TIDMNETD
RNS Number : 3490K
NetDimensions (Holdings) Limited
19 April 2010
NetDimensions (Holdings) Limited
("NetDimensions", the "Group" or the "Company")
Preliminary Results for the year ended 31 December 2009
NetDimensions (AIM: NETD), a provider of performance, knowledge and learning
management systems, announces its Preliminary Results for the year ended 31
December 2009 which mark a return to pre-tax profitability.
Financial Highlights
· Revenues up 8% to US$6.84 million (2008: US$6.35 million)
· Operating profit of US$0.69 million (2008: US$0.09 million)
· Pre-tax profit of US$0.7 million (2008: loss before taxation US$0.59
million)
· Cash balances of US$7.44 million - equates to c.18.6p per share (2008:
US$5.34 million)
· Revenue from new clients contributing 23% of the total revenue
· Operating expenses reduced by US$0.24 million
Operational Highlights
· Launch of versions 5.6 and 5.7 of the Company's flagship Enterprise
Knowledge Platform (EKP)
· Implemented infrastructure and process improvements to support future
growth
· Continued expansion in the Philippines
· 70 new clients added
Roger Durn, Chairman of NetDimensions, commented:
"I am pleased to report strong growth in revenue over the past financial year,
despite the challenging global economic environment, resulting in a return to
pre-tax profitability. To position ourselves for the future, we also expanded
our lower cost support and development operations in the Philippines by doubling
the country headcount in 2009. In addition, we have maintained a healthy cash
level and remain in a good position to grow.
"We believe that recent economic indicators look positive and the Company's 2010
first quarter trading results were in line with management expectations."
Enquiries:
+------------------+--------------+--------------------------------------+
| NetDimensions | Jay Shaw | +852 2122 4500 |
| | Clarence Wu | investor-relations@netdimensions.com |
| | | |
+------------------+--------------+--------------------------------------+
| Arden Partners | Fred Walsh | +44 (0) 20 7614 5917 |
| plc | Matthew | fred.walsh@arden-partners.com |
| | Armitt | matthew.armitt@arden-partners.com |
| (Nomad & Broker) | | |
+------------------+--------------+--------------------------------------+
| Walbrook PR | | +44 (0) 20 7933 8780 |
| Limited | Paul McManus | paul.mcmanus@walbrookpr.com |
| | | +44 (0) 7980 541 893 |
| | Ben Knowles | ben.knowles@walbrookpr.com |
| | | +44 (0) 7900 346 978 |
+------------------+--------------+--------------------------------------+
CHAIRMAN'S STATEMENT
Financial Summary
I am pleased to report on the financial results for NetDimensions (Holdings)
Limited for the year ended 31 December 2009. Despite a challenging economic
environment, total revenue increased by 8% to US$6.84 million (2008: US$6.35
million) with revenue from new clients contributing 23% of the total.
The Company achieved substantial revenue growth in the Europe, Middle East and
Africa (EMEA) region, a geography on which we concentrated sales and marketing
efforts. EMEA contributed 52% of total revenue compared to 37% in the previous
financial year. Our continued focus on Software as a Service ("SaaS") hosting
services also proved successful. Hosting revenue rose to US$2.69 million, up
26% from the previous year.
In light of the weak global economy, NetDimensions implemented tight cost
controls and managed to reduce overhead expenses by US$0.24 million as compared
to 2008 expenses, a reduction from 92% to 82% of total revenue. The Company
ended the year with an organic operating profit of US$0.69 million.
During the year, the favourable Sterling and Euro exchange rates resulted in a
US$0.18 million exchange gain and the operations helped generate US$0.01 million
of finance income. After taking into account the US$0.18 million in losses for
two strategic investments in 2009, the Group's profit before tax was US$0.7
million (2008: loss before tax of US$0.59 million).
The Company has continued to maintain a strong cash position, with cash balances
of US$7.44 million (2008: US$5.34 million) and no debt. Net cash generated from
operating activities for the year totalled US$2.02 million (2008: US$0.65
million).
The Board does not recommend payment of a dividend at this stage in the
Company's development, however, it is the Board's intention to pay dividends in
the future. Surplus funds will be reinvested to support the continued growth of
the Company.
Operational Review
In 2009, NetDimensions put in place infrastructure and process improvements to
support future growth while focusing on client retention and cost control.
In the interest of managing expenses, the Company reset expansion initiatives
planned in 2008, except for initiatives relating to EMEA marketing and sales and
to support service increases in the Company's two Asian offices. The Company's
Philippines office doubled in size, in line with the Company plans to expand
support and development operations into its lowest cost operating center.
The Company continued to work with major existing clients such as ING Group,
HSBC, Cathay Pacific Airways and The Chicago Police Department. Our existing
clients which mostly are in highly regulated industries accounted for the client
retention rate of 88% in 2009.
The Company's reseller network accounted for 31% of 2009 revenue, helping the
Company add some 55 of its 70 new clients during the year, including the
Butterfield Group throughout its worldwide offices, the Metropolitan Housing
Partnership in the United Kingdom, The New Zealand Department of Corrections and
United Laboratories, Inc., the largest consumer prescription and health products
company in the Philippines.
In 2009, the Company released versions 5.6 and 5.7 of its flagship product, the
Enterprise Knowledge Platform (EKP). The 2009 EKP releases included dashboard
reporting for senior managers, wiki integration to provide more end-user
collaboration and social networking capabilities, and two new payment gateways
for e-commerce use. Other product enhancements included continuing improvements
to the EKP Portal Toolkit and to the Company's testing and certification engine,
the Enterprise Assessment Platform.
During the year the Company's software engineering group adopted Agile software
development methodology in order to foster faster release cycles, permit rapid
delivery of incremental product improvements and incorporate more user feedback
in the development process. The Agile development methodology complements the
Company's ISO 9001:2008 quality management system in use in other departments.
