TIDMEVT
29 March 2012
Eurovestech plc
("Eurovestech", "the Group" or "the Company")
Interim report for the six months ended 31 December 2011 ("the
period" or "the six months")
Highlights
- Return of GBP13.3 million cash to shareholders
- Record revenues for KSS Fuels; successful integration of MPSI acquisition
- Carrying value of KSS Fuels increased by 37 per cent to GBP13 million
- Maxifier wins further contracts and recognition
- Company net assets of GBP55 million - 16.6 pence per share - following cash
return of 4p per share
- Agreement with Cenkos to expand routes to public markets
- Since its foundation, Eurovestech has helped more than 100 charities through
share gifts worth GBP2 million
- Portfolio well placed to deliver the next phase of growth
Richard Bernstein, Chief Executive, comments:
"I am delighted to report further advances for our portfolio and
for our shareholders. We have now returned in excess of GBP23 million to
shareholders in the last two years, more than the total funds raised from
investors in the history of the Company. We are also pleased to have reached
the milestone of having helped more than 100 charities via our share gifting
scheme with a total value of GBP2 million. Our balance sheet remains strong and
investee companies including KSS Fuels and Maxifier are poised to lead our
next phase of growth".
Further Enquiries
Eurovestech plc
Richard Bernstein (Chief Executive Officer) 020 7478 9070
Merchant Securities Limited
David Worlidge / Simon Clements 020 7628 2200
Cenkos Securities
Ivonne Cantu 020 7397 8900
Chairman's Statement
I am pleased to report our results for the six months ended 31
December 2011. This has been a period of transition and renewal, as well as
continued progress, for Eurovestech and its investee companies.
Our progress was exemplified by the return of GBP13.3 million cash to
shareholders in October 2011, amounting to 4 pence per share. Following our
initial return of GBP10 million in March 2010, Eurovestech has now returned cash
equivalent to 6.18 pence per share to shareholders and made share buybacks
amounting to GBP2.5 million. Thus the total returned to shareholders, including
share buybacks, since inception is GBP23.3 million.
It is especially encouraging to report that even after these
capital returns, our balance sheet remains strong.
Eurovestech incurred a loss after tax for the six months ended 31
December 2011 of GBP2.2 million, compared to a profit of GBP0.6 million in the six
months ended 31 December 2010. The loss for the period reflected the absence
of gains on disposal, exceptional charges at KSS Fuels for the integration of
MPSI, and business combination amortisation. At earnings per share level, the
loss for the six months ended 31 December 2011 was 0.65 pence per share,
compared to earnings of 0.18 pence in the previous period.
Building value for shareholders remains our critical objective. We
see the net asset value of our investments as the key benchmark of our
progress. The company balance sheet of Eurovestech shows shareholders' funds
of GBP55.0 million (16.6 pence per share) compared to GBP62.4 million (18.9 pence
per share) at 31 December 2010 and to GBP65.6 million (19.8 pence per share) at
30 June 2011. Adjusted for the cash return of 4 pence per share (GBP13.3
million) in October 2011, Company net assets per share have increased by 4.0
per cent in the last six months. Our progress on this in the period gives us
some measure of satisfaction.
Let us report in more detail on the progress of each investee
company.
PORTFOLIO REVIEW
ITWP ACQUISITIONS LTD (HOLDING COMPANY OF TOLUNA)
ToLuna, which combines its online market research panel with
industry-leading research technology, has four million members on its social
voting site Toluna.com, and is at the forefront of the quick-feedback market.
ToLuna was acquired by ITWP Acquisitions in April 2011 and is now a
privately owned business. We have been shareholders in ToLuna since we
co-founded the business in 2000. The company has been and remains a remarkable
success - we have already banked GBP40 million in cash on our total GBP2 million
investment and still retain a 10 per cent holding, plus GBP12.2 million of loan
notes.
In order to continue with its objective of best in class operations
in North America and across all markets, last December, a new group chief
operations officer with extensive industry experience was appointed. We
believe this appointment should help to reverse the inevitable short-term
disruption following the company being taken private, particularly in the
United States. We remain confident about ToLuna's continuing growth prospects.
ToLuna's products reached several important milestones during the
period. It signed more than 35 new clients for its proprietary product, Panel
Portal TM, which provides customers with a branded panel community that
encourages on-site interaction among members as well as offering quantitative
research opportunities.
