TIDMNSV
RNS Number : 0681S
NetServices PLC
12 May 2009
12 May 2009
NetServices plc
('NetServices', the 'Company' or the 'Group')
Interim Results Announcement
For the six months ended 28 February 2009
NetServices plc (AIM:NSV), the specialist provider of converged business
communication, announces its results for the six months ended 28 February 2009.
Key Highlights
+---+---------------------------------------------------------------------+
| - | Revenue of GBP3.19m (2008: GBP3.68m) |
+---+---------------------------------------------------------------------+
| - | Gross profit of GBP1.37m (2008: GBP1.60m) |
+---+---------------------------------------------------------------------+
| - | Gross profit margin of 43% (2008: 44%) |
+---+---------------------------------------------------------------------+
| - | EBITDA* before non-recurring items of GBP0.14m (2008: GBP0.22m) |
+---+---------------------------------------------------------------------+
| - | Loss before tax of GBP0.42m (2008: GBP0.003m profit) |
+---+---------------------------------------------------------------------+
| - | Cash in hand at end of period of GBP0.81m (2008: GBP1.28m) |
+---+---------------------------------------------------------------------+
| - | Achieved accreditation as a CISCO Managed Services Channel Partner |
+---+---------------------------------------------------------------------+
* EBITDA = profit from operations before interest, tax, depreciation,
amortisation and share-based payment costs.
Commenting on these results, Mark Vickers, Chief Executive said:
'Against the backdrop of the most challenging economic period in living memory,
we have continued to focus on tight cost control enabling us to generate an
operating profit before non-recurring items, in line with our expectations.
During the past six months, we pursued our strategy of building our managed
services capability and have successfully achieved the Cisco MSCP accreditation
that we set as our goal at the start of the period. We intend to maximize the
value of this certification during the remainder of the financial year to
generate robust managed service revenues and deliver value for shareholders.'
For further information, please contact:
+--------------------------------------+--------------------------------------+
| NetServices | Tel No: 0870 753 0900 |
+--------------------------------------+--------------------------------------+
| Mark Vickers, Chief Executive | |
+--------------------------------------+--------------------------------------+
| Ian Winn, Finance Director | |
+--------------------------------------+--------------------------------------+
| | |
+--------------------------------------+--------------------------------------+
| MC2 (Manchester) Ltd | Tel No: 0161 236 1352 |
+--------------------------------------+--------------------------------------+
| Samantha Lafferty | |
+--------------------------------------+--------------------------------------+
| | |
+--------------------------------------+--------------------------------------+
| Arbuthnot Securities | Tel No: 020 7012 2000 |
+--------------------------------------+--------------------------------------+
| Tom Griffiths | |
+--------------------------------------+--------------------------------------+
chairman's statement
OVERVIEW
I am pleased to announce the results for the six months ended 28 February 2009,
one of the most challenging economic periods in living memory, and to provide an
update on recent developments within the business.
Revenue for the first half of the year was GBP3.19m (2008: GBP3.68m), producing
a gross profit of GBP1.37m (2008: GBP1.60m). A continued focus on tight cost
control enabled the Group to generate earnings before interest, tax,
depreciation and amortisation ("EBITDA") and before non-recurring items of
GBP0.14m (2008: GBP0.22m). The Group incurred non-recurring items relating to a
staff re?organisation, the write off of legacy networking equipment and
professional fees relating to a strategic review. The impact of these items
resulted in a loss before tax of GBP0.42m (2008: GBP0.003m profit).
I am pleased that our EBITDA before non-recurring items continues to demonstrate
the underlying viability of our business model, whilst acknowledging
disappointment that we have posted a loss for the period, which was primarily
due to a number of identifiable one-off non-recurring items. However, our
success in achieving accreditation as a CISCO Managed Services Channel Partner
("MSCP") in managed connectivity and security, combined with recent contract
wins worth over GBP0.30m secured through our partnership with Datapoint,
provides encouragement for the remainder of this calendar year.
HALF YEAR RESULTS
Revenue for the six months ended 28 February 2009 was GBP3.19m (2008: GBP3.68m).