The Company celebrates its 10th anniversary, a milestone that has marked the
Company's progress from a two-man start-up in 1999 to an AIM listed company in
2007 with clients, operations and resellers in more than 25 countries.
NetDimensions ended the year with approximately 800 clients around the world.
Outlook
NetDimensions has a sound business model and, as an expanding and cash
generative business, remains in a good position to grow. We have maintained a
healthy cash level, with cash balances on 31 December 2009 of US$7.44 million,
mostly held in Sterling and US Dollars.
We will continue to focus on employee and extended enterprise training and
performance support applications, mostly for clients in highly regulated and
compliance driven industries.
We believe that recent economic indicators look positive, largely due to the
current low interest rate environment. However, low interest rates may not
continue. Different countries may launch different monetary policies, which may
in turn lead to market uncertainties in our focus geographies. Nevertheless,
the Company's 2010 first quarter trading results were in line with management
expectations.
Roger Philip Edward Durn
Chairman
19 April 2010
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2009
+----------------------------------+-------+------------------+----------+------------------+
| | | 2009 | | 2008 |
+----------------------------------+-------+------------------+----------+------------------+
| | Notes | US$ | | US$ |
+----------------------------------+-------+------------------+----------+------------------+
| | | | | |
+----------------------------------+-------+------------------+----------+------------------+
| Revenue | 3&6 | 6,839,795 | | 6,352,524 |
+----------------------------------+-------+------------------+----------+------------------+
| | | | | |
+----------------------------------+-------+------------------+----------+------------------+
| Cost of sales | | (561,001) | | (421,645) |
+----------------------------------+-------+------------------+----------+------------------+
| | | | | |
+----------------------------------+-------+------------------+----------+------------------+
| Gross profit | | 6,278,794 | | 5,930,879 |
+----------------------------------+-------+------------------+----------+------------------+
| | | | | |
+----------------------------------+-------+------------------+----------+------------------+
| Administrative expenses | | (5,586,308) | | (5,837,302) |
+----------------------------------+-------+------------------+----------+------------------+
| | | | | |
+----------------------------------+-------+------------------+----------+------------------+
| Operating profit | | 692,486 | | 93,577 |
+----------------------------------+-------+------------------+----------+------------------+
| | | | | |
+----------------------------------+-------+------------------+----------+------------------+
| Net finance gains/(costs) | 4 | 191,427 | | (507,795) |
+----------------------------------+-------+------------------+----------+------------------+
| Impairment loss on goodwill | | (54,604) | | - |
+----------------------------------+-------+------------------+----------+------------------+
| Share of loss of an associate | | (78,955) | | (24,041) |
+----------------------------------+-------+------------------+----------+------------------+
| Share of loss of a jointly | | (49,597) | | (150,403) |
| controlled entity | | | | |
+----------------------------------+-------+------------------+----------+------------------+
| | | | | |
+----------------------------------+-------+------------------+----------+------------------+
| Profit/(loss) before taxation | | 700,757 | | (588,662) |
+----------------------------------+-------+------------------+----------+------------------+
| | | | | |
+----------------------------------+-------+------------------+----------+------------------+
| Taxation | | (21,000) | | - |
+----------------------------------+-------+------------------+----------+------------------+
| | | | | |
+----------------------------------+-------+------------------+----------+------------------+
| Profit/(loss) for the year | | 679,757 | | (588,662) |
+----------------------------------+-------+------------------+----------+------------------+
| | | | | |
+----------------------------------+-------+------------------+----------+------------------+
| | | | | |
+----------------------------------+-------+------------------+----------+------------------+
| Attributable to: | | | | |
+----------------------------------+-------+------------------+----------+------------------+
| Equity shareholders of the | | 679,757 | | (588,662) |
| Company | | | | |
+----------------------------------+-------+------------------+----------+------------------+
| | | | | |
+----------------------------------+-------+------------------+----------+------------------+
| | | | | |
+----------------------------------+-------+------------------+----------+------------------+
| Earnings/(loss) per share: | | | | |
+----------------------------------+-------+------------------+----------+------------------+
| Basic | 5 | US$ 0.03 | | US$(0.02) |
+----------------------------------+-------+------------------+----------+------------------+
| Diluted | 5 | US$ 0.03 | | US$(0.02) |
+----------------------------------+-------+------------------+----------+------------------+
| | | | | |
+----------------------------------+-------+------------------+----------+------------------+
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2009
+------------------------------------+----------+----------+------------+
| | 2009 | | 2008 |
+------------------------------------+----------+----------+------------+
| | US$ | | US$ |
+------------------------------------+----------+----------+------------+
| | | | |
+------------------------------------+----------+----------+------------+
| Profit/(loss) for the year | 679,757 | | (588,662) |
+------------------------------------+----------+----------+------------+
| | | | |
+------------------------------------+----------+----------+------------+
| Other comprehensive income: | | | |
+------------------------------------+----------+----------+------------+
| | | | |
+------------------------------------+----------+----------+------------+
| Exchange differences on | | | |
| translation of | | | |
+------------------------------------+----------+----------+------------+
| foreign operations | 1,422 | | 37,702 |
+------------------------------------+----------+----------+------------+
| | | | |
+------------------------------------+----------+----------+------------+
| Share of other comprehensive | | | |
| income of | | | |
+------------------------------------+----------+----------+------------+
| an associate | 152 | | 316 |
+------------------------------------+----------+----------+------------+
| | | | |
+------------------------------------+----------+----------+------------+
| Other comprehensive income for the | 1,574 | | 38,018 |
| year | | | |
+------------------------------------+----------+----------+------------+
| | | | |
+------------------------------------+----------+----------+------------+
| Total comprehensive income for the | 681,331 | | (550,644) |
| year | | | |
+------------------------------------+----------+----------+------------+
| | | | |
+------------------------------------+----------+----------+------------+
| | | | |
+------------------------------------+----------+----------+------------+
| Total comprehensive income | | | |
| attributable to: | | | |
+------------------------------------+----------+----------+------------+
| Equity shareholders of the Company | 681,331 | | (550,644) |
+------------------------------------+----------+----------+------------+
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2009