QuickSurveys, a new version of which ToLuna launched in mid-2011,
achieved 10,000 users and won more than $1 million revenues in 2011. ToLuna
believes that "DIY" survey solutions are causing a sea change in the industry,
and will continue to develop QuickSurveys and to expand it into more
countries.
During 2012, ToLuna plans to launch a number of new initiatives to
support its growth. In January 2012 it launched a new iPad and iPhone app
enabling users to take ToLuna QuickSurveys directly through their mobile
devices.
KSS LTD ("KSS FUELS")
KSS Fuels is a global leader of fuels pricing and retail network
planning solutions. It serves over 400 customers in 80 countries and is wholly
owned by Eurovestech.
KSS Fuels delivered record revenues and earnings for the period.
Revenues for the six months ended 31 December 2011 were $11.3 million (GBP7.1
million), compared to $5.8 million (GBP3.7 million) in the equivalent period a
year earlier. Underlying EBITDA was $1.5 million (GBP0.9 million), an increase
of 91 per cent from the equivalent period. These excellent results reflected
strong sales performance in its core markets - North America, Europe, Japan,
Australia and South Africa. Operating profit margins remain at a very healthy
level.
KSS Fuels forecasts revenues for the year ending 30 June 2012 will
be in excess of $20 million (GBP12.8 million). In the year ended 30 June 2011,
revenues were GBP7.7 million.
The integration of Market Planning Solutions Inc. ("MPSI"), the
network planning, data collection and analytics company acquired in May 2011,
has been largely completed, and approximately $2 million in annual cost
savings will have been achieved. Extended product offerings from MPSI enhanced
the trading performance of KSS Fuels in the period. Net cash at 31 December
2011 was $2.5 million (GBP1.6 million).
Since the period end, KSS Fuels has continued to win new orders. In
January 2012 it announced that 7-Eleven Australia will implement its PriceNet
solution in its Australian retail network of over 400 fuel sites. Outside its
core markets, KSS Fuels is pursuing growth opportunities in India, Southeast
Asia, China and Brazil.
KSS Fuels has made a number of senior appointments to strengthen
its management team and position itself for further growth.
The success of KSS Fuels has been achieved against a very
challenging economic backdrop. Based on these results, the underlying trends,
current trading, the successful integration of MPSI and the net cash position,
the directors of Eurovestech have increased the carrying value of KSS Fuels
from GBP9.5 million to GBP13 million to reflect their assessment of fair value. We
look forward to continued progress.
AUDIONAMIX SA
Audionamix has developed sound separation technologies that allow
dramatic enhancement of the audio content in music, film, and television. Its
ADX Technology resolves technical challenges that paralyse content
distribution, and generates incremental revenue for content owners. Music
dissociation (the removal of music from a soundtrack while preserving the
dialogue and effects) is the biggest contributor to revenue so far.
Its portfolio of services continues to attract interest at the
highest levels of the film, television and music industries. The company's
client roster currently includes five of the top eight studios worldwide.
In December 2011, Audionamix announced that its audio engineers had
been asked to use its proprietary ADX technology for film music composer Hans
Zimmer's soundscape for the film Sherlock Holmes; A Game of Shadows.
Audionamix previously provided a similar service for Hans Zimmer in the 2010
box office hit Inception.
Additionally, using its proprietary Voice Isolation Technology,
Audionamix assisted Warner Bros. Animation to create new 3D cartoons based on
the mono recordings of Mel Blanc, who wrote songs for the Looney Tunes
characters Sylvester and Tweety.
Following its success in removing the orchestral sounds from the
original soundtrack of West Side Story, thus enabling spectacular live
performances during 2011, Audionamix has compiled a five minute documentary
film West Side Story; Reviving the Masterpiece, detailing how it achieved the
removal.
Revenues grew rapidly in the 2011 calendar year. However, its
advances are modest relative to its potential. Accordingly, Audionamix is
targeting further substantial growth.
On 31 December 2011 Eurovestech owned 45.5 per cent of Audionamix.
MAXIFIER LIMITED
Maxifier's online advertising technology solution enables premium
publishers and ad networks to increase their advertising effectiveness,
maximise campaign performance and drive greater inventory value, giving them a
competitive advantage.
The adoption of Maxifier's services is highly encouraging. It won a
number of new contracts during the period from both media and telecoms
companies, enabling it to achieve a substantial increase in the "run rate" of
its revenues.
