Delcam PLC
24 August 2007
DLC.L
DELCAM PLC
('Delcam' or 'the Company')
Interim Report
For the six months to 30 June 2007
• Record half-year sales of £14.5 million (2006: £13.2 million) -
reflecting benefits of acquisitions of additional software ranges
• Pre-tax profit of £1.26 million (2006: £1.31 million) despite £0.35
million negative impact of US dollar exchange rate.
• Balance sheet remains very robust with net cash of £4.5m at 30 June 2007
• Interim dividend increased by 4.2% to 1.25p (2006: 1.2p)
• £6.1 million investment in the Group by Renishaw plc completed in April
2007
• Continued high level of investment in software R&D
• Position as largest specialist supplier of Numerical Control ('NC')
software and services confirmed by US analyst, CIMdata
Peter Miles, Chairman, commented,
'In my first statement as Chairman, I am pleased to report that the business
remains in good shape and, as the results demonstrate, we are seeing the
benefits come through of the acquisitions of two software ranges we made in
2006. The new ranges add additional breadth to our product offering and we are
in a good position to leverage future sales growth through our global
distribution network.
Delcam's cash generation and net cash position remain strong. However,
profitability has been impacted by the continuing deterioration in the US dollar
exchange rate and looking ahead, while we remain positive about Delcam's
prospects, the extreme weakness of the US dollar will continue to affect us.
Nevertheless, we will continue to invest in our software products, which will
benefit Delcam and its shareholders in the future.'
Enquiries:
Website: www.delcam.com
Delcam plc Hugh Humphreys, Managing T: 0121 683 1000
Director
Kulwant Singh, Finance
Director
Biddicks Katie Tzouliadis T: 020 7448 1000
Brewin Ian Stanway T: 0121 236 7000
Dolphin
Chairman's Statement
I am pleased to be making my first Chairman's Statement, having been appointed
as Chairman to the Board on 15 May 2007 following the retirement of Tom Kinsey.
I would like to thank Tom for his invaluable support over the last seventeen
years. The Directors are especially grateful to have benefited from Tom's
experience and guidance, which has contributed to a six-fold increase in sales.
Financial Highlights
Sales for the six months to 30 June 2007 achieved a record level for a half-year
at £14.5 million compared with £13.2 million in the first half of last year.
This represented an increase of 9.8% and largely reflected the benefit of the
addition of two software ranges, namely PartMaker, acquired in July 2006, and
Crispin, acquired in December 2006.
The deterioration in the US dollar exchange rate adversely affected
profitability, impacting by approximately £350,000. Profit before tax for the
first half was therefore £1.26 million against £1.31 million last year, while
basic earnings per share were 16.1p compared with 18.4p in the equivalent period
last year.
With net cash inflow from operating activities of £1.4 million in the first six
months, the balance sheet remains robust with net cash of £4.5 million. The
Company continues to invest in the future, with £4.1 million invested in R&D
over the period (2006: £3.7 million).
Dividend
The Board is pleased to be paying an interim dividend of 1.25p per ordinary
share, representing an increase of 4.2% over last year (2006: 1.20p). This will
be paid on 20 September 2007 to shareholders on the Register as at 7 September
2007.
Renishaw plc placing
At an EGM held on 23 April 2007, Delcam shareholders voted to accept an
investment from leading metrology company, Renishaw plc, of £6.1m. This
investment was effected through a placing of 1,524,052 new Delcam Ordinary
Shares with Renishaw at £4.00 per share.
Renishaw and Delcam have worked together for many years and share common
metrology interests and customers. We believe that closer cooperation with
Renishaw will enhance the sales of both companies, in particular through
initiatives such as our agreement to develop software to support the application
of Renishaw's new inspection probes. The proceeds of the placing will help to
fund Delcam's continuing growth.
Following the placing, we were pleased to appoint Renishaw director, Geoffrey
McFarland, as a non-executive director of Delcam.
Review
The growth in sales principally reflects the emerging benefits of the two
software ranges, PartMaker and Crispin, which we acquired respectively in July
and December 2006. As predicted, the acquisition of the Crispin range of
software has consolidated our position as the leading supplier of CADCAM
software to the footwear industry. Most of the leading international shoe
companies now use Delcam software.
It is also pleasing to note that we saw increased demand for the FeatureCAM
family of products which we acquired in July 2005. Prior to its acquisition,
FeatureCAM was predominantly sold in the US. Through our global sales network,
we are now able to leverage sales into additional geographic markets for this
high quality software range. We expect to increase sales of PartMaker and
Crispin in a similar way.
Sales growth in the period was strongest in our subsidiaries in Germany and
France, which both won significant new business to give growth rates well ahead
of their local markets. Our operation in Indonesia, our reseller in Australia
and our business in Russia also performed well. In contrast, our joint venture
in Korea has been affected by the poor short-term economic conditions and sales
in Thailand have been affected by the current political uncertainty in the
country.
Some of our North American resellers continue to be affected by the problems
being experienced in the local automotive industry, although other parts of our
business in North America have continued to make progress. A key focus in North
America has been the consolidation of our operations to create a single sales,
support and marketing structure for our Power Solution, ArtCAM and FeatureCAM
product ranges, in place of the previously independent USA and Canadian
activities. We believe that this will make the best use of the skills of our
personnel, expand our business opportunities and provide the best possible
service to our customers.
We have continued to expand our Professional Services Group to meet the growing
demand for its consultancy expertise, especially from aerospace engine
manufacturers and from companies that machine aerostructures. In addition, we
have begun similar operations in France and the Netherlands to develop
opportunities in mainland Europe.
We are pleased that the latest rankings published by the US analyst, CIMdata,
show that our increased sales have consolidated our position as the world's
number one specialist supplier of NC software and services, with our market
share increasing to 11% of the total world market. The survey also showed that
Delcam operates the largest CAM software development team of any supplier and
was the largest supplier to the global mould, tool and die industry. Our strong
balance sheet leaves us well placed to take advantage of the anticipated future
consolidation in the sector.
Outlook
The normal yearly business pattern for Delcam is to achieve higher sales and
profits in the second half of the year than in the first half and the Directors
expect the outcome for the current year to reflect this traditional weighting.
However, with more than 50% of Delcam's revenue being undertaken in US$, the
current weakness in the currency will continue to affect the value of our sales
and profitability. Nevertheless, we will continue to invest in our software
products, which will benefit Delcam and its shareholders in the future.
Peter Miles
Chairman
24 August 2007
The Group intends to adopt International Financial Reporting Standards (IFRS)
for the year ended 31 December 2007 and has prepared this interim report in
accordance with the accounting policies that will be adopted at that date. As a
result, comparative figures in respect of the period ended 30 June 2006 and 31
December 2006 have been restated. A reconciliation between the comparative
figures included and those previously reported is set out in the notes to this
report.
