TIDMNETD
RNS Number : 4461V
NetDimensions (Holdings) Limited
18 April 2016
NetDimensions (Holdings) Limited
("NetDimensions" or the "Company" or the "Group")
Final Results for the year ended 31 December 2015
NetDimensions (AIM: NETD; OTCQX: NETDY), a global provider of
performance, knowledge, and learning management systems, is pleased
to announce its final results for the year ended 31 December
2015.
Highlights
-- 12% revenue growth to US$25.4M (2014: US$22.7M)
-- 85% reduction in the adjusted EBITDA loss to US$0.5M (2014: US$3.4M)
-- 98% increase in average first year deal size for direct new
clients to US$210K (2014: US$106K)
Graham Higgins, Chairman of NetDimensions, commented: "The
Company made solid progress in 2015 in terms of revenue growth,
substantially reducing the reported loss and increasing the focus
on high consequence industries. The Company will continue to invest
in software engineering to provide a product that is best in class
for high consequence use cases."
The annual report and notice of annual general meeting, to be
held on Monday 20 June 2016 at 2:30pm on the 18th floor, Siu On
Centre, 188 Lockhart Road, Hong Kong will be available on the
Company's website and sent to shareholders shortly.
Enquiries:
NetDimensions (Holdings) Tel: +852 2122 4500
Limited
Jay Shaw
Matthew Chaloner
Panmure Gordon (UK) Limited Tel: +44 20 7886 2500
(Nomad & Broker)
Fred Walsh
Peter Steel
Walbrook PR Ltd (Financial Tel: +44 20 7933 8780
Public Relations)
Paul Cornelius Or netdimensions@walbrookpr.com
Sam Allen
Nick Rome
Helen Cresswell
About NetDimensions
Established in 1999, NetDimensions (AIM: NETD; OTCQX: NETDY) is
a global provider of performance, knowledge and learning management
solutions.
NetDimensions provides companies, government agencies and other
organizations with talent management solutions to personalize
learning, share knowledge, enhance performance, foster
collaboration and manage compliance programs for employees,
customers, partners and suppliers.
Recognized as one of the talent management industry's top-rated
technology suppliers, NetDimensions has been chosen by leading
organizations worldwide including ING, Cathay Pacific, Chicago
Police Department, Geely Automotive, Fugro Group and Fresenius
Medical Care.
NetDimensions is ISO 9001 certified and NetDimensions hosted
services are ISO 27001 certified.
For more information, visit www.NetDimensions.com or follow
@netdimensions on Twitter.
Chairman's Statement for the Year Ended 31 December 2015
I am pleased to report that the Company has made good progress
in the year achieving another record high for reported revenue,
which increased 12% to US$25.4M (2014: US$22.7M). The growth in
revenue was achieved with a lower operating cost base than the
prior year, resulting in a substantial reduction in the adjusted
EBITDA loss.
Financial Highlights
-- 12% revenue growth to US$25.4M (2014: US$22.7M)
-- 85% reduction in the adjusted EBITDA loss to US$0.5M (2014: US$3.4M)
-- 98% increase in average first year deal size for direct new
clients to US$210K (2014: US$106K)
Financial Summary
The financial results for the year ended 31 December 2015 saw
good progress with both revenue and invoiced sales higher than
prior year. Revenue increased by 12% to US$25.4M (2014: US$22.7M)
and invoiced sales increased 8% to US$25.7M (2014: US$23.9M), which
was in line with management's expectations.
The Group continues to improve direct sales activity, generating
invoiced sales from direct clients of US$22.3M representing 87%
(2014: US$20.3M, 85%) of total invoiced sales. Increasing focus on
direct sales in high consequence industries has also led us into
bigger deals with the average first year deal size for new direct
clients achieving US$210K in the year (2014: US$106K). Invoiced
sales to clients in high consequence industries represented 84% of
total invoiced sales, an increase of 16% over the prior year, in
line with our strategy of becoming a leading supplier of compliance
and learning solutions to clients operating in high consequence
industries.
The North America region was the largest market for the Group,
comprising 46% of Group revenues. Europe, Middle East & Africa
("EMEA") accounted for 44% of Group revenues and Asia Pacific
including China accounted for 7%. The rest of the world made up
3%.
The Group saw substantial growth in the North America market
with revenues up 25% to US$11.6M (2014: US$9.3M) on the back of a
number of new client wins in high consequence industries most
notably for government agencies.
In addition, the Group ended the year with a strong deferred
revenue balance of US$8.8M (2014: US$8.6M).
The Group continues to focus on supplying software via its
global hosted secure SaaS service and we are pleased to report that
revenues from this product offering increased by 27% to US$10.5M
(2014: US$8.3M).
