2 July 2012
TRAKM8 HOLDINGS PLC
('Trakm8')
Final Results
for year ended 31 March 2012
Trakm8, the AIM-listed designer and developer of GPRS based hardware and software for the vehicle placement and security market, is pleased to announce its results for the year ended 31 March 2012.
Financial Highlights:
|
|
Year ended 31 March 2012 |
|
Year ended 31 March 2011
|
|
|
|
|
£000's |
|
£000's |
|
|
|
|
|
|
|
|
|
|
Revenue |
5,215 |
|
4,186 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
3,326 |
|
2,787 |
|
|
|
Gross profit margin % |
63.7% |
66.6% |
|
||
|
|
|
|
|
|
|
|
Other income |
5 |
|
362 |
|
|
|
|
|
|
|
|
|
|
Operating profit |
88 |
|
329 |
|
|
|
|
|
|
|
|
|
|
EBITDA (Earnings before interest, tax, depreciation & amortisation) |
359 |
|
593 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (excluding Government grants) |
354 |
|
234 |
|
|
|
|
|
|
|
|
|
|
Profit before taxation |
84 |
|
323 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
1,087 |
|
1,119 |
|
|
|
|
|
|
|
|
|
|
Net assets |
2,380 |
|
2,236 |
|
|
Key points:
· Revenues up 25%
· Adjusted EBITDA (excluding Government grants) up £120K
· Growth in annualised recurring revenues to £1,956K (2011: £1,500K)
· Robust financial position with good cash balances
· T8 Mini and Driver feedback devices launched
· Contract win since year end with Motorola Solutions
John Watkins, CEO of Trakm8, commented on the results:
"The results for the Group have continued to progress well and in line with expectations.
"Trakm8 solutions are expected to increase market penetration both in the large fleet market and the SME space. The installed base for Trakm8 Swift and its consequent recurring revenues are expected to continue to increase.
"We have a strong balance sheet with substantial cash reserves and minimal debt. The market for vehicle telematics in the UK is still very fragmented and should opportunities emerge for us to grow by making acquisitions then we will seriously consider them."
For further information please contact:
|
Trakm8 plc |
01747 858444 |
|
John Watkins, Chief Executive Officer |
|
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James Hedges, Finance Director
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MHP Communications |
020 3128 8100 |
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Reg Hoare / Vicky Watkins |
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finnCap |
020 7220 0500 |
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Ed Frisby / Christopher Raggett - corporate finance Simon Starr - corporate broking
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About Trakm8
Trakm8, based in Shaftesbury, Dorset is the leading technology provider, designer and developer of GPRS based hardware and software to the vehicle tracking and security market. The Group distributes its hardware and software worldwide through a network of distributors. In addition the Group provides vehicle monitoring and tracking services direct to the B2B market. Trakm8's products allow vehicles and drivers to be monitored, allowing organisations to manage deliveries and services, or track stolen vehicles down to five metres.
Chairman's Statement
I am pleased to report that the results for the Group have continued to progress well and in line with market expectations. Revenues have increased by 25% to £5,215,565 (2011: £4,186,264) and we have realised a profit before tax of £83,884 (2011: £323,133). Excluding the Government funding of R&D our operating profits have improved by £114,355 over the previous year. Our adjusted EBITDA (excluding government grants) was £354,297 and this is a better guide to Trakm8's underlying performance.
Trakm8 has successfully introduced a number of new products and software solutions that have been well received by the market. Our recurring revenues continue to grow, which provides good visibility of our earnings.
Despite the working capital requirement of the considerable growth and the pre-product launch build of inventory, the cash balances remain strong at £1,087,474. This robust financial position means that we can continue to invest to keep our products at the forefront of their markets and it gives our customers confidence that we are a well established business.
The prospects for the Group continue to be positive. Trakm8 has achieved progressive gross profit expansion over the period, supported by the increased value-added nature of the Group's activities. The Group has also seen a positive impact on revenue streams from the service offering, which now accounts for a significant proportion of Group revenues.