CONSOLIDATED INCOME STATEMENT
+--------------------------------------+-------+----------+----------+----------+
| | |Six months|Six months| Year to |
+--------------------------------------+-------+----------+----------+----------+
| | |to 30/06/ |to 30/06/ | 31/12/06 |
| | | 07 | 06 | |
+--------------------------------------+-------+----------+----------+----------+
| |Notes | £'000 | £'000 | £'000 |
+--------------------------------------+-------+----------+----------+----------+
|Continuing Operations | | | | |
+--------------------------------------+-------+----------+----------+----------+
|Revenue | 1| 14,504| 13,187| 26,740|
+--------------------------------------+-------+----------+----------+----------+
|Cost of sales | | (4,425)| (4,234)| (9,535)|
+--------------------------------------+-------+----------+----------+----------+
|Gross profit | | 10,079| 8,953| 17,205|
+--------------------------------------+-------+----------+----------+----------+
|Other operating expenses | | (8,858)| (7,805)| (14,739)|
+--------------------------------------+-------+----------+----------+----------+
|Operating profit | | 1,221| 1,148| 2,466|
+--------------------------------------+-------+----------+----------+----------+
|Share of associates' operating profit | | (34)| 132| 97|
+--------------------------------------+-------+----------+----------+----------+
|Net finance costs | 2| 71| 30| 260|
+--------------------------------------+-------+----------+----------+----------+
|Profit before tax | | 1,258| 1,310| 2,823|
+--------------------------------------+-------+----------+----------+----------+
|Tax | | (204)| (186)| (454)|
+--------------------------------------+-------+----------+----------+----------+
|Profit for the period from continuing | | | | |
|operations | | 1,054| 1,124| 2,369|
+--------------------------------------+-------+----------+----------+----------+
| | | | | |
+--------------------------------------+-------+----------+----------+----------+
|Attributable to | | | | |
+--------------------------------------+-------+----------+----------+----------+
|Equity holders of the parent company | | 1,073| 1,124| 2,328|
+--------------------------------------+-------+----------+----------+----------+
|Equity minority interests | | (19)| 0| 41|
+--------------------------------------+-------+----------+----------+----------+
| | | 1,054| 1,124| 2,369|
+--------------------------------------+-------+----------+----------+----------+
|Earnings per share | | | | |
+--------------------------------------+-------+----------+----------+----------+
|From continuing operations | | | | |
+--------------------------------------+-------+----------+----------+----------+
|Basic | 3| 16.1p| 18.4p| 38.2p|
+--------------------------------------+-------+----------+----------+----------+
|Diluted | 3| 15.9p| 18.0p| 37.2p|
+--------------------------------------+-------+----------+----------+----------+
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
+-----------------------------------------------+----------+----------+----------+
| |Six months|Six months| Year to|
+-----------------------------------------------+----------+----------+----------+
| | to 30/06/| to 30/06/| 31/12/06|
| | 07| 06| |
+-----------------------------------------------+----------+----------+----------+
| | £'000| £'000| £'000|
+-----------------------------------------------+----------+----------+----------+
|Foreign currency translation differences | (19)| 24| (21)|
+-----------------------------------------------+----------+----------+----------+
|Actuarial gains on defined benefit pension | | | |
|schemes | 218| 178| 1,396|
+-----------------------------------------------+----------+----------+----------+
|Tax on items taken directly to equity | (65)| (53)| (418)|
+-----------------------------------------------+----------+----------+----------+
|Net income recognised directly in equity | 134| 149| 957|
+-----------------------------------------------+----------+----------+----------+
|Profit for the period attributable to members | | | |
|of the company | 1,073| 1,124| 2,328|
+-----------------------------------------------+----------+----------+----------+
|Total recognised income and expense for the | | | |
|period | 1,207| 1,273| 3,285|
+-----------------------------------------------+----------+----------+----------+
CONSOLIDATED BALANCE SHEET
+--------------------------------------+-------+-----------+----------+----------+
| | | As at | As at | As at |
+--------------------------------------+-------+-----------+----------+----------+
| | | 30/06/07 | 30/06/06 | 31/12/06 |
+--------------------------------------+-------+-----------+----------+----------+
| |Notes | £'000 | £'000 | £'000 |
+--------------------------------------+-------+-----------+----------+----------+
|Non-current assets | | | | |
+--------------------------------------+-------+-----------+----------+----------+
|Goodwill | | 2,124| 1,459| 2,104|
+--------------------------------------+-------+-----------+----------+----------+
|Other intangible assets | | 1,819| 34| 1,643|
+--------------------------------------+-------+-----------+----------+----------+
|Property, plant & equipment | | 6,437| 6,079| 6,154|
+--------------------------------------+-------+-----------+----------+----------+
|Investments | | 785| 930| 800|
+--------------------------------------+-------+-----------+----------+----------+
|Deferred tax asset | | 175| 984| 379|
+--------------------------------------+-------+-----------+----------+----------+
| | | 11,340| 9,486| 11,080|
+--------------------------------------+-------+-----------+----------+----------+
|Current assets | | | | |
+--------------------------------------+-------+-----------+----------+----------+
|Inventories | | 222| 160| 210|
+--------------------------------------+-------+-----------+----------+----------+
|Trade and other receivables | | 7,538| 6,630| 6,763|
+--------------------------------------+-------+-----------+----------+----------+
|Cash and cash equivalents | 4| 7,135| 1,719| 2,447|
+--------------------------------------+-------+-----------+----------+----------+
| | | 14,895| 8,509| 9,420|
+--------------------------------------+-------+-----------+----------+----------+
| | | | | |
+--------------------------------------+-------+-----------+----------+----------+
|Total assets | | 26,235| 17,995| 20,500|
+--------------------------------------+-------+-----------+----------+----------+
| | | | | |
+--------------------------------------+-------+-----------+----------+----------+
|Current liabilities | | | | |
+--------------------------------------+-------+-----------+----------+----------+
|Trade and other payables | | (4,778)| (3,878)| (3,821)|
+--------------------------------------+-------+-----------+----------+----------+
|Current tax liabilities | | 0| (304)| 0|
+--------------------------------------+-------+-----------+----------+----------+
|Borrowings | | (334)| (788)| (1,244)|
+--------------------------------------+-------+-----------+----------+----------+
|Deferred income | | (2,021)| (1,568)| (1,947)|
+--------------------------------------+-------+-----------+----------+----------+
| | | (7,133)| (6,538)| (7,012)|
+--------------------------------------+-------+-----------+----------+----------+
| | | | | |