The lower revenues resulted from a contract loss and attrition in our non-core,
non-converged revenues. The contract loss was not a reflection on the level of
service by the Group, simply a result of a client decision to take the service
back in house. In common with all businesses, the uncertain economic backdrop of
the last six months has resulted in a reticence on the part of some of our
larger opportunities to commit to contracts, which has had an effect on sales in
the first half of the year and will impact on the second half of the year.
We have however been reassured by the credit quality of our existing customer
base during the period, and the importance of our services to them, which meant
at the half year end there were no significant overdue balances and no
requirement for a bad debt charge during the first half.
Gross profit was GBP1.37m (2008: GBP1.60m) which equated to a gross margin of
43%. We produced EBITDA before non-recurring items of GBP0.14m for the period
(2008: GBP0.22m). We took positive action during the second quarter of the
financial year to ensure that our cost base was aligned with our revenue base,
whilst ensuring that we maintained capability in all areas. This resulted in a
small number of staff redundancies, which were completed during January 2009.
Operating profit for the first half, before non-recurring items, of GBP0.013m
(2008: loss GBP0.005m) is in line with management's expectations for the period,
and the comparative period last year.
The Group incurred GBP0.41m of non-recurring items in the period relating to (in
descending order of size): the write off of certain legacy network assets which
have now been made obsolete by the completion of our network update; redundancy
costs associated with a staff re-organisation in January 2009; and professional
fees relating to a strategic review.
Cash balances at 28 February 2009 were GBP0.81m (2008: GBP1.28m).
We continue to review ways that we can mitigate the supply contract, against
which we currently hold a provision of GBP1.38m. We commenced negotiations
during the period which may or may not lead to a reduction in the contractual
obligation and remaining length of this contract.
OPERATIONS
The focus in the first half of the year has been in two key areas; capability
and improvements in our routes to market.
CAPABILITY
In our review of last year we were clear about the need for us to achieve a
recognised, external "kite mark" which would provide third party validation of
the efficacy of the managed services offered by the Group. We highlighted that
we would seek to become accredited under the Cisco MSCP programme. I am pleased
to report that, due to the extensive efforts of all staff involved in this
process, we were successful in achieving this accreditation at the end of March
2009, gaining Cisco Powered Network status for managed connectivity and managed
security. The independent auditors tasked with making the assessment of our
policies, processes and services were particularly complimentary about the
business. The accreditation and the Group's focus on Cisco's SMB (small and
medium sized businesses) market of resellers mean that the Group now has a
unique position in this chosen market.
The Cisco MSCP accreditation, whilst in itself having value given that it allows
access to the highest level of global Cisco discounts, now needs to be
commercially exploited. We announced on 30 March 2009 that Paul Foley had
resigned as sales director. This was in part due to our changing focus on the
Cisco reseller channel, which demanded a different set of skills and experience.
We are currently working with Cisco's largest UK distributor and utilising the
skills and knowledge of experienced Cisco consultants to refine our product
offering to maximise our chances of success in this sector in the coming months.
We acknowledged in November 2008 the importance of managed services, and the
fact that provision of the network (our core capability) was the "glue" that
held this together. During the first half of this year we have continued to
assess and add to the number of services we can source from third party
partners. These have included Unified Communications, WAN optimisation, SaaS
providers and "Cloud" based services. In doing this we believe we are
significantly enhancing our service offering.
ROUTES TO MARKET
Against the uncertain economic backdrop of the last six months we have continued
to seek out and identify potential partners who share our vision in terms of
managed service delivery. In so doing we are looking to partners and
opportunities who we can work with to "sell with" rather than "sell through". It
has taken longer to develop these relationships than we expected. However our
first contract, secured through Datapoint during March 2009 for a contract value
in excess of GBP0.30m, provides evidence that our strategy has value and has the
capability to scale. We will continue to concentrate on developing this area
further over the coming months.
OUTLOOK
Our primary focus for the remainder of this year will be "monetising" and
maximising the value associated with MSCP accreditation. The Group recognises it
has acquired an industry recognised capability and accreditation which has
intrinsic value.