The market is growing and the Trakm8 solutions are increasingly capable. The Board is therefore confident that the Group will continue to grow revenues and the Trakm8 Swift installed base. I am pleased to report the new financial year has started ahead of the same period last year and we have a good pipeline of sales prospects.
Dawson Buck
Chairman
CEO's Statement
I am pleased with the progress outlined in the Chairman's statement. Trakm8 has enjoyed a significant improvement in sales of units and complete solutions, which has resulted in strong growth in revenues.
Telematics revenues £2,226,230 (2011: £1,394,998)
Trakm8 supplies other Telematics Service Providers with hardware solutions. In most cases this also includes our market leading configuration firmware for the hardware unit. These sales have been the core of Trakm8 revenue over the past 10 years and in excess of 150,000 have been supplied. During the year unit sales increased by 30% following contract wins in the UK and the Middle East.
In the UK we have launched two in vehicle display devices that feed back to the driver vehicle performance and driver behaviour data. Over 6,000 of these devices were supplied during the year. Trakm8 has also launched a derivative of the A1091 telematics unit that was acquired from Vincotech in 2010. The new T8 Mini device combines a compact, waterproof design with exceptionally low power consumption. The T8, which is fitted onboard vehicles, can access a vast amount of data through the CANbus (Controller Area Network bus). This has recently been put into production and almost 2,000 units have already been supplied of the two variants. In addition, a range of tags for driver ID and temperature measurement have also been introduced.
Following the year end, we today announced a major contract win with Motorola Solutions for 2,300 T8 telematics units to be used in South America. New firmware was developed to allow data to be transmitted over the private mobile radio network providing a telematics solution in areas of poor or no GSM coverage.
Trakm8 Swift revenues £2,776,872 (2011: £2,553,876)
Trakm8 supplies customers with a fully integrated telematics service provision via Trakm8 Swift, an internet based service which is flexible, low cost and easy to use. Customers include the Automobile Association ("AA"), EO.N and Jewsons. This solution is also provided through a partner in South Africa. In total nearly 30,000 units are now using Swift, a net increase of 20% in the past twelve months. We now have five customers with over 1,000 vehicles operating Trakm8 Swift solutions.
This has increased our base of recurring monthly revenues, which provides the improved security and predictability to future income. By the end of the financial year under review, the monthly recurring revenue had increased by 30% on the previous year. This also amounted to 70% of our operational costs up from 62% at the end of the previous year.
During the past 12 months we have developed a number of variants of Swift. These include EcoN, which combines the Driver feedback device with server side analysis to improve the fuel economy of the vehicle. A security product, primarily for asset management, has also been launched with positive feedback.
The server side solutions have had extensive development so that management reports are easier to use and can provide the higher levels of data now available from the driver feedback devices, the telematics unit and the CANbus connectivity. It is this provision and management use of the data available that enables vehicle operators to achieve significant reductions in fuel use. Trakm8's knowledge of the vehicle electronic systems continues to be market leading following continuous development. Trakm8 has notified in previous statements that it is committed to owning the Intellectual Property throughout the value chain and the extensions of the server side applications continues this trend. The Trakm8 Swift product range is the core value enhancing segment of the Group. Hosting multiple applications on a single unit broadens its potential addressable markets including insurance, environmental services, Government and general consultancy.
Professional Services revenues £212,463 (2011: £237,390)
Trakm8 undertakes bespoke software development for customers. The customer specific application engineering has been a major feature of the product development team as larger customers have demanded their particular requirements. This has also helped improve the core products.
These engineering projects provide profitable consultancy activities in themselves, helping to integrate the customer with Trakm8 solutions, and provide on-going support and maintenance revenues. Whilst this activity remains a small percentage of the Group revenues it is considered a key skill and value added capability.
We have recently renamed our subsidiary PJSoft to Trakm8 sro and this year they moved into new offices in Prague. This development team is an important element of the enhancement of our systems and the Professional Services revenues.