+------------------------------------+------------------+----------+------------------+
| | 2009 | | 2008 |
+------------------------------------+------------------+----------+------------------+
| | US$ | | US$ |
+------------------------------------+------------------+----------+------------------+
| ASSETS | | | |
+------------------------------------+------------------+----------+------------------+
| Non-current assets | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Property, plant and equipment | 137,648 | | 144,394 |
+------------------------------------+------------------+----------+------------------+
| Intangible assets | 26,138 | | 49,790 |
+------------------------------------+------------------+----------+------------------+
| Interest in an associate | 92,868 | | 226,275 |
+------------------------------------+------------------+----------+------------------+
| Interest in a jointly controlled | - | | 49,597 |
| entity | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| | 256,654 | | 470,056 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Current assets | | | |
+------------------------------------+------------------+----------+------------------+
| Trade and other receivables | 2,480,929 | | 3,254,905 |
+------------------------------------+------------------+----------+------------------+
| Cash and cash equivalents | 7,444,665 | | 5,338,405 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| | 9,925,594 | | 8,593,310 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| TOTAL ASSETS | 10,182,248 | | 9,063,366 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| EQUITY AND LIABILITIES | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Equity attributable to equity | | | |
| holders of the Company | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
| Notes | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Share capital | 25,014 | | 24,914 |
| 7 | | | |
+------------------------------------+------------------+----------+------------------+
| Reserves | 6,432,554 | | 5,727,407 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Total equity | 6,457,568 | | 5,752,321 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Non-current liabilities | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Obligations under finance leases | - | | 1,026 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Current liabilities | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Trade and other payables | 3,713,655 | | 3,308,651 |
+------------------------------------+------------------+----------+------------------+
| Income tax payable | 10,000 | | - |
+------------------------------------+------------------+----------+------------------+
| Obligations under finance leases | 1,025 | | 1,368 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| | 3,724,680 | | 3,310,019 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Total liabilities | 3,724,680 | | 3,311,045 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| TOTAL EQUITY AND LIABILITIES | 10,182,248 | | 9,063,366 |
+------------------------------------+------------------+----------+------------------+
The financial statements were approved by the Board of Directors on 19 April
2010 and were signed on its behalf by Clarence On Pong Wu, Director.
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2009
+------------------------------------+------------------+----------+------------------+
| | 2009 | | 2008 |
+------------------------------------+------------------+----------+------------------+
| | US$ | | US$ |
+------------------------------------+------------------+----------+------------------+
| ASSETS | | | |
+------------------------------------+------------------+----------+------------------+
| Non-current assets | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Investments in subsidiaries | 902,737 | | 902,737 |
+------------------------------------+------------------+----------+------------------+
| Interest in an associate | 79,870 | | 250,000 |
+------------------------------------+------------------+----------+------------------+
| Interest in a jointly controlled | - | | 200,000 |
| entity | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| | 982,607 | | 1,352,737 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Current assets | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Trade and other receivables | 4,362,019 | | 4,217,113 |
+------------------------------------+------------------+----------+------------------+
| Cash and cash equivalents | 3,323,159 | | 3,533,224 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| | 7,685,178 | | 7,750,337 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| TOTAL ASSETS | 8,667,785 | | 9,103,074 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| EQUITY AND LIABILITIES | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Equity attributable to equity | | | |
| holders of | | | |
+------------------------------------+------------------+----------+------------------+
| the Company | | | |
+------------------------------------+------------------+----------+------------------+
| Notes | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Share capital | 25,014 | | 24,914 |
| 7 | | | |
+------------------------------------+------------------+----------+------------------+
| Reserves | 8,585,716 | | 9,026,478 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Total equity | 8,620,730 | | 9,051,392 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Current liabilities | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Trade and other payables | 47,055 | | 51,682 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Total liabilities | 47,055 | | 51,682 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| TOTAL EQUITY AND LIABILITIES | 8,667,785 | | 9,103,074 |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
The financial statements were approved by the Board of Directors on 19 April
2010 and were signed on its behalf by Clarence On Pong Wu, Director.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2009
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| | | | | | |
| | | Share | Foreign | Accumulated | |
| | Share | premium | currency | losses | |
| | capital | | translation | | Total |
| | | | reserve | | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| | | | | | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| | US$ | US$ | US$ | | US$ |
| | | | | US$ | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| | | | | | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| | | 11,116,871 | (5,211) | (4,872,470) | 6,264,054 |
| At 1 January 2008 | 24,864 | | | | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| | | | | | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| Loss for the year | - | | | (588,662) | (588,662) |
| | | - | - | | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| Other | - | | 38,018 | | 38,018 |
| comprehensive | | - | | - | |
| income for the | | | | | |
| year | | | | | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| Total | | - | 38,018 | (588,662) | (550,644) |
| comprehensive | - | | | | |
| income for the | | | | | |
| year | | | | | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| Equity settled | | - | | 38,861 | 38,861 |
| share-based | | | - | | |
| payments | | | | | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| Issue of shares | 50 | - | - | - | 50 |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| | | | | | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| At 31 December | | 11,116,871 | 32,807 | (5,422,271) | 5,752,321 |
| 2008 and | 24,914 | | | | |
| 1 | | | | | |
| January 2009 | | | | | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| | | | | | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| Profit for the | - | | | 679,757 | 679,757 |
| year | | - | - | | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| Other | - | | 1,574 | | 1,574 |
