TIDMTSEG
RNS Number : 4082T
TSE Group PLC
05 June 2009
For immediate release
5 June 2009
TSE GROUP PLC
(the "Company" or "TSE")
AUDITED RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2008
The Board of TSE is pleased to announce its audited results for the year ended
31 December 2008. The Report and Accounts are being posted to shareholders today
and a copy is available from the Company's website, www.tsegroupplc.com.
Chairman's Statement
I am pleased to report on our results for the year ended 31 December 2008. This
period has for the first time included a full 12 months trading by the Group's
subsidiary TSE Consulting SA, the Swiss based management consultancy operating
exclusively in the world of international sport.
During 2008, TSE continued to expand its consulting business organically and
continued to benefit from being a company with a broad international presence
and operating mainly in the public sector around the world. The company's
international offices are now firmly established and the Group is able to report
its first annual pre-tax profit of GBP31,904 (2007: loss of GBP244,192) on sales
of GBP1,103,053 (2007: GBP317,427).
TSE Consulting's policy of international expansion started to contribute during
the year, with strong earnings developing from its offices in the United States,
Denmark, Turkey and South Africa. The company's head office, based in the
Olympic capital of Lausanne, Switzerland, continues to be the main source of
income. The policy for international expansion is set to continue with the
establishment of new regional offices due in the near future. The development of
the strong TSE brand over the past 5 years within the world of international
sport is coming to fruition and the company is respected more than ever as the
leading provider of consultancy services within this market.
During the past year TSE has entered into new assignments with the government of
Saudi Arabia and the provincial government of Gauteng in South Africa (the
continent's fourth largest economic area). The Company continues to provide
services to many of the major international sporting organisations, including
the Olympic Solidarity department at the International Olympic Committee (IOC),
the Union of European Football Associations (UEFA), and the international
governing bodies for Athletics, Swimming, Archery, Air Sports, Basketball and
the World Games Association amongst its clients. TSE also continues to work with
the United States Olympic Committee, which it is assisting with the bid for
Chicago to host the Olympic Games in 2016. In addition, TSE's Danish office will
be heavily involved with the IOC's Session and Congress in Copenhagen in
October, where the host city for the 2016 Olympic Games will be decided.
Since the year end, TSE has continued to show strong growth. As announced in
February, the company has now increased its business offering with the launch of
a new division providing consultancy services in sports performance to
governments and Olympic Committees around the world; this should reap benefits
in 2009 and already, trading in the first quarter of 2009 is well ahead of 2008,
reflecting the performance of the newly established offices and the strength of
TSE's international brand. In the last month the company also published its
first management book entitled "The new sports organisation", which has been
critically acclaimed and is selling well around the world.
Major sporting events continue even during a global recession and governments
are increasingly accepting that sport has an important role to play in the
health and wellbeing of its citizens whilst the hosting of international events
can provide strong brand benefits to a city or nation. TSE's long held belief
that the future growth of international sport will increasingly depend upon its
relationships with its public sector partners has positioned the company in the
right place to benefit from its strong relationships in this area over the
coming years.
Following a successful year of growth and a very strong start to 2009, we
believe that TSE is ideally placed to show continued organic growth over the
years ahead.
Adam Reynolds
Chairman
Enquiries:
+-------------------------------------------------+---------------------------------------+
| TSE Group plc | Tel: 020 7245 1100 |
+-------------------------------------------------+---------------------------------------+
| Paul Foulger | |
| | |
+-------------------------------------------------+---------------------------------------+
| Beaumont Cornish Limited (Nominated Adviser) | Tel: 0207 628 3396 |
+-------------------------------------------------+---------------------------------------+
| Michael Cornish | |
| | |
+-------------------------------------------------+---------------------------------------+
REPORT OF THE AUDITORS
Independent Auditors' Report to the Shareholders of TSE Group plc
We have audited the group and parent company financial statements of TSE Group
plc for the year ended 31 December 2008 which comprise the Consolidated Income
Statement, the Consolidated and Parent Company Balance Sheets, the Consolidated
and Parent Company Cash Flow Statements, the Statements of Changes in Equity and
the related notes. These financial statements have been prepared under the
accounting policies set out therein.
This report is made solely to the Company's members, as a body, in accordance
with Section 235 of the Companies Act 1985. Our audit work has been undertaken
for no purpose other than to draw to the attention of the Company's members
those matters which we are required to include in an auditors report addressed
to them. To the fullest extent permitted by law, we do not accept or assume
responsibility to any party other than the company and company's members as a
body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The Directors' responsibilities for preparing the Annual Report and the
financial statements in accordance with applicable law and International
Financial Reporting Standards (IFRSs) as adopted by the European Union are set
out in the Statement of Directors' Responsibilities.
Our responsibility is to audit the financial statements in accordance with
relevant legal and regulatory requirements and International Standards on
Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true
and fair view and whether the financial statements have been properly prepared
in accordance with the Companies Act 1985. We also report to you whether in our
opinion the information given in the Directors' Report is consistent with the
financial statements.
In addition we report to you if, in our opinion, the company has not kept proper
accounting records, if we have not received all the information and explanations
we require for our audit, or if information specified by law regarding
directors' remuneration and other transactions is not disclosed.
We read other information contained in the Annual Report and consider whether it
is consistent with the audited financial statements. The other information
comprises only the Chairman's Statement and the Corporate Governance Statement.
We consider the implications for our report if we become aware of any apparent
misstatements or material inconsistencies with the financial statements. Our
responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing
issued by the Auditing Practices Board. An audit includes examination, on a test
basis, of evidence relevant to the amounts and disclosures in the financial
statements. It also includes an assessment of the significant estimates and
judgements made by the directors in the preparation of the financial statements,
and of whether the accounting policies are appropriate to the group's and
company's circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the financial statements
are free from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the financial statements.
Opinion
In our opinion:
* the group financial statements give a true and fair view, in accordance with
IFRSs as adopted by the European Union, of the state of the group's affairs as
at 31 December 2008 and of its profit for the year then ended;
* the parent company financial statements give a true and fair view, in accordance
with IFRSs as adopted by the European Union and as applied in accordance with
the provisions of the Companies Act 1985, of the state of the parent company's
affairs as at 31 December 2008
* the financial statements have been properly prepared in accordance with the
Companies Act 1985; and
* the information given in the Directors' Report is consistent with the financial
statements.
Kingston Smith LLP
Chartered Accountants and Registered Auditors
Devonshire House
60 Goswell Road
London
EC1M 7AD
Date: 5 June 2009
CONSOLIDATED INCOME STATEMENT
+---------------------------------+--------+-------+-----+-------------+-----+-----------+
| | Notes | | 12 Months | | As |
| | | | to | | restated |
| | | | 31.12.08 | | 9 Months |
| | | | | | to |
| | | | | | 31.12.07 |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| | | | GBP | | GBP |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| | | | | | |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| Group revenue | 2 | | 1,103,053 | | 317,427 |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| | | | | | |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| Operating costs | | | (1,065,196) | | (562,574) |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| | | | | | |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| | | | | | |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| OPERATING PROFIT/(LOSS) | 5 | | 37,857 | | (245,147) |
| | | | | | |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| Finance revenue | | | 19,713 | | 20,187 |
| | | | | | |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| Finance costs | 6 | | (25,666) | | (19,232) |
| | | | | | |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| | | | | | |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| PROFIT/(LOSS) BEFORE TAX | | | 31,904 | | (244,192) |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| | | | | | |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| Taxation | 7 | | (9,242) | | 12,726 |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| | | | | | |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| PROFIT/(LOSS) FOR THE YEAR | | | 22,662 | | (231,466) |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| | | | | | |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| | | | | | |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| | | | | | |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| Earnings/(Loss) per share (basic) | 17 | | 0.004p | | (0.04p) |
+------------------------------------------+-------+-----+-------------+-----+-----------+
| | | | | | |
+---------------------------------+----------------+-----+-------------+-----+-----------+
| Earnings/(Loss) per share | 17 | | 0.003p | | (0.04p) |
| (diluted) | | | | | |
+---------------------------------+--------+-------+-----+-------------+-----+-----------+
CONSOLIDATED BALANCE SHEET
+----------------------------------------+--------+-------------+-----+-------------+
| | Notes | At | | As |
| | | 31.12.08 | | restated |
| | | | | 31.12.07 |
+----------------------------------------+--------+-------------+-----+-------------+
| Non-current assets | | GBP | | GBP |
+----------------------------------------+--------+-------------+-----+-------------+
| Intangible assets | 8 | 2,482,721 | | 1,737,158 |
+----------------------------------------+--------+-------------+-----+-------------+
| Property, plant, and equipment | 9 | 38,219 | | 18,954 |
+----------------------------------------+--------+-------------+-----+-------------+
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| Current assets | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| Trade and other receivables | 11 | 552,460 | | 347,712 |
+----------------------------------------+--------+-------------+-----+-------------+
| Cash and cash equivalents | | 155,523 | | 97,945 |
+----------------------------------------+--------+-------------+-----+-------------+
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| | | 707,983 | | 445,657 |
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| Current liabilities | 12 | (394,727) | | (336,217) |
| Trade and other payables | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| Net current assets | | 313,256 | | 109,440 |
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| Total assets less current liabilities | | 2,834,196 | | 1,865,552 |
+----------------------------------------+--------+-------------+-----+-------------+
| Non-current liabilities | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| Long term payables | 13 | - | | (200,000) |
+----------------------------------------+--------+-------------+-----+-------------+
| Provision for liabilities and charges | 14 | - | | (35,114) |
+----------------------------------------+--------+-------------+-----+-------------+
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| NET ASSETS | | 2,834,196 | | 1,630,438 |
+----------------------------------------+--------+-------------+-----+-------------+
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| Equity | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| Issued share capital | 16 | 1,457,600 | | 1,231,900 |
+----------------------------------------+--------+-------------+-----+-------------+
| Shares to be issued reserve | | 136,000 | | 204,000 |
+----------------------------------------+--------+-------------+-----+-------------+
| Share premium account | | 2,791,920 | | 2,608,385 |
+----------------------------------------+--------+-------------+-----+-------------+
| Retained losses | | (2,371,679) | | (2,413,847) |
+----------------------------------------+--------+-------------+-----+-------------+
| Translation reserve | | 820,355 | | - |
+----------------------------------------+--------+-------------+-----+-------------+
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| SHAREHOLDERS' FUNDS | | 2,834,196 | | 1,630,438 |
+----------------------------------------+--------+-------------+-----+-------------+
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
The financial statements were approved by the Board of Directors and authorised
for issue on 5 June 2009.