We acknowledge the short term challenges to revenue and profitability growth
that result from continuing with our strategy, as it will undoubtedly take time
to develop partnerships amid a backdrop of unprecedented economic uncertainty.
However we believe that this strategy will generate robust managed service
revenues and therefore is in the interest of shareholders.
While we anticipate the difficult economic conditions enduring for the remainder
of the current financial year, we have demonstrated our capability to manage
costs to mitigate potential impacts upon the business.
As ever we rely upon the continued skill, diligence and efforts of our staff
and, given the achievements of the last six months, I am particularly grateful
for their continuing support and effort.
BOARD CHANGE
Finally, I would like to take this opportunity to announce that due to my
increasing commitments as commercial director of the London Organising Committee
of the 2012 Olympic Games it is becoming more difficult for me to commit the
appropriate amount of time to the Group. After almost four years I have
therefore, reluctantly, decided to step down as non-executive chairman with
effect from today. Graham Norfolk, an existing non-executive director, has
agreed to take over from me as non-executive chairman. I therefore would like to
wish Graham and the team all the best in the future.
CHRIS TOWNSEND
NON-EXECUTIVE CHAIRMAN
11 MAY 2009
consolidated income statement
for the six months ended 28 february 2009
+----------------------------------------------+-------+----------+-----------+----------+
| Six | Six | Year |
| months | months | |
+-----------------------------------------------------------------+-----------+----------+
| ended | ended | ended |
+-----------------------------------------------------------------+-----------+----------+
| 28 | 29 | 31 |
| February | February | August |
+-----------------------------------------------------------------+-----------+----------+
| 2009 | 2008 | 2008 |
+-----------------------------------------------------------------+-----------+----------+
| Unaudited | Unaudited | Audited |
+-----------------------------------------------------------------+-----------+----------+
| | Notes | GBP000's | GBP000's | GBP000's |
+----------------------------------------------+-------+----------+-----------+----------+
| Revenue | | 3,193 | 3,678 | 7,145 |
+----------------------------------------------+-------+----------+-----------+----------+
| Cost of sales | | (1,828) | (2,074) | (3,836) |
+----------------------------------------------+-------+----------+-----------+----------+
| Gross profit | | 1,365 | 1,604 | 3,309 |
+----------------------------------------------+-------+----------+-----------+----------+
| Other operating expenses | | (1,230) | (1,384) | (2,810) |
+----------------------------------------------+-------+----------+-----------+----------+
| Profit from operations before depreciation, amortisation, |
+----------------------------------------------------------------------------------------+
| share-based payments and non-recurring items | | 135 | 220 | 499 |
+----------------------------------------------+-------+----------+-----------+----------+
| Depreciation | | (84) | (202) | (369) |
+----------------------------------------------+-------+----------+-----------+----------+
| Amortisation of intangibles | | (32) | (23) | (64) |
+----------------------------------------------+-------+----------+-----------+----------+
| Share-based payment costs | | (6) | - | - |
+----------------------------------------------+-------+----------+-----------+----------+
| Operating Profit/(loss) before non-recurring | | 13 | (5) | 66 |
| items | | | | |
+----------------------------------------------+-------+----------+-----------+----------+
| Non-recurring items | 2 | (412) | - | - |
+----------------------------------------------+-------+----------+-----------+----------+
| Operating (loss)/profit | | (399) | (5) | 66 |
+----------------------------------------------+-------+----------+-----------+----------+
| Finance income | | 5 | 22 | 36 |
+----------------------------------------------+-------+----------+-----------+----------+
| Finance costs | | (25) | (14) | (53) |
+----------------------------------------------+-------+----------+-----------+----------+
| (Loss)/profit before tax | | (419) | 3 | 49 |
+----------------------------------------------+-------+----------+-----------+----------+
| Income tax expense | 3 | - | - | - |
+----------------------------------------------+-------+----------+-----------+----------+
| (Loss)/profit for the period/year | | (419) | 3 | 49 |
+----------------------------------------------+-------+----------+-----------+----------+
+----------------------------------------------+------+--------+------+------+
| (Loss)/Earnings per share |
+----------------------------------------------------------------------------+
| - basic (p) | 4 | (1.42) | 0.01 | 0.17 |
+----------------------------------------------+------+--------+------+------+
| - diluted (p) | 4 | (1.42) | 0.01 | 0.16 |
+----------------------------------------------+------+--------+------+------+
There was no recognised income or expenditure other than the (loss)/profit for
the period/year. Accordingly, no statement of recognised income and expenditure
has been prepared.
