TIDMIGP
RNS Number : 0375F
Intercede Group PLC
11 June 2012
INTERCEDE GROUP plc
Preliminary Results for the Year Ended 31 March 2012
Intercede, one of the world's leading digital identity software
providers, today announces its preliminary results for the year
ended 31 March 2012.
SUMMARY
- Continued robust financial performance:
-- Sales revenues increased from GBP6.9m to GBP7.0m
-- Profit before tax of GBP0.9m (2011: GBP2.0m)
-- Fully diluted EPS 1.4p (2011: 4.1p)
-- Increased cash balances of GBP7.0m at 31 March 2012 (2011: GBP6.0m)
- New customer accounts contributed 21% of total sales with the
number of user licences issued rising to over 5 million.
- Sales in North America have grown strongly as a result of
several big wins to contribute over 64% of total sales.
- Significant development of technology to manage virtual
identity credentials and security of mobile devices.
- Collaboration on multiple tender responses for large scale US Federal identity programs.
- Implementations at a broad range of global customers including
ANZ Bank, Booz Allen Hamilton, BASF, Boeing, HealthSmart Australia,
Lockheed Martin and Swedbank.
- Increasing managed service/Software as a Service (SaaS)
activity; revenues in excess of GBP0.5m.
- Additional office space and staff recruitment in the UK and US
to support next phase of growth.
Richard Parris, Chairman & Chief Executive of Intercede,
said today:
"There is an increasingly irresistible case for believing that
the digital identity market is rapidly moving to mass adoption. For
an organisation to fully exploit this opportunity, it needs to have
developed a suitably robust technology platform, entrenched itself
in the market and scaled up its infrastructure. Intercede has spent
many years achieving the first two of these and I'm pleased to
report that we have made significant progress towards achieving the
third. The investment we have made this year in our sales and
delivery capability gives us a real competitive advantage.
Our pipeline of commercial opportunities continues to grow as we
seek to deepen our penetration of the markets where Intercede's
MyID digital identity technology has become an industry standard.
There are also a number of new technology-led trends which provide
additional opportunities for Intercede; for example mobile device
security and the deployment of digital patient identities in
healthcare. The outlook is therefore extremely positive."
About Intercede
Intercede(TM) is a security software provider whose MyID(R)
identity management platform enables global organisations and
governments to create trusted digital identities for employees and
citizens on secure devices such as smartcards, smartphones and
tablets. MyID(R) enables the protection of IP, assets, and digital
content, delivering trusted digital identities as the cornerstone
of cyber security strategies for government, defence, financial
services and other industries.
The Company operates in global markets (including the US, Europe
and Middle East) and works with large international partners
including BT, Gemalto, HP, Microsoft, Oberthur, SafeNet, Symantec
and Thales to deliver flexible digital identity solutions that are
interoperable with other existing technologies and which are
tailored to customer needs.
Corporations such as Boeing, Booz Allen Hamilton and Lockheed
Martin, and governments including the USA, UK and Kuwait, trust
Intercede's deep expertise to deliver effective solutions. The
Company's technology achievements reflect an investment of 300 plus
man years of development, exemplary speed of deployment and
adherence to international standards including FIPS 201, where
MyID(R) was the first electronic personalisation product to obtain
GSA approval. This trust is reflected in Intercede's rate of repeat
business with its customers, which typically runs at 70-80% of
annual revenues.
Intercede has been developing ID management systems since 1992
and MyID(R) is currently deployed by end customers located in 24
countries. The company is headquartered in the UK, listed on the
London Stock Exchange (AIM: IGP) and is ISO 9001 and TickIT
certified.
For more information visit http://www.intercede.com
ENQUIRIES
Intercede Group plc Tel. +44 (0)1455 558111
Richard Parris, Chairman & Chief
Executive
Andrew Walker, Finance Director
FinnCap Tel. + 44 (0)20 7600 1658
Sarah Wharry/Rose Herbert, Corporate
Finance
Joanna Weaving, Corporate Broking
Pelham Bell Pottinger Tel. +44 (0)20 7861 3112
Archie Berens
Chairman's Statement
Financial and Operational Highlights
Significant progress has been made this year in building a
platform for a step change in performance as the market for
identity management moves towards mass adoption. Highlights
include:
-- Continued robust financial performance
- Sales revenues increased from GBP6.9m to GBP7.0m
- Profit before tax of GBP0.9m (2011: GBP2.0m)
- Fully diluted EPS 1.4p (2011: 4.1p)
- Cash balances of GBP7.0m at 31 March 2012 (2011: GBP6.0m)
-- Over 5 million licences issued to users of identity credentials.