Paul Foulger
Director
COMPANY BALANCE SHEET
+----------------------------------------+--------+-------------+-----+-------------+
| | Notes | At | | As |
| | | 31.12.08 | | restated |
| | | | | 31.12.07 |
+----------------------------------------+--------+-------------+-----+-------------+
| | | GBP | | GBP |
+----------------------------------------+--------+-------------+-----+-------------+
| Non-current assets | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| Investments | 10 | 2,197,326 | | 2,179,894 |
+----------------------------------------+--------+-------------+-----+-------------+
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| Current assets | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| Trade and other receivables | 11 | 84,963 | | 101,906 |
+----------------------------------------+--------+-------------+-----+-------------+
| Cash and cash equivalents | | 131,465 | | 42,696 |
+----------------------------------------+--------+-------------+-----+-------------+
| | | 216,428 | | 144,602 |
+----------------------------------------+--------+-------------+-----+-------------+
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| Current liabilities | 12 | (87,576) | | (119,474) |
| Trade and other payables | | | | |
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| Net current assets | | 128,852 | | 25,128 |
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| Total assets less current liabilities | | 2,326,178 | | 2,205,022 |
+----------------------------------------+--------+-------------+-----+-------------+
| Non-current liabilities | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| Long term payables | 13 | - | | (200,000) |
+----------------------------------------+--------+-------------+-----+-------------+
| Provision for liabilities and charges | 14 | - | | (35,114) |
+----------------------------------------+--------+-------------+-----+-------------+
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| NET ASSETS | | 2,326,178 | | 1,969,908 |
+----------------------------------------+--------+-------------+-----+-------------+
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| Equity | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| Issued share capital | 16 | 1,457,600 | | 1,231,900 |
+----------------------------------------+--------+-------------+-----+-------------+
| Shares to be issued reserve | | 136,000 | | 204,000 |
+----------------------------------------+--------+-------------+-----+-------------+
| Share premium account | | 2,791,920 | | 2,608,385 |
+----------------------------------------+--------+-------------+-----+-------------+
| Retained losses | | (2,059,342) | | (2,074,377) |
+----------------------------------------+--------+-------------+-----+-------------+
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
| SHAREHOLDERS' FUNDS | | 2,326,178 | | 1,969,908 |
+----------------------------------------+--------+-------------+-----+-------------+
| | | | | |
+----------------------------------------+--------+-------------+-----+-------------+
The financial statements were approved by the Board of Directors and
authorised for issue on 5 June 2009.
Paul Foulger
Director
CONSOLIDATED CASH FLOW STATEMENT
+---------------------------------------------+--+------------+--+-----------+
| | | 12 Months | | As |
| | | to | | restated |
| | | 31.12.08 | | 9 Months |
| | | | | to |
| | | | | 31.12.07 |
+---------------------------------------------+--+------------+--+-----------+
| | | GBP | | GBP |
+---------------------------------------------+--+------------+--+-----------+
| Cash flow from operating activities | | | | |
+---------------------------------------------+--+------------+--+-----------+
| Operating profit / (loss) | | 37,857 | | (245,147) |
+---------------------------------------------+--+------------+--+-----------+
| | | | | |
+---------------------------------------------+--+------------+--+-----------+
| Adjusted for: | | | | |
+---------------------------------------------+--+------------+--+-----------+
| Depreciation | | 13,012 | | 21,706 |
+---------------------------------------------+--+------------+--+-----------+
| (Increase)/decrease in trade and other | | (97,171) | | (335,081) |
| receivables | | | | |
+---------------------------------------------+--+------------+--+-----------+
| Increase/(decrease) in trade payables | | 5,213 | | 450,725 |
+---------------------------------------------+--+------------+--+-----------+
| Share based payments P&L charge | | 19,506 | | 17,068 |
+---------------------------------------------+--+------------+--+-----------+
| Decrease in provisions | | (35,114) | | (14,886) |
+---------------------------------------------+--+------------+--+-----------+
| Foreign exchange loss | | 7,912 | | - |
+---------------------------------------------+--+------------+--+-----------+
| | | | | |
+---------------------------------------------+--+------------+--+-----------+
| Tax refunded / (paid) | | (50,983) | | - |
+---------------------------------------------+--+------------+--+-----------+
| | | | | |
+---------------------------------------------+--+------------+--+-----------+
| Net cash from operating activities | | (99,768) | | (105,615) |
+---------------------------------------------+--+------------+--+-----------+
| | | | | |
+---------------------------------------------+--+------------+--+-----------+
| Cash flows from investing activities | | | | |
+---------------------------------------------+--+------------+--+-----------+
| Purchase of property, plant and equipment | | (28,171) | | - |
+---------------------------------------------+--+------------+--+-----------+
| Acquisition of subsidiary, net of cash | | (17,432) | | (813,517) |
| acquired | | | | |
+---------------------------------------------+--+------------+--+-----------+
| Interest received | | 19,713 | | 20,187 |
+---------------------------------------------+--+------------+--+-----------+
| Interest paid | | (25,666) | | (19,232) |
+---------------------------------------------+--+------------+--+-----------+
| | | | | |
+---------------------------------------------+--+------------+--+-----------+
| Net cash outflow from investing activities | | (51,556) | | (812,562) |
+---------------------------------------------+--+------------+--+-----------+
| | | | | |
+---------------------------------------------+--+------------+--+-----------+
| Cash flows from financing activities | | | | |
+---------------------------------------------+--+------------+--+-----------+
| Proceeds from the issue of shares (net of | | 341,235 | | 812,251 |
| issue costs) | | | | |
+---------------------------------------------+--+------------+--+-----------+
| Repayment of deferred cash consideration | | (155,000) | | - |
| relating to the acquisition of Wilton | | | | |
| International Consulting Limited | | | | |
+---------------------------------------------+--+------------+--+-----------+
| | | | | |
+---------------------------------------------+--+------------+--+-----------+
| Net cash used in financing activities | | 186,235 | | 812,251 |
+---------------------------------------------+--+------------+--+-----------+
| | | | | |
+---------------------------------------------+--+------------+--+-----------+
| Net Increase/(Decrease) in cash & cash | | 34,911 | | (105,926) |
| equivalents | | | | |
+---------------------------------------------+--+------------+--+-----------+
| | | | | |
+---------------------------------------------+--+------------+--+-----------+
| Cash & cash equivalents at 01.01.08 | | 97,945 | | 203,871 |
+---------------------------------------------+--+------------+--+-----------+
| Effect of exchange rate changes | | 22,667 | | - |
+---------------------------------------------+--+------------+--+-----------+
| | | | | |
+---------------------------------------------+--+------------+--+-----------+
| Cash & cash equivalents at 31.12.08 | | 155,523 | | 97,945 |
+---------------------------------------------+--+------------+--+-----------+
| | | | | |
+---------------------------------------------+--+------------+--+-----------+
COMPANY CASH FLOW STATEMENT
+---------------------------------------------+--+------------+--+-------------+
| | | 12 Months | | As |
| | | to | | restated |
| | | 31.12.08 | | 9 Months |
| | | | | to |
| | | | | 31.12.07 |
+---------------------------------------------+--+------------+--+-------------+
| | | GBP | | GBP |
+---------------------------------------------+--+------------+--+-------------+
| Cash flow from operating activities | | | | |
+---------------------------------------------+--+------------+--+-------------+
| Operating loss | | (8,105) | | (213,260) |
+---------------------------------------------+--+------------+--+-------------+
| | | | | |
+---------------------------------------------+--+------------+--+-------------+
| Adjusted for: | | | | |
+---------------------------------------------+--+------------+--+-------------+
| Decrease/(increase) in trade and other | | 16,943 | | (89,275) |