+--------------------------------------+-------+-----------+----------+----------+
|Net current assets | | 7,762| 1,971| 2,408|
+--------------------------------------+-------+-----------+----------+----------+
| | | | | |
+--------------------------------------+-------+-----------+----------+----------+
|Non-current liabilities | | | | |
+--------------------------------------+-------+-----------+----------+----------+
|Retirement benefit obligation | | (486)| (2,423)| (930)|
| | | | | |
+--------------------------------------+-------+-----------+----------+----------+
|Deferred tax liabilities | | (1,008)| (980)| (1,015)|
+--------------------------------------+-------+-----------+----------+----------+
|Borrowings | | (874)| (521)| (1,899)|
+--------------------------------------+-------+-----------+----------+----------+
|Other payables | | (52)| 0| (151)|
+--------------------------------------+-------+-----------+----------+----------+
| | | (2,420)| (3,924)| (3,995)|
+--------------------------------------+-------+-----------+----------+----------+
| | | | | |
+--------------------------------------+-------+-----------+----------+----------+
|Total liabilities | | (9,553)| (10,462)| (11,007)|
+--------------------------------------+-------+-----------+----------+----------+
| | | | | |
+--------------------------------------+-------+-----------+----------+----------+
|Net assets | | 16,682| 7,533| 9,493|
+--------------------------------------+-------+-----------+----------+----------+
| | | | | |
+--------------------------------------+-------+-----------+----------+----------+
|Equity | | | | |
+--------------------------------------+-------+-----------+----------+----------+
|Called-up share capital | | 779| 617| 617|
+--------------------------------------+-------+-----------+----------+----------+
|Share premium | | 8,074| 1,983| 1,983|
+--------------------------------------+-------+-----------+----------+----------+
|Investment in own shares | | (131)| (179)| (144)|
+--------------------------------------+-------+-----------+----------+----------+
|Revaluation reserve | | 1,479| 1,510| 1,495|
+--------------------------------------+-------+-----------+----------+----------+
|Capital reserve | | 9| 9| 9|
+--------------------------------------+-------+-----------+----------+----------+
|Share based payments reserve | | 12| 7| 12|
+--------------------------------------+-------+-----------+----------+----------+
|Other reserve | | (32)| (7)| 9|
+--------------------------------------+-------+-----------+----------+----------+
|Retained earnings | | 6,492| 3,593| 5,512|
+--------------------------------------+-------+-----------+----------+----------+
|Total equity | 6| 16,682| 7,533| 9,493|
+--------------------------------------+-------+-----------+----------+----------+
CONSOLIDATED CASH FLOW STATEMENT
+-+--------------------------------------+-------+----------+----------+---------+
| | | |Six months|Six months| Year |
+-+--------------------------------------+-------+----------+----------+---------+
| | | |to 30/06/ |to 30/06/ |to 31/12/|
| | | | 07 | 06 | 06 |
+-+--------------------------------------+-------+----------+----------+---------+
| | |Notes | £'000 | £'000 | £'000 |
+-+--------------------------------------+-------+----------+----------+---------+
|Net cash from operating activities | 7| 1,421| 1,797| 2,578|
+----------------------------------------+-------+----------+----------+---------+
| | | | | |
+----------------------------------------+-------+----------+----------+---------+
|Investing activities | | | | |
+----------------------------------------+-------+----------+----------+---------+
|Purchases of fixed assets & investments | | (606)| (355)| (478)|
+----------------------------------------+-------+----------+----------+---------+
|Expenditure on product development | | (258)| (34)| (101)|
+----------------------------------------+-------+----------+----------+---------+
|Disposal proceeds of property, plant & | | | | |
|equipment | | 0| 0| 13|
+----------------------------------------+-------+----------+----------+---------+
|Net cash used in investing activities | | (864)| (389)| (566)|
+----------------------------------------+-------+----------+----------+---------+
| | | | | |
+----------------------------------------+-------+----------+----------+---------+
|Financing activities | | | | |
+----------------------------------------+-------+----------+----------+---------+
|Dividends paid | | (230)| (203)| (276)|
+----------------------------------------+-------+----------+----------+---------+
|Taxation paid | | (77)| (103)| (159)|
+----------------------------------------+-------+----------+----------+---------+
|New loan finance | | 0| 0| 2,550|
+----------------------------------------+-------+----------+----------+---------+
|Proceeds from new share capital | | 6,253| 0| 0|
+----------------------------------------+-------+----------+----------+---------+
|Acquisitions | | (20)| 0| (1,929)|
+----------------------------------------+-------+----------+----------+---------+
|Repayment of borrowings | | (1,934)| (176)| (891)|
+----------------------------------------+-------+----------+----------+---------+
|Bank overdraft movement | | (543)| (499)| (579)|
+----------------------------------------+-------+----------+----------+---------+
|Restricted cash movement | | 685| (624)| (83)|
+----------------------------------------+-------+----------+----------+---------+
|Net cash used in financing activities | | 4,134| (1,605)| (1,367)|
+----------------------------------------+-------+----------+----------+---------+
| | | | | |
+----------------------------------------+-------+----------+----------+---------+
|Increase in cash and cash equivalents | | 4,691| (197)| 645|
+----------------------------------------+-------+----------+----------+---------+
| | | | | |
+----------------------------------------+-------+----------+----------+---------+
|Cash and cash equivalents at beginning | | | | |
|of the period | | 2,447| 1,910| 1,910|
+----------------------------------------+-------+----------+----------+---------+
|Exchange adjustments | | (3)| 6| (108)|
+----------------------------------------+-------+----------+----------+---------+
|Cash and cash equivalents at end of the | | | | |
|period | | 7,135| 1,719| 2,447|
+-+--------------------------------------+-------+----------+----------+---------+
SIGNIFICANT ACCOUNTING POLICES
a) Basis of preparation
The next annual financial statements of the Group will be prepared in accordance
with International Financial Reporting Standards (IFRS). This interim financial
report has been prepared under the accounting standards that the Directors
expect to be applicable for the financial year ended 31 December 2007.
The comparative data for the year to 31 December 2006 and for the six months to
30 June 2006 have been restated and reconciliations are included in note 8 to
explain the changes.
The financial information set out above does not constitute statutory accounts
within the meaning of section 40 of the Companies Act 1985.
The statutory accounts for the year ended 31 December 2006, which have been
delivered to the Registrar of Companies, carry an unqualified report by the
auditors and do not contain a statement under Section 237 (2) or section 237 (3)
of the Companies Act 1985.