| comprehensive | | - | | - | |
| income for the | | | | | |
| year | | | | | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| Total | - | | 1,574 | 679,757 | 681,331 |
| comprehensive | | - | | | |
| income for the | | | | | |
| year | | | | | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| Equity settled | | - | - | 23,816 | 23,816 |
| share-based | - | | | | |
| payments | | | | | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| Issue of shares | 100 | | | | 100 |
| | | - | - | - | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| | | | | | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
| At 31 December | 25,014 | 11,116,871 | 34,381 | (4,718,698) | 6,457,568 |
| 2009 | | | | | |
+--------------------+---------+------------------------+---------------------+--------------------------+-----------------------+
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2009
+------------------------------------+------------------+----------+------------------+
| | 2009 | | 2008 |
+------------------------------------+------------------+----------+------------------+
| | US$ | | US$ |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Cash generated from operations | 2,033,680 | | 648,844 |
+------------------------------------+------------------+----------+------------------+
| Income tax paid | (11,000) | | - |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Net cash generated from operating | 2,022,680 | | 648,844 |
| activities | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Cash flows from investing | | | |
| activities | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Purchase of property, plant and | (88,880) | | (43,495) |
| equipment | | | |
+------------------------------------+------------------+----------+------------------+
| Purchase of intangible assets | (19,397) | | (56,828) |
+------------------------------------+------------------+----------+------------------+
| Interest income received | 6,940 | | 199,571 |
+------------------------------------+------------------+----------+------------------+
| Investment in an associate | - | | (250,000) |
+------------------------------------+------------------+----------+------------------+
| Investment in a jointly controlled | - | | (200,000) |
| entity | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Net cash used in investing | (101,337) | | (350,752) |
| activities | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Cash flows from financing | | | |
| activities | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Finance lease charges | (335) | | (335) |
+------------------------------------+------------------+----------+------------------+
| Repayments of borrowings and | (1,368) | | (1,368) |
| finance leases | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Net cash used in financing | (1,703) | | (1,703) |
| activities | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Net increase in cash and cash | 1,919,640 | | 296,389 |
| equivalents | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Cash and cash equivalents at | 5,338,405 | | 5,711,745 |
| beginning of the year | | | |
+------------------------------------+------------------+----------+------------------+
| Effect of foreign exchange rate | 186,620 | | (669,729) |
| changes, net | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
| Cash and cash equivalents at end | 7,444,665 | | 5,338,405 |
| of the year | | | |
+------------------------------------+------------------+----------+------------------+
| | | | |
+------------------------------------+------------------+----------+------------------+
NOTES TO THE FINANCIAL STATEMENTS
1. GENERAL INFORMATION
The Company was incorporated inthe Cayman Islands as a limited liability company
under the Companies Law (2000) Revision on 10 July 2000. Its shares are listed
on the London Stock Exchange AIM. The registered office of the Company is
located atP.O. Box 309, Ugland House, South Church Street, George Town, Grand
Cayman, Cayman Islands, British West Indies. Its principal place of business is
located at 17/F., Siu On Centre, 188 Lockhart Road, Wan Chai, Hong Kong.
The principal activities of the Company and its subsidiaries (hereinafter
collectively referred to as the "Group") are licensing of computer software and
the provision of related services. The principal activity of the Company is
investment holding. The principal activities of its subsidiaries are set out in
note 14 to the financial statements.
2. FINANCIAL RISK MANAGEMENT
The Group's current activities result in the following financial risks and
management's responses to those risks in order to minimise any resulting adverse
effects on the Group's financial performance.
(a) Foreign exchange risk
The Group's reporting currency is US dollars. Its principal activities are
licensing of computer software and the provision of related services in various
currencies, particularly US dollars and Hong Kong dollars ("HK dollars"). Since
HK dollars is currently pegged to the US dollars, no significant exposure is
expected on HK dollars transactions and balances.
The following table indicates the approximate change in the Group's
profit/(loss) after taxation (and accumulated losses) and other components of
consolidated equity in response to reasonably possible changes in the foreign
exchange rates to which the Group has significant exposure at the end of the
reporting period. The analysis includes balances between Group entities where
the denomination of the balances is in a currency other than the functional
currencies.
+-------------+------------+----------+-------------+----------+------------+----------+-------------+
| | 2009 | | 2009 | | 2008 | | 2008 |
+-------------+------------+----------+-------------+----------+------------+----------+-------------+
| The Group | Increase/ | | Effect | | Increase/ | | Effect |
| |(decrease) | | on | |(decrease) | | on loss |
| |in foreign | | profit | |in foreign | | after |
| | exchange | | after | | exchange | | taxation |
| | rates | | taxation | | rates | | and |
| | | | and | | | |accumulated |
| | | |accumulated | | | | losses |
| | | | losses | | | | US$'000 |
| | | | US$'000 | | | | |
+-------------+------------+----------+-------------+----------+------------+----------+-------------+
| | | | | | | | |
+-------------+------------+----------+-------------+----------+------------+----------+-------------+
| HK dollars | 1% | | 4 | | 1% | | 30 |
+-------------+------------+----------+-------------+----------+------------+----------+-------------+
| | (1%) | | (4) | | (1)% | | (30) |
+-------------+------------+----------+-------------+----------+------------+----------+-------------+
| | | | | | | | |
+-------------+------------+----------+-------------+----------+------------+----------+-------------+
| Pounds | 15% | | 258 | | 9% | | 119 |
| Sterling | | | | | | | |
+-------------+------------+----------+-------------+----------+------------+----------+-------------+
| | (15%) | | (258) | | (9)% | | (119) |
+-------------+------------+----------+-------------+----------+------------+----------+-------------+
| | | | | | | | |
+-------------+------------+----------+-------------+----------+------------+----------+-------------+
| Euro | 6% | | 44 | | 7% | | 182 |
+-------------+------------+----------+-------------+----------+------------+----------+-------------+
| | (6%) | | (44) | | (7)% | | (182) |
+-------------+------------+----------+-------------+----------+------------+----------+-------------+
The sensitivity analysis has been determined assuming that the change in
foreign exchange rates had occurred at the end of the reporting period and had
been applied to each of the Group entities' exposure to currency risk for both
derivative and non-derivative financial instruments in existence at that date,
and that all other variables, in particular interest rates, remain constant.