| receivables | | | | |
+---------------------------------------------+--+------------+--+-------------+
| (Decrease)/increase in trade payables | | (267,012) | | 250,035 |
+---------------------------------------------+--+------------+--+-------------+
| Share based payments P&L charge | | 19,506 | | 17,068 |
+---------------------------------------------+--+------------+--+-------------+
| Tax refunded / (paid) | | - | | - |
+---------------------------------------------+--+------------+--+-------------+
| | | | | |
+---------------------------------------------+--+------------+--+-------------+
| Net cash from operating activities | | (238,668) | | (35,432) |
+---------------------------------------------+--+------------+--+-------------+
| | | | | |
+---------------------------------------------+--+------------+--+-------------+
| Cash flows from investing activities | | | | |
+---------------------------------------------+--+------------+--+-------------+
| Acquisition of subsidiary, net of cash | | (17,432) | | (2,179,894) |
| acquired | | | | |
+---------------------------------------------+--+------------+--+-------------+
| Interest received | | 3,634 | | 20,901 |
+---------------------------------------------+--+------------+--+-------------+
| | | | | |
+---------------------------------------------+--+------------+--+-------------+
| Net cash outflow from investing activities | | (13,798) | | (2,158,993) |
+---------------------------------------------+--+------------+--+-------------+
| | | | | |
+---------------------------------------------+--+------------+--+-------------+
| | | | | |
+---------------------------------------------+--+------------+--+-------------+
| Cash flows from financing activities | | | | |
+---------------------------------------------+--+------------+--+-------------+
| Proceeds from the issue of shares (net of | | 341,235 | | 2,033,250 |
| issue costs) | | | | |
+---------------------------------------------+--+------------+--+-------------+
| | | | | |
+---------------------------------------------+--+------------+--+-------------+
| Net cash used in financing activities | | 341,235 | | 2,033,250 |
+---------------------------------------------+--+------------+--+-------------+
| | | | | |
+---------------------------------------------+--+------------+--+-------------+
| Net Increase/(Decrease) in cash & cash | | 88,769 | | (161,175) |
| equivalents | | | | |
+---------------------------------------------+--+------------+--+-------------+
| | | | | |
+---------------------------------------------+--+------------+--+-------------+
| Cash & cash equivalents at 01.01.08 | | 42,696 | | 203,871 |
+---------------------------------------------+--+------------+--+-------------+
| | | | | |
+---------------------------------------------+--+------------+--+-------------+
| | | | | |
+---------------------------------------------+--+------------+--+-------------+
| Cash & cash equivalents at 31.12.08 | | 131,465 | | 42,696 |
+---------------------------------------------+--+------------+--+-------------+
| | | | | |
+---------------------------------------------+--+------------+--+-------------+
STATEMENT OF CHANGES IN EQUITY
GROUP
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | Share | | Shares to | | Share | | Profit and | | Translation | Total |
| | Capital | | be Issued | | premium | | loss | | reserve | equity |
| | | | Reserve | | | | account | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | GBP | | GBP | | GBP | | GBP | | GBP | GBP |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| Balance at | 1,000,000 | | - | | 1,011,035 | | (1,899,086) | | - | 111,949 |
| 01.04.07 | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| Loss for the | - | | - | | - | | (214,398) | | - | (214,398) |
| period (as | | | | | | | | | | |
| previously | | | | | | | | | | |
| reported) | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| Shares to be | - | | 204,000 | | - | | - | | - | 204,000 |
| issued | | | | | | | | | | |
| Reserve | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| Acquisition | - | | - | | - | | (300,363) | | - | (300,363) |
| of TSE | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| Issue of | 231,900 | | - | | 1,597,350 | | - | | - | 1,829,250 |
| share | | | | | | | | | | |
| capital | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| Balance at | 1,231,900 | | 204,000 | | 2,608,385 | | (2,413,847) | | - | 1,630,438 |
| 31.12.07 (as | | | | | | | | | | |
| previously | | | | | | | | | | |
| reported) | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| Prior year | | | | | | | | | | |
| adjustment: | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| Share | - | | - | | - | | (17,068) | | - | (17,068) |
| options - | | | | | | | | | | |
| IFRS2 P&L | | | | | | | | | | |
| charge | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| IFRS2 charge | - | | - | | - | | 17,068 | | - | 17,068 |
| - | | | | | | | | | | |
| Credited to | | | | | | | | | | |
| reserves | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| As restated | 1,231,900 | | 204,000 | | 2,608,385 | | (2,413,847) | | - | 1,630,438 |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| Profit for | - | | - | | - | | 22,662 | | - | 22,662 |
| the period | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| Shares | - | | (68,000) | | - | | - | | - | (68,000) |
| issued | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| Issue of | 225,700 | | - | | 212,390 | | - | | - | 438,090 |
| share | | | | | | | | | | |
| capital | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| Expenses of | - | | - | | (28,855) | | - | | - | (28,855) |
| share issue | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| IFRS2 charge | - | | - | | - | | 19,506 | | - | 19,506 |
| - Credited | | | | | | | | | | |
| to reserves | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| Exchange | - | | - | | - | | - | | 820,355 | 820,355 |
| difference | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| Balance at | 1,457,600 | | 136,000 | | 2,791,920 | | (2,371,679) | | 820,355 | 2,834,196 |
| 31.12.08 | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
| | | | | | | | | | | |
+--------------+-----------+--+-----------+--+-----------+--+-------------+--+-------------+-------------+
COMPANY
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | Share | | Shares | | Share | | Profit | | Total |
| | | Capital | | to be | | premium | | and | | equity |
| | | | | Issued | | | | loss | | |
| | | | | Reserve | | | | account | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | GBP | | GBP | | GBP | | GBP | | GBP |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| Balance at | | 1,000,000 | | - | | 1,011,035 | | (1,899,086) | | 111,949 |
| 01.04.07 | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| Loss for the | | - | | - | | - | | (175,291) | | (175,291) |
| period | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| Shares to be | | - | | 204,000 | | - | | - | | 204,000 |
| issued Reserve | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| Issue of share | | 231,900 | | - | | 1,597,350 | | - | | 1,829,250 |
| capital | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| Balance at | | 1,231,900 | | 204,000 | | 2,608,385 | | (2,074,377) | | 1,969,908 |
| 31.12.07 (as | | | | | | | | | | |
| previously | | | | | | | | | | |
| reported) | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| Prior year | | - | | - | | - | | (17,068) | | (17,068) |
| adjustment: | | - | | - | | - | | 17,068 | | 17,068 |
| Share options - | | | | | | | | | | |
| IFRS2 P&L charge | | | | | | | | | | |
| IFRS2 charge - | | | | | | | | | | |
| credited to | | | | | | | | | | |
| reserves | | | | | | | | | | |
| | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| As restated | | 1,231,900 | | 204,000 | | 2,608,385 | | (2,074,377) | | 1,969,908 |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| Profit for the | | - | | - | | - | | (4,471) | | (4,471) |
| period | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| IFRS2 charges - | | - | | - | | - | | 19,506 | | 19,506 |
| credited to | | | | | | | | | | |
| reserves | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| Shares to be | | - | | (68,000) | | - | | - | | (68,000) |
| issued Reserve | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| Issue of share | | 225,700 | | - | | 212,390 | | - | | 438,090 |
| capital | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| Expenses of share | | - | | - | | (28,855) | | - | | (28,855) |
| issue | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| Balance at | | 1,457,600 | | 136,000 | | 2,791,920 | | (2,059,342) | | 2,326,178 |
| 31.12.08 | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | | |
+--------------------+-----+-----------+--+----------+--+-----------+--+-------------+--+-----------+
NOTES TO THE FINANCIAL STATEMENTS
1.GENERAL INFORMATION
TSE Group plc is a public limited company incorporated in the United Kingdom
under the Companies Act 1985 (Registration Number 05353387).