The Group's adjusted EBITDA loss, excluding net foreign exchange
losses of US$0.3M, intangible asset amortisation of US$0.5M and
non-cash share-based payments of US$0.4M, was US$0.5M (2014: loss
of US$3.4M).
NetDimensions' loss before tax was US$1.9M (2014: US$5.0M). The
substantial reduction in the loss was a result of the increased
revenue and lower selling and operating expenses, which reduced by
3% to US$22.7M (2014: US$23.5M). The lower selling and operating
expenses were a result of reduced overheads within the professional
services division, after being re-structured and reduced spend on
sales and marketing.
Cash used in operating activities was US$2.5M in the year (2014:
US$2.1M). The Group's cash balance at the end of the year was
US$12.0M (2014: US$4.9M), benefiting from net proceeds of US$10.5M
from the fund raise completed in November 2015. The accounts
receivable balance was US$8.4M (2014: US$7.5M) at the year end.
I am pleased to announce that the Board recommends a final
dividend of GBP0.625 pence (or US$0.9 cents) to be paid from the
share premium account. If approved, the dividend will be paid on 29
July 2016, with an ex-dividend date of 30 June 2016 to shareholders
on the register with an associated record date of 1 July 2016. The
Company's AGM will be held on Monday 20 June 2016 at 2:30pm in the
afternoon on the 18th floor, Siu On Centre, 188 Lockhart Road, Hong
Kong.
An income tax provision of US$0.2M (2014: US$0.1M) was made in
the year.
Operations Review
In 2015 the Board focused the business on sustainable sales
growth within high consequence industries, re-aligning the
operating cost base and increasing spend on engineering to provide
a better product and service to clients operating in high
consequence industries. I am pleased to report on the following
progress:
-- US$10.5M raised from share placing in November 2015
-- Invoiced sales to clients in high consequence industries
represented 84% (2014: 78%) of total invoiced sales for the
year
-- NetDimensions won two Brandon Hall Group bronze awards for
technology excellence for the NetDimensions Talent Suite in the
following categories:
o Best Advance in Learning Management Technology for Compliance
Training -
Managing Compliance Training and Certifications of Employees
with Multiple Job Roles/Assignments
o Best Advance in Learning Management Technology - Dynamic,
Adaptive Language Management of Training Content and
Exams/Assessments
-- 35% increase in Research and Development investment to
US$3.5M (2014: US$2.6M), all of which was expensed to the
consolidated income statement
-- 34 new clients added in the year through direct and reseller
channels with a combined contracted value of US$3.9M. The new
clients include Port Authority of New York and New Jersey, Moody's
Analytics, Inc., Medical University Hospital Authority, Toshiba
Information Equipment (Phils), Inc., Canadian Institute for Health
Information, and PATH. These new clients operate in a number of
high consequence industries including precision manufacturing,
healthcare, financial services, life sciences and government
agencies.
Outlook
The Company made solid progress in 2015 in terms of revenue
growth, substantially reducing the reported loss and increasing the
focus on high consequence industries. The Company will continue to
invest in software engineering to provide a product that is best in
class for high consequence use cases. The global market for high
consequence use cases within the talent management systems market
is substantial and the Company is gearing itself to better serve
this segment of the market and take additional market share.
Finally, we would like to thank all of the people who work at
NetDimensions for their hard work, loyalty and dedication in
2015.
We look forward to another successful year with them, along with
our clients, partners and shareholders in 2016.
NETDIMENSIONS (HOLDINGS) LIMITED
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2015
2015 2014
US$ US$
Revenue 25,396,183 22,701,189
Cost of sales (4,193,125) (4,002,325)
------------------ ------------------
Gross profit 21,203,058 18,698,864
Other losses, net (345,297) (220,367)
Selling expenses (12,838,498) (14,489,129)
Operating expenses (9,895,920) (9,030,344)
------------------ ------------------
Operating loss (1,876,657) (5,040,976)
Finance income 895 28,414
Finance costs (15,524) (3,870)
(MORE TO FOLLOW) Dow Jones Newswires
April 18, 2016 02:00 ET (06:00 GMT)
------------------ ------------------
Finance (costs)/income, net (14,629) 24,544
----------------- -----------------
Loss before income tax (1,891,286) (5,016,432)
Income tax expense (193,353) (124,450)
------------------ ------------------
Loss for the year (2,084,639) (5,140,882)
Attributable to:
Owners of the Company (2,084,639) (5,140,882)
Loss per share attributable
to the owners of the Company
for the year (expressed in
US$ cents per share):
* Basic (5.1) (13.3)
* Diluted (5.1) (13.3)
NETDIMENSIONS (HOLDINGS) LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2015