Government Grants £5,039 (2011: £361,542)
The two Government funded projects, the Trusted Road Usage & Emissions Profiling Project and the Future Intelligent Transport Systems - Project Freeflow Initiative, were successfully completed early last year. We have been very pleased with the outcomes and much of the development work has been incorporated into our core products. Trakm8's leading roles in government-sponsored projects ensures the Group is well positioned to capitalise on the regulatory and legislative drivers impacting the field of telematics.
It is pleasing to see that we have realised a profit before tax excluding any Government Grant income and the table below demonstrates how important these projects have been to the continued development of our products.
Outlook
The Group is confident that revenues will continue to improve over the next twelve months with results in line with market expectations. Trakm8 solutions are expected to increase market penetration both in the large fleet market and the SME space. The installed base for Trakm8 Swift and its' consequent recurring revenues are expected to continue to increase.
Hardware only solutions are expected to grow on the back of new customers and new products. To protect the technical superiority of the products and services and to ensure the lowest possible cost base, Trakm8 will continue to expand the engineering and professional services teams.
The cost of fuel continues to rise and the capability of Trakm8 telematics based fleet management solutions to reduce fuel usage continues to become more sophisticated and beneficial to customers. We expect to benefit from these trends.
Cost reduction initiatives and innovative product launches undertaken during the downturn, have left us well positioned for future growth. We have a strong balance sheet with substantial cash reserves and minimal debt. The market for vehicle telematics in the UK is still very fragmented and should opportunities emerge for us to grow by making acquisitions then we will seriously consider them.
Finally, I would like to thank all the Trakm8 staff for their tremendous hard work over the past twelve months.
John Watkins
CEO
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 March 2012
|
|
Notes |
2012 |
2011 |
|
|
|
|
|
|
|
|
£ |
£ |
|
|
|
|
|
|
REVENUE |
4 |
5,215,565 |
4,186,264 |
|
Cost of sales |
|
(1,889,499) |
(1,399,046) |
|
|
---------------------------------------- |
------------------------------------------ |
|
|
Gross profit |
3,326,066 |
2,787,218 |
|
|
Other income |
5 |
5,039 |
361,542 |
|
|
|
---------------------------------------- |
------------------------------------------ |
||
|
|
3,331,105 |
3,148,760 |
||
|
|
|
|
||
|
Administrative expenses |
(3,242,760) |
(2,820,049) |
||
|
|
|
---------------------------------------- |
------------------------------------------ |
|
|
OPERATING PROFIT |
5 |
88,345 |
328,711 |
|
|
Finance income |
|
788 |
979 |
|
|
|
--------------------------------------- |
------------------------------------------ |
|
|
|
89,133 |
329,690 |
|
|
|
|
|
|
Finance costs |
|
(5,249) |
(6,557) |
|
|
--------------------------------------- |
------------------------------------------ |
|
|
PROFIT BEFORE TAXATION |
83,884 |
323,133 |
|
|
Income tax credit / (charge) |
|
50,666 |
(117,094) |
|
|
---------------------------------------- |
----------------------------------------- |
|
|
PROFIT FOR THE YEAR ATTRIBUTABLE TO THE OWNERS OF THE GROUP |
|
134,550 |
206,039 |
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME |
|
|
|
|
Currency translation differences |
|
1,493 |
1,008 |
|
|
-------------------------------------- |
------------------------------------------ |
|
|
TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO OWNERS OF THE GROUP |
|
136,043 |
207,047 |
|
|
======================== |
======================== |
|
|
|
|
|
|
|
EARNINGS PER ORDINARY SHARE (PENCE) ATTRIBUTABLE TO OWNERS OF THE GROUP |