The principal activity of the Group is that of an International Sports
Consultancy firm.
STATEMENT OF COMPLIANCE
These financial statements have been prepared in accordance with International
Financial Reporting Standards, International Accounting Standards and their
interpretations issued or adopted by the International Accounting Standards
Board as adopted by the European Union ("IFRS").
ACCOUNTING POLICIES
(a) Basis of preparation of the financial statements
The financial statements have been prepared in accordance with International
Financial Reporting Standards including standards and interpretations issued by
the International Accounting Standards Board, and have been prepared using the
historical cost convention.
The financial statements are prepared in Pounds Sterling rounded to the nearest
pound.
(b) Basis of consolidation
The consolidated profit and loss account and balance sheet include the financial
statements of the company and its subsidiary undertakings made up to 31 December
2008. The results of subsidiaries sold or acquired are included in the profit
and loss account up to, or from the date control passes. Intra-group sales and
profits are eliminated fully on consolidation.
(c) Depreciation
Depreciation on fixed assets is provided at rates estimated to write off the
cost, less estimated residual value of each asset over its expected useful life,
as follows:
Computer equipment 25% reducing balanc
Fixtures, fittings & equipment 25% reducing balance
(d) Cash and cash equivalents
Cash and cash equivalents comprise current bank balances which are readily
convertible to known amounts of cash and which are subject to insignificant risk
of changes in value. This definition is also used for the cash flow statement.
(e) Revenue
Both fee income and recharged costs are billed in the period in which the work
was completed or the costs incurred. Where there are exceptions to this income
is deferred or accrued as necessary. For projects falling over the financial
year end, income is recognised to reflect the partial performance of the
contractual obligations.
(f) Deferred tax
Deferred income is provided, using the liability method, on temporary
differences between the tax bases of assets and liabilities and their carrying
amounts in the financial statements. Deferred income tax assets relating to the
carry-forward of unused tax losses are recognised to the extent that it is
probable that future taxable profit will be available against which the unused
tax losses can be utilised.
(g) Goodwill
Goodwill is determined by comparing the amount paid on the acquisition of a
business and the aggregate fair value of its separable net assets, and is tested
annually for impairment or more frequently if circumstances exist that indicate
impairment may have occurred.
(h) Leasing commitments
Rentals payable under operating leases are charged against income on a straight
line basis over the lease term.
(i) Pensions and similar obligations
The Group operates a defined contribution plan. Payments to defined contribution
pension plans are charged as an expense to the income statement, as incurred,
when the related employee service is rendered. The Group has no further legal or
constructive payment obligations once the contributions have been made.
(j) Foreign currency translation
Amounts included in the financial statements of each of the Group's entities are
measured using the currency of the primary economic environment in which the
entity operates (the functional currency).
The consolidated financial statements are presented in pounds sterling, the
company's functional and presentation currency. Transactions in foreign
currencies are translated into the functional currency using the exchange rate
prevailing at the date of the transaction. Foreign exchange gains and losses
resulting from settlement of such transactions, and from the translation at year
end exchange rates of monetary assets and liabilities denominated in foreign
currencies, are recognised in the income statement except when deferred in
equity as qualifying cash flow and net investment hedges.
The results and financial position of all Group companies that have a functional
currency other than sterling are translated as follows:
- income and expenses are translated at average exchange rates (unless this
average is not a reasonable approximation of the cumulative effect of the rate
prevailing on the transaction date, in which case income and expenses are
translated at the date of the transaction);
- assets and liabilities are translated at the closing exchange rate at the date
of the balance sheet; and
- all resulting exchange differences are recognised as a separate component of
equity.
On consolidation, exchange differences arising from the translation of the net
investment in foreign entities, and from borrowings and other currency
instruments designated as hedges of such investments, are taken to equity. When
a foreign operation is sold, such exchange differences are recognised in the
income statement as part of the gain or loss on sale. Goodwill and fair value
adjustments on the acquisition of a foreign entity are treated as assets and
liabilities of the foreign entity and translated at the closing exchange rate.
(k) Share-based payments
The Group makes equity-settled and cash-settled share-based payments to its
employees. Equity-settled share-based awards granted after 7 November 2002 but
not vested by 1 January 2005 are measured at fair value at the date of grant
using an options pricing methodology and expensed over the vesting period of the
award. At each balance sheet date, the Group reviews its estimate of the number
of options that are expected to vest. Cash-settled share-based payments are
accrued over the vesting period of the award, based on the current fair market
value at each balance sheet date. When share options are exercised, the proceeds
received, net of any transaction costs, are credited to share capital (nominal
value) and share premium.
(l) Basis of consolidation
The consolidated financial statements include the financial statements of TSE
Group plc and its subsidiaries and the Group's share of the post acquisition
results of associates and joint ventures.
Subsidiaries are all entities over which the Group has the power to govern the
financial and operating policies generally accompanying a shareholding of more
than 50% of the voting rights. Subsidiaries are consolidated from the date on
which control is transferred to the Group and de-consolidated from the date on
which control ceases. The purchase method of accounting is used to account for
the acquisition of subsidiaries by the Group. The excess of the cost of an
acquisition over the fair value of the Group's share of the identifiable net
assets acquired is recorded as goodwill. If the cost of acquisition is less than
the fair value of the net assets of the subsidiary acquired, the difference is
recognised directly in the income statement. All intra-group transactions are
eliminated as part of the consolidation process. In preparing the Group
financial statements, accounting policies of subsidiaries have been adjusted
where necessary to ensure consistency with the accounting policies adopted by
the Group.
(m) Revenue recognition
Revenue represents the turnover, net of discounts, derived from services
provided to and invoiced to customers. Long-term contracts are accounted for in
accordance with the contractual terms either on a percentage of completion basis
or on a time as incurred basis.
(n) Intangible assets
Goodwill represents the excess of the cost of an acquisition over the fair value
of the Group's share of the identifiable net assets (including intangible
assets) of the acquired subsidiary, associate or joint venture at the date of
acquisition.
Goodwill on acquisition of subsidiaries is included in intangible assets.
Goodwill and intangibles on acquisition of associates and joint ventures is
included in the carrying value of the investment. Goodwill is tested annually
for impairment and carried at cost less accumulated impairment losses. Gains and
losses on disposal of an entity include the carrying amount of goodwill relating
to the entity or investment sold.
2. SEGMENTAL REPORTING
The board considers that the Group has a single business segment which delivers
international sports consultancy services. The revenue, expenditure and result
reported in the income statement and the assets and liabilities reported in the
balance sheet all relate to this single segment. An analysis of turnover by
geographical destination is given below.
+----------------------------------------------------+-----------------+---+--------------+
| | 12 Months | | 9 Months |
| | to 31.12.08 | | to 31.12.07 |
+----------------------------------------------------+-----------------+---+--------------+
| | GBP | | GBP |
| | | | |
+----------------------------------------------------+-----------------+---+--------------+
| Europe (including Cayman Island and Switzerland) | 624,011 | | 238,262 |
+----------------------------------------------------+-----------------+---+--------------+
| Africa | 17,826 | | 4,332 |
+----------------------------------------------------+-----------------+---+--------------+
| America | 209,145 | | 44,616 |
+----------------------------------------------------+-----------------+---+--------------+
| Asia | 252,071 | | 25,880 |
+----------------------------------------------------+-----------------+---+--------------+
| Australia/Oceania | - | | 4,337 |
+----------------------------------------------------+-----------------+---+--------------+
| | | | |
+----------------------------------------------------+-----------------+---+--------------+
| | 1,103,053 | | 317,427 |
+----------------------------------------------------+-----------------+---+--------------+
3.STAFF COSTS
+----------------------------------------+-------------+--+-----------+
| | 12 Months | | 9 Months |
| |to 31.12.08 | | to |
| | | | 31.12.07 |
+----------------------------------------+-------------+--+-----------+
| | GBP | | GBP |
+----------------------------------------+-------------+--+-----------+
| | | | |
+----------------------------------------+-------------+--+-----------+
| Wages and Salaries | 211,247 | | 48,442 |
+----------------------------------------+-------------+--+-----------+
| Directors Remuneration | 231,000 | | 63,382 |
+----------------------------------------+-------------+--+-----------+
| Social Security costs | 39,364 | | 10,165 |
+----------------------------------------+-------------+--+-----------+
| | | | |
+----------------------------------------+-------------+--+-----------+
| | 481,611 | | 121,989 |
+----------------------------------------+-------------+--+-----------+
| | | | |
+----------------------------------------+-------------+--+-----------+
The remuneration of the highest paid Director included above was GBP96,000
(2007: GBP41,025).