2015 2014
US$ US$
Loss for the year (2,084,639) (5,140,882)
Other comprehensive (loss)/income:
Items that may be reclassified
to profit or loss
Currency translation differences (156,289) 185,010
------------------ ----------------
Other comprehensive (loss)/income
for the year (156,289) 185,010
------------------ ----------------
Total comprehensive loss for the
year (2,240,928) (4,955,872)
Total comprehensive loss attributable
to:
owners of the Company (2,240,928) (4,955,872)
NETDIMENSIONS (HOLDINGS) LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2015
Note 2015 2014
US$ US$
ASSETS
Non-current assets
Property, plant and equipment 260,030 270,171
Intangible assets 2,590,605 3,058,596
Available-for-sale financial
assets - -
Deposits 168,037 29,758
------------------ ------------------
3,018,672 3,358,525
----------------- -----------------
Current assets
Accounts and other receivables,
prepayments and deposits 9,030,267 8,196,741
Cash and bank balances 3 11,981,221 4,907,118
------------------ ------------------
21,011,488 13,103,859
----------------- -----------------
Total assets 24,030,160 16,462,384
EQUITY
Equity attributable to owners
of the Company
Share capital 51,150 38,763
Other reserves 29,147,076 18,772,059
Accumulated losses (17,078,149) (15,006,278)
------------------ ------------------
Total equity 12,120,077 3,804,544
----------------- -----------------
NETDIMENSIONS (HOLDINGS) LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2015
2015 2014
US$ US$
LIABILITIES
Non-current liabilities
Deferred income tax liabilities 3,567 -
Obligations under finance
leases 14,412 2,913
Deferred revenue 61,789 179,333
------------------ ------------------
79,768 182,246
----------------- -----------------
Current liabilities
Accounts and other payables 2,967,993 3,961,572
Deferred revenue 8,727,155 8,422,518
Obligations under finance
leases 4,118 2,357
Income tax payables 131,049 89,147
------------------ ------------------
11,830,315 12,475,594
----------------- -----------------
Total liabilities 11,910,083 12,657,840
----------------- -----------------
Total equity and liabilities 24,030,160 16,462,384
On behalf of the Board
_______________________ __________________________
Jay Mervin Shaw Matthew Chaloner
Director Director
NETDIMENSIONS (HOLDINGS) LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2015
Attributable to owners of the Company
Share-based
Capital payment
Share Share redemption Translation compensation Accumulated
capital premium reserve reserve reserve losses Total
US$ US$ US$ US$ US$ US$ US$
Balance at 1
January
2014 37,917 17,577,150 850 31,278 443,041 (9,865,396) 8,224,840
Comprehensive
loss:
Loss for the
year - - - - - (5,140,882) (5,140,882)
Other
comprehensive
income for the
year:
Currency
translation
differences - - - 185,010 - - 185,010
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Total
comprehensive
income/( loss)
for the
year - - - 185,010 - (5,140,882) (4,955,872)
---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
Transactions
with owners
in their
capacity as
owners
Employee share
option
benefits - - - - 538,701 - 538,701
Issue of shares
to
non-executive
directors 103 113,022 - - - - 113,125
Allotment of
shares
to a
non-executive
director
but not yet
issued - - - - 22,044 - 22,044
Issue of shares
upon
exercise of
share options 743 400,901 - - (151,238) - 250,406
Dividend
relating to
2013 - (388,700) - - - - (388,700)
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Total
transactions
with
owners in
their capacity
as owners 846 125,223 - - 409,507 - 535,576
---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
Balance at 31
December
2014 38,763 17,702,373 850 216,288 852,548 (15,006,278) 3,804,544
NETDIMENSIONS (HOLDINGS) LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2015
(MORE TO FOLLOW) Dow Jones Newswires
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Attributable to owners of the Company
Share-based
Capital payment
Share Share redemption Translation compensation Accumulated
capital premium reserve reserve reserve losses Total
US$ US$ US$ US$ US$ US$ US$
Balance at 1
January
2015 38,763 17,702,373 850 216,288 852,548 (15,006,278) 3,804,544
Comprehensive
loss:
Loss for the
year - - - - - (2,084,639) (2,084,639)
Other
comprehensive
loss for the
year:
Currency
translation
differences - - - (156,289) - - (156,289)
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Total
comprehensive
loss for the
year - - - (156,289) - (2,084,639) (2,240,928)
---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
Transactions
with owners
in their
capacity as
owners
Employee share
option
benefits - - - - 198,431 - 198,431
Issue of
shares to
non-executive
directors 114 139,339 - - - - 139,453
Allotment of
shares
to a
non-executive
director
but not yet
issued - - - - 39,391 - 39,391
Issue of
shares upon
exercise of
share options 273 151,284 - - (53,568) - 97,989
Proceeds from
shares
issued 12,000 10,442,715 - - - - 10,454,715
Transfer to
accumulated
losses upon
forfeiture
