TIDMMXM
RNS Number : 4979G
Maxima Holdings PLC
02 February 2010
Embargoed until 0700 Maxima Holdings plc
2 Feb 2010 ('Maxima' or the
'Company')
HALF YEARLY REPORT FOR THE SIX MONTHS ENDED 30 NOVEMBER 2009
Maxima Holdings plc (AIM: MXM), the integrated IT solutions and managed services
business, is pleased to announce its unaudited half yearly report for the six
months ended 30 November 2009.
Financial Highlights
· Revenues for the 6 month period were GBP26.2m (H1 2009: GBP28.3 m)
· Adjusted operating profit of GBP2.9m* (H1 2009: GBP4.3m*)
· Adjusted profit before tax GBP2.6m* (H1 2009: GBP3.7m*)
· Loss before tax of GBP0.6m (H1 2009: profit GBP1.3m) after GBP1.3m of
exceptional items
· Adjusted basic earnings per share 7.0p* (H1 2009: 11.0p*)
· Net cash flow from operating activities was GBP3.4m (H1 2009: GBP1.7m)
· The Group had net debt of GBP13.5m at the end of the period (H1 2009:
GBP17.5m; 31 May 2009: GBP15.5m)
· Net interest costs in the period totalled GBP0.3m, covered 9.7 times by
adjusted operating profit*
· Interim Dividend of 1p per share (H1 2009: 2p)
· 60% recurring revenue (H1 2009: 54%)
(*before amortisation of intangibles, share-based payments and exceptional
charges)
Operational Highlights:
· 58 new clients won during the period (H1 2009: 40) and strong contract
renewal rate
· 4 new Microsoft Dynamics AX migrations
· 7 Microsoft Dynamics AX projects reached a live status
· 110 cross business selling orders signed
· Over GBP6.5m of multi year Network Infrastructure and Communication
Service contracts placed by two customers
· 18 new Virtualisation Contracts won
· More than GBP1m of Business Intelligence orders placed by major UK banks
· Former QAD customers continue to invest in other Maxima solutions and
services
Commenting on the results, Graham Kingsmill, Maxima's Chief Executive, said:
"We're progressing with our plan to simplify and focus Maxima's organisational
structure in order to deliver greater value for our customers. Our increasingly
focused approach is continuing to attract significant attention and support from
the major technology providers, who are eager to gain access to Maxima's
substantial customer base.
Although trading in the period was down on the previous year, there are
encouraging signs of recovery across many parts of the business. Enquiries,
pipeline and order intake are steadily improving, and contribution from new
sales hires is starting to have a positive impact. Overall, today's results and
the outlook are consistent with expectations for the year as a whole."
Enquiries:
+--------------------------------------------------------------------+-------------------------+
| Maxima | 01242 211211 |
| Graham Kingsmill, Chief Executive Officer | 01242 211211 |
| David Memory, Chief Finance Officer | |
+--------------------------------------------------------------------+-------------------------+
| | 020 7397 8926 |
| Cenkos Securities plc | |
| Stephen Keys | |
+--------------------------------------------------------------------+-------------------------+
| | 020 7360 4900 |
| Smithfield | |
| Reg Hoare/Will Henderson | |
| | |
| | |
| | |
+--------------------------------------------------------------------+-------------------------+
Half yearly report for the six months ended 30 November 2009
+-----------------------------------------------------------------------------------------------------+----+
| Director's Report | |
| | |
| Chairman's Statement | |
| | |
| I am pleased to report that excellent progress has been made in executing the strategy presented in | |
| Maxima's 2009 Annual Report by our CEO, Graham Kingsmill. The company's plan is on track: we have | |
| continued to invest in those areas where we have identified strong growth potential, and - in line | |
| with our strategy - have cut costs in other areas. | |
| Adjusted revenues and profits reported for the first half-year are in line with expectations for | |
| the full year following updated guidance issued in October 2009 at the time of the announcement | |
| regarding the ending of Maxima's agreement with QAD. The fall in revenues and profits | |
| principally reflects more challenging trading conditions in the IT sector as well as the cost of | |
| the investment we are making in growth opportunities. An increased level of recurring revenues | |
| reflects the high priority we have given to broadening and deepening long-term relationships with | |
| our customers. Net debt at 30 November 2009 was better than previous market expectations at | |
| GBP13.5m (30 November 2008: GBP17.5m; 31 May 2009: GBP15.5m), reflecting good cash conversion, and | |
| comfortably within our banking facilities and covenants. | |
| Maxima continues its consistent policy of returning a proportion of operating profits to | |
| shareholders as a dividend, whilst continuing to pay down our debt and retain the headroom to | |
| finance investment and acquisitions. On 31 March 2010 the company will pay an Interim Dividend of | |
| 1p per share (H1 2009: 2p) to shareholders on the register on 26 February 2010. | |
| Once again I should like to thank all of our staff for their continued loyalty and commitment | |
| during a time of significant change, particularly as the company works to align its cost base to | |
| meet new business priorities. | |
| In summary, the new management team have settled in well, our new business propositions are already | |
| proving successful, and Maxima continues to benefit from a large and loyal client base. I am | |
| confident that the changes we have made to the structure and focus of the business position us well | |
| for the future. | |
| Kelvin Harrison | |
| Chairman, 1 February 2010 | |
| | |
| | |
| | |
| | |
| Interim results for the six months ended 30 November 2009 | |
| | |
| Director's Report | |
| | |
| Chief Executive's Review | |
| | |
| Introduction: | |
| For the six months ended 30 November 2009, Maxima has made good progress towards delivering on its | |
| strategic plan presented in August 2009, focusing particularly on areas of core competence where | |
| the company can respond best to the demands of key customers. Our sales and marketing activity is | |
| now driven around three main engagement routes: | |
| | |
| · IT life extension and managed migration services | |
| · Industry-specific business solutions, and the up-selling of our infrastructure offering | |
| · Sales, support and enablement services with selected technology partners | |
| | |
| We differentiate ourselves from competitors by concentrating on a limited number of industry | |
| sectors where Maxima has historic knowledge and experience, and through the provision of both | |
| Business Solutions and Infrastructure Enablement Services that allow us to offer customers real | |
| choice and solutions that support a variable investment scale. | |
| We have also accelerated our plans to align Maxima with the largest and most influential technology | |
| partners, taking advantage of demand from customers for the supply of 'IT-as-a-Service', and | |
| offering an approved and complementary portfolio of products and services that will make Maxima the | |
| preferred partner. As a result, we have now combined a number of core Maxima specialities and | |
| competences to create four clear value creation opportunities: | |
| | |
| · Virtualisation Services | |