The average monthly number of employees was as follows:
+----------------------------------------+-------------+--+-----------+
| | 12 Months | | 9 Months |
| |to 31.12.08 | | to |
| | No. | | 31.12.07 |
| | | | No. |
+----------------------------------------+-------------+--+-----------+
| | | | |
+----------------------------------------+-------------+--+-----------+
| Administration (including Directors) | 12 | | 10 |
+----------------------------------------+-------------+--+-----------+
| | | | |
+----------------------------------------+-------------+--+-----------+
4. RETIREMENT BENEFITS
TSE Group plc operates a defined contribution plan into which contributions of
GBP8,442 (2007: GBP10,396) were made during the year.
5.OPERATING PROFIT / (LOSS)
The operating Profit/(Loss) is stated after charging:
+----------------------------------------+-------------+--+-----------+
| | 12 Months | | 9 Months |
| |to 31.12.08 | | to |
| | | | 31.12.07 |
+----------------------------------------+-------------+--+-----------+
| | GBP | | GBP |
+----------------------------------------+-------------+--+-----------+
| | | | |
+----------------------------------------+-------------+--+-----------+
| Depreciation of property, plant and | 13,012 | | 21,706 |
| equipment | 11,000 | | 15,500 |
| Auditors remuneration - audit | | | |
+----------------------------------------+-------------+--+-----------+
| | | | |
+----------------------------------------+-------------+--+-----------+
During the year, the Group was charged GBPnil (2007: GBP47,500) in respect of
non-audit services provided by associated businesses of the auditors.
6. FINANCE COSTS
+----------------------------------------+-------------+--+-----------+
| | 12 Months | | 9 Months |
| |to 31.12.08 | | to |
| | | | 31.12.07 |
+----------------------------------------+-------------+--+-----------+
| | GBP | | GBP |
+----------------------------------------+-------------+--+-----------+
| | | | |
+----------------------------------------+-------------+--+-----------+
| Bank interest | 25,666 | | 19,232 |
+----------------------------------------+-------------+--+-----------+
7.TAXATION
+----------------------------------------+-------------+--+-----------+
| | 12 Months | | 9 Months |
| |to 31.12.08 | | to |
| | | | 31.12.07 |
+----------------------------------------+-------------+--+-----------+
| | GBP | | GBP |
+----------------------------------------+-------------+--+-----------+
| Analysis of charge in the year: | | | |
+----------------------------------------+-------------+--+-----------+
| Current tax | 9,242 | | (12,726) |
+----------------------------------------+-------------+--+-----------+
| | | | |
+----------------------------------------+-------------+--+-----------+
The tax assessed for the year differs from the standard rate of corporation tax
in the UK at 28%.The differences are explained below:
+------------------------------------------------------+-----------------+---+----------------+
| | | | |
| Profit/(Loss) before tax | 31,904 | | (244,192) |
+------------------------------------------------------+-----------------+---+----------------+
| | | | |
+------------------------------------------------------+-----------------+---+----------------+
| Profit/(Loss) before tax multiplied by the standard | | | |
| rate of corporation tax in the UK of 28% | 8,933 | | (68,374) |
+------------------------------------------------------+-----------------+---+----------------+
| | | | |
+------------------------------------------------------+-----------------+---+----------------+
| Accrued tax payable at date of acquisition | - | | (36,629) |
| of subsidiary | | | |
+------------------------------------------------------+-----------------+---+----------------+
| | | | |
+------------------------------------------------------+-----------------+---+----------------+
| Tax losses and disallowable items | 309 | | 92,277 |
+------------------------------------------------------+-----------------+---+----------------+
| | | | |
+------------------------------------------------------+-----------------+---+----------------+
| | 9,242 | | (12,726) |
+------------------------------------------------------+-----------------+---+----------------+
| | | | |
+------------------------------------------------------+-----------------+---+----------------+
The total amount of unused tax losses for which no deferred tax asset is
recognised in the balance sheet is approximately GBP373,000 (2007 - GBP410,000).
8. INTANGIBLE FIXED ASSETS - GROUP
+----------------------------------------+-------------+
| | Goodwill |
+----------------------------------------+-------------+
| | GBP |
+----------------------------------------+-------------+
| Cost | - |
| At 1 April 2007 | 1,737,158 |
| Additions | - |
| Disposals | |
+----------------------------------------+-------------+
| At 31 December 2007 | 1,737,158 |
+----------------------------------------+-------------+
| Additions | 17,432 |
| Translation difference | 728,131 |
+----------------------------------------+-------------+
| At 31 December 2008 | 2,482,721 |
+----------------------------------------+-------------+
| | |
+----------------------------------------+-------------+
| Amortisation | - |
| At 1 April 2007 | - |
| Disposals | |
+----------------------------------------+-------------+
| At 31 December 2007 | - |
+----------------------------------------+-------------+
| Disposals | - |
+----------------------------------------+-------------+
| At 31 December 2008 | - |
+----------------------------------------+-------------+
| Net Book Value | 1,737,158 |
| At 31 December 2007 | |
+----------------------------------------+-------------+
| At 31 December 2008 | 2,482,721 |
+----------------------------------------+-------------+
Impairment tests of goodwill
No impairment losses in respect of goodwill have been recognised in 2008 or
2007. An annual goodwill impairment review is performed as at 31 December. This
review compares the carrying value of goodwill with the present value of future
cash flows arising from TSE Consulting SA, the Swiss subsidiary and main
operating unit. If the present value is less than the carrying value of the
goodwill, an impairment loss is recognised immediately in the income statement.
Key assumptions used in the value in use calculations are as follows:
Cash flow projections are derived from financial plans approved by the Board and
cover a twelve month period. They reflect management's expectations of revenue
growth, operating cost and margin for TSE Consulting SA based on past
experience.
A post-tax discount rate of 10% to 15% has been applied to cash flow projections
reflecting management's view that this range of discount rates are suitable for
the year.
9. PROPERTY, PLANT AND EQUIPMENT - GROUP
+------------------------+-------------+--+------------+--+----------+--+----------+
| | Office | | IT | | Motor | | Total |
| | Furniture | | Equipment | |Vehicles | | |
| | and | | | | | | |
| | machinery | | | | | | |
+------------------------+-------------+--+------------+--+----------+--+----------+
| | GBP | | GBP | | GBP | | GBP |
+------------------------+-------------+--+------------+--+----------+--+----------+
| Cost | - | | - | | - | | - |
| At 1 April 2007 | 28,937 | | 11,723 | | - | | 40,660 |
| Additions | | | | | | | |
+------------------------+-------------+--+------------+--+----------+--+----------+
| At 31 December 2007 | 28,937 | | 11,723 | | - | | 40,660 |
+------------------------+-------------+--+------------+--+----------+--+----------+
| Translation difference | 11,872 | | 4,809 | | - | | 16,681 |
| Additions | 19,471 | | 8,700 | | - | | 28,171 |
| Disposals | - | | - | | - | | - |
| | | | | | | | |
+------------------------+-------------+--+------------+--+----------+--+----------+
| At 31 December 2008 | 60,280 | | 25,232 | | - | | 85,512 |
+------------------------+-------------+--+------------+--+----------+--+----------+
| Depreciation | - | | - | | - | | - |
| At 1 April 2007 | 11,428 | | 10,278 | | - | | 21,706 |
| Charge for the period | - | | - | | - | | - |
| | | | | | | | |
| Disposals | | | | | | | |
+------------------------+-------------+--+------------+--+----------+--+----------+
| At 31 December 2007 | 11,428 | | 10,278 | | - | | 21,706 |
+------------------------+-------------+--+------------+--+----------+--+----------+
| Translation difference | 6,182 | | 6,393 | | - | | 12,575 |
| Charge for the period | 5,296 | | 7,716 | | - | | 13,012 |
| | - | | - | | - | | - |
| Disposals | | | | | | | |
| | | | | | | | |
+------------------------+-------------+--+------------+--+----------+--+----------+
| At 31 December 2008 | 22,906 | | 24,387 | | - | | 47,293 |
+------------------------+-------------+--+------------+--+----------+--+----------+
| | | | | | | | |
+------------------------+-------------+--+------------+--+----------+--+----------+
| Net Book Value | 17,509 | | 1,445 | | - | | 18,954 |
| At 31 December 2007 | | | | | | | |
| | | | | | | | |
+------------------------+-------------+--+------------+--+----------+--+----------+
| At 31 December 2008 | 37,374 | | 845 | | - | | 38,219 |
+------------------------+-------------+--+------------+--+----------+--+----------+
| | | | | | | | |
+------------------------+-------------+--+------------+--+----------+--+----------+
10. INVESTMENTS - COMPANY
+------------------------------------------------------+--------------+
| | Investment |
| | in |
| |Subsidiaries |
+------------------------------------------------------+--------------+
| | GBP |
+------------------------------------------------------+--------------+
| Cost & Net Book Value at 1 April 2007 | - |
| Additions | 2,179,894 |