consolidated balance sheet
as at 28 february 2009
+----------------------------------------------------+---------+-----------+----------+
| As at | As | As |
| | at | at |
+--------------------------------------------------------------+-----------+----------+
| 28 February | 29 | 31 |
| | February | August |
+--------------------------------------------------------------+-----------+----------+
| 2009 | 2008 | 2008 |
+--------------------------------------------------------------+-----------+----------+
| Unaudited | Unaudited | Audited |
+--------------------------------------------------------------+-----------+----------+
| GBP000's | GBP000's | GBP000's |
+--------------------------------------------------------------+-----------+----------+
| ASSETS |
+-------------------------------------------------------------------------------------+
| Non-current assets |
+-------------------------------------------------------------------------------------+
| Property, plant and equipment | 1,211 | 1,754 | 1,548 |
+----------------------------------------------------+---------+-----------+----------+
| Goodwill | 334 | 334 | 334 |
+----------------------------------------------------+---------+-----------+----------+
| Intangible assets | 153 | 155 | 183 |
+----------------------------------------------------+---------+-----------+----------+
| Investments | 59 | 59 | 59 |
+----------------------------------------------------+---------+-----------+----------+
| 1,757 | 2,302 | 2,124 |
+--------------------------------------------------------------+-----------+----------+
| Current assets | | | |
+----------------------------------------------------+---------+-----------+----------+
| Trade and other receivables | 894 | 897 | 844 |
+----------------------------------------------------+---------+-----------+----------+
| Cash and cash equivalents | 810 | 1,280 | 1,254 |
+----------------------------------------------------+---------+-----------+----------+
| 1,704 | 2,177 | 2,098 |
+--------------------------------------------------------------+-----------+----------+
| Total Assets | 3,461 | 4,479 | 4,222 |
+----------------------------------------------------+---------+-----------+----------+
| EQUITY AND LIABILITIES |
+-------------------------------------------------------------------------------------+
| Equity attributable to equity holders of the parent |
+-------------------------------------------------------------------------------------+
| Share capital | 74 | 74 | 74 |
+----------------------------------------------------+---------+-----------+----------+
| Share premium | 4,293 | 4,293 | 4,293 |
+----------------------------------------------------+---------+-----------+----------+
| Share-based payment reserve | 14 | 8 | 8 |
+----------------------------------------------------+---------+-----------+----------+
| Revaluation reserve | 152 | 152 | 152 |
+----------------------------------------------------+---------+-----------+----------+
| Retained losses | (4,073) | (3,701) | (3,654) |
+----------------------------------------------------+---------+-----------+----------+
| Equity shareholders' funds | 460 | 826 | 873 |
+----------------------------------------------------+---------+-----------+----------+
| Non-current liabilities |
+-------------------------------------------------------------------------------------+
| Trade and other payables | - | 1 | 1 |
+----------------------------------------------------+---------+-----------+----------+
| Financial liabilities | 449 | 454 | 508 |
+----------------------------------------------------+---------+-----------+----------+
| Provisions | 1,382 | 1,600 | 1,520 |
+----------------------------------------------------+---------+-----------+----------+
| Deferred tax | 67 | 67 | 67 |
+----------------------------------------------------+---------+-----------+----------+
| 1,898 | 2,122 | 2,096 |
+--------------------------------------------------------------+-----------+----------+
| Current liabilities |
+-------------------------------------------------------------------------------------+
| Financial liabilities | 108 | 189 | 150 |
+----------------------------------------------------+---------+-----------+----------+
| Trade and other payables | 995 | 1,342 | 1,103 |
+----------------------------------------------------+---------+-----------+----------+
| | 1,103 | 1,531 | 1,253 |
+----------------------------------------------------+---------+-----------+----------+