Copies of this statement are being sent to shareholders. Further copies are
available from the Company Secretary, Small Heath Business Park, Birmingham, B10
0HJ.
b) Basis of consolidation
The financial statements of the Group consolidate the financial statements of
Delcam plc and all its subsidiaries. Subsidiaries are entities controlled by the
Company. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until
that control ceases.
c) Intangible assets
Goodwill
In respect of acquisitions since 1 January 2006, goodwill arising on
consolidation represents the excess of cost of acquisition over the Group's
interest in the fair value of the identifiable assets and liabilities of the
acquired entity at the date of acquisition. For acquisitions prior to this date,
goodwill is included on the basis of its deemed cost, which represents the
amount recorded under previous GAAP. Goodwill is recognised as an asset and
assessed for impairment at least annually. Impairment is assessed by comparing
the carrying value of goodwill with the discounted cashflows projected for the
acquired entity, using a discount rate that management estimate to be the risk
adjusted average cost of capital for that entity.
Research and development
Research expenditure is written off as incurred. Expenditure on a development
project will be written off as incurred unless and until the project is
identified as being:
a) for a new or substantially improved product or process;
b) technically feasible; and
c) commercially feasible, and with a high probability that recovery of the costs
will take place.
For a project meeting these criteria, subsequent costs will be capitalised and
amortised from the date the product or process is available for use, on a
straight line basis over the product's estimated life.
Acquired intangible assets
Intangible assets that are acquired as a result of a business combination are
recorded at fair value at acquisition date, provided they can be separately and
reliably measured. The assets are amortised on a straight line basis over their
expected useful lives.
d) Property, plant and equipment
Property, plant and equipment are shown at historical cost, less any provision
for impairment in value.
Depreciation is provided at rates calculated to write off the cost less
estimated residual value of each asset on a straight-line basis over its
expected useful life, except freehold land which is not depreciated. The rates
used are as follows:
Long leasehold/freehold buildings 2%
Plant and machinery 10% to 15%
Computer equipment 20% to 33%
Fixtures and fittings 20%
Vehicles 25%
e) Impairment of non-current assets
All non-current assets are assessed annually for indications of impairment.
Where impairment is likely, the fair value is measured and any impairment loss
is charged to the income statement.
f) Inventories
Inventories are valued at the lower of cost and net realisable value. Cost
includes the relevant proportion of production overhead assuming normal levels
of activity. Net realisable value is based on estimated selling price less
further costs expected to be incurred on completion and disposal.
g) Taxation
The tax charge for the year includes the charge for tax currently payable and
deferred taxation. The current tax charge represents the estimated amount due
that arises from the operations of the Group in the financial year and after
making adjustments in respect of prior years.
Deferred tax is recognised in respect of all differences between the carrying
amount of assets and liabilities in the financial statements and the
corresponding tax bases used in the computation of taxable profit, except where
the temporary difference arises from goodwill or from the initial recognition of
assets or liabilities that effect neither accounting nor taxable profit.
A deferred tax asset is recognised only to the extent that it is probable that
future taxable profits will be available against which the asset can be
utilised.
Deferred tax is measured at the tax rates that are expected to apply in the
periods in which the timing differences are expected to reverse.
h) Foreign currencies
Normal trading activities denominated in foreign currencies are recorded in
sterling at the exchange rates at the dates of the transactions. Monetary assets
and liabilities denominated in foreign currencies at the balance sheet date are
reported at the rates of exchange prevailing at the balance sheet date; exchange
differences arising are taken to the profit and loss account.
Income statements of overseas subsidiaries are translated to sterling at average
exchange rates. Exchange differences arising on the translation of the opening
net assets and results of overseas operations are taken directly to reserves.
i) Turnover
i) Sales
Sales comprise the value of sales, excluding VAT, of goods and services in the
normal course of business. Maintenance income invoiced in advance for fixed
periods is treated as deferred income, being taken to revenue in the income
statement in equal monthly instalments over the period of the contract.
ii) Government grants
Grants are recognised in the balance sheet initially as deferred income. Grants
in respect of assets are transferred to the income statement as other operating
income over the estimated useful life of the asset concerned. Grants to
compensate for expenses are transferred to the income statement in the same
periods as the expenses are incurred.
j) Employee benefits
(i) Defined contribution plans
Obligations for contributions to defined contribution plans are recognised as an
expense in the income statement as incurred.
(ii) Defined benefit plan
The Group's net obligation in respect of its defined benefit pension plan is
calculated by estimating the amount of future benefits payable to members,
discounted to present value, and deducting the fair value of the plan assets.
The calculation is performed by a qualified actuary using the projected unit
credit method. Actuarial gains or losses are included in the Statement of
Recognised Income and Expenses. Current and past service costs, curtailments and
settlements are recognised within operating profit. Returns on scheme assets and
interest on obligations are recognised as a component of financing costs.
(iii) Share-based payment transactions
Share-based incentive arrangements are provided to employees under the Group's
share option schemes. Share-based arrangements put in place since 1 January 2006
are valued at the date of grant and charged to operating profit over the vesting
period of the scheme. Options are valued using an appropriate pricing model. The
annual charge is modified to take account of shares forfeited by employees who
leave during the vesting period.
k) Leased assets
Leasing agreements that transfer substantially all the risks and rewards of
ownership to the Group are classified as Finance Leases. Assets financed by a
Finance Lease are accounted for as if they had been purchased outright, with the
corresponding liability to the leasing company included as an obligation. The
rentals payable are apportioned between interest, which is charged to the income
statement, and capital, which reduces the outstanding obligation. All other
leases are classified as Operating Leases and lease rentals are charged to the
income statement on a straight-line basis over the term of the lease.
l) Financial instruments and hedging
i) Trade receivables and trade payables
These do not carry any interest and are stated at nominal value.
ii) Bank overdraft and loans
These are interest bearing and interest is accounted for on an accruals basis.