In September 2011 it secured a long term contract from Forbes.com,
one of the world's most recognised and influential business media brands.
Forbes.com is adopting Maxifier's platform to optimise the effectiveness of
its advertisers' campaigns, manage its global advertising inventories and
improve operational efficiencies.
In recent weeks, several significant contracts have been signed,
including Martini Media in the US and WPP's 24/7 Real Media in the UK.
A contract was also signed with a global mobile telephone network
provider. The original trial contract was extended after Maxifier exceeded all
performance hurdles. This followed a contract win from a division of Telecom
Italia.
The Asia Pacific region offers exciting potential for Maxifier. Its
new managing director of the APAC region joined in January 2012 and Maxifier's
first contract in the region has already been signed with Recruit, the major
Japanese publisher. Discussions are under way with a number of other leading
companies in APAC.
Further funding is required to develop Maxifier's success fully and
we are pleased to report that the company is at an advanced stage of
negotiations for additional funding. This would be supported both by its
founding shareholders, including Eurovestech, and by outside investors, and
would value Maxifier at substantially more than its current valuation in
Eurovestech's accounts. The interest from outside investors is an encouraging
sign that Maxifier's success and technological strength are becoming widely
recognised.
At 31 December 2011, Eurovestech owned 49.9 per cent of Maxifier.
LOGNET INFORMATION SYSTEMS PLC
LogNet provides billing and e-billing solutions which help telecoms
and utility companies worldwide to cut operating costs and achieve greater
profitability.
LogNet has expanded its marketing efforts to Asia, which it sees as
potentially its fastest growing market. Following a period in 2010 when
trading was below expectations, LogNet recovered during the 2011 calendar
year, achieving sales growth of more than 50 per cent, and returning to
profit.
Progress has continued into 2012. In February 2012, LogNet was
selected by Tango, a leading mobile and internet services operator in
Luxembourg, to deploy a multiple play customer management and billing
solution. Tango, which is part of the Belgacom group, has more than 260,000
clients.
In March 2012, LogNet was profiled in "Smart Grid Billing Outlook
2012-2016" a market report published by Innovation Observatory, which analyses
the opportunities for utility providers and municipalities to create new
services and revenues. The report described LogNet, with its telecoms
background, as being positioned to win business with forward-looking utility
providers and municipalities in deregulating economies and with new entrants
in competitive markets.
At 31 December 2011, Eurovestech owned 26.5 per cent of LogNet
MAGENTA CORPORATION LTD ("MAGENTA")
Magenta is a leading provider of real-time dynamic software
scheduling for flagship players in the transportation industry.
During the period, Magenta strengthened its management and took
action to ensure that its cost base was aligned to revenues. It completed the
development of a new generation of Software as a Service (SaaS) products for
different industries, such as the transport of patients and of cash, and for
in-field service engineers.
Encouragingly, it won a dynamic scheduling contract from Rosinkas,
which is the leading cash transit group in Russia and number three worldwide.
It also won government contracts, which highlights the reliability of
Magenta's service organisation.
Following revenue growth in excess of 20 per cent in the 2011
calendar year, Magenta produced a profit after tax of GBP381,000 and is
generating sufficient cash to fund its growth. This is testimony to the
progress it has made, and though it needs to win further contracts to maintain
its momentum in 2012, it has intensified its efforts to meet this challenge.
The new generation of SaaS products will be a core of the sales strategy.
At 31 December 2011, Eurovestech owned 49.6 per cent of Magenta.
ARKeX LTD
ARKeX carries out geophysical surveys for oil, gas and mineral
explorers using airborne and marine gravity gradiometry technology which
delivers accurate images of sub-surface geology over inaccessible terrain such
as mountains or jungle, without damaging the environment.
In September 2011, ARKeX completed an airborne survey in Tajikistan
for Tethys Petroleum. The survey covered most of the 35,000 square kilometre
Bokhtar area, which is considered to have very promising potential.
In October 2011, ARKeX completed one of the larger airborne surveys
flown to date, covering the Turkana Rift Basin around Lake Turkana in North
West Kenya, for Tullow Oil. Tullow is one of the leading independent oil and
gas companies with interests in 22 countries.