| Total Liabilities | 3,001 | 3,653 | 3,349 |
+----------------------------------------------------+---------+-----------+----------+
| Total Equity and Liabilities | 3,461 | 4,479 | 4,222 |
+----------------------------------------------------+---------+-----------+----------+
consolidated statement of changes in equity
as at 28 february 2009
+---------------------------------+----------+----------+-------------+-------------+----------+----------+
| | | | Share-based | | | |
+---------------------------------+----------+----------+-------------+-------------+----------+----------+
| | Share | Share | payment | Revaluation | Retained | |
+---------------------------------+----------+----------+-------------+-------------+----------+----------+
| | capital | premium | reserve | reserve | losses | Total |
+---------------------------------+----------+----------+-------------+-------------+----------+----------+
| | GBP000's | GBP000's | GBP000's | GBP000's | GBP000's | GBP000's |
+---------------------------------+----------+----------+-------------+-------------+----------+----------+
| Balance at 1 September 2008 | 74 | 4,293 | 8 | 152 | (3,654) | 873 |
+---------------------------------+----------+----------+-------------+-------------+----------+----------+
| Total recognised income and | - | - | - | - | (419) | (419) |
| expense for | | | | | | |
+---------------------------------+----------+----------+-------------+-------------+----------+----------+
| the period | | | | | | |
+---------------------------------+----------+----------+-------------+-------------+----------+----------+
| Share-based compensation | - | - | 6 | - | - | 6 |
+---------------------------------+----------+----------+-------------+-------------+----------+----------+
| Balance at 28 February 2009 | 74 | 4,293 | 14 | 152 | (4,073) | 460 |
+---------------------------------+----------+----------+-------------+-------------+----------+----------+
| Balance at 1 September 2007 | 74 | 4,293 | 8 | 152 | (3,703) | 824 |
+---------------------------------+----------+----------+-------------+-------------+----------+----------+
| Total recognised income and | - | - | - | - | 2 | 2 |
| expense for | | | | | | |
+---------------------------------+----------+----------+-------------+-------------+----------+----------+
| the period | | | | | | |
+---------------------------------+----------+----------+-------------+-------------+----------+----------+
| Balance at 29 February 2008 | 74 | 4,293 | 8 | 152 | (3,701) | 826 |
+---------------------------------+----------+----------+-------------+-------------+----------+----------+
| Balance at 1 September 2007 | 74 | 4,293 | 8 | 152 | (3,703) | 824 |
+---------------------------------+----------+----------+-------------+-------------+----------+----------+
| Total recognised income and | - | - | - | - | 49 | 49 |
| expense for | | | | | | |
+---------------------------------+----------+----------+-------------+-------------+----------+----------+
| the period | | | | | | |
+---------------------------------+----------+----------+-------------+-------------+----------+----------+
| Balance at 31 August 2008 | 74 | 4,293 | 8 | 152 | (3,654) | 873 |
+---------------------------------+----------+----------+-------------+-------------+----------+----------+
consolidated cash flow statement
for the six months ended 28 february 2009
+----------------------------------------------+-------+-----------+-----------+-----------+
| | | Six | Six | Year |
| | | months | months | |
+----------------------------------------------+-------+-----------+-----------+-----------+
| | | ended | ended | ended |
+----------------------------------------------+-------+-----------+-----------+-----------+
| | | 28 | 29 | 31 August |
| | | February | February | |
+----------------------------------------------+-------+-----------+-----------+-----------+
| | | 2009 | 2008 | 2008 |
+----------------------------------------------+-------+-----------+-----------+-----------+
| | | Unaudited | Unaudited | Audited |
+----------------------------------------------+-------+-----------+-----------+-----------+
| | Notes | GBP000's | GBP000's | GBP000's |
+----------------------------------------------+-------+-----------+-----------+-----------+
| Cash flows from operating activities | | | | |
+----------------------------------------------+-------+-----------+-----------+-----------+