| Cost & Net Book Value at 31 December 2007 | 2,179,894 |
| Additions | 17,432 |
| | |
+------------------------------------------------------+--------------+
| Cost & Net Book Value at 31 December 2008 | 2,197,326 |
+------------------------------------------------------+--------------+
+---------------------+---------------+--------------+---------------------+
| Name of subsidiary | Country of | Percentage | Principal |
| | Incorporation | shareholding | activities during |
| | | | year |
+---------------------+---------------+--------------+---------------------+
| | | | |
+---------------------+---------------+--------------+---------------------+
| Wilton | England & | 100% | Dormant |
| International | Wales | | |
| Consulting Limited | | | |
| | | | |
+---------------------+---------------+--------------+---------------------+
| TSE Consulting SA | Switzerland | 100% | International |
| | | | sports consultancy |
+---------------------+---------------+--------------+---------------------+
11. TRADE AND OTHER RECEIVABLES - GROUP
+------------------------------------------+------------+--+-----------+
| | At | | At |
| | 31.12.08 | | 31.12.07 |
+------------------------------------------+------------+--+-----------+
| | GBP | | GBP |
+------------------------------------------+------------+--+-----------+
| Trade debtors: Gross | 528,608 | | 261,432 |
| Less: provision for bad debts | (52,879) | | (37,934) |
| | | | |
+------------------------------------------+------------+--+-----------+
| | 475,729 | | 223,498 |
+------------------------------------------+------------+--+-----------+
| Other debtors | 53,971 | | 65,548 |
+------------------------------------------+------------+--+-----------+
| Prepayments and accrued income | 22,760 | | 58,666 |
+------------------------------------------+------------+--+-----------+
| | | | |
+------------------------------------------+------------+--+-----------+
| | 552,460 | | 347,712 |
+------------------------------------------+------------+--+-----------+
| | | | |
+------------------------------------------+------------+--+-----------+
| TRADE AND OTHER RECEIVABLES - COMPANY | At | | At |
| | 31.12.08 | | 31.12.07 |
+------------------------------------------+------------+--+-----------+
| | GBP | | GBP |
+------------------------------------------+------------+--+-----------+
| Trade debtors: Gross | 41,544 - | | - |
| Less: provision for bad debts | | | - |
| | | | |
+------------------------------------------+------------+--+-----------+
| | 41,544 | | - |
+------------------------------------------+------------+--+-----------+
| Other debtors | 25,981 | | 70,772 |
+------------------------------------------+------------+--+-----------+
| Prepayments and accrued income | 17,438 | | 31,134 |
+------------------------------------------+------------+--+-----------+
| | | | |
+------------------------------------------+------------+--+-----------+
| | 84,963 | | 101,906 |
+------------------------------------------+------------+--+-----------+
12. TRADE AND OTHER PAYABLES - GROUP
+--------------------------------------------------+----------+--+----------+
| | At | | At |
| |31.12.08 | |31.12.07 |
+--------------------------------------------------+----------+--+----------+
| | GBP | | GBP |
+--------------------------------------------------+----------+--+----------+
| Trade creditors | 151,267 | | 162,182 |
| Taxes and social security costs | - | | 4,472 |
| Other creditors | 243,460 | | 169,563 |
| Accrued expenses | - | | - |
| | | | |
+--------------------------------------------------+----------+--+----------+
| | 394,727 | | 336,217 |
+--------------------------------------------------+----------+--+----------+
| | | | |
+--------------------------------------------------+----------+--+----------+
| TRADE AND OTHER PAYABLES - COMPANY | At | | At |
| |31.12.08 | |31.12.07 |
+--------------------------------------------------+----------+--+----------+
| | GBP | | GBP |
+--------------------------------------------------+----------+--+----------+
| Trade creditors | 29,214 | | 119,474 |
| Other creditors | 58,362 | | - |
| Accrued expenses | - | | - |
| | | | |
+--------------------------------------------------+----------+--+----------+
| | 87,576 | | 119,474 |
+--------------------------------------------------+----------+--+----------+
13. LONG TERM PAYABLES - GROUP & COMPANY
+--------------------------------------------------+----------+--+----------+
| | At | | At |
| |31.12.08 | |31.12.07 |
| | GBP | | GBP |
+--------------------------------------------------+----------+--+----------+
| Amounts falling due after one year: | | | |
+--------------------------------------------------+----------+--+----------+
| Deferred cash consideration relating to the | - | | 200,000 |
| acquisition of the entire issued share capital | | | |
| of Wilton International Consulting Ltd | | | |
+--------------------------------------------------+----------+--+----------+
14. PROVISION FOR LIABILITIES & CHARGES - GROUP & COMPANY
+--------------------------------------------------+----------+--+----------+
| | At | | At |
| |31.12.08 | |31.12.07 |
+--------------------------------------------------+----------+--+----------+
| | GBP | | GBP |
+--------------------------------------------------+----------+--+----------+
| | | | |
+--------------------------------------------------+----------+--+----------+
| Provision for claim for breach of contract (see | 35,114 | | 50,000 |
| below): | (12,910) | | (14,886) |
| Balance brought forward at 1 January 2008 | (22,204) | | - |
| Legal charges incurred in year | | | |
| Provision released in year | | | |
| | | | |
+--------------------------------------------------+----------+--+----------+
| Balance carried forward at 31 December 2008 | - | | 35,114 |
+--------------------------------------------------+----------+--+----------+
At 31 December 2007, a provision of GBP35,114 (31 March 2007: GBP50,000) was
made to allow for a potential claim for breach of contract regarding J E Farmer,
a former director of the company. In April 2008, Mr Farmer withdrew his request
for a hearing and hence the remaining provision was released.
15. FINANCIAL INSTRUMENTS - RISK MANAGEMENT
The Group and the Company in principle do not use or trade in derivative
financial instruments.
+------------------------------------------------------+----------+-------------+---+--------------+
| Financial assets categorised as loans and | Notes | Group | | Group |
| receivables | | 2008 | | 2007 |
+------------------------------------------------------+----------+-------------+---+--------------+
| | | GBP | | GBP |
+------------------------------------------------------+----------+-------------+---+--------------+
| | | | | |
+------------------------------------------------------+----------+-------------+---+--------------+
| Trade and other receivables | 11 | 552,460 | | 347,712 |
+------------------------------------------------------+----------+-------------+---+--------------+
| Cash and cash equivalents | | 155,523 | | 97,945 |
+------------------------------------------------------+----------+-------------+---+--------------+
| | | 707,983 | | 445,657 |
+------------------------------------------------------+----------+-------------+---+--------------+
| Financial liabilities measured at amortised cost | | | | |
+------------------------------------------------------+----------+-------------+---+--------------+
| Trade payables | 12 | 151,267 | | 162,182 |
+------------------------------------------------------+----------+-------------+---+--------------+
| Other payables | 12 | 243,460 | | 169,563 |
+------------------------------------------------------+----------+-------------+---+--------------+
| Other taxes and social security | 12 | | | 4,472 |
| | | - | | |
+------------------------------------------------------+----------+-------------+---+--------------+
| | | 394,727 | | 336,217 |
+------------------------------------------------------+----------+-------------+---+--------------+
+------------------------------------------------------+----------+-------------+---+--------------+
| Financial assets categorised as loans and | Notes | Company | | Company |
| receivables | | 2008 | | 2007 |
+------------------------------------------------------+----------+-------------+---+--------------+
| | | GBP | | GBP |
+------------------------------------------------------+----------+-------------+---+--------------+
| | | | | |
+------------------------------------------------------+----------+-------------+---+--------------+
| Trade and other receivables | 11 | 84,963 | | 101,906 |
+------------------------------------------------------+----------+-------------+---+--------------+
| Cash and cash equivalents | | 131,465 | | 42,696 |
+------------------------------------------------------+----------+-------------+---+--------------+
| | | 216,428 | | 144,602 |
+------------------------------------------------------+----------+-------------+---+--------------+
| Financial liabilities measured at amortised cost | | | | |
+------------------------------------------------------+----------+-------------+---+--------------+
| Trade payables | 12 | 29,214 | | 119,474 |
+------------------------------------------------------+----------+-------------+---+--------------+
| Other payables | 12 | 58,362 | | - |
+------------------------------------------------------+----------+-------------+---+--------------+
| | | 87,576 | | 119,474 |
+------------------------------------------------------+----------+-------------+---+--------------+
The main risks arising from the financial instruments of the Group and of the
Company are credit risk, interest rate risk, liquidity risk and fair value risk.