The increasing importance of shale gas discoveries, particularly in
North America, offers opportunities for ARKeX's technology, which can provide
analysis of significant benefit in the early stages of shale gas exploration,
where three-dimensional seismic access is restricted. ARKeX has been working
with Global Geophysical Services to improve understanding of the Marcellus
shale, one of the largest sources of domestic natural gas to be discovered in
the US.
ARKeX achieved very positive results in the 2011 calendar year.
Following a very significant increase in the volume of data collected,
revenues rose by nearly half compared to 2010 and it generated a net operating
profit for the first time.
At 31 December, 2011 Eurovestech owned 2.5 per cent of ARKeX.
DIRECTORATE CHANGE
As announced on 13 March 2012, we are pleased to welcome David
Ristow to Eurovestech's board as Director of Investments. David was Chief
Financial Officer at KSS Retail, our former investee subsidiary, and we
believe he is the ideal candidate to take our investment portfolio to the next
stage of growth.
We thank Jean-Michel Petit, who resigns from the board with effect
from 31 March 2012 to pursue his other business interests, for his excellent
contribution over the last nine years. He has played a major role in managing
the investments that have created substantial value for shareholders. We wish
him every success with his future projects. He has agreed to continue to help
our investee companies at least until the end of the year, so we will continue
to benefit from his skills and experience.
CHARITABLE DONATIONS
From the beginning of its life as a quoted company, Eurovestech set
out a commitment to support charities by issuing and gifting shares.
The Company has today issued 1,100,000 new ordinary shares of
Eurovestech divided equally between St. Luke's Hospice, Yechi Am Yisrael,
Missing People, The Trussell Trust, The Royal Opera House Foundation
(Apprenticeship), Battersea Dogs and Cats Home, Tracks Autism, The Roy Castle
Lung Cancer Foundation, Metropolitan Sports & Social Club for the Visually
Impaired, Chris Westwood Charity for Children with Physical Disabilities and
Marie Curie Cancer Care. Richard Bernstein, Chief Executive of Eurovestech,
has paid GBP11,000 to facilitate their issue, representing the nominal value of
these shares of one penny per share. Application has been made for the shares
to be admitted to AIM and dealings are expected to commence on 5 April 2012.
Including these shares, since its flotation on AIM in 2000,
Eurovestech has created and gifted 12 million shares to more than 100
charitable organisations. Including the cash returns to shareholders in 2010
and 2011, charities have now been gifted cash and shares currently valued at
GBP2 million.
We are proud to have passed the milestone of helping 100 charities
and hope other companies will follow our example by creating and gifting
shares in this way.
AGREEMENT WITH CENKOS
As announced on 14 March 2012, Eurovestech has signed a
co-operation agreement with Cenkos Securities plc in which both companies aim
to benefit from each other's expertise and networks to help companies raise
money. The agreement focuses on raising capital in the Middle East, where
Cenkos will work with Eurovestech on any suitable opportunities for clients to
raise funds on NASDAQ Dubai, and also covers Eurovestech's introduction of
other investors to Cenkos. Cenkos is also discounting commission rates on any
funds raised for Eurovestech and its investee and associated companies.
We see this agreement as offering broader funding routes for our
companies and having the potential to generate significant income for
Eurovestech via shared revenues or commissions. Cenkos and Eurovestech are
already working on identified projects. There is no cap on the amount
Eurovestech can earn under the co-operation agreement. In order to secure the
above terms, Eurovestech paid a cash consideration of GBP0.9 million.
PROSPECTS
We have commented in the past on international economic conditions
and their possible impact on our portfolio of companies. We have been pleased
to report that our specific operations have been resilient, or unaffected by
some of the most difficult conditions for many years. Signs of recovery in the
US have raised hopes that the global economic difficulties of the last three
years may ease somewhat during 2012.
However, in point of fact, while the overall environment for
business, and interest rates and corporate valuations, may be driven by
economic indicators, the fortunes of our individual companies are not. We
develop and sell products and technologies that serve specific needs, and that
are unaffected by gross economic measures. The markets our portfolio of
companies serve are in rude health; these niche markets are growing.
The associated growth of our own companies has enabled us to
demonstrate the success of our model in a most tangible form: by returning
cash to shareholders. The return of GBP13.3 million completed in October 2011
takes the total returned in the last two years, including share buybacks, to
GBP23.3 million. Moreover, even after very successful realisations, our
portfolio continues to offer significant opportunities for growth. Our track
record demonstrates that we are capable of taking advantage of these
opportunities.