| · Network Infrastructure and Communications Services | |
| · Business Intelligence professional services in the Financial Services industry | |
| · Microsoft Dynamics AX/CRM "As a Service" for Construction, Manufacturing and Services | |
| Industries | |
| | |
| We're already seeing this approach prove successful, with highlights including: | |
| | |
| · Growth in Virtualisation Services, with major Citrix orders in both Ireland and the UK | |
| · Securing two major multi-year communications service contracts valued at over GBP6.5 million | |
| · Winning a number of contracts from major banks for projects relating to our specialist | |
| Business Intelligence industry expertise | |
| · Successfully migrated an additional 7 clients onto Microsoft Dynamics AX, and signed 4 new | |
| legacy migration projects | |
| | |
| Maxima has also focused on delivering a reliable performance, managing headcount, and taking | |
| significant steps to reduce costs. Adopting a centralised shared services function has made a big | |
| contribution, as has renewed focus on credit control - allowing us to invest in key areas such as | |
| Marketing and Business Development staff and processes that will drive growth for the future. | |
| We're also working to unlock additional business opportunities through new initiatives, including | |
| leveraging our skills to support Cloud Computing*, and setting up new Maxima Competency Centres to | |
| drive sales of our specialist capabilities in four key areas. | |
| | |
| Over the last six months we have continued to align Maxima staffing levels with our stated business | |
| goals. This process has seen the recruitment of 47 new employees into the business, bringing new | |
| skills and experience to strengthen our defined areas of competence, while overall staff levels | |
| have reduced by 44 over the period. We have also started to make greater use of Maxima's | |
| facilities in India to provide more affordable 24x7 services, which is proving a critical part of | |
| delivering our 'IT-as-a-Service' proposition. Maxima serves over 1,400 clients, primarily | |
| medium-sized UK-based organisations with a turnover of between GBP5m and GBP500m. Increasingly | |
| larger organisations are also now contracting with Maxima, particularly in areas where we have | |
| unique skills and competencies. | |
| | |
| Customer examples include: Orange UK, Mars, AG Barr plc, The Murphy Group and Caledonian MacBrayne | |
| | |
| *Cloud Computing is an IT delivery approach that provides utility-style, on-demand IT applications | |
| and services, hosted on a virtualised infrastructure, and typically delivered across the internet | |
| or corporate network on a pay-as-you-go basis. | |
| | |
| | |
| Market Conditions: | |
| | |
| Maxima is addressing challenging market conditions by implementing new opportunity management and | |
| qualification processes. Focusing on better quality opportunities has helped deliver an increase | |
| in our win rate, and improved our ability to deliver stronger margins. More recently, there have | |
| been encouraging signs that volumes are increasing, complementing the improved win rate. | |
| | |
| There has been some reduction in day rates for consulting services compared to the same period last | |
| year, but by concentrating on the higher value specialist services, Maxima has successfully | |
| controlled the impact on margins. Customers are more risk averse, taking longer on technology | |
| selection and negotiation for new systems, however Maxima has benefited from having a large | |
| installed base with customers who are more comfortable investing with a supplier they already know | |
| - rather than taking a risk with new suppliers. | |
| | |
| Maxima is also seeing an increasing interest in 'on-demand', cloud-based services - a technology | |
| area where the company is well positioned to succeed thanks to our deep expertise in cloud | |
| infrastructure such as communications, data centres, storage and hosting, applications skills, and | |
| our proven Managed Services capability. We're particularly well placed to support customers | |
| looking to supplement their existing IT operations with cloud initiatives, however, although | |
| interest is growing, we will continue in the short term to provide a balance between conventional | |
| and 'IT-as-a-Service' delivery models. | |
| | |
| As previously announced, on the 20thOctober 2009 the company was informed by QAD that they intended | |
| to end a long standing distribution partnership with Maxima, indicating that they were going to | |
| sell direct to customers rather than through Maxima. Although this was disappointing news, it is | |
| encouraging that many of the customer relationships will be maintained as Maxima has been | |
| successful in cross-selling many other products and services unrelated to QAD. Maxima takes pride | |
| in the customer relationships derived through the QAD product, which in many cases have been active | |
| for 10 years or more. As a result of our good service reputation, we believe that many customers | |
| will remain loyal to the Maxima brand and will continue to invest in other business solutions and | |
| services offered by the company. | |
| | |
| Operating Review: | |
| | |
| The financial year started with the appointment in June 2009 of a reorganised operational | |
| management team reporting into me. The team is divided into two parts, covering customer-centric | |
| sales and delivery teams as well as a central shared services operation. The delivery teams are in | |
| turn divided into two groups, Business Solutions and Support Enablement Services, each accounting | |
| for approximately 50% of the business in terms of revenue and staff distribution. The new team has | |
| bedded in well, with momentum picking up in August and performing well through to the end of the | |
| first half. The recipe of new management combined with the entrepreneurial experience of existing | |
| management has worked well, supporting an improved level of success in cross selling contracts. | |
| There has also been a greater emphasis placed on growing existing customers, working closely with | |
| key partners and winning new business. Highlights include: | |
| | |
| · Continuing to maintain the support of existing Managed Services customers who have renewed | |
| and extended services with Maxima - including two multi-year service contracts valued at over | |
| GBP6.5m which were part of a group of existing and new customer wins relating to our specialist | |
| Network Infrastructure and Communications capability | |
| · Growth in Maxima's virtualisation capability, including contracts with Dublin City Council | |
| and Towergate - delivered by our Support Enablement Services team | |
| · Concentrated efforts to drive the partnering relationship with Microsoft has paid dividends | |
| with 7 customers migrating to Microsoft's Dynamics AX technology, and 4 new legacy migration | |
| contracts signed with organisations such as nPower | |
| · New contracts placed by major banks wanting to access Maxima's specialist domain expertise | |
| in Business Intelligence technology from SAP and Oracle | |
| · Centralised Maxima shared service functions making a big contribution helping to minimise | |
| costs, recruit new skills and generate new opportunities | |