iii) Derivative financial instruments
The Group does use derivative financial instruments to hedge its exposure to
interest rate or currency risk and no financial instruments were in place as at
30 June 2007.
Notes to the consolidated financial statements
1. Segment information
Business Segment
+--------------------------------------+-----------+-----------+------------+
|Revenue |Six months |Six months | Year |
+--------------------------------------+-----------+-----------+------------+
| |to 30/06/07|to 30/06/06|to 31/12/06 |
+--------------------------------------+-----------+-----------+------------+
| | £'000 | £'000 | £'000 |
+--------------------------------------+-----------+-----------+------------+
|Software | 7,596| 7,194| 14,394|
+--------------------------------------+-----------+-----------+------------+
|Maintenance | 4,400| 3,797| 7,136|
+--------------------------------------+-----------+-----------+------------+
|Services | 1,322| 917| 2,012|
+--------------------------------------+-----------+-----------+------------+
|Other | 1,186| 1,279| 3,198|
+--------------------------------------+-----------+-----------+------------+
|Continuing operations | 14,504| 13,187| 26,740|
+--------------------------------------+-----------+-----------+------------+
Geographical segments
+--------------------------------------+-----------+-----------+------------+
|Revenue |Six months |Six months | Year |
+--------------------------------------+-----------+-----------+------------+
| |to 30/06/07|to 30/06/06|to 31/12/06 |
+--------------------------------------+-----------+-----------+------------+
| | £'000 | £'000 | £'000 |
+--------------------------------------+-----------+-----------+------------+
|United Kingdom | 2,976| 2,558| 5,194|
+--------------------------------------+-----------+-----------+------------+
|Rest of Europe | 5,346| 4,481| 7,975|
+--------------------------------------+-----------+-----------+------------+
|Americas | 3,266| 3,391| 7,131|
+--------------------------------------+-----------+-----------+------------+
|Far East | 2,045| 2,181| 5,197|
+--------------------------------------+-----------+-----------+------------+
|Rest of World | 871| 576| 1,243|
+--------------------------------------+-----------+-----------+------------+
|Continuing operations | 14,504| 13,187| 26,740|
+--------------------------------------+-----------+-----------+------------+
2. Finance costs
+--------------------------------------+-----------+-----------+------------+
| |Six months |Six months | Year |
+--------------------------------------+-----------+-----------+------------+
| |to 30/06/07|to 30/06/06|to 31/12/06 |
+--------------------------------------+-----------+-----------+------------+
| | £'000 | £'000 | £'000 |
+--------------------------------------+-----------+-----------+------------+
|Net interest payable | (7)| (111)| (22)|
+--------------------------------------+-----------+-----------+------------+
|Pension: expected return on plan | | | |
|assets | 558| 581| 1,207|
+--------------------------------------+-----------+-----------+------------+
|Pension: interest cost | (480)| (440)| (925)|
+--------------------------------------+-----------+-----------+------------+
|Total finance credit | 71| 30| 260|
+--------------------------------------+-----------+-----------+------------+
3. Earnings per share
+--------------------------------------+-----------+-----------+------------+
| |Six months |Six months | Year |
+--------------------------------------+-----------+-----------+------------+
| |to 30/06/07|to 30/06/06|to 31/12/06 |
+--------------------------------------+-----------+-----------+------------+
| | £'000 | £'000 | £'000 |
+--------------------------------------+-----------+-----------+------------+
|Earnings - continuing | 1,073| 1,124| 2,328|
+--------------------------------------+-----------+-----------+------------+
| | | | |
+--------------------------------------+-----------+-----------+------------+
|Average number of shares during year | '000 | '000 | '000 |
+--------------------------------------+-----------+-----------+------------+
|For basic earnings per share | 6,685| 6,096| 6,096|
+--------------------------------------+-----------+-----------+------------+
|Scheme options | 65| 135| 159|
+--------------------------------------+-----------+-----------+------------+
|For diluted earnings per share | 6,750| 6,231| 6,255|
+--------------------------------------+-----------+-----------+------------+
| | | | |
+--------------------------------------+-----------+-----------+------------+
|Earnings per share | | | |
+--------------------------------------+-----------+-----------+------------+
|Continuing - basic | 16.1p| 18.4p| 38.2p|
+--------------------------------------+-----------+-----------+------------+
| - diluted | 15.9p| 18.0p| 37.2p|
+--------------------------------------+-----------+-----------+------------+
4. Restricted cash
At 30 June 2007, included within cash at bank and in hand and trade and other
payables is £1,391,000 (30 June 2006: £165,000) that relates to monies received
by the company for a grant in respect of a European project. This cash is
restricted as the company has been nominated to administer the funds, which are
to be distributed to several other independent partners. Therefore this cash is
not considered as part of the net owned funds of the company at 30 June 2007.
5. Acquisitions
In respect of the acquisition of Delcam Partmaker Limited and Partmaker Inc on 1
July 2006 the intangible fixed assets acquired are noted as below. No fair value
adjustments were necessary.
Fair value
adjustments
Book value Fair value
£'000
£'000 £'000
Intellectual property rights 1,475 - 1,475
Brand value 80 - 80
Customer list 70 - 70
Total intangible fixed assets 1,625 - 1,625
Fixed assets 6 - 6
Deferred income (136) - (136)
Cash 136 - 136
Goodwill 286 - 286
Net Assets acquired 1,917 1,917
Satisfied by:
Cash & deferred consideration 1,917
In respect of the acquisition of Crispin Systems Limited £305,000 has been paid
for goodwill and no intangible fixed assets were identified.
6. Capital & Reserves
+--------------------------------------+-----------+-----------+------------+
| | As at | As at | As at |
+--------------------------------------+-----------+-----------+------------+
| | 30/06/07 | 30/06/06 | 31/12/06 |
+--------------------------------------+-----------+-----------+------------+
| | £'000 | £'000 | £'000 |
+--------------------------------------+-----------+-----------+------------+
|Balance at beginning of the period | 9,493| 6,459| 6,459|
+--------------------------------------+-----------+-----------+------------+
|Dividends paid | (230)| (203)| (276)|
+--------------------------------------+-----------+-----------+------------+
|Profit for the period | 1,073| 1,124| 2,328|
+--------------------------------------+-----------+-----------+------------+
|Movement in exchange fluctuation | | | |
|reserve | (41)| (3)| 13|
+--------------------------------------+-----------+-----------+------------+
|Proceeds from new share capital | 6,253| 0| 0|
+--------------------------------------+-----------+-----------+------------+
|Net income and expense for the period | | | |
|recognised directly in equity | 134| 149| 957|
+--------------------------------------+-----------+-----------+------------+
|Credit to equity for share-based | | | |
|payments | 0| 7| 12|
+--------------------------------------+-----------+-----------+------------+
|Balance at end of the period | 16,682| 7,533| 9,493|
+--------------------------------------+-----------+-----------+------------+
7. Net cash from operating activities
+-+--------------------------------------+-----------+-----------+-------------+
| | |Six months |Six months | Year |
+-+--------------------------------------+-----------+-----------+-------------+
| | |to 30/06/07|to 30/06/06| to 31/12/06 |
+-+--------------------------------------+-----------+-----------+-------------+
| | | £'000 | £'000 | £'000 |
+-+--------------------------------------+-----------+-----------+-------------+
|Operating profit from continuing | | | |
|operations | 1,221| 1,148| 2,466|
+----------------------------------------+-----------+-----------+-------------+
|Adjustments for: | | | |
+----------------------------------------+-----------+-----------+-------------+
|Depreciation and amortisation | 389| 279| 660|
+----------------------------------------+-----------+-----------+-------------+
|Release of government grants | (4)| (4)| (8)|
+----------------------------------------+-----------+-----------+-------------+
|Profit on sale of tangible fixed assets | 0| 0| (6)|
+----------------------------------------+-----------+-----------+-------------+
|Share based payments | 0| 7| 12|
+----------------------------------------+-----------+-----------+-------------+
|Operating cash flow before working | | | |
|capital movements | 1,606| 1,430| 3,124|
+----------------------------------------+-----------+-----------+-------------+
|Increase in working capital | (30)| 614| (254)|
+----------------------------------------+-----------+-----------+-------------+
|Cash generated by operations | 1,576| 2,044| 2,870|
+----------------------------------------+-----------+-----------+-------------+
| | | | |
+----------------------------------------+-----------+-----------+-------------+
|Additional pension payment | (148)| (136)| (270)|
+----------------------------------------+-----------+-----------+-------------+
|Net interest paid | (7)| (111)| (22)|
+----------------------------------------+-----------+-----------+-------------+
|Net cash from operating activities | 1,421| 1,797| 2,578|
+-+--------------------------------------+-----------+-----------+-------------+
8. Explanation of transition to IFRS
The reconciliation of equity at 31 December 2005 (date of transition to IFRS),
at 31 December 2006 (date of last UK GAAP financial statements) and at 30 June
2006, together with a reconciliation of the UK GAAP profit for the six months to
30 June 2006, and for the year ended 31 December 2006, are included below to
enable a comparison to be made between the June 2007 and June 2006 interim
figures.