-- Large scale corporate identity card projects continued with
implementations for global customers including: ANZ Bank, Booz
Allen Hamilton, BASF, Boeing, HealthSmart Australia, Lockheed
Martin and Swedbank.
-- Large scale border security project with a US partner;
initial revenues in excess of GBP0.6m.
-- Services to support major MyID system upgrades in US Federal
Aviation Authority, Kuwait Public Authority for Civil Information,
Road Safety Authority Ireland.
-- MyID and Software as a Service (SaaS) sales to support a
North American managed service organisation and the securing of
three other SaaS customers. Recognised revenue in the period
exceeds GBP0.5m.
-- Success with major systems integrators, collaborating on
multiple tender responses for large scale US Federal identity
programs requiring Personal-Identity-Verification (PIV) and
PIV-Interoperable (PIV-I) solutions. Revenues are expected from
this investment in the next period.
-- Technology developments
- Over-the-air (OTA) provisioning of digital certificates to mobile devices.
- MyID extension to manage virtual identity credentials on
Trusted Platform Modules (TPM) in anticipation of the forthcoming
release of Windows 8.
- Near Field Communications (NFC) technology to support the use
of mobile devices featuring NFC for personal identity
verification.
- MyID improvements including the release of MyID v8 Enterprise
SP2 and MyID v9 PIV Service Pack.
-- International Standards: ISO 9001 and TickIT certification announced on 14 September 2011.
-- Business expansion: additional office space and staff
recruitment in the UK and US to support the next phase of
Intercede's growth.
Results
In the year ended 31 March 2012, revenue increased by 1.3% from
GBP6,872,000 to GBP6,964,000 at a gross margin of 98.4%.
Good progress has been made growing our sales and delivery
capabilities. North American sales have increased to GBP4,450,000
(2011: GBP3,965,000) and Intercede has expanded its office in
Reston, Virginia, to support further growth.
The operating profit for the period was GBP829,000 which
compares to GBP1,952,000 in the previous year. As at 31 March 2012,
the Group had cash balances of GBP6,968,000; an increase of
GBP922,000 from 2011.
During the year Intercede delivered a profit before tax of
GBP910,000 (2011: GBP2,005,000), reflecting the fourth consecutive
full year of profitability. The reduced profit is, as previously
indicated, due to increased investment in our infrastructure,
technology development and sales capacity.
Intercede has invested in supporting strategic partnerships in
North America and in the Germany, Austria, Switzerland region of
continental Europe.
Key Performance Indicators
-- The level of exports has further increased to 89% (2011: 80%).
-- Within that, the proportion of revenue attributable to North
American customers has continued to grow from 58% to 64%. This is
important because it both fuels and justifies our ongoing
investment in this major market.
-- The level of repeat business with existing customers remains
high at 79% (2011: 73%) which reflects the level of trust placed in
MyID as a critical component of their IT security
infrastructure.
-- Against a backdrop where government spending continues to be
subject to an increased level of scrutiny, the level of private
sector customers has further increased from 48% to 52% year on
year.
Product Development
In response to complex cyber and physical security threats, the
US Federal Identity Credential and Access Management (ICAM)
initiative is demanding greater reliance on
Personal-Identity-Verification (PIV) credentials. In the previous
year this has driven the development of new core capabilities
within the MyID platform.
The adoption by the private sector of digital identities that
either interoperate or are compatible with US government PIV
standards has gained market traction. This has resulted in the
development of PIV-Interoperable (PIV-I) and
Commercial-Identity-Verification (CIV) products and services that
are derivative of MyID's core PIV functionality.
The international market for national identity cards and
identity provider credentials requires ongoing development work to
accommodate diverse standards and a high degree of country specific
integration. Intercede continues to develop the MyID platform to
ensure it remains scalable and appropriate for large national
deployments building on its experience in Kuwait and the UK.
Intercede's MyID product suite is undergoing extensive
development to support new form factors such as smart phones and
tablet computers for both business and consumer applications.
The Board continues to support ongoing investment in existing
and new product capability to maximise the potential of market
leadership and to ensure Intercede is best placed for future
exploitation.