| Cash used in operations | 5 | (280) | (367) | (317) |
+----------------------------------------------+-------+-----------+-----------+-----------+
| Finance costs | | (25) | (14) | (53) |
+----------------------------------------------+-------+-----------+-----------+-----------+
| Net cash used in operating activities | | (305) | (381) | (370) |
+----------------------------------------------+-------+-----------+-----------+-----------+
| Cash flows from investing activities | | | | |
+----------------------------------------------+-------+-----------+-----------+-----------+
| Purchase of property, plant and equipment | | - | (76) | (79) |
+----------------------------------------------+-------+-----------+-----------+-----------+
| Purchases of intangible assets | | (43) | (117) | (117) |
+----------------------------------------------+-------+-----------+-----------+-----------+
| Proceeds from sale of equipment | | - | 12 | 47 |
+----------------------------------------------+-------+-----------+-----------+-----------+
| Finance income | | 5 | 22 | 36 |
+----------------------------------------------+-------+-----------+-----------+-----------+
| Net cash used in investing activities | | (38) | (159) | (113) |
+----------------------------------------------+-------+-----------+-----------+-----------+
| Cash flows from financing activities | | | | |
+----------------------------------------------+-------+-----------+-----------+-----------+
| Repayment of long term borrowings | | (46) | (22) | (46) |
+----------------------------------------------+-------+-----------+-----------+-----------+
| Payment of finance lease liabilities | | (55) | (41) | (100) |
+----------------------------------------------+-------+-----------+-----------+-----------+
| Net cash used in financing activities | | (101) | (63) | (146) |
+----------------------------------------------+-------+-----------+-----------+-----------+
| Net decrease in cash and cash equivalents | | (444) | (603) | (629) |
+----------------------------------------------+-------+-----------+-----------+-----------+
| Cash and cash equivalents at beginning of | | 1,254 | 1,883 | 1,883 |
| the period | | | | |
+----------------------------------------------+-------+-----------+-----------+-----------+
| Cash and cash equivalents at the end of the | | 810 | 1,280 | 1,254 |
| period | | | | |
+----------------------------------------------+-------+-----------+-----------+-----------+
1. Basis of preparation
The Group's interim results consolidate the results of the company and its
subsidiary undertakings made up to 28 February 2009. The company is a limited
liability company incorporated and domiciled in England & Wales and whose shares
are listed on AIM, a market of the London Stock Exchange.
The financial information contained in this interim report does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. It does
not, therefore, include all the information and disclosures required in the
annual financial statements and should be read in conjunction with the Group's
annual financial statements for the year ended 31 August 2008.
The financial information for the six months ended 28 February 2009 is also
unaudited but has been reviewed by the auditors in accordance with the
International Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor of the
Entity" issued by the Auditing Practices Board for use in the UK. The Group has
not applied IAS 34 "Interim Financial Reporting", which is not mandatory for UK
Groups, in the preparation of these interim financial statements.
The Group's statutory accounts for the year ended 31 August 2008 have been
delivered to the Registrar of Companies. The independent auditors' report on
these accounts was unqualified and did not contain a statement under section
237(2) or (3) of the Companies Act 1985.
Significant accounting policies
The accounting policies used in the preparation of the financial information for
the six months ended 28 February 2009 are in accordance with the recognition and
measurement criteria of International Financial Reporting Standards ("IFRS") as
adopted by the European Union and are consistent with those which were adopted
in the annual statutory financial statements for the year ended 31 August 2008
and those which will be adopted in the financial statements for the year ending
31 August 2009.
The board of directors approved the interim report on 11 May 2009.