| · Focused efforts in credit control resulting in a very pleasing level of cash collection, | |
| enabling net debt to be reduced ahead of expectation to GBP13.5m | |
| · New investment in partner management has supported greater partner collaboration, resulting | |
| in new pipeline opportunities being generated and - very encouragingly - new orders being placed | |
| including one contract worth approximately GBP0.5m from IBM | |
| · Investment in new marketing staff and management, enabling the roll-out of a re-branding | |
| programme, simplification of marketing messages and a refresh of all communications media | |
| | |
| Maxima continues to have high visibility of future revenues with 60% recurring revenues from | |
| support and managed services in the period, high levels of repeat business and a good order book | |
| for project work. We have a broad spread of clients across a number of industry sectors with a | |
| good mix of transaction values - all helping to ensure that our risk profile is manageable. While | |
| the current economic climate has driven a small number of customers to either reduce or cancel | |
| services, we have had very few customers that have been forced out of business. Maxima's business | |
| strategy is to provide exemplary levels of customer service around market-leading solutions - | |
| leading to high levels of customer retention. We have also adopted a policy of working closely | |
| with any customers who are experiencing trading difficulties, and this has resulted in any | |
| potential customer and financial losses being minimised. | |
| | |
| | |
| Financial Results in Summary: | |
| | |
| · Revenues for the 6 month period were GBP26.2m (H1 2009: GBP28.3 m) | |
| · Adjusted operating profit of GBP2.9m* (H1 2009: GBP4.3m*) | |
| · Adjusted profit before tax GBP2.6m* (H1 2009: GBP3.7m*) | |
| · Loss before tax of GBP0.6m (H1 2009: profit GBP1.3m) after GBP1.3m of exceptional items | |
| · Adjusted basic earnings per share to 7.0p* (H1 2009: 11.0p*) | |
| · Net cash flow from operating activities was GBP3.4m (H1 2009: GBP1.7m) | |
| · The Group had net debt of GBP13.5m at the end of the period (H1 2009: GBP17.5m; 31 May | |
| 2009: GBP15.5m) | |
| · Net interest costs in the period totalled GBP0.3m, covered 9.7 times by adjusted operating | |
| profit* | |
| · Interim Dividend of 1p per share (H1 2009: 2p) | |
| · 60% recurring revenue (H1 2009: 54%) | |
| | |
| | |
| (*before amortisation of intangibles, share-based payments and exceptional items) | |
| | |
| Trading results: | |
| Revenues for the half year to 30 November 2009 decreased from GBP28.2m to GBP26.2m, notwithstanding | |
| the GBP0.8m impact of 1 extra month of trading from DXI which was acquired on 1 July 2008. The | |
| largest contributor to this is a decline in product revenues, whilst a smaller decline in | |
| consulting revenues was partly offset by an increase in recurring revenues. Consulting and product | |
| sales have been lower in most areas, reflecting the general market conditions, though we have seen | |
| some improvement in consulting sales relating to Microsoft AX implementations. Recurring revenues | |
| have also been strong, particularly in the Support Enablement Services Division and now account for | |
| 60% (H1 2009: 54%) of total revenue. Gross margins have also declined from 69% to 68%, largely in | |
| the product sales, but also as we see some pressure on day rates for consulting compared to a year | |
| ago. | |
| | |
| Administration expenses reduced by GBP0.3m to GBP14.9m. The underlying reduction after allowing | |
| for the DXI acquisition was GBP0.7m with savings principally in people and property costs. The | |
| reduced gross profit described above, less the effect of the reduction in administration expenses | |
| gives rise to a reduced earnings before interest, tax, amortisation, share based payments and | |
| redundancy and re-organisation costs of GBP2.9m compared to GBP4.3m for the first six months of | |
| last year. Amortisation of intangibles was GBP1.8m (H1 2009: GBP2.0m), a reduction that reflects | |
| the fact that intangible assets valued on the acquisitions of 3Net and Centric have now been fully | |
| amortised. | |
| | |
| (Loss)/Earnings per share and dividends | |
| Basic loss per share was 2.2p (H1 2009: earnings 3.9p). Adjusted earnings per share, before | |
| amortisation, share based payments and exceptional redundancy and reorganisation costs, fell to | |
| 7.0p (H1 2009: 11.0p). An interim dividend of 1.0p per share will be paid on 31 March 2010, to | |
| shareholders on the register at close of business on 26 February 2010. | |
| | |
| Cashflow and net debt | |
| In the 6 months, the Group generated GBP3.4m of cash from operations, against GBP1.7m last year. | |
| This reflects stronger cash collection and net debt consequently reduced to GBP13.5m, down from | |
| GBP15.5m at 31 May 2009. | |
| | |
| The Group finances its operations through a mixture of cash generation and related retained profit, | |
| and a mix of medium and long term bank facilities with Barclays Bank plc, to ensure that sufficient | |
| liquidity is available to meet its foreseeable funding requirements. The Group's facilities are | |
| floating rate and it uses interest rate instruments to hedge its interest rate risk on borrowing | |
| where appropriate. The Group had committed borrowing facilities of GBP18.25m at 30 November 2009, | |
| comprising a GBP3.5m term loan facility, repayable in seven instalments until 31 May 2013, a | |
| GBP13.75m revolving credit facility repayable by 31 May 2013 and a GBP1.0m overdraft facility. | |
| GBP15.3m was drawn under these facilities at the year end. Cash balances at the year end were | |
| GBP1.9m, which allows GBP4.8m of headroom. At 31 May 2009, GBP4.0m of the group's interest rate | |
| risk was hedged for the period to 30 June 2010 and a further GBP4.0m was hedged for the period to | |
| 30 November 2011. | |
| | |
| Outlook: | |
| | |
| The last period has been one of considerable change for Maxima, as the business adjusts and adapts | |
| its operating activities to an evolving business climate. At the core of Maxima is a loyal and | |
| committed customer base, which we're pleased to say has continued to invest its trust and money in | |
| the combined skill, knowledge and experience of Maxima staff, and our vision for the future. | |
| | |
| I believe that the work we have done in focussing on our core competences means we have an | |
| excellent platform from which we can take advantage of future opportunities and there are | |
| encouraging signs of recovery across many parts of the business. Enquiries, pipeline and order | |
| intake are steadily improving, and contribution from new sales hires is starting to have a positive | |
| impact. Overall, progress has been made across Maxima and we are excited by the prospects for the | |
| Company. | |
| | |
| Graham Kingsmill | |
| Chief Executive Officer, 1 February 2010 | |
| | |
+-----------------------------------------------------------------------------------------------------+----+
+----------------------------------------------------+------------------------------------------------------+
| | |
+----------------------------------------------------+------------------------------------------------------+
Independent Review Report to Maxima Holdings plc
Introduction