|
|
|
|
Basic |
6 |
0.71p |
1.10p |
|
|
|
|
|
|
Diluted |
6 |
0.70p |
1.07p |
|
|
|
========================= |
========================= |
There were no discontinued operations in 2012 or 2011. Accordingly the results relate to continuing operations.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2012
|
|
Share capital |
Share premium |
Merger Reserve |
Share based payment reserve |
Translation reserve |
Retained earnings |
Total equity attributable to owners of the Group |
|
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|
Balance as at 1 April 2010 |
187,647 |
1,719,402 |
509,837 |
63,152 |
205,313 |
(666,330) |
2,019,021 |
|
Comprehensive income |
|
|
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
- |
- |
206,039 |
206,039 |
|
Other comprehensive income |
|
|
|
|
|
|
|
|
Exchange differences on translation of overseas operations |
- |
- |
- |
- |
1,008 |
- |
1,008 |
|
Total comprehensive income |
- |
- |
- |
- |
1,008 |
206,039 |
207,047 |
|
|
|
|
|
|
|
|
|
|
Transactions with owners |
|
|
|
|
|
|
|
|
Transfer share based payment reserve to Retained earnings |
- |
- |
- |
(63,152) |
- |
63,152 |
- |
|
IFRS2 Share based payments |
- |
- |
- |
- |
- |
9,921 |
9,921 |
|
Transactions with owners |
- |
- |
- |
(63,152) |
- |
73,073 |
9,921 |
|
Balance as at 1 April 2011 |
187,647 |
1,719,402 |
509,837 |
- |
206,321 |
(387,218) |
2,235,989 |
|
|
|
|
|
|
|
|
|
|
Comprehensive income |
|
|
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
- |
- |
134,550 |
134,550 |
|
Other comprehensive income |
|
|
|
|
|
|
|
|
Exchange differences on translation of overseas operations |
- |
- |
- |
- |
(1,493) |
- |
(1,493) |
|
Total comprehensive income |
- |
- |
- |
- |
(1,493) |
134,550 |
133,057 |
|
|
|
|
|
|
|
|
|
|
Transactions with owners |
|
|
|
|
|
|
|
|
Shares issued |
1,000 |
4,250 |
- |
- |
- |
- |
5,250 |
|
IFRS2 Share based payments |
- |
- |
- |
- |
- |
5,537 |
5,537 |
|
Transactions with owners |
1,000 |
4,250 |
- |
- |
- |
5,537 |
10,787 |
|
Balance as at 31 March 2012 |
188,647 |
1,723,652 |
509,837 |
- |
204,828 |
(247,131) |
2,379,833 |
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 March 2012
|
|
|
|
|
|
|
|
2012 |
2011 |
|
|
|
|
|
|
|
|
£ |
£ |
|
NON CURRENT ASSETS |
|
|
|
|
Intangible assets |
|
1,005,107 |
1,150,235 |
|
Property and equipment |
|
517,118 |
463,007 |
|
Deferred income tax asset |
|
98,421 |
63,243 |
|
|
-------------------------------------- |
------------------------------------------ |
|
|
|
1,620,646 |
1,676,485 |
|
|
|
-------------------------------------- |
------------------------------------------- |
|
|
CURRENT ASSETS |
|||
|
Inventories |
|
410,016 |
259,042 |
|
Trade and other receivables |
|
782,375 |
893,172 |
|
Current tax assets |
|
15,488 |
17,828 |
|
Cash and cash equivalents |
|
1,087,474 |
1,119,027 |
|
|
-------------------------------------- |
------------------------------------------ |
|
|
|
2,295,353 |
2,289,069 |
|
|
|
|
-------------------------------------- |
------------------------------------------ |
|
CURRENT LIABILITIES |
|
|
|
|
Trade and other payables |
|
(1,250,672) |
(1,473,074) |
|
Borrowings |
|
(56,223) |
(27,305) |
|
|
|
-------------------------------------- |
------------------------------------------ |
|
|
|
(1,306,895) |
(1,500,379) |
|
|
|
-------------------------------------- |
------------------------------------------ |
|
|
|
|
|
|
CURRENT ASSETS LESS CURRENT LIABILITIES |
988,458 |
788,690 |
|
|
|
|
|
|
|
TOTAL ASSETS LESS CURRENT LIABILITIES |
2,609,104 |
2,465,175 |
|
|
|
|
|
|
|
NON CURRENT LIABILITIES |
|
|
|
|
Borrowings |
|
(163,093) |
(159,186) |
|
Provisions |
|
(66,178) |
(70,000) |
|
|
------------------------------------- |
------------------------------------- |
|
|
NET ASSETS |
2,379,833 |
2,235,989 |
|
|
|
======================== |
======================== |
|
EQUITY
|
Share capital |
|
188,647 |
187,647 |
|
Share premium account |
|
