TIDMIGP
RNS Number : 8810I
Intercede Group PLC
05 June 2014
5 June 2014
INTERCEDE GROUP plc
Preliminary Results for the Year Ended 31 March 2014
Intercede, a leading provider of identity and credential
management software, today announces its preliminary results for
the year ended 31 March 2014.
Against the backdrop of an aggressive investment plan, and a
target of remaining EBITDA positive for the year, Intercede has
returned to profit at all levels and reported a record year end
cash balance:
-- Sales revenues up 45% to GBP9.8m (2013: GBP6.7m).
-- Operating expenses increased to GBP9.4m (2013: GBP7.5m)
reflecting planned investment in infrastructure, technology
development and sales capacity.
-- Headcount increased to 105 at 31 March 2014 (2013: 80).
-- Profit for the year of GBP0.8m (2013: loss of GBP0.6m).
-- Earnings per share 1.6p (2013: loss per share 1.2p).
-- Cash balances of GBP7.2m remain strong at 31 March 2014 (2013: GBP6.8m).
-- The Group has no debt.
-- Significant contract wins include a large-scale US government
security programme, major US & European aerospace & defence
contractors and major North American & German telcos.
-- Technology developments include the MyID Identity Agent which
enables the delivery of digital identities to the secure element of
mobile devices and the MyID Mobile Identity Software Development
Kit which enables developers to make use of credentials within
apps.
Richard Parris, Chairman & Chief Executive of Intercede,
said today:
"Intercede has achieved many key milestones during the past
year, with record sales ahead of expectations and a return to
profitability. More importantly, we have continued to strengthen
our market position, with significant contract wins in the key
government, aerospace & defence and telecoms sectors. Our
customer base now includes four of the top six worldwide aerospace
& defence companies and we are also working on a large scale US
government security programme. These will provide a stable base of
revenue, with additional scope to grow as we win similar such
contracts."
"And, as we report a record year for the Company, it is the
newer cyber security market that is increasingly providing larger
opportunities for growth. The trends we are seeing here suggest the
market is on the edge of potentially explosive growth: the
traditional password becoming obsolete, the proliferation of mobile
devices to conduct more and more daily lifestyle functions and the
increasing number of business services being conducted online. All
require highly sophisticated forms of trusted identity, the
cornerstone of cyber security, and this is an area in which
Intercede is a leading provider"
"With this in mind, we will continue to invest in the necessary
corporate infrastructure to provide us with the scale and critical
mass to take advantage of these trends. We are confident that a
considered programme of investment is the correct direction for the
Company to take. It is against a backdrop of strong revenue growth
and a market with the potential to grow exponentially that the
Board executes its long-term growth strategy and has continued
confidence it will create significant shareholder value."
About Intercede
Intercede is a software company specialising in identity and
credential management with a global team of experts located in the
US and UK.
Intercede's MyID identity and credential management software
enables organisations to create and use trusted digital identities
for employees, citizens and machines. This allows secure access to
services, facilities, information and networks.
MyID meets the highest government standards yet is simple enough
to be deployed onto consumer devices such as smart phones and
tablets. Critically, MyID provides an easy, convenient and secure
alternative to passwords.
Millions of identities are managed using MyID and Intercede has
provided identity verification and management services to global
customers for more than 20 years. MyID is a commercial off the
shelf software product, designed and developed to be configurable
so it can be embedded as the cornerstone of cyber security
infrastructure for governments and corporations.
Customers trusting Intercede for secure digital identity include
the US and UK governments and some of the world's largest
corporations, telecommunications providers and information
technology partners.
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
Lorraine Homer, Communications
Director
FinnCap Tel. + 44 (0)20 7220 0500
Stuart Andrews, Corporate Finance
Joanna Weaving, Corporate Broking
Pelham Bell Pottinger Tel. +44 (0) 7802 442486
Archie Berens
Chairman's Statement
The Year Reviewed
Intercede has achieved many key milestones during the past year.
