TIDMATL
Press Release 28 September 2010
Atlantic Global Plc
("Atlantic Global" or "the Group")
Interim Results
Atlantic Global Plc (AIM: ATL), the specialist provider of integrated business
and resource management software applications, today announces its Interim
Results for the six months ended 30 June 2010.
Financial and Operational Summary
* Turnover increased to GBP728,000 (2009: GBP647,000)
* Profit before tax of GBP21,000 (2009: loss of GBP148,000)
* Cash balance increase of GBP78,000 since the Group's financial year end of
31 December 2009 to GBP2,110,000 (2009: GBP2,265,000)
* Earnings per share of 0.1p (H1 09: loss of 0.53p)
* Proposed interim dividend of 0.1 pence per share
* Continued investment in research and development of GBP198,000 (2009:
GBP202,000)
* New SaaS customers include the British Computer Society, ESURE, Merseyside
Police and Experian
Adrian Bradshaw, Chairman of Atlantic Global commented:
"I am pleased to report Atlantic Global's results for the six months to 30 June
2010. In the first half of the year, the Group remained profitable, continued
to develop a fully automated Software as a Service (SaaS) business platform and
secured new blue chip customers. The Group has achieved this while maintaining
its substantial cash reserves.
"The introduction of the automated SaaS platform, which is due to be launched on
29 October 2010, will mark a significant milestone for the Group. It will
provide an effective means of targeting small and medium sized enterprises
including individual departments within a larger organisation.
"Trading remains challenging as customers' IT budgets remain under pressure.
However, the Group is seeing an uptake in interest in its SaaS offering, and
the Directors remain confident about the Group's future performance."
- Ends -
For further information please contact:
Atlantic Global Plc
Eugene Blaine, Managing Director Tel: +44 (0) 1274 863 300
Rupert Hutton, Finance Director
eugene.blaine@atlantic-global.com
rupert.hutton@atlantic-global.com www.atlantic-global.co.uk
Daniel Stewart & Company plc
Paul Shackleton / Christopher Theis Tel: +44 (0) 207 776 6550
Media enquiries:
Abchurch Communications
Sarah Hollins / Nick Probert Tel: +44 (0) 20 7398 7715
nick.probert@abchurch-group.com www.abchurch-group.com
Chairman's Statement
Introduction
During the first half of 2010 the Group was profitable and secured new
customers. We have extended the existing SaaS solution to provide a fully self
serviced SaaS platform which is scheduled for launch on 29 October 2010.
This fully automated SaaS platform marks a significant milestone for the Group
in that customers will be able to register and immediately set up their own
implementations without needing to speak to any support staff. This new self
service SaaS platform will make the trials more relevant and will be available
worldwide 24 hours a day, seven days per week.
Financial Review
Atlantic Global's profit before taxation for the six months to 30 June 2010 was
GBP21,000, compared to a loss before taxation of GBP148,000 in the first six months
of 2009. Revenue increased to GBP728,000 compared to GBP647,000 in the same period
of 2009. Earnings per share were 0.1p for the six month period (2009 losses per
share: 0.53p). As at 30 June 2010, the Group had cash balances of GBP2,110,000
(2009: GBP2,265,000). Cash balances have increased by GBP78,000 since the Group's
financial year end of 31 December 2009.
In the first half of the year, the Group has continued to maintain its
investment in research and development of GBP198,000 (2009: GBP202,000) which
ensured the successful delivery of the new SaaS suite of products.
Atlantic Global has grown its SaaS revenues and now host 35 SaaS implementations
for a wide range of customers that include GlaxoSmithKline, Man Group Plc and
VILT (Spain and Portugal). New SaaS customers added during the period include
the British Computer Society, ESURE, Merseyside Police and as a self hosted
customer, Experian. The Group expects SaaS revenues to increase further during
the second half of 2010.
Operating Review
Having technically deployed our solution on a SaaS platform during 2009,
research and development and marketing resources have been focussed throughout
2010 on making Atlantic Global's product offerings easier for the customer to
trial and adopt.
During this time, the Group also passed several extensive SaaS vendor audits,
which are becoming more common when larger organisations consider deploying
solutions on a SaaS platform. This has given us confidence both in terms of the
quality and performance of our SaaS solution and also in terms of the quality
and robustness of our supporting business process.
Since Atlantic Global first deployed the SaaS solution, the biggest obstacle
that the Group has encountered was the degree of assistance that new customers
required to get themselves up and running on the solution. The Group initially
invested in a significant sales effort to support each evaluation through this
critical early adoption phase. Customer feedback has been very positive once a
client has successfully negotiated this critical set-up phase in the solution
evaluation.
In an attempt to make the solution easier to adopt, Atlantic Global introduced a
new 'Resource Centre' in April 2010 where customers can now access a wide range
of product literature and over 90 video tutorials that explain how to use and
get best value out of the products.
We also launched a 'Live Demo' area in April 2010 which was a read only,
pre-configured version of the Group's solutions, allowing for interested parties
to quickly get a look and feel for the software.