The Board reviews and agrees policies for managing these risks and they are
summarised below. These policies have remained unchanged throughout the
financial period.
Credit risk
The exposure to credit risk of the Group and of the Company is limited to the
carrying values of financial assets recognised at the balance sheet date, as
summarised below:
+----------------------------------------------------------------+-------------+---+---------------+
| | Group | | Group |
| | 2008 | | 2007 |
+----------------------------------------------------------------+-------------+---+---------------+
| | GBP | | GBP |
+----------------------------------------------------------------+-------------+---+---------------+
| Classes of financial assets - carrying amount | | | |
+----------------------------------------------------------------+-------------+---+---------------+
| Cash and cash equivalents | 155,523 | | 97,945 |
+----------------------------------------------------------------+-------------+---+---------------+
| Trade and other receivables | 552,460 | | 347,712 |
+----------------------------------------------------------------+-------------+---+---------------+
| | 707,983 | | 445,657 |
+----------------------------------------------------------------+-------------+---+---------------+
+----------------------------------------------------------------+-------------+---+---------------+
| | Company | | Company |
| | 2008 | | 2007 |
+----------------------------------------------------------------+-------------+---+---------------+
| | GBP | | GBP |
+----------------------------------------------------------------+-------------+---+---------------+
| Classes of financial assets - carrying amount | | | |
+----------------------------------------------------------------+-------------+---+---------------+
| Cash and cash equivalents | 131,465 | | 42,696 |
+----------------------------------------------------------------+-------------+---+---------------+
| Trade and other receivables | 84,963 | | 101,906 |
+----------------------------------------------------------------+-------------+---+---------------+
| | 216,428 | | 144,602 |
+----------------------------------------------------------------+-------------+---+---------------+
The maximum exposure to credit risk in relation to trade receivables is
equivalent to the period end balance. It is the policy of the Group and of the
Company to assess the credit risk of its customers. The Group and the Company
closely monitor the credit worthiness of customers and other counterparties, and
will require an advance payment if necessary. The Group and the Company will
terminate business with a poor credit history.
The Directors consider that all the above financial assets that are not impaired
for each of the reporting dates under review are of good credit quality, based
on financial information and past trading history, including those that are past
due.
Neither the Group nor the Company are exposed to any significant credit risk
exposure to any single counterparty or Group of counterparties having similar
characteristics. The credit risk for cash and cash equivalents is considered
negligible since the counterparties are reputable banks with high quality
external credit ratings.
Liquidity risk
The objectives of the Group and of the Company are to maintain a balance between
continuity of funding and flexibility through cash pooling and shareholder
funding. The Group monitors its liquidity risk on an ongoing basis by
undertaking rigorous cash flow forecasting procedures.
The financial liabilities of the Group and of the Company have contracted
maturities, which are summarised below:
+---------------------------+--------------+---+-------------+----+--------------+---+-----------+
| | Group | | Group | | Group | | Group |
| | 2008 | | 2008 | | 2007 | | 2007 |
+---------------------------+--------------+---+-------------+----+--------------+---+-----------+
| | GBP | | GBP | | GBP | | GBP |
+---------------------------+--------------+---+-------------+----+--------------+---+-----------+
| | Within | | 6 to 12 | | Within | | 6 to 12 |
| | 6 months | | months | | 6 months | | months |
+---------------------------+--------------+---+-------------+----+--------------+---+-----------+
| | | | | | | | |
+---------------------------+--------------+---+-------------+----+--------------+---+-----------+
| Trade Payables | 151,267 | | | | 162,182 | | |
| | | | - | | | | - |
+---------------------------+--------------+---+-------------+----+--------------+---+-----------+
+----------------------------+-------------+---+------------+---+--------------+---+-------------+
| | Company | | Company | | Company | | Company |
| | 2008 | | 2008 | | 2007 | | 2007 |
+----------------------------+-------------+---+------------+---+--------------+---+-------------+
| | GBP | | GBP | | GBP | | GBP |
+----------------------------+-------------+---+------------+---+--------------+---+-------------+
| | Within | | 6 to 12 | | Within | | 6 to 12 |
| | 6 months | | months | | 6 months | | months |
+----------------------------+-------------+---+------------+---+--------------+---+-------------+
| | | | | | | | |
+----------------------------+-------------+---+------------+---+--------------+---+-------------+
| Trade Payables | 151,267 | | | | 162,182 | | - |
| | | | - | | | | |
+----------------------------+-------------+---+------------+---+--------------+---+-------------+
Interest rate risk
The Group and the Company finance themselves using their own cash balances which
comprise cash and short-term deposits, and therefore has no significant interest
rate risk. Additionally, borrowings on short term and long term borrowings are
on fixed rates.
16. SHARE CAPITAL
+--------------------------------------------+-----------+--+-----------+
| | At | | At |
| | 31.12.08 | | 31.12.07 |
+--------------------------------------------+-----------+--+-----------+
| | GBP | | GBP |
+--------------------------------------------+-----------+--+-----------+
| Authorised: | | | |
+--------------------------------------------+-----------+--+-----------+
| 1,352,000,000 Ordinary shares of 0.1p each | 1,352,000 | | 1,352,000 |
+--------------------------------------------+-----------+--+-----------+
| 72,000,000 Deferred shares of 0.9p each | 648,000 | | 648,000 |
+--------------------------------------------+-----------+--+-----------+
| | | | |
+--------------------------------------------+-----------+--+-----------+
| | 2,000,000 | | 2,000,000 |
+--------------------------------------------+-----------+--+-----------+
| | | | |
+--------------------------------------------+-----------+--+-----------+
| Allotted, called up & fully paid: | | | |
+--------------------------------------------+-----------+--+-----------+
| 809,600,000 Ordinary shares of 0.1p each | 809,600 | | 583,900 |
+--------------------------------------------+-----------+--+-----------+
| 72,000,000 Deferred shares of 0.9p each | 648,000 | | 648,000 |
+--------------------------------------------+-----------+--+-----------+
| | | | |
+--------------------------------------------+-----------+--+-----------+
| | 1,457,600 | | 1,231,900 |
+--------------------------------------------+-----------+--+-----------+
| | | | |
+--------------------------------------------+-----------+--+-----------+
During the year 217,700,000 Ordinary 0.1p shares were issued at a premium of
0.07p each, raising GBP370,090 excluding expenses.
During the year 8,000,000 Ordinary 0.1p shares were issued at a premium of 0.75p
each, as part consideration for the acquisition of the entire issued share
capital of Wilton International Consulting Limited.
Deferred Shares
The special rights, privileges, restrictions and limitations attached to the
Deferred shares are as follows:
a) A holder of Deferred
shares shall have no right to receive notice of or to attend or vote at any
General meeting of the company
b) A holder of Deferred
shares shall have no right to receive any dividend or distribution
c) A holder of Deferred
shares shall on a return of capital in a liquidation, but not otherwise, be
entitled to receive only the amount credited as paid up on each share but only
after the holder of each Ordinary share shall have received the amount paid up
or credited as paid up on such share, together with a payment of 0.1 pence per
share but the holders of Deferred shares shall not be entitled to any further
participation in the assets or profits of the Company.
Warrants
Neil McClure, a former Director of the Company, currently holds 8,800,000
Warrants. Each Warrant entitles Neil McClure to receive, upon exercise of the
Warrants, one Ordinary Share at an exercise price of 0.1p per Ordinary Share.
The Warrants may be exercised at any time before the expiry of a three year
period from the date of grant.
Beaumont Cornish Limited currently holds 7,500,000 Warrants. Each Warrant
entitles Beaumont Cornish to receive, upon exercise of the Warrants, one
Ordinary Share at an exercise price of 0.85p per Ordinary Share. The Warrants
may be exercised at anytime before the expiry of a five year period from the
date of grant.
17.EARNINGS PER SHARE
The basic earnings per share is calculated by dividing the profit for the
financial year attributable to shareholders by the weighted average number of
shares in issue.