We have been engaged by the company to review the financial information in the
half-yearly financial report for the six months ended 30 November 2009 which
comprises the consolidated interim income statement, consolidated interim
statement of comprehensive income, consolidated interim balance sheet,
consolidated interim statement of changes in equity, consolidated interim cash
flow statement and notes 1 to 8 to the interim financial statement. We have
read the other information contained in the half-yearly financial report which
comprises only the highlights and the Director's Report and considered whether
it contains any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
This report is made solely to the company in accordance with guidance contained
in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information
performed by the Independent Auditor of the Entity'. Our review work has been
undertaken so that we might state to the company those matters we are required
to state to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the company, for our review work, for this report, or for the
conclusion we have formed.
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The AIM rules of the London Stock Exchange require that the
accounting policies and presentation applied to the financial information in the
half-yearly financial report are consistent with those which will be adopted in
the annual accounts having regard to the accounting standards applicable for
such accounts.
As disclosed in Note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
financial information in the half-yearly financial report has been prepared in
accordance with the basis of preparation in Note 1.
Our responsibility is to express to the company a conclusion on the financial
information in the half-yearly financial report based on our review.
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe
that the financial information in the half-yearly financial report for the six
months ended 30 November 2009 is not prepared, in all material respects, in
accordance with the basis of preparation described in Note 1.
GRANT THORNTON UK LLP
CHARTERED ACCOUNTANTS
GLASGOW
1 February 2010
The maintenance and integrity of the Maxima Holdings plc website is the
responsibility of the Directors: the interim review does not involve
consideration of these matters and, accordingly, the company's reporting
accountants accept no responsibility for any changes that may have occurred to
the interim report since it was initially presented on the website. Legislation
in the United Kingdom governing the preparation and dissemination of the interim
report differ from legislation in other jurisdictions.
Maxima Holdings plc
Consolidated Interim Income Statement
for the six months ended 30 November 2009
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| | | (Unaudited) | | (Unaudited) | | (Audited) |
| | | Six months to | | Six months to | | Year to |
| | | 30 November | | 30 November | | 31 May 2009 |
| | Note | 2009 | | 2008 | | |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| | | | | | | |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| | | | | | | |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Revenue | 2 | 26,247 | | 28,283 | | 56,609 |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Cost of sales | | (8,372) | | (8,688) | | (17,192) |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Gross profit | | 17,875 | | 19,595 | | 39,417 |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Administration expenses | | (14,935) | | (15,277) | | (31,160) |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Earnings before interest, tax, | | 2,940 | | 4,318 | | 8,257 |
| amortisation of intangibles, share | | | | | | |
| based payments and exceptional items | | | | | | |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Amortisation of intangibles | | (1,787) | | (1,979) | | (4,031) |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Impairment of goodwill | | - | | - | | (8,413) |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Share based payments | | (146) | | (31) | | (93) |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Exceptional items | | (1,303) | | (322) | | (3,652) |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Operating (loss)/ profit | | (296) | | 1,986 | | (7,932) |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| | | | | | | |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Exceptional fair value adjustments | | - | | - | | (551) |
| for internal hedging instruments | | | | | | |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Finance income | | 7 | | 23 | | 27 |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Finance costs | | (311) | | (665) | | (1,176) |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| | | | | | | |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| (Loss)/ profit before income tax | | (600) | | 1,344 | | (9,632) |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Tax expense, net | | 34 | | (379) | | 400 |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| | | | | | | |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| (Loss)/ profit for the period from | | (566) | | 965 | | (9,232) |
| total operations attributable to | | | | | | |
| equity holders of the parent | | | | | | |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| | | | | | | |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Earnings per share | 3 | | | | | |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Basic (loss)/ earnings per share | | (2.2)p | | 3.9p | | (36.8)p |
| (pence) | | | | | | |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Diluted (loss)/ earnings per share | | (2.2)p | | 3.8p | | (36.8)p |
| (pence) | | | | | | |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
Consolidated Interim Statement of Comprehensive Income
for the six months ended 30 November 2009
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| | | (Unaudited) | | (Unaudited) | | (Audited) |
| | | Six months to | | Six months to | | Year to |
| | | 30 November | | 30 November | | 31 May 2009 |
| | | 2009 | | 2008 | | |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| (Loss)/ profit for the period from | | (566) | | 965 | | (9,232) |
| total operations | | | | | | |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Foreign translation gain | | 27 | | 174 | | 41 |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
| Total comprehensive income | | (539) | | 1,139 | | (9,191) |
| attributable to equity holders of | | | | | | |
| the parent | | | | | | |
+--------------------------------------+------+---------------+---+---------------+--+-----------------+
Maxima Holdings plc
Consolidated Interim Balance Sheet
as at 30 November 2009
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| | | (Unaudited) | | (Unaudited) | | (Audited) |