of share
options - - - - (12,768) 12,768 -
Dividend
relating to
2014 - (373,518) - - - - (373,518)
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Total
transactions
with
owners in
their
capacity
as owners 12,387 10,359,820 - - 171,486 12,768 10,556,461
---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
Balance at 31
December
2015 51,150 28,062,193 850 59,999 1,024,034 (17,078,149) 12,120,077
NETDIMENSIONS (HOLDINGS) LIMITED--
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2015
Note 2015 2014
US$ US$
Cash flows from operating
activities
Cash used in operations 1(a) (2,348,580) (2,084,708)
Interest paid (15,524) (3,870)
Income tax paid (147,778) (57,097)
---------------- ----------------
Net cash used in operating
activities (2,511,882) (2,145,675)
--------------- ---------------
Cash flows from investing
activities
Acquisition of a business - (258,038)
Purchase of property, plant
and equipment (185,037) (126,901)
Purchase of intangible assets (20,015) (35,349)
Interest received 895 28,414
Proceeds from disposal of
property, plant and equipment 1(b) 524 18,206
(Increase)/ decrease in bank
deposits with original maturity
of over three months (209,953) 3,567,562
---------------- ----------------
Net cash (used in)/generated
from investing activities (413,586) 3,193,894
--------------- ---------------
Cash flows from financing
activities
Proceeds from issuance of
ordinary shares 2 10,454,715 -
Proceeds from issuance of
shares under share option
scheme 97,989 250,406
Proceeds from bank borrowings 1,020,000 -
Repayments of capital element
of finance leases (4,091) (3,493)
Repayments of bank borrowings (1,020,000) -
Dividend paid (373,518) (388,700)
---------------- ----------------
Net cash generated from/(used
in) financing activities 10,175,095 (141,787)
--------------- ---------------
Net increase in cash and
cash equivalents 7,249,627 906,432
Cash and cash equivalents
at beginning of the year 4,867,071 4,120,179
Effect of foreign exchange
rate changes (385,477) (159,540)
---------------- ----------------
Cash and cash equivalents
at end of the year 3 11,731,221 4,867,071
NETDIMENSIONS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
1 Notes to the consolidated statement of cash flows
(a) Reconciliation of loss before income tax to net cash used in operations:
2015 2014
US$ US$
Loss before income tax (1,891,286) (5,016,432)
Adjustments for:
Loss/(gain) on disposal of
property, plant and equipment 3,318 (17,360)
Loss on disposal of intangible
asset 200 308
Depreciation of property,
plant and equipment 209,577 170,444
Amortisation of intangible
assets 487,746 497,917
Equity settled share-based
payments 377,275 673,870
Finance costs 15,524 3,870
Finance income (895) (28,414)
Provision for impairment of
accounts receivable - 14,995
Write-off of accounts receivable 17,076 -
Exchange loss 319,304 363,518
---------------- ----------------
(462,161) (3,337,284)
Changes in working capital:
* Accounts and other receivables, prepayments and
deposits (1,287,510) (1,119,410)
* Accounts and other payables (926,937) 1,200,328
1,171,
* Deferred revenue 328,028 658
---------------- ----------------
Net cash used in operations (2,348,580) (2,084,708)
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(b) In the consolidated statement of cash flows, proceeds from
disposal of property, plant and equipment comprise:
2015 2014
US$ US$
Net book amount 3,842 846
(Loss)/gain on disposal of
property, plant and equipment (3,318) 17,360
------------ ------------
Proceeds from disposal of
property, plant and equipment 524 18,206
2 Proceeds from issuance of ordinary shares
On 5 November 2015, the Company and the placing agent ("Panmure
Gordon") entered into a placing agreement (the "Placing
Agreement"), pursuant to which the Company appointed Panmure Gordon
as an agent to procure independent third parties to purchase
12,000,000 new ordinary shares at the placing price of GBP60 pence
per share. The transaction was completed on 10 November 2015.
Accordingly, 12,000,000 ordinary shares of US$0.001 each were
issued at a premium of US$0.919 each. The proceeds from issue of
these new ordinary shares of US$11,036,160, net of the direct
transaction cost of US$581,445, was credited to the share capital
and share premium account. These new ordinary shares rank pari
passu in all respects with the existing ordinary shares.
3 Cash and bank balances
2015 2014
US$ US$
Cash on hand 5,145 4,687
Cash at bank 11,686,034 4,862,384
Short-term bank deposit 40,042 -
---------------- ----------------
Cash and cash equivalents 11,731,221 4,867,071
--------------- ---------------
Restricted bank deposits with
original maturity of over
three months 250,000 -
--------------- ---------------
Bank deposits with original
maturity of over three months - 40,047
--------------- ---------------
Total cash and bank balances 11,981,221 4,907,118
This information is provided by RNS
The company news service from the London Stock Exchange
END
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