Following a strong end to the year, sales reached a record level of
almost GBP10m, staff levels reached 100 and the number of
identities under management using MyID is now approaching 10
million. Against the backdrop of an aggressive investment plan to
take full advantage of the future market opportunity and a target
of remaining EBITDA positive for the year, Intercede returned to
profit at all levels with a profit for the year of GBP0.8m and a
record year end cash balance of GBP7.2m.
Intercede has continued to increase its penetration into the
global market for its solutions. The customer base now includes
four of the top six worldwide aerospace & defence companies and
government contracts included the award of our largest PIV
(Personal Identity Verification) project to date - a large-scale US
government transportation security programme.
The strength of Intercede's core MyID software platform has
given us a market leading position in government and aerospace
& defence sectors and increasing penetration into other
high-security sectors. The contract wins during the year further
strengthen our position and are contributing to an increasingly
buoyant and consistent revenue stream. Perhaps most importantly,
the critical nature of these deployments provides a robust proving
ground for MyID and points to future revenue opportunities.
The early adopting lead sectors for identity and credential
management solutions require the highest levels of security but
they also provide an excellent indicator of growing demand in the
wider market. The global backdrop is one of increased recognition
of the importance of cyber security strategies and the continued
and well-publicised failures of traditional password-based
authentication systems.
To meet this demand, Intercede has continued to invest heavily
in research and development and, in particular, to position the
Company to exploit the growing mobile digital identity market. We
see the potential for explosive growth in this sector over the next
five years - growth that will help us to meet our 2020 target of
100 million identities under management - and that investment is
already producing results. During the year we signed flagship
mobile identity contracts with two telecommunications companies
including a project with TELUS, the Canadian telecommunications
operator. The strength and potential of Intercede's technology and
the value of our partner ecosystem was reinforced as we exhibited
alongside the likes of Samsung and ARM at Mobile World Congress and
Microsoft at RSA.
Performance
Sales revenues for the year ended 31 March 2014 were almost
GBP10 million; ahead of expectations and substantially higher than
the prior year. The Company has returned to profitability and has a
record year end cash balance.
Results and Financial Headlines:
- Sales revenues up 45% to GBP9.8m (2013: GBP6.7m).
- Operating expenses increased to GBP9.4m (2013: GBP7.5m)
reflecting planned investment in infrastructure, technology
development and sales capacity.
- Headcount increased to 105 at 31 March 2014 (2013: 80).
- Profit for the year of GBP0.8m (2013: loss of GBP0.6m).
- Earnings per share 1.6p (2013: loss per share 1.2p).
- Cash balances of GBP7.2m remain strong at 31 March 2014 (2013: GBP6.8m).
- The Group has no debt.
Customer and Partner Developments:
- Large scale US government transportation security programme.
- Exhibited MyID technology alongside Samsung, ARM, Trustonic,
G&D and GSMA at Mobile World Congress.
- Demonstrated virtual smart card technology at RSA alongside Microsoft.
- Gained membership of The FIDO Alliance.
- Signed flagship mobile identity contracts with two
telecommunications companies, proving the use cases of MyID for
mobile. This includes a joint Intercede/Gemalto/TELUS project, with
TELUS employees accessing secure buildings and networks with NFC
smartphones powered by MyID.
- MyID virtual smart card solution for HP ElitePads delivered to a UK government customer.
Technology Developments:
- Development of MyID Identity Agent which enables the delivery
of digital identities to the secure element of mobile devices, for
example the Trusted Execution Environment (TEE) or UICC
(next-generation SIM) or Trusted Platform Module (TPM).
- MyID Mobile Identity Software Development Kit (SDK), enabling
developers to make use of credentials within apps.
- Offering device identity through MyID machine certification
solution; the first customer secured is a European aerospace &
defence contractor.
- MyID apps for secure email and web browser available on
iTunes, providing proof of concepts for government and industrial
customers.
Corporate Development:
- Additional office space and staff recruitment in both the UK
and US to support the Company's continued growth.
- New corporate website plus investment in public relations and
public affairs to raise the Company's profile among target
audiences.
- Increased investment in sales staff including training and increased headcount.
- The implementation of a Share Incentive Plan for all UK staff
through a share buyback programme.
- The appointment of Ben Drury, Chief Executive of 7Digital, as
a new Non-Executive Director with effect from 1 April 2014.
