726,634

661,649

540,712





Current assets




Inventories

4,504

4,997

4,866

Trade receivables

395,446

538,314

371,934

Other current assets

412,964

388.184

387,414

Cash and cash equivalents

10,515

270,269

1,210,373


-------------------------------------

---------------------------------------

---------------------------------------


823,429

1,201,764

1,974,587


-------------------------------------

---------------------------------------

---------------------------------------

Total assets

1,550,063

1,863,413

2,515,299


-=====================-

-=====================-

-=====================-





Equity and liabilities




Equity attributable to equity holders of the parent




Share capital

192,063

192,062

192,063

Share premium

5,886,788

5,886,788 

5,897,740

Retained earnings

(5,539,988)

(4,852,281)

(4,763.947)


-------------------------------------

---------------------------------------

---------------------------------------


538,863

1,226,569

1,325,856


-=====================-

-=====================-

-=====================-

Current liabilities




Trade and other payables

975,106

629,102

1,040,706

Bank overdraft and loans -due within a year

36,094

7,742

148,737


-------------------------------------

---------------------------------------

------------------------------------

Total liabilities

1.011,200

636,844

1,189,443


-=====================-

-=====================-

-=====================-

Total equity and liabilities

1,550,063

1,863,413

2.515,299


=====================-

-=====================-

-=====================-



Condensed Consolidated Income Statement for the financial period ended 30 June 2008



01 Jan - 30 June 2008

01 Jan - 30 June 2007


£

£




Revenue

804,229

556,328




Cost of sales

(39,133)

(9,451)


----------------------------------

----------------------------------

Gross profit

765,096

546,877




Administrative expenses

1,566,570

1,269,981


----------------------------------

----------------------------------

Loss from operations

(801,474)

(723,104)


=====================

=====================

Finance (costs)/income

1,403

(22,362)


=====================

=====================

Loss before tax

(800,071)

(745,466)

Income tax income

112,361

112,145


----------------------------------

----------------------------------

Loss for the period

(687,710)

(633,321)


====================-

====================-




Loss per share diluted and undiluted 0.00358p and 0.00294p.

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



Condensed Consolidated Statement of Changes in Equity for the period ended 30 June 2008



Share capital

Share premium

Accumulated losses

Total


£

£

£

£

Balance at 31 December 2006

104,612

3,495,694

(4,140,647)

(540,341)






Changes in equity for the period Jan - June 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

(4,763,947)

1,325,856


=====================

=====================

=====================

=====================






Changes in equity for the period July - Dec 2007



(78,310)

(78,310)

Loss for the period

-

-



Share options adjustment



(10,021)

(10.021)


----------------------------

--------------------------

---------------------------

-----------------------------

Total recognised income and expense for the period

-


(88,331)

(88,331)


=====================

====================

=====================

=====================

Issue of share capital


(10.952)

-

(10,952)


----------------------------

--------------------------

---------------------------

-----------------------------

Balance at 31 Dec 2007

192,063

5,886,788

(4,852,278)

1,226,573


=====================

=====================

=====================

=====================

Changes in equity for the period Jan - June 2008





Loss for the period



(687,710)

(687,710)


----------------------------

--------------------------

---------------------------

-----------------------------

Total recognised income and expense for the period

-

-

(687,710)

(687,710)


=====================

=====================

=====================

=====================

Issue of share capital

-

-


-


----------------------------

--------------------------

---------------------------

-----------------------------

Balance at 30 June 2008

192,063

5,886,788

(5,539,988)

538,863


=====================

=====================

=====================

=====================



Condensed Consolidated Cash Flow Statement for the period ended 30 June 2008



01 Jan - 30 June 2008 

01 Jan - 30 June 2007


£

£

Cash flow from operating activities



Loss from operations

(801,474)

(723,104)

Adjustments for:



Depreciation of property, plant and equipment

224,902

28,532

Share options adjustment

-

10,021

Operating cash flows before movement in working capital

(576,572)

 (684,551)


=====================

=====================

(Increase)/decrease in inventories

497

1,081

(Increase)/decrease in receivables

118,088

(374,842)

Increase/(decrease) in payables

374,356

(137,588)




Income taxes received

112,361

112,145

Interest received

(1,145)

(23,025)

Net cash from/(used in) operating activities

604,157

(422,229)


=====================

=====================

Investing activities



Interest received

2,548

663

Purchases of property, plant and equipment

(289,887)

(10,770)

Net cash used in investment activities

(287,339)

(10,107)


=====================

=====================




Cash flows from financing activities



Repayments of borrowings

-

(215,000)

Proceeds on issue of convertible loan notes

-

-

Issue of equity share capital 

-

87,451

Share premium on issue of equity share capital

-

2,402,044

Net cash from financing activities

-

2,274,495


=====================

=====================

Net increase/(decrease) in cash and cash equivalents

(259,754)

  1,157,608




Cash and cash equivalents at beginning of year

270,269

(310,974)

Net cash outflow / (inflow) from debentures

-

215,000

Cash and cash equivalents at end of year

10,515

1,061,634


=====================

=====================

Bank balances and cash

10,515

1,061,634


=====================

=====================




NOTES TO THE FINANCIAL STATEMENTS PERIOD ENDED 30 JUNE 2008



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 2007. Copies of the 2007 Annual Report are available on request from Vicorp or its Nominee advisors. 

 

 

2.   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 follows:

  • 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.


3    Property, plant and equipment



Leasehold Improvements

Equipment, Fixtures & Fittings

Computer Hardware & Software

Total


£

£

£

£

Cost or valuation





At 1 January 2008 

97,691

23,930

440,718

562,339

Additions  

-

-

8,983

8,983






At 30 June 2008

97,691

23,930

449,701

571,322






Accumulated Depreciation





At 1 January 2008

44,875

16,939

409,655

471,469

Charge for the year 

9,769

1,997

11,359

23,125






At 30 June 2008

54,644

18,936

421,014

494,594






Carrying amount





At 30 June 2008

43,047

4,994

28,687

76,728


==============

============

==============

==============

At 31 December 2007

52,816

6,991

31,063

90,870


==============

============

==============

==============


4    Other Intangible assets



Development Costs


£

Cost


At 1 January 2008

3,036,665

Additions

280,904



At 30 June 2008

3,317,569


=============



Amortisation


At 1 January 2008

2,465,886

Charge for the year

201,777



At 30 June 2008

2,667,663


=============



Carrying amount 


At 30 June 2008

649,906


=============

At 31 December 2007

570,779


=============


5    Segment Information

No segmental information is provided as, in the directors' opinion, only one economic operation exits.


6    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's auditors have reviewed the information and their report is set out on page 3.


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

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