| | Notes | 30 November 2009 | | 30 November 2008 | | 31 May 2009 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Assets | | | | | | |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Non-current assets | | | | | | |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Property, plant and equipment | | 1,247 | | 1,531 | | 1,361 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Intangible assets - goodwill | 4 | 40,921 | | 49,419 | | 41,021 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Intangible assets - other | | 7,271 | | 10,742 | | 8,880 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Total intangible assets | | 48,192 | | 60,161 | | 49,901 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Total non-current assets | | 49,439 | | 61,692 | | 51,262 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Current assets | | | | | | |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Inventory | | 390 | | 383 | | 405 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Trade and other receivables | | 13,968 | | 15,625 | | 14,363 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Cash and cash equivalents | 5 | 1,930 | | 967 | | 2,421 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Total current assets | | 16,288 | | 16,975 | | 17,189 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Total assets | | 65,727 | | 78,667 | | 68,451 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Liabilities | | | | | | |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Current liabilities | | | | | | |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Trade and other payables | | (3,794) | | (4,228) | | (4,153) |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Deferred Income | | (11,158) | | (11,341) | | (10,653) |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Tax liabilities | | (150) | | (906) | | - |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Current borrowings | 5 | (1,050) | | (1,089) | | (1,096) |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Accruals | | (4,871) | | (4,867) | | (4,218) |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Short term provisions | | (1,124) | | - | | (804) |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Total current liabilities | | (22,147) | | (22,431) | | (20,924) |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Non-current liabilities | | | | | | |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Non-current borrowings | 5 | (14,342) | | (17,338) | | (16,812) |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Deferred tax | | (2,628) | | (3,210) | | (2,899) |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Long term provisions | | (2,459) | | - | | (2,640) |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Total non-current liabilities | | (19,429) | | (20,548) | | (22,351) |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Total liabilities | | (41,576) | | (42,979) | | (43,275) |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| | | | | | | |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Net assets | | 24,151 | | 35,688 | | 25,176 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| | | | | | | |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Equity | | | | | | |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Share capital | | 253 | | 251 | | 253 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Reverse acquisition reserve | | (9,180) | | (9,180) | | (9,180) |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Share premium | | 28,794 | | 28,722 | | 28,794 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Capital redemption reserve | | 50 | | 50 | | 50 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Merger reserve | | 4,595 | | 11,022 | | 4,595 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Foreign translation reserve | | 220 | | 174 | | 193 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Retained earnings | | (581) | | 4,649 | | 471 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| | | | | | | |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
| Total equity | | 24,151 | | 35,688 | | 25,176 |
+------------------------------------+-------+-------------------+--+-------------------+--+-----------------+
Maxima Holdings plc
Consolidated Interim Statement of Changes in
Equity
for the six months ended 30 November 2009
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| | Share | Reverse | Merger | Share | Capital | Foreign | Retained | Total |
| | | acquisition | reserve | premium | redemption | translation | earnings | |
| |Capital | reserve | | | reserve | reserve | | |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| | | | | | | | | |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| 6 months to 30 | | | | | | | | |
| November 2009 | | | | | | | | |
| (unaudited) | | | | | | | | |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| | | | | | | | | |
| Balance at 1 June | 253 | (9,180) | 4,595 | 28,794 | 50 | 193 | 471 | 25,176 |
| 2009 | | | | | | | | |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| Loss for the period | - | - | - | - | - | - | (566) | (566) |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| Dividends paid | - | - | - | - | - | - | (632) | (632) |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| Share based | - | - | - | - | - | - | 146 | 146 |
| payments | | | | | | | | |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| Foreign exchange on | - | - | - | - | - | 27 | - | 27 |
| consolidation | | | | | | | | |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| | | | | | | | | |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| Balance at 30 Nov | 253 | (9,180) | 4,595 | 28,794 | 50 | 220 | (581) | 24,151 |
| 2009 | | | | | | | | |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| | | | | | | | | |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| 6 months to 30 | | | | | | | | |
| November 2008 | | | | | | | | |
| (unaudited) | | | | | | | | |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| | | | | | | | | |
| Balance at 1 June | 250 | (9,180) | 11,022 | 28,624 | 50 | 152 | 4,588 | 35,506 |
| 2008 | | | | | | | | |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| Profit for the | - | - | - | - | - | - | 965 | 965 |
| period | | | | | | | | |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| Dividends paid | - | - | - | - | - | - | (900) | (900) |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| Share based | - | - | - | - | - | - | (4) | (4) |
| payments | | | | | | | | |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| Foreign exchange on | - | - | - | - | - | 22 | - | 22 |
| consolidation | 1 | - | - | 98 | - | - | - | 99 |
| Issue of shares | | | | | | | | |
| (net of expenses) | | | | | | | | |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| Balance at 30 Nov | 251 | (9,180) | 11,022 | 28,722 | 50 | 174 | 4,649 | 35,688 |
| 2008 | | | | | | | | |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| | | | | | | | | |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
| Year to 31 May 2009 | | | | | | | | |
| (audited) | | | | | | | | |
+---------------------+---------+-------------+---------+----------+------------+-------------+----------+--------+
+--------------------+--------+------------+---------+----------+------------+----------+----------+---------+
| | | | | | | | | |
| Balance at 1 June | 250 | (9,180) | 11,022 | 28,624 | 50 | 152 | 4,588 | 35,506 |
| 2008 | | | | | | | | |
+--------------------+--------+------------+---------+----------+------------+----------+----------+---------+
| Loss for the year | - | - | - | - | - | - | (9,232) | (9,232) |
+--------------------+--------+------------+---------+----------+------------+----------+----------+---------+
| Dividends paid | - | - | - | - | - | - | (1,405) | (1,405) |
+--------------------+--------+------------+---------+----------+------------+----------+----------+---------+