The stated changes represent management's assessment of reasonably possible
changes in foreign exchange rates over the period until the end of next annual
reporting period. In this respect, it is assumed that the pegged rate between
the HK dollars and US dollars would not be materially affected by any changes in
movement in value of US dollars against other currencies. Results of the
analysis as presented in the above table represent an aggregation of the effects
on each of the Group entities' profit/(loss) after taxation and accumulated
losses measured in the respective functional currencies, translated into US
dollars at the exchange rate ruling at the end of the reporting period for
presentation purposes. The analysis is performed on the same basis for 2008.
(b) Interest rate risk
Interest rate risk arises from debt borrowingsand cash held on deposit. The
Group has no external borrowings therefore the Group currently has no interest
rate risk exposure. The Group's cash balances are kept in interest bearing
current accounts and on short-term deposits, so as to maximise the level of
return while maintaining an adequate level of liquidity.
(c) Credit risk
The Group's credit risk is primarily attributable to trade and other
receivables. Management has a credit policy in place and the exposure to credit
risk is monitored on an ongoing basis. Credit evaluations are performed on all
customers requiring credit over a certain amount. The Group does not require
collateral in respect of financial assets.
At the end of the reporting period, there were no significant concentrations of
credit risk. The maximum exposure to credit risk is represented by the carrying
amount of each financial asset in the statement of financial position.
(d) Liquidity risk
The availability of adequate cash resources is managed by the Group through
managing its funds conservatively thereby ensuring it meets its continual
operational requirements. The Group's financial liabilities as at 31 December
2009, which fall due within 12 months from the end of reporting period were US$
3,724,680 (2008: US$ 3,310,019).
3. REVENUE
Revenue represents the aggregate of income from software licensing, hosting
services, support and maintenance and software customisation and implementation
services during the year and is analysed as follows: -
+-----------------------------------------+-----------+----------+-----------+
| | 2009 | | 2008 |
+-----------------------------------------+-----------+----------+-----------+
| | US$ | | US$ |
+-----------------------------------------+-----------+----------+-----------+
| | | | |
+-----------------------------------------+-----------+----------+-----------+
| Software licensing | 2,574,937 | | 2,986,803 |
+-----------------------------------------+-----------+----------+-----------+
| Hosting | 2,687,848 | | 2,139,048 |
+-----------------------------------------+-----------+----------+-----------+
| Support and maintenance | 1,127,230 | | 892,602 |
+-----------------------------------------+-----------+----------+-----------+
| Software customisation and | 449,780 | | 334,071 |
| implementation | | | |
+-----------------------------------------+-----------+----------+-----------+
| | | | |
+-----------------------------------------+-----------+----------+-----------+
| | 6,839,795 | | 6,352,524 |
+-----------------------------------------+-----------+----------+-----------+
4. NET FINANCE GAINS/(COSTS)
+-----------------------------------------+----------+----------+------------+
| | 2009 | | 2008 |
+-----------------------------------------+----------+----------+------------+
| | US$ | | US$ |
+-----------------------------------------+----------+----------+------------+
| | | | |
+-----------------------------------------+----------+----------+------------+
| Bank interest income | 6,940 | | 199,571 |
+-----------------------------------------+----------+----------+------------+
| Finance lease charges | (335) | | (335) |
+-----------------------------------------+----------+----------+------------+
| Foreign exchange gain/(loss) | 184,822 | | (707,031) |
+-----------------------------------------+----------+----------+------------+
| | | | |
+-----------------------------------------+----------+----------+------------+
| | 191,427 | | (507,795) |
+-----------------------------------------+----------+----------+------------+
5. EARNINGS/(LOSS) PER SHARE
The calculation of the basic and dilutedearnings/(loss)per share is based on the
following data:
+-----------------------------------------+----------+----------+------------+
| | 2009 | | 2008 |
+-----------------------------------------+----------+----------+------------+
| | US$ | | US$ |
+-----------------------------------------+----------+----------+------------+
| Earnings/(loss) used for the | | | |
| 'Earnings/(loss) per share' | | | |
+-----------------------------------------+----------+----------+------------+
| | | | |
+-----------------------------------------+----------+----------+------------+
| Earnings/(loss) for the purpose of | 679,757 | | (588,662) |
| basic earnings/(loss) per share being | | | |
| net profit/(loss) attributable to | | | |
| equity shareholders of the parent | | | |
+-----------------------------------------+----------+----------+------------+
| | | | |
+-----------------------------------------+----------+----------+------------+
| Earnings/(loss) for the purpose of | 679,757 | | (588,662) |
| diluted earnings/(loss) per share | | | |
+-----------------------------------------+----------+----------+------------+
| | | | |
+-----------------------------------------+----------+----------+------------+
+------------------------------------+----+------------+----------+------------+
| | 2009 | | 2008 |
+-----------------------------------------+------------+----------+------------+
| | | | |
+-----------------------------------------+------------+----------+------------+
| Number of shares | | | |
+-----------------------------------------+------------+----------+------------+
| | | | |
+-----------------------------------------+------------+----------+------------+
| Weighted average number of ordinary | 24,961,658 | | 24,885,980 |
| shares for the purpose of basic | | | |
| earnings/(loss) per share | | | |
+-----------------------------------------+------------+----------+------------+
| | | | |
+-----------------------------------------+------------+----------+------------+
| Effect of dilutive potential ordinary | | | |
| shares: | | | |
+-----------------------------------------+------------+----------+------------+
| Share options | 1,226,500 | | 1,239,475 |
+-----------------------------------------+------------+----------+------------+
| | | | |
+-----------------------------------------+------------+----------+------------+
| Weighted average number of ordinary | 26,188,158 | | 26,125,455 |
| shares for the purpose of dilutive | | | |
| earnings/(loss) per share | | | |
+-----------------------------------------+------------+----------+------------+
| | | | | |