Strategy
The Group's 2011-12 Business Goals were as follows:
-- Invest in sales and marketing.
-- Grow UK revenues by participating in the UK Government's
recently announced Identity Assurance (IDA) programme.
-- Exploit the growing PIV-I market in the US in partnership
with major US systems integrators and aerospace and defence
contractors.
-- Further collaboration with Microsoft.
-- Establish Intercede MyID as a platform for issuing
trustworthy identities on mobile devices.
-- Expand our ecosystem through strategic partnerships including selective investments.
-- Secure participation in additional large scale national identity card projects.
-- Develop the value of the Intercede MyID brand through
participation in industry conferences, standards groups and the use
of new media in order to extend the influence and reach of our
sales channels.
Intercede has delivered against these objectives with solid
progress:
-- A sales director has been appointed and additional sales
staff have been recruited. The website has been re-launched
(www.intercede.com) and Racepoint, an international
technology-focused PR firm, has been hired to extend the reach of
our marketing activities.
-- Intercede has been actively engaged with the UK Cabinet
Office in the IDA consultation programme. Intercede also met the
Prime Minister's Business and Defence advisors in the No 10 Policy
Unit to discuss the Government's support of technology SMEs and
Intercede's success as a UK software exporter. The Company has
fully engaged with the Department for Business Innovation &
Skills and Intercede's growth opportunities were recently reviewed
with Lord Green, the Minister of State for Trade and Industry.
-- As the PIV market has moved out of the US Federal Government
into the private sector, the market for PIV-Interoperable
credentials delivered by SaaS has emerged. Intercede has teamed
with a number of new entrants to this market.
-- Intercede has developed a solution to manage virtual smart
cards in a Windows 8 environment.
-- Intercede has also developed an OTA solution for issuing
identity credentials to secure elements in smart phones in
partnership with a number of major mobile security companies.
-- A number of strategic alliances in emerging markets and
technology areas have been initiated, exemplified by the
announcement of a partnership with HP.
-- Intercede is participating in US state and local verified
identity programs and is also awaiting the outcome of a number of
national ID card bids through partners.
-- Intercede's profile continues to grow through participation
in a number of industry conferences and standards groups. In
February 2012, a trade reception was hosted by Intercede at the
British Consulate in San Francisco and attracted more than 80
attendees, including several CEOs and Presidents from some of
Silicon Valley's most influential digital security companies. Our
active participation in the Transglobal Secure Collaboration
Program is proving to be particularly helpful in influencing
customers within the Aerospace & Defence sector. Our attendance
at industry events can now be followed on Twitter at
@intercedemyid.
The Group's 2012-13 Business Strategy is as follows:
-- Corporate development
- Continue to invest in sales and marketing in order to increase the pipeline of opportunities.
- Position MyID as the convergence platform of choice for the
next generation of physical access control systems (PACS) as an
extension of our support of ICAM.
- Be the partner of choice for provisioning digital identities to mobile devices.
- Invest in intellectual property protection.
-- Product and innovation
- Exploitation of existing MyID product in maturing markets.
- Development of new product to target the mobile device market.
- Development of a SaaS model and the positioning of MyID as a
core technology to sell to third party SaaS providers supporting
the PIV-I and CIV markets.
- Close alignment with the release of Microsoft Windows 8.
-- Regional sales growth
- Emphasis on US market.
- Build stronger collaborations with resale and OEM partners.
- Develop sales channels to service Latin America.
Intellectual Property
Intercede continues to invest to protect its intellectual
property and trademarks. During the year a number of additional
patent applications have been filed in our key markets.
Intercede has worked with legal counsel in both Europe and the
United States to protect our registered MyID trademark. This
continues to be an expensive process; however Intercede considers
that the MyID trademark has significant commercial value.
Vision and Outlook
Intercede currently has more than 5 million digital identities
actively managed by MyID. Intercede's Vision is to have more than
100 million identities under management by its MyID software by
2020. This Vision anticipates that the 20-fold increase in volume
will yield a 10-fold increase in revenue and a doubling in the cost
base. This is a very attractive business model. On the basis of
this, Intercede is planning additional investment in the next 12
months to ensure the Company is best placed to exploit this
opportunity and to maximise the medium and long term returns to
shareholders.