| Transfer from | | | | | | | | |
| merger reserve | - | - | (6,427) | - | - | - | 6,427 | - |
+--------------------+--------+------------+---------+----------+------------+----------+----------+---------+
| Share based | - | - | - | - | - | - | 93 | 93 |
| payments | | | | | | | | |
+--------------------+--------+------------+---------+----------+------------+----------+----------+---------+
| Foreign exchange | | | | | | | | |
| on consolidation | - | - | - | - | - | 41 | - | 41 |
+--------------------+--------+------------+---------+----------+------------+----------+----------+---------+
| Issue of shares | | | | | | | | |
| (net of expenses) | 3 | - | - | 170 | - | - | - | 173 |
+--------------------+--------+------------+---------+----------+------------+----------+----------+---------+
+--------------------+--------+------------+--------+----------+------------+----------+----------+--------+
| Balance at 31 May | 253 | (9,180) | 4,595 | 28,794 | 50 | 193 | 471 | 25,176 |
| 2009 | | | | | | | | |
+--------------------+--------+------------+--------+----------+------------+----------+----------+--------+
| | | | | | | | | |
+--------------------+--------+------------+--------+----------+------------+----------+----------+--------+
Maxima Holdings plc
Consolidated Interim Cash Flow Statement
for the six months ended 30 November 2009
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| | | | | (Unaudited) | | (Audited) |
| | | (Unaudited) | | Six months to | | Year to |
| | | Six months to | | 30 November 2008 | | 31 May 2009 |
| | Notes | 30 November 2009 | | | | |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| | | | | | | |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Operating activities | | | | | | |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| (Loss)/ profit before tax | | (600) | | 1,344 | | (9,632) |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Adjustments for: | | | | | | |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Interest payable | | 311 | | 665 | | 1,176 |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Exceptional redundancy and | | 1,303 | | - | | 3,652 |
| reorganisation costs | | | | | | |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| | | | | | | |
| Exceptional fair value adjustment for | | - | | - | | 551 |
| interest rate hedging instruments | | | | | | |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Interest receivable | | (7) | | (23) | | (27) |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Depreciation | | 320 | | 329 | | 620 |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Share based payments | | 146 | | 31 | | 93 |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Impairment of goodwill | | - | | - | | 8,413 |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Amortisation of intangibles | | 1,787 | | 1,979 | | 4,031 |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Operating cash flows before movements | | 3,260 | | 4,325 | | 8,877 |
| in working capital | | | | | | |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Movement in inventories | | 16 | | (75) | | (93) |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Movement in receivables | | (167) | | (505) | | 1,070 |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Movement in payables | | (286) | | (966) | | (2,629) |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Taxation repaid/ (paid) | | 533 | | (1,096) | | (2,049) |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Net cash from operating activities | | 3,356 | | 1,683 | | 5,176 |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Cash flows from investing activities | | | | | | |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Interest received | | 7 | | 43 | | 27 |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Purchase of property, plant & | | (203) | | (442) | | (614) |
| equipment | | | | | | |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Proceeds from sale of property, plant | | 3 | | 17 | | 57 |
| & equipment | | | | | | |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Acquisition of subsidiaries (net of | | - | | (8,485) | | (8,485) |
| cash acquired) | 4 | 100 | | - | | - |
| Warranty claim paid | | | | | | |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Expenditure on research & development | | | | | | |
| activities capitalised | | (177) | | (201) | | (391) |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Net cash used in investing activities | | (270) | | (9,068) | | (9,406) |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Cash flows from financing activities | | | | | | |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Interest paid | | (429) | | (480) | | (1,103) |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Proceeds from long term borrowings | | - | | 6,000 | | 6,000 |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Repayment of long term borrowings | | (2,450) | | (500) | | (1,000) |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Repayment of finance leases | | (66) | | (69) | | (143) |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Dividends paid | | (632) | | (900) | | (1,405) |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Proceeds from issue of shares | | - | | 99 | | 100 |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Net cash from financing activities | | (3,577) | | 4,150 | | 2,449 |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Net (decrease)/increase in cash & cash | | | | | | |
| equivalents | | (491) | | (3,235) | | (1,781) |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Cash and cash equivalents at beginning | | 2,421 | | 4,202 | | 4,202 |
| of period | | | | | | |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
| Cash and cash equivalents at end of | | 1,930 | | 967 | | 2,421 |
| period | | | | | | |
+----------------------------------------+-------+-------------------+--+--------------------+--+-----------------+
Maxima Holdings plc
Notes to the interim financial statements
1. Basis of preparation
The interim financial information does not constitute statutory financial
statements for the purpose of section 434 of the Companies Act 2006. The
figures for the year ended 31 May 2009 have been extracted from the Group
Financial Statements for that year. Those financial statements have been
delivered to the Registrar of Companies and included an independent auditors'
report, which was unqualified.
The interim financial information has been prepared using the same accounting
policies and estimation techniques as will be adopted in the Group financial
statements for the year ending 31 May 2010. The Group financial statements for
the year ended 31 May 2009 were prepared under International Financial Reporting
Standards. These interim financial statements have been prepared on a
consistent basis and format except for the adoption of IAS 1 'Presentation of
Financial Statements (Revised 2007)'.
The provisions ofIAS 34 'Interim Financial Reporting' have not been applied in
full The adoption of IAS 1 (Revised 2007) does not affect the financial
position or profits of the Group, but gives rise to additional disclosures. The
measurement and recognition of the Group's assets, liabilities, income and
expenses is unchanged. IAS 1 (Revised 2007) affects the presentation of owner
changes in equity and introduces a 'Statement of comprehensive income'.
