Interim Results
September 27 2007 - 3:01AM
UK Regulatory
RNS Number:5528E
Bright Futures Group PLC
27 September 2007
BRIGHT FUTURES GROUP PLC
Half yearly report for six months ended 30 June 2007
Chairman's Statement
The operating loss for the six months ended 30 June 2007 was #23,000, which
reflects the board's continued tight control on costs and the benefit of
interest received on the Company's cash balance. As at 30 June 2007 the Company
had cash resources of #750,000 and net assets were #738,000 (31 December 2006 -
#764,000 and #761,000 respectively).
As previously advised, the Company's shares were suspended from trading on AIM
on 2 April 2007 and pursuant to the AIM Rules the Company's admission will be
cancelled on 2 October 2007.
I am pleased to report that the board has identified an acquisition which we
believe satisfies the Company's investment strategy of increasing shareholder
value over time. The Company has entered into Heads of Agreement with the
target and has engaged professional advisers to progress the transaction process
which involves the acquisition of the target and the re-admission of Bright
Futures Group to AIM.
The board will communicate with shareholders in early October 2007 to provide
them with further information on the target and the expected timetable for the
completion of the transaction.
Duncan Ralph
Non-Executive Chairman
26 September 2007
Income Statement
For 6 months to 30 June 2007
6 months 6 months 12 months to
to 30 June 2007 to 30 June 2006 31 December 2006
#'000 #'000 #'000
Unaudited Unaudited Audited
Revenue - 791 794
Cost of sales - (348) (348)
------------- ------------- -------------
Gross profit - 443 446
Operating costs (46) (517) (556)
------------- ------------- -------------
Operating loss (46) (74) (110)
Financial income 23 7 22
Loss on sale of discontinued operations - (376) (376)
------------- ------------- -------------
Loss before taxation (23) (443) (464)
Taxation - - -
------------- ------------- -------------
Loss for the financial period (23) (443) (464)
------------ ------------ ------------
Loss per share (note 4)
Loss per share (0.05)p (0.93)p (0.97)p
Diluted loss per share (0.05)p (0.93)p (0.97)p
Balance Sheet
As at 30 June 2007
As at As at As at
30 June 2007 30 June 2006 31 December 2006
#'000 #'000 #'000
Unaudited Unaudited Audited
Current assets
Trade and other receivables 5 25 4
Cash and cash equivalents 750 768 764
------------ ------------ ------------
Total current assets 755 793 768
------------ ------------ ------------
Total assets 755 793 768
------------ ------------ ------------
Liabilities
Current liabilities
Trade and other payables (17) (11) (7)
------------ ------------ ------------
Total liabilities (17) (11) (7)
------------ ------------ ------------
Net assets 738 782 761
------------ ------------ ------------
Equity attributable to equity holders
Share capital 2,393 2,393 2,393
Share premium account 148 148 148
Retained earnings (1,803) (1,759) (1,780)
------------ ------------ ------------
Total equity 738 782 761
------------ ------------ ------------
Cash Flow Statement
For the 6 months to 30 June 2007
As at As at As at
30 June 2007 30 June 2006 31 December 2006
#'000 #'000 #'000
Unaudited Unaudited Audited
Cash flows from operating activities
Loss before taxation (23) (443) (464)
Finance costs (23) (7) (21)
Depreciation - 35 35
Loss on disposal of discontinued operation - 376 376
------------ ------------ ------------
Operating loss before changes in
working capital (46) (39) (74)
Increase in inventories - (16) (16)
Increase in receivables (1) (317) (295)
Increase in payables 10 315 308
------------ ------------ ------------
Net cash used in operations (37) (57) (77)
Finance income 23 7 23
Interest paid - (2) (2)
------------ ------------ ------------
Net cash used in operating activities (14) (52) (56)
------------ ------------ ------------
Cash flows from investing activities
Purchase of property, plant and equipment - (11) (11)
Disposal of subsidiary - 434 434
------------ ------------ ------------
Net cash generated in investing activities - 423 423
------------ ------------ ------------
Cash flows from financing activities