The validity of this Vision is reinforced by a new White House
Report that was published on 23 May 2012 "Digital Government:
Building a 21(st) Century Platform to Better Serve the American
People". The report addresses mobility and getting government
information to the public via mobile devices. The strategy focuses
on three objectives:
-- Enable citizens and the growing mobile workforce to access
high-quality digital government information and services anywhere,
anytime, on any device.
-- Institute an information-centric model for interoperability
and openness to deliver better digital government services at a
lower cost.
-- Update and implement policies to buy and manage devices,
applications and data in smart, secure and affordable ways.
According to written analyses, the plan highlights the
importance of agencies being open and interoperable by asking them
to develop IT infrastructures and adopt technologies that will
empower the practice of access anywhere, anytime, on any device. It
places a premium on "secure" - with the phrase attached to nearly
every activity - and acknowledges that the goal of openness may
compete with the need for security.
The plan gives the departments of Defense and Homeland Security
and the National Institute of Standards and Technology (with whose
standards Intercede complies) responsibility for developing
standards for expanding the secure use of mobile and wireless
devices within one year.
Secure digital identities for both Federal employees and US
citizens are critical to this call for action by the White House
and its enactment will stimulate a large market for the Intercede
MyID product line.
In 2012-2013, Intercede will focus on two core drivers of
business growth as a foundation for realising its 2020 Vision:
-- Deepening our penetration of existing markets, where MyID has
already been particularly applicable; and
-- Tapping into new technology-led trends where growth opportunities are developing.
Deepening our penetration of existing markets
-- PIV smartcards
- Intercede is emerging as the dominant supplier in the PIV
smartcard market in the Federal and corporate space. As existing
PIV contracts are rebid and new contract opportunities emerge,
Intercede will compete on the basis of technical excellence,
life-time value for money and reference sites.
- Framework contracts are in place with a US service provider to
meet an emerging opportunity for first responder and citizen
benefit smartcards in West Virginia. If successful it is
anticipated other states will follow the same model.
- Discussions are in progress to supply MyID to a number of
leading additional aerospace and defence companies.
- Intercede is seeking to expand the number of licences issued
under recent border security and national identity projects.
-- Software as a Service (SaaS)
- Several managed service organizations have built PIV-I SaaS
solutions based on MyID, potentially providing Intercede with
significant long term revenue streams. One service is in
production, the others will go public in the next few months.
- Together with partners Deep-Secure and adept4, we launched the
world's first secure email service based on TSCP specification
(TSCP is the Transglobal Secure Collaboration Program, a
co-operative forum of leading aerospace and defence companies and
government agencies working together to develop an open standards
based security framework).
Harnessing new technology opportunities and trends
-- Government as a catalyst for creating a market for identity provision to citizens
- Intercede is participating in a consortium of leading US
companies, trade organisations and service providers in bidding for
a share of grant funding from the National Program Office for the
National Strategy for Trusted Identities in Cyberspace (NSTIC). If
successful, the consortium will build a pilot infrastructure to
demonstrate the governance, security and privacy requirements of
digital identities in support of the world's leading consumer
economy.
- In the UK, we are participating in a consortium bidding to win
the first contract under the HMG Identity Assurance Program to
supply up to 22m secure digital identities for citizens claiming
Universal Credit from the Department of Work and Pensions. Whatever
the outcome, other opportunities are expected to follow.
-- US healthcare sector
- As the sector undergoes structural reform resulting from
President Obama's 'Patient Protection and Affordable Care Act',
Intercede is working with healthcare organisations to ensure a
share of the digital identity market that will emerge.
-- Mobile device security
- Two recent developments are likely to provide a significant
market opportunity for Intercede to license MyID to manufacturers,
service providers and end users:
1) The impending release by Microsoft of its Windows 8 operating
system will introduce support for virtual smartcards on the Trusted
Platform Modules (TPM) already embedded in the motherboards of most
laptops and PCs. This will enable any new Windows platform to
operate at the same level of security as if it had a smart card
physically inserted. Each virtual smart card can be issued and
managed by MyID.
2) ARM Holdings, together with Intercede's existing partners,
Gemalto and Giesecke & Devrient, announced their intention to
form a new company to develop a Trusted Execution Environment (TEE)
for smart connected devices. This will allow Global Platform
standards to be used to inject secure identities into the next
generation of smartphones.