KSS Fuels is but one example. It is now a sizeable business in its
own right. It is profitable. Its recent growth is highly encouraging.
Maxifier, a much younger business, has excellent technology. Its product has
proven its ability to deliver increased performance and is attracting
increasing attention in its industry. Audionamix has undoubted potential and
is also arousing interest in its sector.
Of course, all of these companies face challenges. However, we
believe that they have the technological and management strength to overcome
these and deliver further satisfactory results for our shareholders. At group
level, as our agreement with Cenkos shows, we are exploring innovative ways of
delivering further value. We view the future in a fashion that is tinged with
reality, but in a manner that brims with confidence.
Richard Grogan
Chairman
29 March 2012
Consolidated Statement of Comprehensive Income
Six month Six month
period to period to
31 December 31 December Year
2011 2010 ended 30
June 2011
(unaudited) (unaudited) (audited)
Notes GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 3 7,122 3,742 7,769
Investment income 53 178 165
Net gains on financial assets at fair 24 1,737 49
value
Profit on disposal of financial assets - - 10,973
Operating expenses (8,340) (4,911) (13,680)
Underlying operating (loss)/profit 3 (1,141) 746 5,276
Exceptional items and business (836) - (394)
combination amortisation
Operating (loss)/profit (1,977) 746 4,882
Finance income 13 1 5
Finance costs (173) (163) (212)
(Loss)/Profit before tax (2,137) 584 4,675
Income tax (charge)/credit (23) 1 54
(Loss)/Profit for the period (2,160) 585 4,729
Foreign exchange movements 240 (69) 20
Total comprehensive income and expense (1,920) 516 4,749
recognised in the period
Attributable to:
Equity holders of the Company (1,920) 516 4,749
Earnings per share
Basic (loss)/earnings per share (pence) 4 (0.65) 0.18 1.43
Diluted (loss)/earnings per share 4 (0.65) 0.18 1.42
(pence)
Consolidated Statement of Financial Position
31 December 31 December 30 June
2011 2010 2011
Notes (unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 286 128 202
Goodwill 1,742 - 1,671
Other intangible assets 1,526 17 1,690
Financial assets at fair value through 5 22,824 48,187 21,775
profit or loss
Deferred tax asset 1,317 1,288 1,317
Trade and other receivables 62 - 77
27,757 49,620 26,732
Current assets
Trade and other receivables 5,020 3,511 4,115
Financial assets at fair value through 16,651 3,784 15,051
profit or loss
Cash and cash equivalents 1,896 3,346 23,261
23,567 10,641 42,427
Liabilities
Current liabilities
Trade and other payables (5,045) (3,106) (8,803)
Income tax liabilities - (86) -
Borrowings (9) (17) (17)
(5,054) (3,209) (8,820)
Net current assets 18,513 7,432 33,607
Non-current liabilities
Borrowings - (9) -
Deferred tax liability (164) - (164)
Provisions (4,909) (4,980) (3,782)
(5,073) (4,989) (3,946)
Net assets 41,197 52,063 56,393
Equity
Capital and reserves attributable to
the equity holders of the Company
Issued capital 3,314 3,308 3,314
Share premium 169 45 135
Capital redemption reserve 4,438 4,432 4,432
Other reserves 144 (187) (97)
Retained earnings 33,132 44,465 48,609
Total equity 41,197 52,063 56,393
Consolidated Statement of Cashflows
Six month Six month
period to 31 period to
December 2011 31 December Year ended
2010 30 June
2011
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
(Loss)/Profit for the period before (2,137) 584 4,675
taxation
Adjustments for:
Net finance costs 160 162 207
Depreciation of property, plant and 51 40 79
equipment
Amortisation of intangible assets 310 9 89
Net gains on financial assets (24) (1,737) (49)
Profit on disposal of non-current - - (10,973)
investments
Movement on provision 966 941 107
Investment income (53) (178) (165)
Share based payments 1 1 71
Increase in trade and other receivables (905) (1,247) (768)
(Decrease)/Increase in trade and other (3,758) (3,014) 813
payables
Net cash used in operations (5,389) (4,439) (5,914)