Repayment of finance lease obligations - (6) (6)
------------ ------------
------------
Net cash used in financing activities - (6) (6)
------------ ------------
------------
Net (decrease)/increase in cash and cash
equivalents
(14) 365 361
Cash and cash equivalents at beginning of 764 403 403
period
------------ ------------ ------------
Cash and cash equivalents at end of period 750 768 764
------------ ------------ ------------
Statement of Changes in Equity
Share premium
account
Share #'000 Retained Total
capital earnings equity
#'000 #'000 #'000
As at 1 January 2006 2,393 148 (1,316) 1,225
Loss for the period - - (443) (443)
------------ ---------- ---------- ------------
As at 30 June 2006 2,393 148 (1,759) 782
Loss for the period - - (21) (21)
------------ ------------ ------------ ------------
As at 31 December 2006 2,393 148 (1,780) 761
Loss for the period - - (23) (23)
------------ ------------ ------------ ------------
As at 30 June 2007 2,343 148 (1,803) 738
------------ ------------ ------------ ------------
NOTES TO THE GROUP INTERIM REPORT
1. GENERAL INFORMATION
Bright Futures Group Plc is a public limited company ("Company") incorporated in
the United Kingdom under the Companies Act 1985 (registration number 4324874).
The Company is domiciled in the United Kingdom and its registered address is
Winchester House, Deane Gate Avenue, Taunton, Somerset TA1 2UH. The Company's
Ordinary Shares are traded on the Alternative Investment Market ("AIM").
Further copies of the Interim Report and Annual Report and Accounts may be
obtained from the address above.
2. BASIS OF PREPARATION
Bright Futures Group Plc has adopted International Financial Reporting Standards
("IFRS") as adopted by the European Union with effect from 1 January 2006. The
Group will apply IFRS in its consolidated financial statements for the year
ended 31 December 2007. Therefore, these interim statements for the six months
ended 30 June 2007 are prepared using accounting policies in accordance with
IFRS and International Financial Reporting Interpretations Committee ("IFRIC")
interpretations that are expected to be applicable to the consolidated financial
statements for the year ended 31 December 2007. These standards remain subject
to ongoing amendment and/or interpretation and are therefore still subject to
change. Accordingly, information contained in these interim financial
statements may need updating for subsequent amendments to IFRS required for
first time adoption or for new standards issued post the balance sheet date.
The basis of preparation and accounting policies followed in this interim report
differ from those set out in the Annual Report and Accounts for the year ended
31 December 2006 which were prepared in accordance with United Kingdom
accounting standards (UK GAAP).
The interim financial statements do not constitute statutory accounts as defined
by Section 240 of the Companies Act 1985.
The financial information for the year ended 31 December 2006 has been extracted
from the statutory accounts for the Group for that period now amended to conform
with the IFRS accounting policies expected to be applied in the consolidated
financial statements for the year ended 31 December 2007. These published
accounts in a form consistent with UK GAAP were reported on by the auditors
without qualification or an emphasis of matter reference and did not include a
statement under Section 237(2) or (3) of the Companies Act 1985 and have been
delivered to the Registrar of Companies.
A summary of significant accounting policies used in the preparation of this
interim report under IFRS is provided in note 3 below.
The financial statements are presented in sterling and all values are rounded to
the nearest thousand pounds (#000) except when otherwise indicated.
A detailed explanation of the impact of the transition from UK GAAP to IFRS is
contained in the appendix to the interim financial statements.
3. ACCOUNTING POLICIES
Basis of consolidation
The full year consolidated financial statements incorporate the results and net
assets of the Company and its subsidiary undertakings drawn up to 31 December
each year. The interim results are prepared for the first 6 months of the
relevant full period.