1,723,652 |
1,719,402 |
|
Merger reserve account |
|
509,837 |
509,837 |
|
Translation reserve |
|
204,828 |
206,321 |
|
Retained earnings |
|
(247,131) |
(387,218) |
|
|
|
----------------------------------- |
------------------------------------- |
|
TOTAL EQUITY ATTRIBUTABLE TO OWNERS OF THE GROUP |
|
2,379,833 |
2,235,989 |
|
|
|
======================== |
======================== |
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 March 2012
|
|
|
|
|
|
|
Notes |
2012 |
2011 |
|
|
|
|
|
|
|
|
£ |
£ |
|
NET CASH INFLOW FROM OPERATING ACTIVITIES |
7 |
110,845 |
609,832 |
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
Purchases of property, plant and equipment |
|
(91,232) |
(49,758) |
|
Purchases of intangible assets |
(89,241) |
(96,411) |
|
|
|
|
---------------------------------------- |
------------------------------------------ |
|
NET CASH USED IN INVESTING ACTIVITIES |
|
(180,473) |
(146,169) |
|
|
|
---------------------------------------- |
------------------------------------------ |
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
Issue of new shares |
5,250 |
- |
|
|
New / (repayment of) obligations under hire purchase agreements |
53,296 |
(16,894) |
|
|
Repayment of loans |
(20,471) |
(19,880) |
|
|
|
---------------------------------------- |
------------------------------------------ |
|
|
NET CASH (USED IN) /FROM FINANCING ACTIVITIES |
38,075 |
(36,774) |
|
|
---------------------------------------- |
------------------------------------------ |
||
|
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS |
(31,553) |
426,889 |
|
|
|
|
--------------------------------------- |
------------------------------------------ |
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR |
1,119,027 |
692,138 |
|
|
|
|
--------------------------------------- |
------------------------------------------ |
|
CASH AND CASH EQUIVALENTS AT END OF YEAR |
1,087,474 |
1,119,027 |
|
|
|
|
======================== |
======================== |
NOTES TO THE GROUP FINANCIAL STATEMENTS
for the year ended 31 March 2012
1. GENERAL INFORMATION
Trakm8 Holdings PLC ("Company") is a public limited company incorporated in the United Kingdom (registration number 05452547). The Company is domiciled in the United Kingdom and its registered address is Lydden House, Wincombe Business Park, Shaftesbury, Dorset, SP7 9QJ. The Company's Ordinary Shares are traded on the AIM market of the London Stock Exchange.
The Group's principal activity is the manufacture, marketing and distribution of vehicle telematics equipment and services. The Company's principal activity is to act as a holding company for its subsidiaries.
2. AUTHORISATION OF FINANCIAL STATEMENTS AND STATEMENT OF COMPLIANCE WITH IFRS
The Group's financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") and International Financial Reporting Interpretations Committee ("IFRIC") interpretations as endorsed by the European Union, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
3. BASIS OF PREPARATION
The accounting policies have been applied consistently to all periods presented in these consolidated financial statements.
These financial statements are presented in sterling as that is considered to be the currency of the primary economic environment in which the Group operates. This decision was based on the Group's workforce being based in the UK and that sterling is the currency in which management reporting and decision making is based.
4. SEGMENTAL ANALYSIS
The format of segmental reporting is based on the Group's management and internal reporting of the segments below which carry different risks and rewards and are used to make strategic decisions. Telematics is the sale of hardware through the Group's distributors. Trakm8 SWIFT represents the sale of the Group's full vehicle telematics service direct to customers. Development and other services comprises bespoke professional services and mapping solutions.