Looking Ahead
As we report a record year for the Company, it is the larger
opportunities now available to us that we are focusing on against
the backdrop of the following key market trends:
-- There is a growing recognition amongst organisations around
the world, and the citizens, consumers and businesses they interact
with, that traditional password-based authentication is fatally
flawed. The trust relationship is being compromised on an almost
daily basis; notable recent examples including the eBay data breach
and the discovery of the 'Heartbleed' bug, both of which led to
high profile, front-page calls for password changes globally.
-- Mobility is less of a choice today; more of a paradigm shift
in the way we live and work. We increasingly expect to be able to
interact with anyone and anything, from anywhere, at any time.
-- Global adoption of mobiles has grown at a staggering rate.
eMarketer reports that just over 61% of the world's population owns
a mobile, that's around 4.5 billion people. Significantly 1.75
billion of these have smartphones, which is up from 1 billion a
couple of years ago. As costs continue to fall and networks get
built out, smartphones will carry on increasing their share of the
total. The projection for 2017 is for them to account for about
half of all phones and be used by a third of the world's
population. That's 2.5 billion people accessing the mobile
internet.
-- Organisations are putting more services online in the drive
for efficiency. eMarketer's latest forecasts suggest worldwide
business-to-consumer (B2C) ecommerce sales alone will exceed $2.3
trillion by 2017.
-- The much-heralded Internet of Things is fast becoming a
reality. Industry analyst Gartner is predicting that the installed
base of connected devices will reach 26 billion units by 2020 with
the potential growth beyond that almost incalculable.
-- The growing complexity of the market, and the tight
resourcing position for many organisations, precludes the
development of in-house solutions. The time, resources and
expertise simply aren't available.
Failure of traditional authentication, combined with exponential
growth in the requirement for reliable, trusted identity and
credential management, for people and machines, opens up an almost
unlimited range of opportunities for Intercede. When passwords are
not enough, the market has to explore alternatives.
MyID allows organisations to move beyond passwords, creating
secure trusted identities on mobile, smart cards and devices.
Combining a securely stored credential (something I have) with a
second factor of authentication such as a PIN (something I know) or
a biometric (something I am) increases both security and user
convenience. Organisations can be sure that only the right people
and devices are connected to their networks, and users can replace
multiple complex passwords with a single easy to remember PIN or
fingerprint.
With MyID 'no more passwords' is becoming a reality for a
growing number of organisations and major global technology
partners.
We live in a world in which every connected device, fixed or
mobile, and every individual will require at least one digital
identity, and will need technology that can ensure that identity is
protected wherever it is stored and whenever it is used. Even in a
benign environment, the billions of identities in use every day
dictate identity management that is simple and secure in equal
measure to guard against confusion, conflict, error and accident.
Without it our digital society and our digital economy is
compromised. Citizens rightly expect their health and tax records
to remain private, consumers need to trust that their credit card
data is safe and companies need to protect intellectual property
and data assets.
Of course, the environment is rarely benign and the complexity
of digital relationships provides a myriad of opportunities for
malicious and fraudulent activity. Billions of dollars are invested
annually in the detection and prevention of that activity and in
remedial action. The task has never been more complex but, whilst
cyber security is huge in scope, at its core is efficient and
reliable identity and credential management. Put simply, trusted
identity is the cornerstone of cyber security and it is an area in
which Intercede is a leading provider.
Strategy 2013-14
Goals Progress
----------------------------------------- ----------------------------------------
Corporate Development
-----------------------------------------------------------------------------------
Position MyID as the credential Intercede now supplies four
management system of choice of the top six global aerospace
for high assurance networks & defence companies; continued
- both in the public and private growth in US federal and UK
sector. government customers.
----------------------------------------- ----------------------------------------
Exploit global leadership in Contract signed for major US
PIV solutions market. government transportation security
programme, comprising Intercede's
largest ever PIV-based deployment
(3m licences).
----------------------------------------- ----------------------------------------
Capture new major corporate Contracts signed with a major
accounts in US and Europe. European aerospace & defence
company and a leading UK law
enforcement organisation.