2. (Loss)/Profit for period/year
(Loss)/profit for the period/year is stated after charging the following:
+-----------------------------------------+-----------+------------+------------+
| | Six | Six months | Year |
| | months | | |
+-----------------------------------------+-----------+------------+------------+
| | ended | ended | ended |
+-----------------------------------------+-----------+------------+------------+
| | 28 | 29 | 31 August |
| | February | February | |
+-----------------------------------------+-----------+------------+------------+
| | 2009 | 2008 | 2008 |
+-----------------------------------------+-----------+------------+------------+
| | Unaudited | Unaudited | Audited |
+-----------------------------------------+-----------+------------+------------+
| | GBP000's | GBP000's | GBP000's |
+-----------------------------------------+-----------+------------+------------+
| Non-recurring items | | | |
+-----------------------------------------+-----------+------------+------------+
| Impairment of property, plant and | 253 | - | - |
| equipment | | | |
+-----------------------------------------+-----------+------------+------------+
| Impairment of intangible fixed assets | 41 | - | - |
+-----------------------------------------+-----------+------------+------------+
| Redundancy expenditure | 73 | - | - |
+-----------------------------------------+-----------+------------+------------+
| Strategic business review | 45 | - | - |
+-----------------------------------------+-----------+------------+------------+
| | 412 | - | - |
+-----------------------------------------+-----------+------------+------------+
| Movement in onerous contract provision | (138) | - | (80) |
| as a result of | | | |
+-----------------------------------------+-----------+------------+------------+
| normal operating activities | | | |
+-----------------------------------------+-----------+------------+------------+
3. Taxation
There is no tax charge for the period and no deferred tax asset has been
provided for. The Group has tax losses carried forward of approximately
GBP21.91m for which no deferred tax asset provision has been made.
4. (Loss)/Earnings per share
+-------------------------------------------+-----------+-----------+------------+
| | Six | Six | Year |
| | months | months | |
+-------------------------------------------+-----------+-----------+------------+
| | ended | ended | ended |
+-------------------------------------------+-----------+-----------+------------+
| | 28 | 29 | 31 August |
| | February | February | |
+-------------------------------------------+-----------+-----------+------------+
| | 2009 | 2008 | 2008 |
+-------------------------------------------+-----------+-----------+------------+
| | Unaudited | Unaudited | Audited |
+-------------------------------------------+-----------+-----------+------------+
| (Loss)/earnings per share | | | |
+-------------------------------------------+-----------+-----------+------------+
| - basic (p) | (1.42) | 0.01 | 0.17 |
+-------------------------------------------+-----------+-----------+------------+
| - diluted (p) | (1.42) | 0.01 | 0.16 |
+-------------------------------------------+-----------+-----------+------------+
The calculation of diluted loss per ordinary share is identical to that used for
the basic loss per ordinary share for the six months ended 28 February 2009.
This is because the exercise of the options would have the effect of reducing
the loss per ordinary share and is, therefore, not dilutive under the terms of
IAS 33.
Earnings and the number of shares used in the calculations of (loss)/earnings
per share are set out below:
+-----------------------------------------+-----------+-----------+-----------+
| | Six | Six | Year |
| | months | months | |
+-----------------------------------------+-----------+-----------+-----------+
| | ended | ended | ended |
+-----------------------------------------+-----------+-----------+-----------+
| | 28 | 29 | 31 August |
| | February | February | |
+-----------------------------------------+-----------+-----------+-----------+
| | 2009 | 2008 | 2008 |
+-----------------------------------------+-----------+-----------+-----------+
| | Unaudited | Unaudited | Audited |
+-----------------------------------------+-----------+-----------+-----------+
| | GBP000's | GBP000's | GBP000's |
+-----------------------------------------+-----------+-----------+-----------+
| (Loss)/earnings for the period/year | (419) | 3 | 49 |
+-----------------------------------------+-----------+-----------+-----------+
Weighted average number of shares used in the calculations of (loss)/earnings
per share are set out below:
+------------------------------------+-------------+------------+------------+
| | Six months | Six months | Year |
+------------------------------------+-------------+------------+------------+
| | ended | ended | ended |
+------------------------------------+-------------+------------+------------+
| | 28 February | 29 | 31 August |
| | | February | |
+------------------------------------+-------------+------------+------------+
| | 2009 | 2008 | 2008 |
+------------------------------------+-------------+------------+------------+
| | Unaudited | Unaudited | Audited |
+------------------------------------+-------------+------------+------------+
| | Number | Number | Number |
+------------------------------------+-------------+------------+------------+
| For basic (loss)/earnings per | 29,600,434 | 29,594,788 | 29,595,703 |
| share | | | |
+------------------------------------+-------------+------------+------------+