ACCOUNTING POLICIES
Subsidiary undertakings are consolidated from the date of their acquisition,
being the date on which the Group obtains control, and continue to be
consolidated until the date that such control ceases. Control comprises the
power to govern the financial and operating policies of the investee so as to
obtain benefit from its activities and is achieved through direct or indirect
ownership of voting rights; currently exercisable or convertible potential
voting rights; or by way of contractual agreement. The financial statements of
subsidiary undertakings used in the preparation of the consolidated financial
statements are prepared for the same reporting period as the parent company and
are based on consistent accounting policies. All inter-company transactions and
balances between Group entities, including unrealised profits arising from
these, are eliminated upon consolidation.
Revenue recognition
The revenue shown in the Group income statement represents goods and services
sold to customers outside the Group, less returns, discounts and VAT. Income is
recognised when goods are despatched to our customers in the retail stores.
Website income is recognised when the service has been provided.
Goodwill
Purchased goodwill, representing the difference between the fair values of the
consideration and the underlying assets and liabilities acquired, is initially
recognised as an asset at cost and is subsequently measured at cost less any
accumulated impairment losses.
Amortisation on other intangible assets
Amortisation is calculated so as to write off the cost of other intangible
assets less their estimated residual value, over the useful economic life of the
assets as follows:
Domain names - 33% p.a. straight line
Property, plant and equipment
Items of property, plant and equipment are stated at cost or deemed cost less
accumulated depreciation;
Depreciation is calculated so as to write off the cost or valuation of an asset,
less its estimated residual value, over the useful economic life of the asset as
follows:
Plant and office equipment and website - 20% - 33% p.a.
straight line
Retail store fittings - 20% straight line
Motor vehicles - 33% p.a. straight line
Trade receivables
Trade receivables are recognised at their original amount less an allowance for
any doubtful amounts. An allowance is made when collection of the full amount
is no longer considered probable.
Cash and cash equivalents
Cash and other cash equivalents includes cash in hand, deposits held at the bank
and other short term liquid investments with original maturities of three months
or less.
Trade payables
Trade payables are stated at cost. All trade payables are non-interest bearing.
Share-based payment transactions
Under IFRS2 the Company has taken the exemption not to recognise in the
financial statements the fair value sale of share options at the date of the
grant for any share options issued prior to 7 November 2002.
The fair value of the share options under the Enterprise Management Incentive
Scheme has not been recognised in the financial statements and the options
lapsed due to the sale of the subsidiary companies.
Financial instruments
Financial instruments are recognised when the Company becomes a party to the
contractual provisions of the instrument. The principal financial assets and
liabilities of the Company are as follows:
Interest bearing borrowings
Interest bearing borrowings relating to finance lease obligations are recognised
initially at fair value less attributable transactions costs. Subsequent to
initial recognition, interest bearing borrowings are stated at amortised cost
with any difference between costs and redemption value being recognised in the
income statement over the period of the borrowings on an effective interest
basis.
Derivative financial instruments
As the Company has only limited exposure to foreign currencies, no derivative
products to hedge against current fluctuations are in place. Interest rate
exposure is managed by use of fixed rate and floating rate debt. Currently, no
derivative products are in use.
Interest expense/income
Interest arising, prior to commissioning, on major capital projects is
capitalised and written off over the estimated useful life of the asset
required. Otherwise, interest payable and receivable is recognised in the
income statement as it accrues, using the effective interest rate method.
Finance lease and hire purchase contracts
Assets obtained under hire purchase agreements are capitalised and disclosed
under tangible fixed assets at their value. The assets acquired by hire
purchase are depreciated over their useful lives. Obligations under such
agreements are included in interest bearing borrowing, net of the finance charge
allocated to future periods. Interest is charged to the income statement on a
sum of digits basis.
Operating lease agreements
Rentals applicable to operating leases where substantially all of the benefits
and risks of ownership remain with the lessor are charged against profits on a
straight line basis over the period of the lease.
Pensions
The Group makes payments into an individual employee's personal pension. The
pension charge represents the amounts payable by the Company to the fund in
respect of the year.