Finance costs (173) (163) (212)
Income tax received 4 4 120
Net cash used in operating activities (5,558) (4,598) (6,006)
Cash flows from investing activities
Finance income 13 1 5
Purchase of subsidiary undertakings (net
of cash acquired)
- - (1,996)
Purchase of property, plant and (134) (75) (85)
equipment
Purchase of intangible assets - (2) (5)
Dividends received 53 178 165
Disposal of financial assets 24,756 10,317 41,274
Purchase of financial assets (27,205) (6,801) (14,389)
Net cash (used in)/generated by (2,517) 3,618 24,969
investing activities
Cash flows from financing activities
Finance lease capital repayments (8) (6) (17)
D Share dividend paid (13,262) - -
Purchase of own shares (55) - -
Proceeds from issue of equity shares 3 4 10
Net cash used in financing activities (13,322) (2) (7)
Net (decrease)/increase in cash and cash
equivalents
(21,397) (982) 18,956
Exchange movements 32 15 (8)
Cash and cash equivalents at the start 23,261 4,313 4,313
of the period
Cash and cash equivalents at the end of 1,896 3,346 23,261
the period
Consolidated Statement of Changes in Equity
Capital
Share Share redemption Other Retained Total
capital premium reserve reserves earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July 2011 3,314 135 4,432 (97) 48,609 56,393
Charitable donation of
shares 3 37 - - - 40
Issue of D Shares 3 (3) - - - -
D share distribution - - - - (13,262) (13,262)
Share buyback (6) - 6 - (55) (55)
Share-based payment
charge - - - 1 - 1
Transactions with
owners - 34 6 1 (13,317) (13,276)
Foreign exchange
movements - - - 240 - 240
Profit for the period - - - - (2,160) (2,160)
Total comprehensive
income - - - 240 (2,160) (2,160)
At 31 December 2011 3,314 169 4,438 144 33,132 41,197
At 1 July 2010 3,304 - 4,432 (119) 43,880 51,497
Charitable donation of
shares 4 45 - - - 49
Share-based payment
charge - - - 1 - 1
Transactions with
owners 4 45 - 1 - 50
Foreign exchange
movements - - - (69) - (69)
Profit for the period - - - - 585 585
Total comprehensive
income - - - (69) 585 516
At 31 December 2010 3,308 45 4,432 (187) 44,465 52,063
Notes to the interim report
1. Legal status and activities
Eurovestech Plc ("the Company") and its subsidiaries (together "the
Group") make investments in technology businesses.
The principal trading subsidiary during the period was Knowledge
Support Systems Limited ("KSS Fuels"). KSS Fuels is the leading global
provider of price management and optimisation solutions and network planning
solutions to the fuel retail and oil and gas wholesale industries.
The Company is a public limited company which is quoted on the AIM
market of the London Stock Exchange and is incorporated and domiciled in the
UK. The address of the registered office is 29 Curzon Street, London, W1J 7TL.
2. Basis of preparation
This interim report for the six month period ended 31 December 2011
has been prepared in compliance with IAS 34 `Interim financial reporting'. It
does not include all the information required for full annual financial
statements and should be read in conjunction with the consolidated financial
statements of the Group for the year ended 30 June 2011, which were prepared
under International Financial Reporting Standards ("IFRS") as adopted by the
European Union.
The interim financial information has been prepared on a basis
which is consistent with the accounting policies adopted by the Group for the
last financial statements and in compliance with IAS 34.
The financial information presented does not constitute statutory
accounts as defined by section 434 of the Companies Act 2006. The Group's
statutory accounts for the year ended 30 June 2011 have been filed with the
Registrar of Companies. The auditors, PricewaterhouseCoopers LLP, reported on
these accounts and their report was unqualified and did not contain a
statement under section 498 of the Companies Act 2006.
Comparative figures are given for the six months ended 31 December
2010 and the year ended 30 June 2011.