2. Segmental Analysis
Segment information is presented in respect of the Group's business segments.
The primary format, business segments, is based on the Group's management and
internal reporting structures.
Segment results and assets and liabilities include items directly attributable
to a segment. Unallocated items comprise mainly tax and financing related
items.
+-+--------------------------------------+--+--+------------+--+--------------+--------------+-+--------------+----------+
| | Six months ended 30 November 2009 | | Business | Support | Total |
| | | | Solutions | Enablement | |
| | | | | Services | |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | | | GBP000 | GBP000 | GBP000 |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Revenue | | 10,207 | 16,040 | 26,247 |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Operating profit before amortisation of | | 1,285 | 1,655 | 2,940 |
| | intangibles, share based payments and | | | | |
| | exceptional items | | | | |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Amortisation of intangibles | | (494) | (1,293) | (1,787) |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Share based payments | | (115) | (31) | (146) |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Exceptional items | | (909) | (394) | (1,303) |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Operating loss | | (233) | (63) | (296) |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Finance costs | | | | (311) |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Finance income | | | | 7 |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Loss before income tax | | | | (600) |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Income tax expense, net | | | | 34 |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Loss for the period | | | | (566) |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Balance Sheet | | | | |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Assets | | | | |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Segment assets | | 20,841 | 42,753 | 63,594 |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Unallocated assets | | | | 2,133 |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Consolidated total assets | | | | 65,727 |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Liabilities | | | | |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Segment liabilities | | 12,567 | 12,908 | 25,475 |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Unallocated liabilities | | | | 16,101 |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Consolidated total liabilities | | | | 41,576 |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Capital expenditure | | 60 | 143 | 203 |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | Depreciation | | 107 | 213 | 320 |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | | | | | |
| | | | | | |
| | | | | | |
+-+--------------------------------------------+------------+-----------------+----------------+-------------------------+
| | | | Business | Support | Total |
| | | | Solutions | Enablement | |
| | | | | Services | |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Six months ended 30 November 2008 | | GBP000 | GBP000 | GBP000 |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Revenue | | 11,890 | 16,393 | 28,283 |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Operating profit before amortisation | | 2,013 | 2,305 | 4,318 |
| | of intangibles, share based payments | | | | |
| | and exceptional items | | | | |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Amortisation of intangibles | | (433) | (1,546) | (1,979) |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Share based payments | | (23) | (8) | (31) |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Exceptional items | | (123) | (199) | (322) |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Operating profit | | 1,434 | 552 | 1,986 |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Net financial expense | | | | (642) |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Profit before income tax | | | | 1,344 |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Income tax expense, net | | | | (379) |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Profit for the period | | | | 965 |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Balance Sheet | | | | |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Assets | | | | |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Segment assets | | 23,704 | 53,502 | 77,206 |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Unallocated assets | | | | 1,461 |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Consolidated total assets | | | | 78,667 |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Liabilities | | | | |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Segment liabilities | | 10,499 | 9,024 | 19,523 |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Unallocated liabilities | | | | 23,456 |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Consolidated total liabilities | | | | 42,979 |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Capital expenditure | | 361 | 2,288 | 2,649 |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | Depreciation | | 132 | 197 | 329 |
+-+--------------------------------------+------------------+-----------------+----------------+-------------------------+
| | | | | | |
| Year ended 31 May 2009 | | | | | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Revenue | | 24,209 | 32,400 | 56,609 | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Operating profit before amortisation of | | 4,162 | 4,095 | 8,257 | |
| intangibles, impairment, share based | | | | | |
| payments and exceptional items | | | | | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Impairment of goodwill | | - | (8,413) | (8,413) | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Amortisation of intangibles | | (3,091) | (940) | (4,031) | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Share based payments | | (71) | (22) | (93) | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Exceptional items | | (3,221) | (431) | (3,652) | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Operating loss | | (2,221) | (5,711) | (7,932) | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Net financial expense | | | | (1,700) | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Loss before income tax | | | | (9,632) | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Income tax expense, net | | | | 400 | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Loss for the period | | | | (9,232) | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Balance Sheet | | | | | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Assets | | | | | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Segment assets | | 21,455 | 46,771 | 68,226 | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Unallocated assets | | | | 225 | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Consolidated total assets | | | | 68,451 | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Liabilities | | | | | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Segment liabilities | | 12,010 | 9,983 | 21,993 | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Unallocated liabilities | | | | 21,282 | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Consolidated total liabilities | | | | 43,275 | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Capital expenditure | | 624 | 2,765 | 3,389 | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| Depreciation | | 254 | 366 | 620 | |
+-------------------------------------------+------------------+--------------+--------------+----------------+----------+
| | | | | | | | | | | |
+-+--------------------------------------+--+--+------------+--+--------------+--------------+-+--------------+----------+
3. Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of shares in issue during
the period. Diluted earnings per share takes into account the dilutive effect
of the share options outstanding under the Company's employee option schemes and
acquisition related earn outs payable in shares.
Adjusted earnings per share is based on earnings before amortisation, share
based payments, impairment and exceptional items, and is presented in order to
assist in the understanding of the underlying performance of the Group's
businesses.
