27 June 2013
Enables IT Group Plc
("Enables IT", "the Company" or "the Group")
Unaudited interim results for the six months ended 31 March 2013
Enables IT, the AIM quoted provider of network and IT solutions, is pleased to
announce its interim results for the six months ended 31 March 2013.
The Company will shortly be announcing the acquisition of The Support Force
Group Limited ("Support Force") together with a placing to raise approximately
£900,000.
Highlights:
* Revenue for the six months at £2.7 million (nine months to September 2012:
£2.69 million)
* Gross profit at £1.01 million (nine months to September 2012: £0.92
million)
* Operating profit of £58,000
* Cash at bank of £476,000
* Proposed acquisition of Support Force, a UK data centre hosted platform and
managed services provider, for a gross consideration of £1.2 million
Commenting on the results, Michael Walliss, CEO and interim Executive Chairman
of Enables IT said:
"The last six months have been a busy time for the Group, initially completing
the reverse acquisition of Nexus Management Plc and undertaking the successful
integration of the two businesses. The proposed acquisition of Support Force
will give the Group further additional strong recurring revenue, focused on
managed services and data centre hosted cloud services. The business has been
strengthened and we now have a solid foundation to build on, both in the UK and
US"
FURTHER ENQUIRIES
Enables IT Group plc
Michael Walliss Tel: 01372 455 970
Sanlam Securities UK (Nominated Adviser and Broker)
Simon Clements / Richard Goldsmith / Katie Tel: 020 7628 2200
Shelton
Bishopsgate Communications
Nick Rome / Matthew Low Tel: 020 7562 3350
Chairman's Statement:
Overview
The consolidated results only reflect four months of the new enlarged group
following the reverse takeover of Nexus Management Plc in November 2012. During
the period the Company has performed well with turnover at £2.7 million (nine
months to September 2012: £2.69 million). We have focused on the integration of
Enables IT Limited and Nexus Management Plc which has gone well. The Company
will soon be announcing the acquisition of Support Force, a UK data centre
hosted platform and managed services, which has access to an established 24/7
support desk based in South Africa. Further details of the acquisition and an
associated fundraising will be announced later today.
Trading
Trading throughout the period under review was stable with the acquisition of
new clients a key goal. The Company continues to promote Managed Cloud Services
and we have a number of clients taking advantage of our High Availability
Virtual Enterprise Network (HAVEN) solution. Our clients, which include one of
the leading groups in the private healthcare sector, continue to expand which
provides us with a healthy stream of professional services work and recurring
support contracts. As announced previously and anticipated at the time of the
reverse takeover, Hill & Knowlton gave notice to terminate services with us
which has resulted in an exceptional impairment of £315,000 in the period under
review.
Outlook
Enables IT's strategy is to grow the business both organically and by
acquisition and these are being actively progressed. The Company has recently
bolstered its sales function in order to drive organic growth into the business
and early indications are very encouraging. In addition to the proposed Support
Force acquisition, we continue to review and develop acquisition opportunities.
Michael Walliss
Executive Chairman
Consolidated Income Statement
For the six months ended 31 March 2013
6 months to 9 months
to
31 March
30
2013 September
(unaudited) 2012
(audited)
£'000 £'000
Revenue - Continuing operations 2,702 2,688
2,702 2,688
Cost of sales (1,691) (1,767)
Gross profit 1,012 921
Operating expenses (953) (784)
Operating profit before exceptional 58 137
items
Exceptional items
Restructuring costs (31) -
Impairment of intangible assets (315) -
Amortisation of intangible assets (42) -
Reverse transaction fees - (47)
Foreign exchange adjustment - -
Share based payment expense - -
Operating profit/(loss) (330) 90
Finance costs (18) (1)
(Loss)/profit/before taxation (348) 89
Taxation - (29)
(Loss)/profitfor the period (348) 60
(Loss)/earnings per share (pence)
Basic (4.421)p 0.765p
Diluted (4.421)p 0.765p
Consolidated Balance sheet
As at 31 March 2013
As at As at
31 March 30
September
2013
2012
(unaudited)
(audited)
Assets £'000 £'000
Non-current assets
Tangible fixed assets 637 71
Intangible assets 396 -
Goodwill 185 -
1,218 71
Current assets
Trade and other receivables 1,105 452
Inventories - 1
Cash and cash equivalents 476 404
1,582 857
Total Assets 2,800 928
Liabilities
Current liabilities
Trade and other payables 1,725 906
Bank overdrafts and loans - -
Corporation tax 29 29
Obligations under finance leases - 30 -
due within one year
1,784 935
Non current liabilities
Trade and other payables - -
Loans and other borrowings 255 -
Obligations under finance leases - 8 -
due after one year
263 -