- In most cases there will be a need for the TPM or TEE to be
bound to the trusted electronic identity of the user. Intercede
intends to ensure MyID can be used to manage digital identities
within the TPM or TEE environment.
-- Bring Your Own Device (BYOD)
- As the market opportunity to enable employee owned mobile
devices to be used for business purposes becomes mainstream, we are
making significant investment in the MyID platform to enable the
secure provision of identities and credentials to BYOD devices. New
partnerships will be announced shortly.
-- The Internet of Things
- Making significant investment in the MyID platform to extend
the secure provisioning of identities from people to any
internet-connected, real or virtual entity. This provides the
potential to use MyID to manage tens of billions of people and
items.
In summary, our pipeline of commercial opportunities continues
to grow as we seek to deepen the penetration of markets where
Intercede's MyID product has become an industry standard. There are
also a number of new technology-led trends which provide additional
opportunities for Intercede. The outlook is therefore extremely
positive.
Richard Parris
Chairman & Chief Executive
Business and Finance Review
Introduction
The Group has embarked upon a period of substantial investment
in order to be able to take full advantage of the opportunities it
has created for itself. This is considered to be appropriate,
notwithstanding a backdrop of challenging trading conditions, as
the scale of the potential market for our MyID technology continues
to grow and new related markets are emerging.
Business Development
The Group's overall objective is to put in place the platform
and processes to accelerate revenue growth fuelled by increasing
investment in new markets and new partners. A number of
opportunities are opening up as a result of the progress made to
date. The challenge is how to obtain the resources required for
expansion into areas such as mobile, whilst continuing to develop
the core MyID digital identity technology in conjunction with
existing and potential new partners.
The Group had 70 employees and contractors as at 31 March 2012,
which represents a substantial increase in experience and expertise
over the past two to three years, a time during which we have
established a major US and European presence. Selective investment
has also increased across a variety of other areas during the same
period, for example;
-- Sales and marketing including participation in trade
exhibitions/conferences and membership of industry bodies such as
Intellect and the Transglobal Secure Collaboration Program;
-- Partner development and support;
-- Technical and product development;
-- Quality management processes; and
-- Office and IT infrastructure and equipment;
The Group entered 2012/13 with a larger order book and pipeline
than ever before. Whilst experience tells us that project delays
can and will happen for a variety of reasons, we remain focused on
the action we can take to ensure that we are best placed to deal
with any changes to project timings.
Financial Results
Revenue for the year ended 31 March 2012 was GBP6,964,000 (2011:
GBP6,872,000) with no one project representing more than 15% of
total revenue (2011: 22%). Over the last three years, exports have
increased from 56% to 89% of total revenue.
Whilst gross profit margins remain high, the increase in costs
resulting from the selective investment in additional resources
outlined above has resulted in a reduction in operating profit from
GBP1,952,000 to GBP829,000. Staff costs continue to represent the
main area of expense, representing 77% of total operating costs
(2011: 81%). Intercede had 70 employees and contractors as at 31
March 2012 (2011: 64). The average number of employees and
contractors increased from 58 to 68 year on year.
Expenditure on research and development (R&D) activities
totalled GBP2,071,000 (2011: GBP1,601,000). In accordance with
International Financial Reporting Standards, the Board has
continued to determine that all internal R&D costs incurred in
the year are expensed. No development expenditure has been
capitalised as at 31 March 2012 (2011: GBPnil).
Finance income for the year was GBP81,000 (2011: GBP53,000) as
the Group has continued to generate cash and increase the level of
interest bearing short term deposits despite increased levels of
investment.
A GBP233,000 taxation charge for the period (2011: GBP7,000)
primarily reflects the de-recognition of the deferred tax asset
that had previously been recognised in respect of prior year
trading losses as it is considered less probable that those losses
will be utilised within the foreseeable future. Whilst the Group
has been profitable for four consecutive years, it is a beneficiary
of the UK Government's efforts to encourage innovation by allowing
100% (2011: 75%) of qualifying R&D expenditure to be offset
against taxable profits. Given the increased level of R&D
expenditure outlined above, this has resulted in the current period
being converted from a taxable profit to a taxable loss.
Against the backdrop of a further increase in the R&D tax
credit to 125% with effect from 1 April 2012 and the introduction
of the patent box regime (which provides for a reduction of
corporation tax on profits from patented inventions), the Group has
GBP4,091,000 (2011: GBP3,168,000) of prior year tax losses
available for carry forward.