+------------------------------------------+----------------+----------------+---------------+
| | (Unaudited) | (Unaudited) | (Audited) |
| | Six months to | Six months to | Year ended |
| | 30 November | 30 November | 31 May |
| | 2009 | 2008 | 2009 |
+------------------------------------------+----------------+----------------+---------------+
| Earnings | GBP000 | GBP000 | GBP000 |
+------------------------------------------+----------------+----------------+---------------+
| | | | |
+------------------------------------------+----------------+----------------+---------------+
| Net (loss)/ profit after tax | (566) | 965 | (9,232) |
| attributable to equity holders | | | |
+------------------------------------------+----------------+----------------+---------------+
| | | | |
+------------------------------------------+----------------+----------------+---------------+
| | No. 000's | No.000's | No.000's |
+------------------------------------------+----------------+----------------+---------------+
| Weighted average number of shares | | | |
+------------------------------------------+----------------+----------------+---------------+
| For basic earnings per share | 25,261 | 25,019 | 25,087 |
+------------------------------------------+----------------+----------------+---------------+
| Dilutive share options | 1,214 | 170 | 260 |
+------------------------------------------+----------------+----------------+---------------+
| | | | |
| For diluted earnings per share | 26,475 | 25,189 | 25,347 |
+------------------------------------------+----------------+----------------+---------------+
| Basic (loss)/ earnings per share | (2.2)p | 3.9p | (36.8)p |
+------------------------------------------+----------------+----------------+---------------+
| Diluted (loss)/ earnings per share | (2.2)p | 3.8p | (36.8)p |
+------------------------------------------+----------------+----------------+---------------+
| | | | |
+------------------------------------------+----------------+----------------+---------------+
| Operating (loss)/ profit | (296) | 1,986 | (7,932) |
+------------------------------------------+----------------+----------------+---------------+
| Add back | | | |
+------------------------------------------+----------------+----------------+---------------+
| Amortisation of share based payments | 146 | 31 | 93 |
+------------------------------------------+----------------+----------------+---------------+
| Amortisation of other intangible assets | 1,787 | 1,979 | 4,031 |
+------------------------------------------+----------------+----------------+---------------+
| Impairment of goodwill | - | - | 8,413 |
+------------------------------------------+----------------+----------------+---------------+
| Redundancy and re-organisation costs | 1,303 | 322 | 3,652 |
+------------------------------------------+----------------+----------------+---------------+
| Adjusted operating profit | 2,940 | 4,318 | 8,257 |
+------------------------------------------+----------------+----------------+---------------+
| Net interest | (304) | (642) | (1,149) |
+------------------------------------------+----------------+----------------+---------------+
| | | | |
| Adjusted profit on ordinary activities | 2,636 | 3,676 | 7,108 |
| before tax | | | |
+------------------------------------------+----------------+----------------+---------------+
| Tax on ordinary activities | 34 | (379) | 400 |
+------------------------------------------+----------------+----------------+---------------+
| Tax on share based payments, | (906) | (557) | (2,177) |
| amortisation and re-organisation costs | | | |
+------------------------------------------+----------------+----------------+---------------+
| | | | |
| Adjusted profit after tax | 1,764 | 2,740 | 5,331 |
+------------------------------------------+----------------+----------------+---------------+
| | | | |
| Adjusted basic earnings per share | 7.0p | 11.0p | 21.2p |
+------------------------------------------+----------------+----------------+---------------+
| Adjusted diluted earnings per share | 6.7p | 10.9p | 21.0p |
+------------------------------------------+----------------+----------------+---------------+
4. Warranty Claim
During the period a claim was made against a warranty relating to the
acquisition of DXI, which was settled in an amount of GBP100,000. In accordance
with IFRS 3 'Business Combinations', this has been applied to the value of
goodwill arising in relation to that acquisition.
5. Net Debt
+-------------------------------+-------------------------------+---------------------------------+-----------------------------+
| | (Unaudited) | (Unaudited) | (Audited) |
+ +-------------------------------+---------------------------------+-----------------------------+
| | Six months to | Six months to | Year ended |
+ +-------------------------------+---------------------------------+-----------------------------+
| | 30 November | 30 November | 31 May |
+ +-------------------------------+---------------------------------+-----------------------------+
| | 2009 | 2008 | 2009 |
+-------------------------------+-------------------------------+---------------------------------+-----------------------------+
| | GBP000 | GBP000 | GBP000 |
+-------------------------------+-------------------------------+---------------------------------+-----------------------------+
| Non-Current borrowings | | | |
| | | | |
+-------------------------------+-------------------------------+---------------------------------+-----------------------------+
| | 14,300 | 17,250 | 16,750 |
| Bank borrowings | | | |
| | | | |
+-------------------------------+-------------------------------+---------------------------------+-----------------------------+
| Finance Leases | 42 | 88 | 62 |
+-------------------------------+-------------------------------+---------------------------------+-----------------------------+
| | 14,342 | 17,338 | 16,812 |
+-------------------------------+-------------------------------+---------------------------------+-----------------------------+
| | | | |
+-------------------------------+-------------------------------+---------------------------------+-----------------------------+
| Current borrowings | | | |
+-------------------------------+-------------------------------+---------------------------------+-----------------------------+
| | 1,000 | 1,000 | 1,000 |
| Bank borrowings | | | |
+-------------------------------+-------------------------------+---------------------------------+-----------------------------+
| Finance Leases | 50 | 89 | 96 |
+-------------------------------+-------------------------------+---------------------------------+-----------------------------+
| | 1,050 | 1,089 | 1,096 |
+-------------------------------+-------------------------------+---------------------------------+-----------------------------+
| | 15,392 | 18,427 | 17,908 |
| Total Borrowings | | | |
+-------------------------------+-------------------------------+---------------------------------+-----------------------------+
| | | | |
| Cash | (1,930) | (967) | (2,421) |
| | | | |
+-------------------------------+-------------------------------+---------------------------------+-----------------------------+
| | 13,462 | 17,460 | 15,487 |
| Net Debt | | | |
+-------------------------------+-------------------------------+---------------------------------+-----------------------------+
6. Dividends
An interim dividend of 1.0 pence per share for the year to 31 May 2010 will be
paid on 31 March 2010 to shareholders on the register at 26 February 2010. In
accordance with IAS 10 this has not been accrued for in the accounts.
7. Availability of Interim Report
Copies of these results are being sent to shareholders and will also be
available from the Company's registered office at Cotswold Court, Lansdown Road,
Cheltenham, GL50 2JA.
8. Statutory Accounts
These financial statements do not constitute statutory accounts. Although the
information has been reviewed by the auditors, it is unaudited.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ZMGGZRMLGGZM
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