Other SaaS vendors have recently started to allow prospective customers to load
and edit their own data and configure the system to suit their own requirements
without any company intervention. Atlantic Global will launch a similar easy
set-up offering that will allow access to all modules on the 29 October 2010.
This new method of establishing active client prospects will increase the number
of new product trials, and this will help the Group to increase timely sales
conversions and help address the issue of slippage in the sales pipeline.
The ability to move to a 'remote sales platform' will also produce a more
predictable business model and will enable management to establish a clear link
between marketing spend and revenue generated, thereby enabling the management
to target sales and marketing expenditure.
Dividend
The Directors are proposing an interim dividend of 0.1 pence per share to be
paid on 5 November 2010 to shareholders on the register on 8 October 2010.
Current Trading
Trading remains challenging as customers' IT budgets remain under pressure.
However, the Group is experiencing a sharp increase in penetration from its
SaaS offering, and the Directors remain confident about the Group's performance.
The addition of the new customers listed above, the increased penetration
within Atlantic Global's existing 'Blue Chip' client base and a number of deals
that have been introduced via partners provide the Directors with confidence
going forward.
Outlook
The introduction of the automated SaaS platform, which is due to be launched on
29 October 2010, will mark a significant milestone for the Group. It will
provide an effective means of targeting small and medium sized enterprises
including individual departments within a larger organisation. The Group has
achieved this while maintaining its substantial cash reserves.
On behalf of the Board, I would like to thank the staff who have demonstrated
great levels of skill, commitment and patience whilst delivering an industry
leading SaaS solution.
Adrian Bradshaw
Chairman
28 September 2010
Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2010
Unaudited Unaudited Audited
Six Six Year
notes months to months to ended
30 June 30 June 31 December
2010 2009 2009
GBP 000 GBP 000 GBP 000
Revenue 728 647 1,350
Cost of sales (436) (505) (927)
----------- ----------- ------------
Gross profit 292 142 423
----------- ----------- ------------
Administration and other
operating expenses (278) (299) (569)
----------- ----------- ------------
Operating profit / (loss) 14 (157) (146)
Finance income 7 9 16
----------- ----------- ------------
Profit / (loss) before tax 21 (148) (130)
Income tax credit 2 1 28 -
----------- ----------- ------------
Profit and total comprehensive
income for the period attributable
to owners of the parent 22 (120) 130
Earnings/(loss) per share
Basic & diluted (pence) 3 0.1p (0.53)p (0.57)p
----------- ----------- ------------
Consolidated Balance Sheet
as at 30 June 2010
Unaudited Unaudited Audited
As at As at As at
30 June 30 June 31 December
2010 2009 2009
GBP 000 GBP 000 GBP 000
Assets
Non-current assets
Intangible assets 2,792 2,792 2,792
Property, plant and equipment 9 17 13
Deferred tax asset 52 9 52
----------- ----------- -------------
Total non-current assets 2,853 2,818 2,857
Current assets
Trade and other receivables 485 401 507
Income tax receivable - - 12
Cash and cash equivalents 2,110 2,265 2,032
-----------------------------------------
2,595 2,666 2,551
-----------------------------------------
Total assets 5,448 5,484 5,408
Equity and liabilities
Liabilities
Current liabilities
Trade and other payables 497 517 479
----------- ----------- -------------
Total liabilities 497 517 479
Equity attributable to owners of
the parent
Share capital 1,123 1,133 1,123
Share premium account 1,578 1,578 1,578
Merger reserve 2,538 2,538 2,538
Retained earnings (310) (294) (332)
Capital redemption reserve 22 12 22
----------- ----------- -------------
Total equity 4,951 4,967 4,929
----------- ----------- -------------
-----------------------------------------
Total equity and liabilities 5,448 5,484 5,408
Summarised Consolidated Cash Flow Statement
for the 6 months ended 30 June 2010
Audited
Unaudited Unaudited Year ended
Six months Six months 31
to 30 June to 30 June December
2010 2009 2009
GBP000 GBP000 GBP000
Cash flows from
operating activities
Profit/(loss)
after tax for the
period 22 (120) (130)
Adjustments for
Interest income (7) (9) (16)
Income tax
(credit) (1) (28) -
Depreciation 4 5 10
------------ ------------- -----------
Operating
profit/(loss) before
changes in working
capital and provisions 18 (152) (136)
Change in trade
and other receivables 22 535 429
Change in trade
and other payables 18 (164) (202)
Income tax
received 13 - -
------------ ------------- -----------
Cash generated from
operations 71 219 91
Income tax paid - - (83)
------------ ------------- -----------
Net cash from
operating activities 71 219 8
------------ ------------- -----------
Cash flows from
investing activities
Net interest
received 7 9 16
Acquisition of
plant and equipment - (7) (8)
------------ ------------- -----------
Net cash from
investing activities 7 2 8
------------ ------------- -----------
Cash flows from
financing activities
Purchase of own
shares - (24) (52)
Dividends paid - (91) (91)
------------ ------------- -----------
Net cash used in
financing activities - (115) (143)
------------ ------------- -----------
Net increase in cash
and cash equivalents 78 106 (127)
Cash and cash
equivalents at the
beginning of the
period 2,032 2,159 2,159
------------ ------------- -----------