+----------------------------------------+-------------+----------------------------------------+-------------+
| | 12 Months | | 9 Months |
| |to 31.12.08 | | to |
| | | | 31.12.07 |
+----------------------------------------+-------------+----------------------------------------+-------------+
| | Number | | Number |
+----------------------------------------+-------------+----------------------------------------+-------------+
| | | | |
+----------------------------------------+-------------+----------------------------------------+-------------+
| Weighted average number of shares | 645,685,714 | | 529,110,584 |
| (ordinary) | | | |
+----------------------------------------+-------------+----------------------------------------+-------------+
| Weighted average number of shares | 682,985,714 | | 529,110,584 |
| (dilutive) | | | |
+----------------------------------------+-------------+----------------------------------------+-------------+
| | | | |
+----------------------------------------+-------------+----------------------------------------+-------------+
| Profit/(Loss) for the year/period | GBP | | GBP |
| | 22,662 | | (231,466) |
+ + +----------------------------------------+ +
| | | | |
+----------------------------------------+-------------+----------------------------------------+-------------+
| Basic earnings per share | 0.004p | | (0.04p) |
+----------------------------------------+-------------+----------------------------------------+-------------+
| Diluted earnings per share | 0.003p | | (0.04p) |
+----------------------------------------+-------------+----------------------------------------+-------------+
| | | | |
+----------------------------------------+-------------+----------------------------------------+-------------+
18.RELATED PARTY TRANSACTIONS
GROUP & COMPANY
During the year the Company received credit notes of GBP36,000 (2007: Invoiced
GBP36,000) by Hansard Communications.com Limited, a company of which both Adam
Reynolds and Paul Foulger are directors, representing directors' fees waived
relating to both Adam Reynolds and Paul Foulger. At the year end, a balance
existed within Trade Creditors of GBPnil (2007: GBP36,000).
During the year the Company was invoiced GBP13,750 (2007: GBP7,500) by Alan
Bailey (Studios) Limited, a company of which both Adam Reynolds and Paul Foulger
are directors, for office rent and administration costs. At the year end GBPNil
(2007: GBP5,875) was included in trade payables.
During the year the Company was invoiced the following amounts by Diablo
Consulting Limited, a company of which both Adam Reynolds and Paul Foulger are
directors:
* Office rent and administration costs = GBP1,250 (2007: GBPNil)
* Director fees = GBP2,000 (2007: GBPNil)
* Fundraising introductory fees = GBP7,000 (2007: GBPNil)
At the year end a balance existed within Trade Creditors of GBP11,788 (2007:
GBPNil)
During the year the Company was invoiced GBP12,000 (2007: GBPNil) by CICS
Limited, a company of which Brian Blasdale is a director, for director's fees
earned.
During the year, the Company was invoiced GBP6,450 (2007: GBP16,000) by Neil
McClure, a former director, in relation to director's fees earned. At the year
end, all amounts had been fully paid.
19. POST BALANCE SHEET EVENTS
In February 2009, the Company cancelled the existing options held by certain key
employees over 16.5 million shares at an exercise price of 1p per Ordinary Share
which had been previously awarded in 2007. At the same time, the Company awarded
in aggregate options over 32 million New Ordinary Shares to key employees of its
wholly owned subsidiary, TSE Consulting SA, in accordance with the terms of the
Company's share option scheme. The options will vest on 18 February 2011 and
must be exercised on or before 18 February 2014 at an exercise price of 0.23p
per ordinary share.
20. PROFIT ACCOUNTED FOR IN THE PARENT COMPANY
As permitted by section 230 of the Companies Act 1985, the profit and loss
account of the parent Company is not presented as part of the financial
statements. The parent company's loss for the financial year was GBP4,471 (2007:
loss GBP192,359).
21. SHARE BASED PAYMENTS
As at 31 December 2008, the following share options and warrants were
outstanding over the ordinary shares of the Company.
+---------------+----------+----------+----------+------------+----------+----------+
| | Date of | Vesting | Expiry | Balance | Exercise | Fair |
| | grant | date | date | at | price | value |
| | | | | 31 | Pence | of |
| | | | | December | | option |
| | | | | 2008 | | at |
| | | | | Number | | grant |
| | | | | | | date |
| | | | | | | Pence |
+---------------+----------+----------+----------+------------+----------+----------+
| Warrants | 28/02/07 | 28/02/07 | 28/02/10 | 8,800,000 | 0.10p | 0.0p |
+---------------+----------+----------+----------+------------+----------+----------+
| Warrants | 26/07/07 | 26/07/07 | 26/07/12 | 7,500,000 | 0.85p | 0.0p |
+---------------+----------+----------+----------+------------+----------+----------+
| Total | | | | 16,300,000 | | |
| warrants | | | | | | |
| outstanding | | | | | | |
+---------------+----------+----------+----------+------------+----------+----------+
| Share option | | | | | | |
| scheme: | | | | | | |
+---------------+----------+----------+----------+------------+----------+----------+
| 2007 | 21/08/07 | 21/08/09 | 21/08/17 | 21,000,000 | 1.00p | 0.325p |
+---------------+----------+----------+----------+------------+----------+----------+
| Total share | | | | 21,000,000 | | |
| options | | | | | | |
| outstanding | | | | | | |
+---------------+----------+----------+----------+------------+----------+----------+
| Total equity | | | | 37,300,000 | | |
| instruments | | | | | | |
| outstanding | | | | | | |
+---------------+----------+----------+----------+------------+----------+----------+
The exercise price of the warrants is the lowest average closing price for a
preceding quarter or the current exercise price, whichever is the lower.
The fair value of share options and warrants at grant date has been determined
using the Black-Scholes formula. The assumptions and other inputs used in the
models in respect of share options issued during the year were as follows:
+--------------------------------------------------+-----------+-----------+
| | | Share |
| | | option |
| | | scheme |
| | | 2007 |
+--------------------------------------------------+-----------+-----------+
| Share price on date of grant | | 0.395p |
+--------------------------------------------------+-----------+-----------+
| Exercise price | | 1.00p |
+--------------------------------------------------+-----------+-----------+
| Expected volatility | | 30% |
+--------------------------------------------------+-----------+-----------+
| Expected dividends | | Nil |
+--------------------------------------------------+-----------+-----------+
| Option life | | 3 years |
+--------------------------------------------------+-----------+-----------+
| Risk free interest rate | | 5.0% |
+--------------------------------------------------+-----------+-----------+
At the dates of issue of shares under the various share option schemes, there
was insufficient historical data to calculate a reliable estimate of expected
share volatility in respect of the Company itself and accordingly expected
volatility has been based on the average volatility of a range of similar UK
listed companies operating in similar markets.
The following tables reconcile the outstanding warrants and share options
granted under the employee share option schemes at the beginning and end of the
financial year.
+---------------------------+------------+----+-----------+-------------+----------+----+
| | Number | Weighted | Number | Weighted |
| | 2008 | average | 2007 | average |
| | | exercise | | exercise |
| | | price | | price |
| | | 2008 | | 2007 |
+---------------------------+-----------------+-----------+-------------+---------------+
| Balance at beginning of | 37,300,000 | 0.76p | - | - |
| the financial year | | | | |
+---------------------------+------------+----------------+-------------+----------+
| Granted during the year | - | - | 37,300,000 | 0.76p |
+---------------------------+------------+----------------+-------------+----------+
| Exercised during the year | - | - | - | - |
+---------------------------+------------+----------------+-------------+----------+
| Balance at end of the | 37,300,000 | 0.76p | 37,300,000 | 0.76p |
| financial year | | | | |
+---------------------------+------------+----------------+-------------+----------+
| Exercisable at end of the | 16,300,000 | 0.4p | 16,300,000 | 0.4p |
| financial year | | | | |
+---------------------------+------------+----+-----------+-------------+----------+----+
No warrants were exercised during the year.
22. PRIOR PERIOD ADJUSTMENT
No charge was made in the income statement for 2007 for the share options issued
to the Swiss employees under IFRS2 in error. As a result of this a prior period
adjustment has been made and the effect on 2007 was to increase the loss by the
relevant IFRS2 charge as shown below.
The income statement charge which has now been made for each period is as
follows:
+-------------------------------------------------+-----------+--+-----------+
| | Group | | Group |
| | 2008 | | 2007 |
+-------------------------------------------------+-----------+--+-----------+
| | GBP | | GBP |
+-------------------------------------------------+-----------+--+-----------+
| | | | |
+-------------------------------------------------+-----------+--+-----------+
| Share based payment charge to income statement | 19,506 | | 17,068 |
+-------------------------------------------------+-----------+--+-----------+
23.The financial information in this announcement has been derived from the
Company's statutory accounts for the year ended 31 December 2008, which were
approved by the Directors on 5 June 2009 and on which the auditors have given an
unqualified opinion and did not make a statement under sections 237(2) or 237(3)
of the Companies Act 1985. The financial information set out in this
announcement does not constitute statutory accounts within the meaning of
section 240 of the Companies Act 1985. Statutory accounts for the year ended 31
December 2008 will be delivered to the Registrar of Companies in accordance with
section 242 of the Companies Act 1985. The financial information for the year
ended 31 December 2007 is derived from the Company's statutory accounts, which
have been delivered to the Registrar of Companies and on which the auditors gave
an unqualified opinion.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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