| For diluted (loss)/earnings per | 29,600,434 | 30,085,534 | 30,055,123 |
| share | | | |
+------------------------------------+-------------+------------+------------+
5. Reconciliation of (loss)/profit to net cash outflow from operating activities
+-----------------------------------------+-----------+--------------+------------+
| | Six | Six months | Year |
| | months | | |
+-----------------------------------------+-----------+--------------+------------+
| | ended | ended | ended |
+-----------------------------------------+-----------+--------------+------------+
| | 28 | 29 February | 31 August |
| | February | | |
+-----------------------------------------+-----------+--------------+------------+
| | 2009 | 2008 | 2008 |
+-----------------------------------------+-----------+--------------+------------+
| | Unaudited | Unaudited | Audited |
+-----------------------------------------+-----------+--------------+------------+
| | GBP000's | GBP000's | GBP000's |
+-----------------------------------------+-----------+--------------+------------+
| (Loss)/profit before tax | (419) | 3 | 49 |
+-----------------------------------------+-----------+--------------+------------+
| Adjustments for: | | | |
+-----------------------------------------+-----------+--------------+------------+
| Depreciation and amortisation | 116 | 225 | 433 |
+-----------------------------------------+-----------+--------------+------------+
| Share-based payment costs | 6 | - | - |
+-----------------------------------------+-----------+--------------+------------+
| Loss on disposal of equipment | - | - | 36 |
+-----------------------------------------+-----------+--------------+------------+
| Finance income | (5) | (22) | (36) |
+-----------------------------------------+-----------+--------------+------------+
| Finance costs | 25 | 14 | 53 |
+-----------------------------------------+-----------+--------------+------------+
| Impairment of property, plant and | 294 | - | - |
| equipment and intangible fixed assets | | | |
+-----------------------------------------+-----------+--------------+------------+
| Operating profit before changes in | 17 | 220 | 535 |
| working capital and | | | |
+-----------------------------------------+-----------+--------------+------------+
| provisions | | | |
+-----------------------------------------+-----------+--------------+------------+
| Increase in trade and other receivables | (50) | (54) | (1) |
+-----------------------------------------+-----------+--------------+------------+
| Decrease in provisions | (138) | - | (80) |
+-----------------------------------------+-----------+--------------+------------+
| Decrease in trade and other liabilities | (109) | (533) | (771) |
+-----------------------------------------+-----------+--------------+------------+
| Cash flows from operating activities | (280) | (367) | (317) |
+-----------------------------------------+-----------+--------------+------------+
independent review report
to netservices plc
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the interim financial report for the six months ended 28 February
2009 which comprises the Consolidated Balance Sheet, Consolidated Income
Statement, Consolidated Cash Flow Statement, Consolidated Statement of Changes
in Equity and the related explanatory notes. We have read the other information
contained in the interim financial report and considered whether it contains any
apparent misstatements or material inconsistencies with the information in the
condensed set of financial statements.
This report, including the conclusion, has been prepared for and only for the
Company for the purpose of meeting the requirements of the AIM Rules for
Companies and for no other purpose. We do not, therefore, in producing this
report, accept or assume responsibility for any other purpose or to any other
person to whom this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.
Directors' Responsibilities
The interim financial report, is the responsibility of, and has been approved by
the directors. The directors are responsible for preparing and presenting the
interim financial report in accordance with the AIM Rules for Companies.
As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with International Financial Reporting Standards ("IFRS")
and International Financial Reporting Interpretations Committee ("IFRIC")
pronouncements as adopted by the European Union. The condensed set of financial
statements included in this interim financial report has been prepared in
accordance with the measurement and recognition criteria of IFRS and IFRIC
pronouncements, as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the interim financial report based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the UK. A review of interim financial information
consists of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK and Ireland) and consequently does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an
audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the interim financial report
for the six months ended 28 February 2009 is not prepared, in all material
respects, in accordance with the measurement and recognition criteria of IFRS
and IFRIC pronouncements as adopted by the European Union, and the AIM Rules for
Companies.
Baker Tilly UK Audit LLP
Chartered Accountants
3 Hardman Street
Manchester
M3 3HF
11 May 2009
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ABMRTMMMBBAL
Netservices (LSE:NSV)
過去 株価チャート
から 4 2024 まで 5 2024
Netservices (LSE:NSV)
過去 株価チャート
から 5 2023 まで 5 2024