4. LOSS PER SHARE
The loss per share calculations have been arrived at by reference to the
following earnings and weighted average number of shares in issue during the
period.
6 months ended 6 months ended Year ended
30 June 2007 30 June 2006 31 December 2006
#'000 #'000 #'000
Basic loss after taxation 23 443 464
--------------- --------------- ---------------
No. No. No.
Weighted number of shares in issue 47,850,020 47,850,020 47,850,020
--------------- --------------- ---------------
APPENDIX TO THE GROUP INTERIM REPORT
REPORTING UNDER INTERNATIONAL FINANCIAL REPORTING STANDARDS
The interim financial statements are the first to be prepared by the Group using
policies in accordance with IFRS as adopted by the European Union. The
comparative figures have been prepared on the same basis and have therefore been
restated from those previously prepared under UK GAAP. The commentary below
details the key changes that have arisen due to the transition to reporting
under IFRS. The Group's date of transition is 1 January 2006, which is the
beginning of the comparative period for the 2006 financial year. Therefore, the
opening balance sheet for IFRS purposes is that reported at 1 January 2006, as
amended for changes due to IFRS.
To explain the impact of the transition, reconciliations have been included in
this appendix that show the changes made to the statements previously reported
under UK GAAP. The following un-audited reconciliations are included in this
appendix:
1. Reconciliation of Group balance sheet at 1 January 2006 from UK GAAP to IFRS.
2. Reconciliation of Group balance sheet at 31 December 2006 from UK GAAP to IFRS.
3. Reconciliation of Group income statement for the year ended 31
December 2006 from UK GAAP to IFRS.
4. Reconciliation of Group balance sheet at 30 June 2006 from UK GAAP to IFRS.
5. Reconciliation of Group income statement for the 6 months ended 30 June 2006
from UK GAAP to IFRS.
The transition from UK GAAP to IFRS does not affect the cash flows generated by
the Group. The IFRS cash flow statement is presented in a different format than
that required under UK GAAP. The reconciling items between the UK GAAP format
and the IFRS format have no net impact on the cash flows generated and
accordingly reconciliations have not been presented.
The accounting policies used for IFRS are set out in note 3 of the main report.
First time adoption
The Group has applied the provisions of IFRS1 - (First-Time Adoption of
International Financial Reporting Standards) which, generally, requires that
IFRS accounting policies be applied retrospectively in determining the opening
balance sheet at the date of transition. IFRS1 contains both mandatory and
optional exemptions to the principle of retrospective application. Where the
Group has made use of an exemption it is noted below.
The group has taken the following exemptions:
* The Group has chosen to take the first time adoption exemption available
under IFRS1 to use a subsequent revaluation for its property, plant and
equipment as its deemed cost at the transition date.
Descriptions of the reconciling items between UK GAAP and IFRS are listed below.
The amounts of the reconciling items are detailed in tables set out beneath
each of the reconciliations.