A profit for the year of GBP677,000 (2011: GBP1,998,000)
resulted in a basic and fully diluted earnings per share of 1.4p
(2011: 4.1p).
Funding
As at 31 March 2012, the Group had cash balances totaling
GBP6,968,000 (2011: GBP6,046,000). The increase in cash balances
principally reflects a GBP909,000 inflow from operating activities
(2011: GBP1,415,000).
The Group has no debt and, following the Capital Reduction which
was registered by the Registrar of Companies on 30 October 2010, is
in a position to commence the payment of dividends as and when the
Board considers this to be appropriate.
Summary
The Group has delivered another robust trading and financial
performance. As a result we enter the new financial year with GBP7m
of cash available to fuel our accelerated growth plans.
Andrew Walker
Finance Director
INTERCEDE GROUP plc
Consolidated Statement of Comprehensive Income for the year
ended 31 March 2012
Notes 2012 2011
GBP'000 GBP'000
Continuing operations
Revenue 2 6,964 6,872
Cost of sales (112) (22)
__________ __________
Gross profit 6,852 6,850
Administrative expenses (6,023) (4,898)
__________ __________
Operating profit 829 1,952
Finance income 81 53
__________ __________
Profit before tax 910 2,005
Taxation 3 (233) (7)
__________ __________
Profit for the year 677 1,998
__________ __________
Total comprehensive income attributable
to owners of the company 677 1,998
Earnings per share (pence) 4
- basic 1.4p 4.1p
- diluted 1.4p 4.1p
__________ __________
There is no other comprehensive income for the year.
The accompanying notes are an integral part of these financial
statements.
INTERCEDE GROUP plc
Consolidated Balance Sheet at 31 March 2012
Notes 2012 2011
GBP'000 GBP'000
Non-current assets
Property, plant and
equipment 183 167
Deferred tax 3 - 280
__________ __________
183 447
__________ __________
Current assets
Trade and other receivables 1,311 841
Cash and cash equivalents 6,968 6,046
__________ __________
8,279 6,887
__________ __________
Total assets 8,462 7,334
__________ __________
Equity
Share capital 6 484 484
Share premium account 110 86
Other reserves 1,508 1,508
Retained earnings 3,930 3,113
__________ __________
Total equity 6,032 5,191
__________ __________
Current liabilities
Trade and other payables 910 790
Deferred revenue 1,520 1,353
__________ __________
2,430 2,143
__________ __________
Total equity and liabilities 8,462 7,334
__________ __________
The accompanying notes are an integral part of these financial
statements.
INTERCEDE GROUP plc
Consolidated Statement of Changes in Equity for the year ended
31 March 2012
Share Share Other Retained Total
capital premium reserves earnings
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 31 March 2010 4,413 4,718 1,508 (7,497) 3,142
Capital reduction (note
6) (3,931) (4,718) - 8,649 -
Issue of shares, net of
costs (note 6) 2 86 - - 88
Purchase of treasury shares
(note 6) - - - (37) (37)
Total comprehensive income - - - 1,998 1,998
_______ ________ ________ ________ _______
At 31 March 2011 484 86 1,508 3,113 5,191
Issue of shares, net of
costs (note 6) - 24 - - 24
Employee share option scheme
charge - - - 140 140
Total comprehensive income - - - 677 677
_______ ________ ________ _______ _______
At 31 March 2012 484 110 1,508 3,930 6,032
________ ________ ________ _______ _______
The accompanying notes are an integral part of these financial
statements.
INTERCEDE GROUP plc
Consolidated Cash Flow Statement for the year ended 31 March
2012
2012 2011
GBP'000 GBP'000
Cash flows from operating activities
Operating profit 829 1,952
Depreciation 67 51
Employee share option scheme charge 140 -
(Increase)/decrease in trade and
other receivables (461) 116
Increase/(decrease) in trade and
other payables 287 (697)
__________ __________
Cash generated from operations 862 1,422
Taxation 47 (7)
__________ __________
Net cash generated from operating
activities 909 1,415
__________ __________
Investing activities
Interest received 73 50
Purchases of property, plant and
equipment (84) (134)
__________ __________
Net cash from investing activities (11) (84)
__________ __________
Financing activities
Proceeds on issue of shares 24 88
Purchase of treasury shares - (37)
__________ __________
Net cash from financing activities 24 51
__________ __________
Net increase in cash and cash equivalents 922 1,382
Cash and cash equivalents at the
beginning of the year 6,046 4,664
__________ __________
Cash and cash equivalents at the
end of the year 6,968 6,046
__________ __________
The accompanying notes are an integral part of these financial
statements.