The changes as a result of the transition to IFRS are described below.
(a) Share options
In accordance with IFRS 2 a charge has been recognised reflecting the fair value
of outstanding share options granted to employees. The fair value has been
calculated using the 'Black Scholes' valuation model. This has resulted in a
charge of £7,000 for the six months to 30 June 2006. The 31 December 2006
accounts had already accounted for this charge.
(b) Pensions
Accounting for pensions in accordance with IAS19 requires that the pension
liability and related deferred tax asset to be disclosed separately. Accordingly
the related deferred tax has been recognised under non-current assets.
(c) Intangible assets
IAS 38 requires that development expenditure should be capitalised and amortised
over the life of the project not exceeding three years when a commercially
viable future for that project has been established. This has resulted in an
increase in operating profits of £101,000 for the year to 31 December 2006 and
£34,000 for the six months to 30 June 2006, with a transfer of costs to
intangible assets.
(d) Goodwill
IFRS3 prohibits the amortisation of goodwill which is subject to annual
impairment reviews. Goodwill is stated in the opening balance sheet at 1 January
2006 at its UK GAAP carrying value of £1,459,000 with subsequent amortisation
reversed. The impact on operating profit is a credit of £169,000 for the year
ended 31 December 2006 and a credit of £75,000 for the six months ended 30 June
2006.
The standard also requires separable, identifiable intangible assets arising on
acquisition to be capitalised at fair value and amortised over their useful
economic lives. Brand value and customer lists with a value of £150,000 arising
on the acquisition of Delcam Partmaker Limited and Partmaker Inc have been
reclassified from goodwill to intangibles and are being amortised over their
useful lives resulting in a charge to the income statement of £9,000 for the
year ending 31 December 2006.
(e) Tax
In accordance with IAS12 provision has been made for deferred tax on revalued
assets and property not qualifying for capital allowances. This was not required
under UK GAAP. The increase in the deferred tax liability was £968,000 at 1
January 2007.
An adjustment to the deferred tax charge is being made for non-qualifying
buildings and property revaluations. In respect of property revaluations an
equivalent credit is made to the revaluation reserve.
Reconciliation of UK GAAP profit to IFRS profit
Income Statement for the six months to June 2006
+---------------------------------------+--------+----------+--------+
| | UK |Effect of | IFRS |
+---------------------------------------+--------+----------+--------+
| | GAAP |transition| |
+---------------------------------------+--------+----------+--------+
| | | to IFRS | |
+---------------------------------------+--------+----------+--------+
|Continuing operations | £'000 | £'000 | £'000 |
+---------------------------------------+--------+----------+--------+
|Sales | 13,187| | 13,187|
+---------------------------------------+--------+----------+--------+
|Cost of sales (note c) | (4,268)| 34| (4,234)|
+---------------------------------------+--------+----------+--------+
|Gross profit | 8,919| 34| 8,953|
+---------------------------------------+--------+----------+--------+
|Other operating expenses (note a & d) | (7,873)| 68| (7,805)|
+---------------------------------------+--------+----------+--------+
|Operating profit | 1,046| 102| 1,148|
+---------------------------------------+--------+----------+--------+
|Share of associates' operating profit | 132| | 132|
+---------------------------------------+--------+----------+--------+
|Finance costs | 30| | 30|
+---------------------------------------+--------+----------+--------+
|Profit before tax | 1,208| 102| 1,310|
+---------------------------------------+--------+----------+--------+
|Tax (note e) | (197)| 11| (186)|
+---------------------------------------+--------+----------+--------+
|Profit for the period from continuing | | | |
|operations | 1,011| 113| 1,124|
+---------------------------------------+--------+----------+--------+
Income Statement for the year to December 2006
+-----------------------------------------+--------+----------+---------+
| | UK |Effect of | IFRS |
+-----------------------------------------+--------+----------+---------+
| | GAAP |transition| |
+-----------------------------------------+--------+----------+---------+
| | | to IFRS | |
+-----------------------------------------+--------+----------+---------+
| | £'000 | £'000 | £'000 |
+-----------------------------------------+--------+----------+---------+
|Continuing operations | | | |
+-----------------------------------------+--------+----------+---------+
|Sales | 26,740| | 26,740|
+-----------------------------------------+--------+----------+---------+
|Cost of sales (note c) | (9,636)| 101| (9,535)|
+-----------------------------------------+--------+----------+---------+
|Gross profit | 17,104| 101| 17,205|
+-----------------------------------------+--------+----------+---------+
|Other operating expenses (note d) |(14,899)| 160| (14,739)|
+-----------------------------------------+--------+----------+---------+
|Operating profit | 2,205| 261| 2,466|
+-----------------------------------------+--------+----------+---------+
|Share of associates' operating profit | 97| | 97|
+-----------------------------------------+--------+----------+---------+
|Finance costs | 260| | 260|
+-----------------------------------------+--------+----------+---------+
|Profit before tax | 2,562| 261| 2,823|
+-----------------------------------------+--------+----------+---------+
|Tax (note e) | (477)| 23| (454)|
+-----------------------------------------+--------+----------+---------+
|Profit for the period from continuing | | | |
|operations | 2,085| 284| 2,369|
+-----------------------------------------+--------+----------+---------+
Reconciliation of equity
At 31 December 2005
+-------------------------------+--------------+-------------+----------+
| | UK | Effect of | IFRS |
+-------------------------------+--------------+-------------+----------+
| | GAAP |transition to| |
+-------------------------------+--------------+-------------+----------+
| | | IFRS | |
+-------------------------------+--------------+-------------+----------+
| | £'000 | £'000 | £'000 |
+-------------------------------+--------------+-------------+----------+
|Non-current assets | | | |
+-------------------------------+--------------+-------------+----------+
|Goodwill | 1,459| | 1,459|
+-------------------------------+--------------+-------------+----------+
|Property, plant & equipment | 6,263| | 6,263|
+-------------------------------+--------------+-------------+----------+
|Investments | 856| | 856|
+-------------------------------+--------------+-------------+----------+
|Deferred tax asset (note b) | | 1,163| 1,163|
+-------------------------------+--------------+-------------+----------+
| | 8,578| 1,163| 9,741|
+-------------------------------+--------------+-------------+----------+
|Current assets | | | |