The Board review the revenue results by segment and the gross margin. Cost of sales comprise hardware costs and have been allocated to the segments based on the number of units sold. Administration costs and assets and liabilities are not separated out by segment.
|
Year ended 31 March 2012 |
Telematics
£ |
Trakm8 SWIFT
£ |
Development & other services £ |
Unallocated
£ |
Total
£ |
|
|
|
|
|
|
|
|
Segment revenue |
2,226,230 |
2,776,872 |
212,463 |
- |
5,215,565 |
|
|
|
|
|
|
|
|
Gross profit |
789,858 |
2,323,746 |
212,462 |
- |
3,326,066 |
|
|
|
|
|
|
|
|
Other income |
- |
- |
5,039 |
- |
5,039 |
|
|
|
|
|
|
|
|
Depreciation & amortisation |
(124,058) |
(53,703) |
(93,230) |
- |
(270,991) |
|
|
|
|
|
|
|
|
Finance income |
- |
- |
- |
788 |
788 |
|
|
|
|
|
|
|
|
Finance costs |
- |
- |
- |
(5,249) |
(5,249) |
|
|
|
|
|
|
|
|
Income tax |
- |
- |
- |
50,666 |
50,666 |
|
|
|
|
|
|
|
|
Year ended 31 March 2011 |
Telematics
£ |
Trakm8 SWIFT
£ |
Development & other services £ |
Unallocated
£ |
Total
£ |
|
|
|
|
|
|
|
|
Segment revenue |
1,394,998 |
2,553,876 |
237,390 |
- |
4,186,264 |
|
|
|
|
|
|
|
|
Gross profit |
489,081 |
2,060,747 |
237,390 |
- |
2,787,218 |
|
|
|
|
|
|
|
|
Other income |
- |
- |
361,542 |
- |
361,542 |
|
|
|
|
|
|
|
|
Depreciation & amortisation |
(127,182) |
(41,668) |
(95,714) |
- |
(264,564) |
|
|
|
|
|
|
|
|
Finance income |
- |
- |
- |
979 |
979 |
|
|
|
|
|
|
|
|
Finance costs |
- |
- |
- |
(6,557) |
(6,557) |
|
|
|
|
|
|
|
|
Income tax |
- |
- |
- |
(117,094) |
(117,094) |
|
|
|
|
|
|
|
The Group's operations are located in the UK and the Czech Republic. The following table provides an analysis of the Group's revenue by geography based upon location of the Group's customers.
|
Year ended 31 March 2012 |
Telematics
£ |
Trakm8 SWIFT
£ |
Development & other services £ |
Total
£ |
|
|
|
|
|
|
|
United Kingdom |
1,291,621 |
2,767,583 |
98,205 |
4,157,409 |
|
Europe |
171,772 |
9,289 |
24,258 |
205,319 |
|
Africa |
214,928 |
- |
90,000 |
304,928 |
|
Rest of the World |
547,909 |
- |
- |
547,909 |
|
|
2,226,230 |
2,866,872 |
122,463 |
5,215,565 |
The Group had one customer who accounted for more than 10% of the Group revenue (2011: two).