Cash and cash
equivalents at the end
of the period 2,110 2,265 2,032
------------ ------------- -----------
Statement of changes in equity
for the 6 months ended 30 June 2010
6 months ended 30 June 2009 Share Merger Profit Capital
Share premium reserve and loss redemption
Capital account account reserve
GBP000 GBP000 GBP000 GBP000 GBP000
Balance brought forward at 1 January
2009 1,139 1,578 2,538 (59) 6
Dividends Paid - - - (91) -
--------------------------------------------
Share buy back (6) - - (24) 6
--------------------------------------------
Transactions with owners (6) - - (115) 6
Loss and total comprehensive income
for the period - - - (120) -
--------------------------------------------
Balance at 30 June 2009 1,133 1,578 2,538 (294) 12
12 months ended 31 December 2009 Share Merger Profit Capital
Share premium reserve and loss redemption
Capital account account reserve
GBP000 GBP000 GBP000 GBP000 GBP000
Balance brought forward at 1 January
2008 1,139 1,578 2,538 (59) 6
Dividends Paid - - - (91) -
Share buy back (16) - - (52) 16
--------------------------------------------
Transactions with owners (16) - - (143) 16
Loss and total comprehensive income
for the period - - - (130) -
--------------------------------------------
Balance at 31 December 2009 1,123 1,578 2,538 (332) 22
6 months ended 30 June 2010 Share Merger Profit Capital
Share premium reserve and loss redemption
Capital account account reserve
GBP000 GBP000 GBP000 GBP000 GBP000
Balance brought forward at 1 January
2010 1,123 1,578 2,538 (332) 22
Profit and total comprehensive
income for the period - - - 22 -
--------------------------------------------
Balance at 30 June 2010 1,123 1,578 2,538 (310) 22
Notes to the interim report
Basis of preparation
1. The interim financial information has been prepared on the basis of the
recognition and measurement requirements of adopted IFRSs as at 30 June
2010 that are effective (or available for early adoption) at 31 December
2010. Based on these adopted IFRSs, the Directors have applied the
accounting policies, which they expect to apply when the annual IFRS
financial statements are prepared for the year ending 31 December 2010.
The group has chosen not to adopt IAS 34 (Interim Financial Statements) in
preparing these interim financial statements and therefore the interim financial
information is not in full compliance with International Financial Reporting
Standards.
The financial information set out in this interim report does not constitute
statutory accounts as defined in sections 434 and 435 of the Companies Act
2006. The figures for the year ended 31 December 2009 have been extracted from
the statutory financial statements which have been filed with the Registrar of
Companies. The auditor's report on those financial statements was unqualified
and did not contain a statement under section 498(2) and 498(3) of the Companies
Act 2006.
The group's accounting policies remain as stated in the group's full annual
accounts for the year ended 31 December 2009.
Tax and EPS
2. The tax charge for the period is based on the anticipated effective tax rate
for the year to 31 December
2010.
3. Basic loss or earnings per share are calculated on the profit for the
period of GBP22,000 (2009: loss of GBP120,000) and on 22,471,350 ordinary shares,
being the weighted average number of ordinary shares in issue in the period
(2009: 22,899,350 ordinary shares).
Independent review report to Atlantic Global Plc
Introduction
We have been engaged by the company to review the financial information in the
half-yearly financial report for the six months ended 30 June 2010 which
comprises the Consolidated Statement of Comprehensive Income, Consolidated
Balance Sheet, the Summarised Consolidated Cash Flow Statement, the Statement of
Changes in Equity and the related notes.
We have read the other information contained in the half yearly financial report
which comprises only the Chairman's Interim Statement and considered whether it
contains any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
This report is made solely to the company in accordance with guidance contained
in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information
performed by the Independent Auditor of the Entity'. Our review work has been
undertaken so that we might state to the company those matters we are required
to state to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the company, for our review work, for this report, or for the
conclusion we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The AIM rules of the London Stock Exchange require that the
accounting policies and presentation applied to the financial information in the
half-yearly financial report are consistent with those which will be adopted in
the annual accounts having regard to the accounting standards applicable for
such accounts.
As disclosed in Note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
financial information in the half-yearly financial report has been prepared in
accordance with the basis of preparation in Note 1.
Our responsibility
Our responsibility is to express to the Company a conclusion on the financial
information in the half-yearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the financial information in the half-yearly financial report for the six
months ended 30 June 2010 is not prepared, in all material respects, in
accordance with the basis of accounting described in Note 1.
GRANT THORNTON UK LLP
AUDITOR
LEEDS
[HUG#1447130]
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Atlantic Global Plc via Thomson Reuters ONE
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