+-------------------------------+--------------+-------------+----------+
|Inventories | 168| | 168|
+-------------------------------+--------------+-------------+----------+
|Trade and other receivables | 6,051| (67)| 5,984|
+-------------------------------+--------------+-------------+----------+
|Cash and cash equivalents | 1,910| | 1,910|
+-------------------------------+--------------+-------------+----------+
| | 8,129| (67)| 8,062|
+-------------------------------+--------------+-------------+----------+
| | | | |
+-------------------------------+--------------+-------------+----------+
|Total assets | 16,707| 1,096| 17,803|
+-------------------------------+--------------+-------------+----------+
| | | | |
+-------------------------------+--------------+-------------+----------+
|Current liabilities | | | |
+-------------------------------+--------------+-------------+----------+
|Trade and other payables | (3,599)| | (3,599)|
+-------------------------------+--------------+-------------+----------+
|Current tax liabilities | (210)| | (210)|
+-------------------------------+--------------+-------------+----------+
|Borrowings | (1,467)| | (1,467)|
+-------------------------------+--------------+-------------+----------+
|Deferred income | (1,670)| | (1,670)|
+-------------------------------+--------------+-------------+----------+
| | (6,946)| | (6,946)|
+-------------------------------+--------------+-------------+----------+
| | | | |
+-------------------------------+--------------+-------------+----------+
|Net current assets | 1,183| | 1,183|
+-------------------------------+--------------+-------------+----------+
| | | | |
+-------------------------------+--------------+-------------+----------+
|Non-current liabilities | | | |
+-------------------------------+--------------+-------------+----------+
|Retirement benefit obligation | (1,715)| (1,163)| (2,878)|
|(note b) | | | |
+-------------------------------+--------------+-------------+----------+
|Deferred tax liabilities (note | 0| (924)| (924)|
|e) | | | |
+-------------------------------+--------------+-------------+----------+
|Borrowings | (596)| | (596)|
+-------------------------------+--------------+-------------+----------+
| | (2,311)| (2,087)| (4,398)|
+-------------------------------+--------------+-------------+----------+
| | | | |
+-------------------------------+--------------+-------------+----------+
|Total liabilities | (9,257)| (2,087)| (11,344)|
+-------------------------------+--------------+-------------+----------+
| | | | |
+-------------------------------+--------------+-------------+----------+
|Net assets | 7,450| (991)| 6,459|
+-------------------------------+--------------+-------------+----------+
| | | | |
+-------------------------------+--------------+-------------+----------+
|Equity | | | |
+-------------------------------+--------------+-------------+----------+
|Called-up share capital | 617| | 617|
+-------------------------------+--------------+-------------+----------+
|Share premium | 1,983| | 1,983|
+-------------------------------+--------------+-------------+----------+
|Investment in own shares | (254)| | (254)|
+-------------------------------+--------------+-------------+----------+
|Revaluation reserve (note e) | 2,180| (654)| 1,526|
+-------------------------------+--------------+-------------+----------+
|Capital reserve | 9| | 9|
+-------------------------------+--------------+-------------+----------+
|Other reserve | (4)| | (4)|
+-------------------------------+--------------+-------------+----------+
|Profit and loss account | 2,919| (337)| 2,582|
+-------------------------------+--------------+-------------+----------+
| | | | |
+-------------------------------+--------------+-------------+----------+
|Total equity | 7,450| (991)| 6,459|
+-------------------------------+--------------+-------------+----------+
Reconciliation of Equity
At 30 June 2006
+-------------------------------+--------------+-----------+----------+
| | UK | Effect of | IFRS |
+-------------------------------+--------------+-----------+----------+
| | GAAP |transition | |
| | | to | |
+-------------------------------+--------------+-----------+----------+
| | | IFRS | |
+-------------------------------+--------------+-----------+----------+
| | £'000 | £'000 | £'000 |
+-------------------------------+--------------+-----------+----------+
|Non-current assets | | | |
+-------------------------------+--------------+-----------+----------+
|Goodwill (note d) | 1,384| 75| 1,459|
+-------------------------------+--------------+-----------+----------+
|Intangible assets (note c) | 0| 34| 34|
+-------------------------------+--------------+-----------+----------+
|Property, plant & equipment | 6,079| | 6,079|
+-------------------------------+--------------+-----------+----------+
|Investments | 930| | 930|
+-------------------------------+--------------+-----------+----------+
|Deferred tax asset (note b) | 0| 984| 984|
+-------------------------------+--------------+-----------+----------+
| | 8,393| 1,093| 9,486|
+-------------------------------+--------------+-----------+----------+
|Current assets | | | |
+-------------------------------+--------------+-----------+----------+
|Inventories | 160| | 160|
+-------------------------------+--------------+-----------+----------+
|Trade and other receivables | 6,630| | 6,630|
+-------------------------------+--------------+-----------+----------+
|Cash and cash equivalents | 1,719| | 1,719|
+-------------------------------+--------------+-----------+----------+
| | 8,509| | 8,509|
+-------------------------------+--------------+-----------+----------+
| | | | |
+-------------------------------+--------------+-----------+----------+
|Total assets | 16,902| 1,093| 17,995|
+-------------------------------+--------------+-----------+----------+
| | | | |
+-------------------------------+--------------+-----------+----------+
|Current liabilities | | | |
+-------------------------------+--------------+-----------+----------+
|Trade and other payables | (3,878)| | (3,878)|
+-------------------------------+--------------+-----------+----------+
|Current tax liabilities | (304)| | (304)|
+-------------------------------+--------------+-----------+----------+
|Borrowings | (788)| | (788)|
+-------------------------------+--------------+-----------+----------+
|Deferred income | (1,568)| | (1,568)|
+-------------------------------+--------------+-----------+----------+
| | (6,538)| | (6,538)|
+-------------------------------+--------------+-----------+----------+
| | | | |
+-------------------------------+--------------+-----------+----------+
|Net current assets | 1,971| | 1,971|
+-------------------------------+--------------+-----------+----------+
| | | | |
+-------------------------------+--------------+-----------+----------+
|Non-current liabilities | | | |
+-------------------------------+--------------+-----------+----------+
|Retirement benefit obligation | (1,439)| (984)| (2,423)|
|(note b) | | | |
+-------------------------------+--------------+-----------+----------+
|Deferred tax liabilities (note | 0| (980)| (980)|
|e) | | | |