|
Year ended 31 March 2011 |
Telematics
£ |
Trakm8 SWIFT
£ |
Development & other services £ |
Total
£ |
|
|
|
|
|
|
|
United Kingdom |
502,235 |
2,543,862 |
114,983 |
3,161,080 |
|
Europe |
193,874 |
10,014 |
58,450 |
262,338 |
|
Africa |
278,361 |
- |
47,000 |
325,361 |
|
Rest of the World |
420,528 |
- |
16,957 |
437,485 |
|
|
1,394,998 |
2,553,876 |
237,390 |
4,186,264 |
5. PROFIT FROM OPERATIONS
|
|
2012 |
2011 |
|
|
£ |
£ |
|
Profit from operations is stated after (crediting)/charging: |
|
|
|
|
|
|
|
Other income - Government grant |
(5,039) |
(359,760) |
|
|
|
|
|
Depreciation - owned fixed assets - assets on hire purchase |
30,205 6,417 |
18,955 11,684 |
|
Amortisation of intangible assets |
234,369 |
233,925 |
|
Operating lease rentals |
|
|
|
Land and buildings |
14,251 |
14,222 |
|
Other |
31,123 |
11,587 |
|
Loss/(profit) on foreign exchange transactions |
11,180 |
(3,987) |
|
Staff costs (note 10) |
1,714,323 |
1,517,374 |
|
|
2012 |
2011 |
|
|
£ |
£ |
|
Auditor's remuneration |
|
|
|
- audit services |
|
|
|
Parent Company and consolidation |
4,680 |
4,500 |
|
Subsidiary audits |
10,920 |
10,500 |
|
- tax advisory services |
2,285 |
2,200 |
|
|
==================== |
==================== |
6. EARNINGS PER ORDINARY SHARE
The earnings per ordinary share has been calculated using the profit for the year and the weighted average number of ordinary shares in issue during the year as follows:
|
|
|
2012 |
2011 |
|
|
|
£ |
£ |
Earnings for the year after taxation |
|
134,550 |
206,039 |
|
|
|
======================== |
======================== |
|
|
|
|
|
|
|
|
|
No. |
Number of ordinary shares of 1p each |
|
18,864,731 |
18,764,731 |
|
|
|
|
|
Basic weighted average number of ordinary shares of 1p each |
|
18,820,621 |
18,764,731 |
|
Basic weighted average number of ordinary shares of 1p each (diluted) |
|
19,159,446 |
19,180,873 |
|
|
|
====================== == |
====================== == |
|
Basic profit pence per share |
|
0.71p |
1.10p |
|
|
|
|
|
|
Diluted profit pence per share |
|
0.70p |
1.07p |
|
|
|
====================== == |
====================== == |
7. CASH FLOWS
|
|
|
|
2012 |
2011 |
|
|
|
|
|
£ |
£ |
|
|
|
Reconciliation of profit before tax to net cash flow from operating activities:
|
|
|
||
|
|
Profit before tax |
83,884 |
323,133 |
||
|
|
Depreciation |
36,622 |
30,639 |
||
|
|
Bank and other interest charges |
4,461 |
5,578 |
||
|
|
Amortisation of intangible assets |
234,369 |
233,925 |
||
|
|
Capitalised development costs |
- |
(103,441) |
||
|
|
Share based payments |
5,537 |
9,922 |
||
|
|
|
--------------------------------- |
--------------------------------- |
||
|
|
Operating cash flows before movement in working capital |
364,873 |
499,756 |
||
|
|
Movement on retranslation of overseas operations |
(994) |
998 |
||
|
|
Movement in inventories |
(150,974) |
(152,406) |
||
|
|
Movement in trade and other receivables |
110,797 |
(191,843) |
||
|
|
Movement in trade and other payables |
(226,224) |
375,401 |
||
|
|
|
---------------------------------- |
---------------------------------- |
||
|
|
Cash generated from operations |
97,478 |
531,906 |
||
|
|
|
|
|
||
|
|
Interest paid |
(5,249) |
(6,557) |
||
|
|
Interest received |
788 |
979 |
||
|
|
Income taxes received |
17,828 |
83,504 |
||
|
|
|
----------------------------------- |
----------------------------------- |
||
|
|
Net cash inflow from operating activities |
110,845 |
609,832 |
||
|
|
|
===================== |
===================== |
||
Cash and cash equivalents comprise cash at bank, other short-term highly liquid investments with a maturity of three months or less (together presented as 'Cash and cash equivalents' on the face of the balance sheet).
The financial information set out above does not constitute statutory financial statements for the year ended 31 March 2012 or 2011 but is derived from those financial statements. Statutory financial statements for the year ended 31 March 2011 have been delivered to the Registrar of Companies. Statutory financial statements for the year ended 31 March 2012 were approved by the Board of Directors on 28 June 2012 and are audited.
The Company's auditors, Milsted Langdon LLP, have reported on the 2012 and 2011 financial statements and those reports were:
(i) Not qualified;
(ii) Did not include a reference to any matters to which the auditors drew attention to by way of emphasis without qualifying their report; and
(iii) Did not contain a statement under Section 498(2) and 498(3) of the Companies Act 2006in respect of the financial statements for the year ended 31 March 2012 and 31 March 2011.