Reconciliation of the Group Balance Sheet at 1 January 2006
UK GAAP IFRS
As at Effect of As at
1 January 2006 transition 1 January 2006
to IFRS
#'000 #'000 #'000
Non-current assets
Intangible assets 97 (97) -
Property, plant and equipment 440 - 440
------------ ------------ ------------
537 (97) 440
Current assets
Inventories 722 - 722
Trade and receivables 381 - 381
Cash and cash equivalents 403 - 403
------------ ------------ ------------
1,506 - 1,506
------------ ------------ ------------
Total assets 2,043 (97) 1,946
------------ ------------ ------------
Current liabilities
Trade and other payables (424) - (424)
Interest bearing borrowings (65) - (65)
------------ ------------ ------------
(489) - (489)
Non-current liabilities
Interest bearing borrowings (137) - (137)
Provisions (95) - (95)
------------ ------------ ------------
Total liabilities (721) - (721)
------------ ------------ ------------
Net assets 1,322 (97) 1,225
------------ ------------ ------------
Shareholders' funds
Share capital 2,393 - 2,393
Share premium account 148 - 148
Retained earnings (1,219) (97) (1,316)
------------ ------------ ------------
Total equity 1,322 (97) 1,225
------------ ------------ ------------
Reconciliation of the Group Balance Sheet at 31 December 2006
UK GAAP IFRS
As at Effect of As at
31 December 2006 transition 31 December
to IFRS 2006
#'000 #'000 #'000
Current assets
Trade and other receivables 4 - 4
Cash and cash equivalents 764 - 764
------------ ------------ ------------
768 - 768
------------ ------------ ------------
Total assets 768 - 768
------------ ------------ ------------
Current liabilities
Trade and other payables (7) - (7)
------------ ------------ ------------
Total liabilities (7) - (7)
------------ ------------ ------------
Net assets 761 - 761
------------ ------------ ------------
Shareholders' funds
Share capital 2,392 - 2,392
Share premium account 148 - 148
Retained earnings (1,779) - (1,779)
------------ ------------ ------------
Total equity 761 - 761
------------ ------------ ------------
Reconciliation of the Group Income Statement for the year ended 31 December 2006
UK GAAP IFRS
Year ended Effect of Year ended
31 December 2006 transition 31 December 2006
to IFRS
#'000 #'000 #'000
Revenue 794 - 794
Cost of sales (348) - (348)
------------ ------------ ------------
Gross profit 446 - 446
Administrative expenses (558) 2 (556)
Other income - - -
------------ ------------ ------------
Operating loss (112) 2 (110)
Financial income 22 - 22
Loss on discontinued operations (471) 95 (376)
------------ ------------ ------------
Loss before taxation (561) 97 (464)
Taxation - - -
------------ ------------ ------------
Loss for the year (561) 97 (464)
------------ ------------ ------------
Loss per share (1.17)p (0.97)p
- Basic (pence) (1.17)p (0.97)p
- Diluted (pence)
Reconciliation of the Group Balance Sheet at 30 June 2006
UK GAAP IFRS
As at Effect of As at
30 June 2006 transition 30 June 2006
to IFRS
#'000 #'000 #'000
Current Assets
Trade and other receivables 25 - 25
Cash and cash equivalents 768 - 768
------------ ------------ ------------
793 - 793
------------ ------------ ------------
Total assets 793 - 793
------------ ------------ ------------
Current liabilities
Trade and other payables (11) - (11)
------------ ------------ ------------
(11) - (11)
------------ ------------ ------------
Total liabilities (11) - (11)
------------ ------------ ------------
Net assets 782 782
------------ ------------ ------------
Shareholders' funds
Share capital 2,393 - 2,393
Share premium account 148 - 148
Retained earnings (1,759) - (1,759)
------------ ------------ ------------
Total equity 782 - 782
------------ ------------ ------------
Reconciliation of the Group Income Statement for the 6 months ended 30 June 2006
UK GAAP IFRS
Six months ended Effect of Six months
30 June 2006 transition ended
to IFRS 30 June 2006
#'000 #'000 #'000
Revenue 791 - 791
Cost of sales (348) - (348)
------------ ------------ ------------
Gross Profit 443 - 443
Administrative expenses (519) 2 (517)
------------ ------------ ------------
Operating loss (76) 2 (74)
Financial income 7 - 7
Loss on sale of discontinued operations (471) 95 (376)
------------ ------------ ------------
Loss before taxation (540) 97 (443)
Taxation - - -
------------ ------------ ------------
Loss for the financial period (540) - (443)
------------ ------------ ------------
Loss per share
- Basic (pence) (1.13)p (0.93)p
- Diluted (pence) (1.13)p (0.93)p
Contact:-
Liam Murray, Nominated Adviser
City Financial Associates Limited
Tel 020 7492 4777
This information is provided by RNS
The company news service from the London Stock Exchange
END
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