+-------------------------------+--------------+-----------+----------+
|Borrowings | (521)| | (521)|
+-------------------------------+--------------+-----------+----------+
| | (1,960)| (1,964)| (3,924)|
+-------------------------------+--------------+-----------+----------+
| | | | |
+-------------------------------+--------------+-----------+----------+
|Total liabilities | (8,498)| (1,964)| (10,462)|
+-------------------------------+--------------+-----------+----------+
| | | | |
+-------------------------------+--------------+-----------+----------+
|Net assets | 8,404| (871)| 7,533|
+-------------------------------+--------------+-----------+----------+
| | | | |
+-------------------------------+--------------+-----------+----------+
|Equity | | | |
+-------------------------------+--------------+-----------+----------+
|Called-up share capital | 617| | 617|
+-------------------------------+--------------+-----------+----------+
|Share premium | 1,983| | 1,983|
+-------------------------------+--------------+-----------+----------+
|Investment in own shares | (179)| | (179)|
+-------------------------------+--------------+-----------+----------+
|Revaluation reserve (note e) | 2,157| (647)| 1,510|
+-------------------------------+--------------+-----------+----------+
|Capital reserve | 9| | 9|
+-------------------------------+--------------+-----------+----------+
|Share based payments reserve | | | |
|(note a) | 0| 7| 7|
+-------------------------------+--------------+-----------+----------+
|Other reserve | (7)| | (7)|
+-------------------------------+--------------+-----------+----------+
|Profit and loss account | 3,824| (231)| 3,593|
+-------------------------------+--------------+-----------+----------+
|Total equity | 8,404| (871)| 7,533|
+-------------------------------+--------------+-----------+----------+
Reconciliation of Equity
At 31 December 2006
+-------------------------------+--------------+-----------+----------+
| | UK GAAP | Effect of | IFRS |
+-------------------------------+--------------+-----------+----------+
| | |transition | |
| | | to | |
+-------------------------------+--------------+-----------+----------+
| | | IFRS | |
+-------------------------------+--------------+-----------+----------+
| | £'000 | £'000 | £'000 |
+-------------------------------+--------------+-----------+----------+
|Non-current assets | | | |
+-------------------------------+--------------+-----------+----------+
|Goodwill (note d) | 2,085| 19| 2,104|
+-------------------------------+--------------+-----------+----------+
|Intangible assets (note c) | 1,401| 242| 1,643|
+-------------------------------+--------------+-----------+----------+
|Property, plant & equipment | 6,154| | 6,154|
+-------------------------------+--------------+-----------+----------+
|Investments | 800| | 800|
+-------------------------------+--------------+-----------+----------+
|Deferred tax asset (note b) | 0| 379| 379|
+-------------------------------+--------------+-----------+----------+
| | 10,440| 640| 11,080|
+-------------------------------+--------------+-----------+----------+
|Current assets | | | |
+-------------------------------+--------------+-----------+----------+
|Inventories | 210| | 210|
+-------------------------------+--------------+-----------+----------+
|Trade and other receivables | 6,763| | 6,763|
+-------------------------------+--------------+-----------+----------+
|Cash and cash equivalents | 2,447| | 2,447|
+-------------------------------+--------------+-----------+----------+
| | 9,420| | 9,420|
+-------------------------------+--------------+-----------+----------+
| | | | |
+-------------------------------+--------------+-----------+----------+
|Total assets | 19,860| 640| 20,500|
+-------------------------------+--------------+-----------+----------+
| | | | |
+-------------------------------+--------------+-----------+----------+
|Current liabilities | | | |
+-------------------------------+--------------+-----------+----------+
|Trade and other payables | (3,821)| | (3,821)|
+-------------------------------+--------------+-----------+----------+
|Current tax liabilities | (47)| 47| 0|
+-------------------------------+--------------+-----------+----------+
|Borrowings | (1,244)| | (1,244)|
+-------------------------------+--------------+-----------+----------+
|Deferred income | (1,947)| | (1,947)|
+-------------------------------+--------------+-----------+----------+
| | (7,059)| 47| (7,012)|
+-------------------------------+--------------+-----------+----------+
| | | | |
+-------------------------------+--------------+-----------+----------+
|Net current assets | 2,361| 47| 2,408|
+-------------------------------+--------------+-----------+----------+
| | | | |
+-------------------------------+--------------+-----------+----------+
|Non-current liabilities | | | |
+-------------------------------+--------------+-----------+----------+
|Retirement benefit obligation | (551)| (379)| (930)|
|(note b) | | | |
+-------------------------------+--------------+-----------+----------+
|Deferred tax liabilities (note | | | |
|e) | 0| (1,015)| (1,015)|
+-------------------------------+--------------+-----------+----------+
|Borrowings | (1,899)| | (1,899)|
+-------------------------------+--------------+-----------+----------+
|Other payables | (151)| | (151)|
+-------------------------------+--------------+-----------+----------+
| | (2,601)| (1,394)| (3,995)|
+-------------------------------+--------------+-----------+----------+
| | | | |
+-------------------------------+--------------+-----------+----------+
|Total liabilities | (9,660)| (1,347)| (11,007)|
+-------------------------------+--------------+-----------+----------+
| | | | |
+-------------------------------+--------------+-----------+----------+
|Net assets | 10,200| (707)| 9,493|
+-------------------------------+--------------+-----------+----------+
| | | | |
+-------------------------------+--------------+-----------+----------+
|Equity | | | |
+-------------------------------+--------------+-----------+----------+
|Called-up share capital | 617| | 617|
+-------------------------------+--------------+-----------+----------+
|Share premium | 1,983| | 1,983|
+-------------------------------+--------------+-----------+----------+
|Investment in own shares | (144)| | (144)|
+-------------------------------+--------------+-----------+----------+
|Revaluation reserve (note e) | 2,135| (640)| 1,495|
+-------------------------------+--------------+-----------+----------+
|Capital reserve | 9| | 9|
+-------------------------------+--------------+-----------+----------+
|Share based payments reserve | 12| | 12|
+-------------------------------+--------------+-----------+----------+
|Other reserve | 9| | 9|
+-------------------------------+--------------+-----------+----------+
|Profit and loss account | 5,579| (67)| 5,512|
+-------------------------------+--------------+-----------+----------+
|Total equity | 10,200| (707)| 9,493|
+-------------------------------+--------------+-----------+----------+
This information is provided by RNS
The company news service from the London Stock Exchange