3. Segmental analysis
a) Primary reporting format - business segments
The segment results for the six month period ended 31 December 2011
are as follows:
Venture Software Total
capital development
GBP'000 GBP'000 GBP'000
Revenue 16 7,106 7,122
Investment income 53 - 53
Net gains on financial assets at fair value 24 - 24
Other operating expenses (2,060) (6,280) (8,340)
Underlying operating (loss)/profit (1,967) 826 (1,141)
Exceptional items and business combination amortisation - (836) (836)
Operating loss (1,967) (10) (1,977)
Net finance cost (160)Loss before tax (2,137)
Income tax charge (23)
Loss for the period (2,160)
The segment results for the six month period ended 31 December 2010
are as follows:
Venture Software Total
capital development
GBP'000 GBP'000 GBP'000
Revenue 74 3,668 3,742
Investment income 178 - 178
Net gains on financial assets at fair value 1,737 - 1,737
Other operating expenses (1,685) (3,226) (4,911)
Operating profit 304 442 746
Net finance cost (162)
Profit before tax 584
Income tax credit 1
Profit for the period 585
The segment results for the year ended 30 June 2011 are as follows:
Venture Software Total
capital development
GBP'000 GBP'000 GBP'000
Revenue 94 7,675 7,769
Investment income 165 - 165
Net gains on financial assets at fair value 49 - 49
Profit on disposal of financial assets 10,973 - 10,973
Other operating expenses (6,597) (7,083) (13,680)
Underlying operating profit 4,684 592 5,276
Exceptional items and business combination - (394) (394)
amortisation
Operating profit 4,684 198 4,882
Net finance cost (207)
Profit before tax 4,675
Income tax credit 54
Profit for the year 4,729
4. Earnings per share
Six months Six months
to 31 to 31
December December Year ended
2011 2010 30 June
(unaudited) (unaudited) 2011
(audited)
GBP'000 GBP'000 GBP'000
(Loss)/Profit for the period (2,160) 585 4,729
(Loss)/Profit for the period attributable to (2,160) 585 4,729
equity shareholders
Basic (loss)/earnings per share (pence) (0.65) 0.18 1.43
Diluted (loss)/earnings per share (pence) (0.65) 0.18 1.42
Shares Shares Shares
Issued ordinary shares at start of the period 331,250,000 330,250,000 330,250,000
Net movement in ordinary shares in the period (300,000) 400,000 1,000,000
Issued ordinary shares at end of the period 330,950,000 330,650,000 331,250,000
Weighted average number of shares in issue 331,350,000 330,450,000 330,700,000
Dilutive effect of options 4,397,119 2,074,559 2,570,209
Diluted weighted average shares 335,747,119 332,524,559 333,270,209
5. Non-current financial assets at fair value through profit or loss
Equity
investments
GBP'000
At 1 July 2010 47,813
Additions 12,294
Net gain on investments at fair
value (1,808)
Disposals (36,524)
At 1 July 2011 21,775
Additions 1,049
Net gain on investments at fair
value -
At 31 December 2011 22,824
Additions are primarily investment in Maxifier Limited.
The prior period additions and disposal primarily relate to the new
investment in ITWP Acquisitions Limited following the Scheme of Arrangement
relating to ToLuna plc.
6. Company Balance Sheet
At 31 At 31 At 30
December December June
2011 2010 2011
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Fixed assets
Tangible assets 8 12 12
Investments 35,824 57,687 31,275
35,832 57,699 31,287
Current assets
Debtors 2,812 235 2,604
Investments 16,651 3,784 15,051
Cash at bank and in hand 288 731 20,683
19,751 4,750 38,338
Creditors: amounts falling due within
one year (602) (99) (3,980)
Net current assets 19,149 4,651 34,358
Net assets 54,981 62,350 65,645
Capital and reserves
Called up share capital 3,314 3,308 3,314
Share premium account 169 45 135
Capital redemption reserve 4,438 4,432 4,432
Other reserve 100 100 100
Profit and loss account 46,960 54,465 57,664
Shareholders' funds 54,981 62,350 65,645
7. Dividends
On 28 October 2011, through a Return of Cash scheme, the Company returned
GBP13,262,000 (4 pence per share) to its shareholders via D share dividend.
8. Further information
Copies of the interim results for the six months ended 31 December
2011 will shortly available from the Company's website www.eurovestech.com.
The directors are responsible for the maintenance and integrity of the group's
website on the internet. However information is accessible in many different
countries where legislation governing the preparation and dissemination of
financial information may differ to that applicable to the United Kingdom.
9. Forward-looking statements
Certain statements in these interim results are forward-looking.
Although the group believes that the expectations reflected in these
forward-looking statements are reasonable, we can give no assurance that these
expectations will prove to have been correct. Because these statements involve
risks and uncertainties, actual results may differ materially from those
expressed or implied by those forward-looking statements.
We undertake no obligation to update any forward-looking statements
whether as a result of new information, future events or otherwise.
END
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