+------------------------------------+----+------------+----------+------------+
| | | 2009 | | 2008 |
+------------------------------------+----+------------+----------+------------+
| | | US$ | | US$ |
+------------------------------------+----+------------+----------+------------+
| Earnings/(loss) per share: | | | | |
+------------------------------------+----+------------+----------+------------+
| Basic | | 0.03 | | (0.02) |
+------------------------------------+----+------------+----------+------------+
| Diluted | | 0.03 | | (0.02) |
+------------------------------------+----+------------+----------+------------+
| | | | | |
+------------------------------------+----+------------+----------+------------+
6. SEGMENTAL ANALYSIS
The Group operates in three geographic segments, North America, Europe, Middle
East and Africa ("EMEA") and Rest of the World. These geographic segments are
the basis on which the Group reports its primary segment information, as
presented below:
Segmental information for the year ended 31 December 2009:
+-----------------------+-----------+----------+-----------+----------+-----------+----------+----------------+
| | North | | | | Rest | | |
| | | | | | of the | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+----------------+
| | America | | EMEA | | World | | Total |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+----------------+
| | US$ | | US$ | | US$ | | US$ |
| | | | | | | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+----------------+
| Revenue from external | 2,098,150 | | 3,572,647 | | 1,168,998 | | 6,839,795 |
| customers | | | | | | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+----------------+
| | | | | | | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+----------------+
| Revenue | 2,098,150 | | 3,572,647 | | 1,168,998 | | 6,839,795 |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+----------------+
| | | | | | | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+----------------+
| Operating profit | 212,455 | | 361,686 | | 118,345 | | 692,486 |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+----------------+
| Net finance gains | | | | | | | 191,427 |
| Impairment loss on | | | | | | | (54,604) |
| goodwill | | | | | | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+----------------+
| Share of loss of an | | | | | | | (78,955) |
| associate | | | | | | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+----------------+
| Share of loss of a | | | | | | | (49,597) |
| jointly controlled | | | | | | | |
| entity | | | | | | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+----------------+
| | | | | | | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+----------------+
| Profit before | | | | | | | 700,757 |
| taxation | | | | | | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+----------------+
| Taxation | | | | | | | (21,000) |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+----------------+
| | | | | | | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+----------------+
| Profit for the year | | | | | | | 679,757 |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+----------------+
Other segment items included in the income statement for the year ended 31
December 2009:
+--------------------------+----------+---------+----------+---------+----------+----------------+----------+---------+
| | North | | | | Rest of | | |
| | | | | | the | | |
+--------------------------+--------------------+----------+---------+----------+----------------+----------+---------+
| | America | | EMEA | | World | | Total |
+--------------------------+--------------------+----------+---------+----------+----------------+----------+---------+
| | US$ | | US$ | | US$ | | US$ |
+--------------------------+--------------------+----------+---------+----------+----------------+----------+---------+
| | | | | | | | |
+--------------------------+--------------------+----------+---------+----------+----------------+----------+---------+
| Depreciation | 13,213 | | 23,093 | | 58,460 | | 94,766 |
+--------------------------+--------------------+----------+---------+----------+----------------+----------+---------+
| Amortisation | 1,700 | | 1,751 | | 39,558 | | 43,009 |
+-------------------------------------+---------+----------+---------+----------+----------------+----------+---------+
| Bad debts written off | - | | - | | 35,622 | | 35,622 |
+--------------------------+--------------------+----------+---------+----------+----------------+----------+---------+
| | | | | | | | | |
+--------------------------+----------+---------+----------+---------+----------+----------------+----------+---------+
Information regarding segment assets and liabilities as at 31 December 2009 and
capital expenditure for the year then ended, based on the locations of
customers:
+-----------------------+---------+----------+--------+----------+------------+----------+------------+
| | North | | | | Rest | | |
| | | | | | of the | | |
+-----------------------+---------+----------+--------+----------+------------+----------+------------+
| | America | | EMEA | | World | | Total |
+-----------------------+---------+----------+--------+----------+------------+----------+------------+
| | US$ | | US$ | | US$ | | US$ |
+-----------------------+---------+----------+--------+----------+------------+----------+------------+
| | | | | | | | |
+-----------------------+---------+----------+--------+----------+------------+----------+------------+
| Total assets | 137,774 | | 29,474 | | 10,015,000 | | 10,182,248 |
+-----------------------+---------+----------+--------+----------+------------+----------+------------+
| | | | | | | | |
+-----------------------+---------+----------+--------+----------+------------+----------+------------+
| Total liabilities | 196,673 | | - | | 3,528,007 | | 3,724,680 |
+-----------------------+---------+----------+--------+----------+------------+----------+------------+
| | | | | | | | |
+-----------------------+---------+----------+--------+----------+------------+----------+------------+
| Tangible assets | 54,488 | | 9,500 | | 24,892 | | 88,880 |
| additions | | | | | | | |
+-----------------------+---------+----------+--------+----------+------------+----------+------------+
| Intangible assets | 8,193 | | 1,560 | | 9,644 | | 19,397 |
| additions | | | | | | | |
+-----------------------+---------+----------+--------+----------+------------+----------+------------+
| | | | | | | | |
+-----------------------+---------+----------+--------+----------+------------+----------+------------+
| Total capital | 62,681 | | 11,060 | | 34,536 | | 108,277 |
| expenditure | | | | | | | |
+-----------------------+---------+----------+--------+----------+------------+----------+------------+
The directors considered that there is no material difference in the information
regarding segment assets and liabilities as at 31 December 2009 and capital
expenditure for the year then ended, either based on the locations of customers
or the locations of assets, no further disclosure is presented.