INTERCEDE GROUP plc
Preliminary Results for the Year Ended 31 March 2012
NOTES
1. The financial information set out in this announcement does
not constitute the Group's Statutory Accounts for the years ended
31 March 2011 or 2012, but is derived from those accounts.
Statutory Accounts for 2011 have been delivered to the Registrar of
Companies and those for 2012, which have been approved by the Board
of Directors, will be delivered following the Group's Annual
General Meeting. The Company's auditors have reported on those
accounts; their reports were unqualified and did not contain
statements under Section 498 of the Companies Act 2006.
The Annual General Meeting of the Company will be held at 11.00
am on Wednesday 26 September 2012 at Lutterworth Hall. Copies of
the full Statutory Accounts will be despatched to shareholders in
due course. Copies will also be available on the website
(www.intercede.com) and from the registered office of the Company:
Lutterworth Hall, St. Mary's Road, Lutterworth, Leicestershire,
LE17 4PS.
2. SEGMENTAL REPORTING
All of the Group's revenue, operating profits and net assets
originate from operations in the United Kingdom. The Directors
consider that the activities of the Group constitute a single
business segment. The split of revenue by geographical destination
of the end customer can be analysed as follows:
2012 2011
GBP'000 GBP'000
UK 779 1,369
Rest of Europe 814 928
North America 4,450 3,965
Rest of World 921 610
__________ _________
6,964 6,872
__________ _________
3. TAXATION
The tax charge comprises:
2012 2011
GBP'000 GBP'000
Current year - UK corporation tax - -
Current year - UK deferred tax (280) -
Current year - US corporation tax (12) (7)
Prior year - US corporation tax (11) -
Research and Development tax credits
relating to prior years 70 -
__________ _________
(233) (7)
__________ _________
The deferred tax asset that had previously been recognised in
respect of prior year trading losses has been de-recognised as the
combined effect of increased expenditure on research and
development and an increase in the level of R&D tax credits
claimable serves to make it less probable that those losses will be
utilised within the foreseeable future. The Group has unused tax
losses of GBP4,091,000 (2011: GBP3,168,000) and unrecognised
deferred tax assets of GBP982,000 calculated at the UK corporation
tax rate of 24% that came into effect from 1 April 2012 (2011:
GBP544,000 calculated at the previous UK corporation tax rate of
26%).
4. EARNINGS PER ORDINARY SHARE
The calculations of earnings per ordinary share are based on the
profit for the financial year and the weighted average number of
ordinary shares in issue during each year.
2012 2011
GBP'000 GBP'000
Profit for the year 677 1,998
__________ _________
Number Number
Weighted average number of shares -
basic 48,367,939 48,239,997
- diluted 49,662,277 48,735,005
__________ __________
Pence Pence
Earnings per share - basic 1.4 4.1
- diluted 1.4 4.1
__________ __________
The increase in the weighted average number of shares used for
the calculation of diluted earnings per share reflects the grant of
share options to directors and senior managers during July, August
and December 2011.
5. DIVIDEND
The Directors do not recommend the payment of a dividend.
6. SHARE CAPITAL
2012 2011
GBP'000 GBP'000
Authorised
481,861,616 ordinary shares of 1p each
(2011: 481,861,616) 4,819 4,819
__________ __________
Issued and fully paid
48,428,005 ordinary shares of 1p each
(2011: 48,365,005) 484 484
___________ __________
On 24 September 2010, shareholder approval was obtained at a
General Meeting of the Company to cancel the share premium account
and to cancel and extinguish the deferred shares. This Capital
Reduction was registered by the Registrar of Companies on 30
October 2010.
On 30 November 2010, certain employees and a Director of the
Company exercised options over a total of 187,000 ordinary shares
at an exercise price of 47p per share. On 3 December 2010, the
Company subsequently purchased 57,975 of these shares at a price of
63.06p per share. The shares purchased, none of which relate to
options exercised by a Director, are held as treasury shares.
On 14 March 2012, certain employees exercised options over a
total of 63,000 ordinary shares at an exercise price of 40.5p per
share.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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