Total liabilities 2,047 935
Total assets less liabilities 753 (7)
Equity
Share capital 3,069 2
Share premium 5,129 -
Other reserves (7,088) -
Retained earnings (357) (9)
Total equity 753 (7)
Consolidated Cash Flow Statement
For the six months ended 31 March 2013
6 months to 9 months to
31 March 30
September
2013
2012
(unaudited)
(audited)
£'000
£'000
Cash inflow from operating
activities
(loss)/profit from operations (348) 60
Adjustments for:
Interest paid 18 -
Depreciation 60 20
Impairment of intangible assets 315 -
Amortisation of intangible assets 42 -
Currency exchange adjustment (25) -
62 80
Share option costs - -
Decrease in inventories 1 8
(Increase)/Decrease in receivables (162) 59
(Decrease)/Increase in provisions - -
for liabilities and charges
Increase in liabilities 210 243
Cash generated from operations 111 390
Interest paid (18) -
Net cash generated from operating 93 390
activities
Cash flows from investing
activities
Dividend paid - (180)
Purchase of property, plant and (350) (47)
equipment
Net cash used in investing (350) (227)
activities
Cash flows from financing
activities
Proceeds from issue of share - -
capital
Premium on issue - -
Decrease in borrowings (100) -
Finance lease principle payments (17) -
Net cash used in financing (117) (227)
activities
Netdecrease/increase in cash and (374) 163
cash equivalents
Cash and cash equivalents at 850 241
beginning of period
Cash and cash equivalents at end 476 404
of period
Consolidated Statement of changes in equity
For the six months ended 31 March 2013
Share Share Retained Merger Reverse Other Total
capital premium earnings reserve acquisition reserves
reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000
9 months ended 30
September 2012
As at 1 January 2012 2 - 111 - - - 113
(as restated)
Profit for the - - 60 - - - 60
period
Dividend paid - - (180) - - - (180)
As at 30 September 2 - (9) - - - (7)
2012
Loss and total - - (348) - - - (348)
comprehensive income
for the six months
ended 31 March 2013
2 - (357) - - - (355)
Shares issued by 2,950 5,129 - - - - 8,079
legal parent prior
to reverse
acquisition
Legal parent - - - - - 898 898
reserves prior to
reverse acquisition
Shares issued by the 119 - - 1,002 - - 1,121
legal parent on
reverse acquisition
Reverse acquisition (2) - - (8,990) - (8,992)
adjustment
Other movements - - - - - 2 2
As at 31 March 2013 3,069 5,129 (357) 1,002 (8,990) 900 753
Notes to the Interim Results
1. Basis of preparation
The Interim Results for the six months ended 31 March 2013 have been prepared
in accordance with EU Endorsed International Financial Reporting Standards
(IFRS) and IFRIC Interpretations. The Interim Results are unaudited and do not
constitute statutory accounts in accordance with section 435 of the Companies
Act 2006.
Enables IT Limited has prepared financial statements at its shortened financial
year end of 30 September (nine months to September 2012) and therefore the only
available financial information for Enables IT Group Plc to be included as a
comparative is as at nine months to 30 September 2012. There is no financial
information available for Enables IT Limited for the period ended 31 March 2012
or year ended to 30 September 2012 as these did not represent accounting period
ends. The directors believe therefore that the most appropriate information to
include for comparative purposes is that available for nine months ended to 30
September 2012 which will be reproduced in the full year financial statements
at 30 September 2013.
2. Segmental information
The services the group provides are in regard to one activity. Accordingly the
primary segmental disclosure is based on geographical location.
UK US Eliminations Total
£'000 £'000 £'000 £'000
6 months ended 31 March 2013
Segmental revenue - continuing 1,796 945 (39) 2,702
Segmental operating profit 14 51 - 65
9months ended 30September2012
Segmental revenue - continuing 2,688 - - 2,688
Segmental operating profit 137 - - 137
3. Lossper share
The loss per share is based on the net loss for the period attributable to
ordinary equity holders divided by the weighted average number of ordinary
shares outstanding during the period.
The weighted average number of ordinary shares for the period ended 31 March
2013 assumes that the 11,909,586 ordinary shares issued in relation to the
reverse acquisition of Enables IT Limited existed for the entire period. The
consideration shares have been included since 26 November 2012, the date of the
reverse acquisition, and all shares have been included in the computation based
on the weighted average number of days since issue.
The basic loss per share has been calculated by dividing the retained loss for
the period of £348,202 (2012: loss of £106,959) by the weighted average number
of ordinary shares of 7,875,608 (2012: 7,875,608) in issue during the period.
4. Dividends
No dividend is proposed for the six months ended 31 March 2013.
5. Copies of Interim Results
Copies of the Interim Results will be available on the Enables IT website,
Investor Section - www.enablesit.com