Segmental information for the year ended 31 December 2008:
+-----------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | North | | | | Rest | | |
| | | | | | of the | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | America | | EMEA | | World | | Total |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | US$ | | US$ | | US$ | | US$ |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Revenue from external | 2,616,339 | | 2,350,482 | | 1,385,703 | | 6,352,524 |
| customers | | | | | | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Revenue | 2,616,339 | | 2,350,482 | | 1,385,703 | | 6,352,524 |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Operating profit | 38,541 | | 34,624 | | 20,412 | | 93,577 |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Net finance costs | | | | | | | (507,795) |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Share of loss of an | | | | | | | (24,041) |
| associate | | | | | | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Share of loss of a | | | | | | | (150,403) |
| jointly controlled | | | | | | | |
| entity | | | | | | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Loss before taxation | | | | | | | (588,662) |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Taxation | | | | | | | - |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | | |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Loss for the year | | | | | | | (588,662) |
+-----------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
Other segment items included in the income statement for the year ended 31
December 2008:
+-----------------------+---------+----------+--------+----------+--------+----------+---------+
| | North | | | | Rest | | |
| | | | | | of the | | |
+-----------------------+---------+----------+--------+----------+--------+----------+---------+
| | America | | EMEA | | World | | Total |
+-----------------------+---------+----------+--------+----------+--------+----------+---------+
| | US$ | | US$ | | US$ | | US$ |
+-----------------------+---------+----------+--------+----------+--------+----------+---------+
| | | | | | | | |
+-----------------------+---------+----------+--------+----------+--------+----------+---------+
| Depreciation | 17,471 | | 4,311 | | 79,951 | | 101,733 |
+-----------------------+---------+----------+--------+----------+--------+----------+---------+
| Amortisation | 11,179 | | 273 | | 36,351 | | 47,803 |
+-----------------------+---------+----------+--------+----------+--------+----------+---------+
| Bad debts written off | 59,650 | | - | | 22,343 | | 81,993 |
+-----------------------+---------+----------+--------+----------+--------+----------+---------+
Information regarding segment assets and liabilities as at 31 December 2008 and
capital expenditure for the year then ended, based on the locations of
customers:
+-----------------------+---------+----------+--------+----------+-----------+----------+-----------+
| | North | | | | Rest | | |
| | | | | | of the | | |
+-----------------------+---------+----------+--------+----------+-----------+----------+-----------+
| | America | | EMEA | | World | | Total |
+-----------------------+---------+----------+--------+----------+-----------+----------+-----------+
| | US$ | | US$ | | US$ | | US$ |
+-----------------------+---------+----------+--------+----------+-----------+----------+-----------+
| | | | | | | | |
+-----------------------+---------+----------+--------+----------+-----------+----------+-----------+
| Total assets | 159,516 | | 7,564 | | 8,896,286 | | 9,063,366 |
+-----------------------+---------+----------+--------+----------+-----------+----------+-----------+
| | | | | | | | |
+-----------------------+---------+----------+--------+----------+-----------+----------+-----------+
| Total liabilities | 87,520 | | - | | 3,223,525 | | 3,311,045 |
+-----------------------+---------+----------+--------+----------+-----------+----------+-----------+
| | | | | | | | |
+-----------------------+---------+----------+--------+----------+-----------+----------+-----------+
| Tangible assets | 3,803 | | 3,398 | | 36,294 | | 43,495 |
| additions | | | | | | | |
+-----------------------+---------+----------+--------+----------+-----------+----------+-----------+
| Intangible assets | 10,839 | | 766 | | 45,223 | | 56,828 |
| additions | | | | | | | |
+-----------------------+---------+----------+--------+----------+-----------+----------+-----------+
| | | | | | | | |
+-----------------------+---------+----------+--------+----------+-----------+----------+-----------+
| Total capital | 14,642 | | 4,164 | | 81,517 | | 100,323 |
| expenditure | | | | | | | |
+-----------------------+---------+----------+--------+----------+-----------+----------+-----------+
The directors considered that there is no material difference in the information
regarding segment assets and liabilities as at 31 December 2008 and capital
expenditure for the year then ended, either based on the locations of customers
or the locations of assets, no further disclosure is presented.
The Group's business segments include software licensing, hosting, support and
maintenance and software customisation and implementation. These business
segments are the basis on which the Group reports its secondary segment
information, as presented below:
Segmental information for the year ended 31 December 2009:
+--------------+-----------+----------+-----------+----------+-----------+----------+----------+----------+------------+
| | | | | | Software | | |
| | | | | | customisation and | | |
| | Software | | | Support and | implementation | | |
| | licensing | | Hosting | maintenance | | | Total |
+--------------+-----------+----------+-----------+----------------------+---------------------+----------+------------+
| | US$ | | US$ | | US$ | | US$ | | US$ |
+--------------+-----------+----------+-----------+----------+-----------+----------+----------+----------+------------+
| | | | | | | | | | |
+--------------+-----------+----------+-----------+----------+-----------+----------+----------+----------+------------+
| Segment | 2,574,937 | | 2,687,848 | | 1,127,230 | | 449,780 | | 6,839,795 |
| revenue from | | | | | | | | | |
| external | | | | | | | | | |
| customers | | | | | | | | | |
+--------------+-----------+----------+-----------+----------+-----------+----------+----------+----------+------------+
| | | | | | | | | | |
+--------------+-----------+----------+-----------+----------+-----------+----------+----------+----------+------------+
| Total | 40,765 | | 42,549 | | 17,844 | | 7,119 | | 108,277 |
| capital | | | | | | | | | |
| expenditure | | | | | | | | | |
+--------------+-----------+----------+-----------+----------+-----------+----------+----------+----------+------------+
| | | | | | | | | | |
+--------------+-----------+----------+-----------+----------+-----------+----------+----------+----------+------------+
| Total | 3,833,252 | | 4,001,337 | | 1,678,082 | | 669,577 | | 10,182,248 |
| carrying | | | | | | | | | |
| amounts of | | | | | | | | | |
| segment | | | | | | | | | |
| assets | | | | | | | | | |
+--------------+-----------+----------+-----------+----------+-----------+----------+----------+----------+------------+
| | | | | | | | | | |
+--------------+-----------+----------+-----------+----------+-----------+----------+----------+----------+------------+
Segmental information for the year ended 31 December 2008:
+--------------+-----------+----------+-----------+----------+-------------+----------+-------------------+----------+-----------+
| | | | | | | | Software | | |
| | | | | | | | customisation | | |
| | Software | | | | Support | | and | | |
| | licensing | | Hosting | | and | | implementation | | Total |
| | | | | | maintenance | | | | |
+--------------+-----------+----------+-----------+----------+-------------+----------+-------------------+----------+-----------+
| | | | | | | | | | |
+--------------+-----------+----------+-----------+----------+-------------+----------+-------------------+----------+-----------+
| | US$ | | US$ | | US$ | | US$ | | US$ |
+--------------+-----------+----------+-----------+----------+-------------+----------+-------------------+----------+-----------+
| Segment | 2,986,803 | | 2,139,048 | | 892,602 | | 334,071 | | 6,352,524 |
| revenue from | | | | | | | | | |
| external | | | | | | | | | |
| customers | | | | | | | | | |
+--------------+-----------+----------+-----------+----------+-------------+----------+-------------------+----------+-----------+
| | | | | | | | | | |
+--------------+-----------+----------+-----------+----------+-------------+----------+-------------------+----------+-----------+
| Total | 47,172 | | 33,779 | | 14,095 | | 5,277 | | 100,323 |
| capital | | | | | | | | | |
| expenditure | | | | | | | | | |
+--------------+-----------+----------+-----------+----------+-------------+----------+-------------------+----------+-----------+
| | | | | | | | | | |
+--------------+-----------+----------+-----------+----------+-------------+----------+-------------------+----------+-----------+
| Total | 4,261,375 | | 3,051,854 | | 1,273,506 | | 476,631 | | 9,063,366 |
| carrying | | | | | | | | | |
| amounts of | | | | | | | | | |
| segment | | | | | | | | | |
| assets | | | | | | | | | |
+--------------+-----------+----------+-----------+----------+-------------+----------+-------------------+----------+-----------+
| | | | | | | | | | |
+--------------+-----------+----------+-----------+----------+-------------+----------+-------------------+----------+-----------+
7. SHARE CAPITAL
+------------------+-----+--------------+----------+---------------+----------+-------------+----------+---------+
| | | 2009 | | 2008 |
+------------------+-----+-----------------------------------------+----------+----------------------------------+
| | | Number | | | | Number | | |
| | | of | | | | of | | |
+------------------+-----+--------------+----------+---------------+----------+-------------+----------+---------+
| | | shares | | US$ | | shares | | US$ |
+------------------+-----+--------------+----------+---------------+----------+-------------+----------+---------+
| | | | | | | | | |
+------------------+-----+--------------+----------+---------------+----------+-------------+----------+---------+
| Authorised: | | | | | | | | |
+------------------+-----+--------------+----------+---------------+----------+-------------+----------+---------+
| Ordinary shares | | 100,000,000 | | 100,000 | | 100,000,000 | | 100,000 |
| at US$0.001 each | | | | | | | | |
+------------------+-----+--------------+----------+---------------+----------+-------------+----------+---------+
| | | | | | | | | |
+------------------+-----+--------------+----------+---------------+----------+-------------+----------+---------+
| Allotted, called | | | | | | | | |
| up and fully | | | | | | | | |
| paid: | | | | | | | | |
+------------------+-----+--------------+----------+---------------+----------+-------------+----------+---------+
| Ordinary shares | | 25,013,576 | | 25,014 | | 24,913,576 | | 24,914 |
+------------------+-----+--------------+----------+---------------+----------+-------------+----------+---------+
| | | | | | | | | |
+------------------+-----+--------------+----------+---------------+----------+-------------+----------+---------+
| Movements in | | | | | | | | |
| ordinary shares | | | | | | | | |
+------------------+-----+--------------+----------+---------------+----------+-------------+----------+---------+
| At 1 January | | 24,913,576 | | 24,914 | | 24,863,576 | | 24,864 |
+------------------+-----+--------------+----------+---------------+----------+-------------+----------+---------+
| Shares issued to | | 100,000 | | 100 | | 50,000 | | 50 |
| non-executive | | | | | | | | |
| directors | | | | | | | | |
+------------------+-----+--------------+----------+---------------+----------+-------------+----------+---------+
| | | | | | | | | |
+------------------+-----+--------------+----------+---------------+----------+-------------+----------+---------+
| At 31 December | | 25,013,576 | | 25,014 | | 24,913,576 | | 24,914 |
+------------------+-----+--------------+----------+---------------+----------+-------------+----------+---------+
| | | | | | | | | |
+------------------+-----+--------------+----------+---------------+----------+-------------+----------+---------+
The Group's primary objectives when managing capital are to safeguard the
Group's ability to continue as a going concern, so that it can continue to
provide returns for shareholders and benefits for other stakeholders, by pricing
products and services commensurately with the level of risk and by securing
access to finance at a reasonable cost.
The Group actively and regularly reviews and manages its capital structure to
maintain a balance between the higher shareholder returns that might be possible
with higher levels of borrowings and the advantages and security afforded by a
sound capital position, and makes adjustments to the capital structure in light
of changes in economic conditions.
The directors of the Company review the capital structure on a semi-annual
basis. As part of this review, the directors consider the cost of capital and
risks associates with each class of capital. Based on recommendations of the
directors, the Group will balance its overall structure through the payment of
dividends, new share issues and share repurchases as well as the issue of new
debt or the redemption of existing debt.
8. EVENTS AFTER THE REPORTING PERIOD
The Group has been served a complaint for patent infringement within the United
States on 25 March 2010 by the US District Court, Eastern District of Texas,
Tyler Division. The plaintiff is IpLearn LLC, a California Limited Liability
Company, and is against eight defendants which include the Group.
The directors believe that there has been no patent infringement, but take any
such complaints seriously. The directors are therefore investigating the claims
with a view to instructing legal advisers, together with the co-defendants, to
challenge the complaint. The Company will announce any further developments in
due course.
The Company's annual report will be sent to shareholders shortly and is
available on the Company's website www.netdimensions.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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Netdimensions (LSE:NETD)
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