----------------------------------------- ----------------------------------------
Widen sales channel to cover Contracts signed with major
major players in the mobile North American and German telcos.
telecoms industry.
----------------------------------------- ----------------------------------------
Progress the Microsoft partnership Delivered a MyID Windows 8 virtual
to revenue generation. smart card solution for HP ElitePads
to a UK government customer.
----------------------------------------- ----------------------------------------
Partner with Cloud service providers Pilot Cloud based deployment
to deliver Identity in the Cloud of MyID in partnership with
using MyID. a global industry major.
Obtained listing on HMG G-Cloud
with UK partner.
----------------------------------------- ----------------------------------------
Product and Innovation
-----------------------------------------------------------------------------------
Continue to re-engineer the MyID v10 (market release May
existing MyID platform to improve 2014) includes the ability to
scalability and supportability issue TPM-protected machine
in anticipation of a rapid expansion certificates for device authentication
of market demand. to networks, support for Windows
8 virtual smart cards as standard
and soft certificate credentialing
to iOS and Android devices.
----------------------------------------- ----------------------------------------
Accelerate research and development Engineered MyID Mobile Identity
in expanding the MyID platform Software Development Kit (SDK)
to provision digital identities which enables developers to
onto mobile devices. make use of credentials within
apps. Development of MyID Identity
Agent.
----------------------------------------- ----------------------------------------
Expand the MyID mobile identity Secure email and web browser
product suite to include client apps now available on iTunes
applications for secure communications. and CardChecker app on both
Google Play and iTunes.
----------------------------------------- ----------------------------------------
Expand the scope of MyID to Device identity (machine certificates)
also manage the identities of included within May 2014 MyID
networked components as part v10 release and first customer
of the emergence of the Internet secured.
of Things.
----------------------------------------- ----------------------------------------
Strategy 2014-15
- Continued traction in corporate and government sectors where
core MyID platform is the credential management system of choice
for high assurance networks.
- Protect, defend and expand existing customer base by offering
solutions for derived credentials in support of FIPS 201-2.
- Progress revenue generation from Microsoft partnership through
exploitation of TPM for virtual smart card deployments on Windows
Phone and tablets.
- Grow the MyID ecosystem by developing channel partners to both
capture existing demand and create new demand for product.
- Progress TEE to revenue generation by taking proof of concept to market.
- Continued research and development in expanding the MyID
platform to provision digital identities onto mobile, portable and
wearable devices.
- Revenue generation from Cloud services/MyID in the Cloud.
- Continued investment in growing sales channel and support
capacity in order to be able to fully exploit new market
opportunities.
Summary
Intercede's MyID is the hallmark solution that sets the standard
for identity protection anywhere and everywhere and satisfies the
requirements of the Chief Technology Officer, the Security Manager
and the Finance Director. MyID is not simply a security solution -
it is a business enabler delivering competitive advantage and a
tangible return on investment.
We believe that we are on the edge of another step change in
market growth and we need to be able to exploit this opportunity to
maximum effect. With this in mind, and targeted revenue growth of
30%+ per annum, we will continue to invest in the necessary
corporate infrastructure to provide us with the scale and critical
mass to do so having due regard for the Board's objective of
remaining EBITDA positive. We are confident that a considered
programme of investment is the correct direction for the Company to
take. It is against a backdrop of a market with the potential to
grow exponentially that the Board executes its long-term growth
strategy and has continued confidence it will create significant
shareholder value.
Richard Parris
Chairman & Chief Executive
Strategic Report
Introduction
Intercede is a leading independent developer and supplier of
identity and credential management software. The Group's vision can
be outlined as follows:
-- Everybody and everything will need a digital identity.
-- Digital IDs will be used for authentication, content
protection, entitlement, safety and convenience.
-- IDs need to be available on whatever platform a user chooses - ID anywhere.
-- IDs need to be trusted, non-repudiable, auditable and managed according to policy.
-- To establish Intercede's MyID as the market-leading platform to exploit this opportunity.
Strategic Investment
Intercede has embarked upon a period of substantial investment
in order to take advantage of the opportunity outlined above. The
costs associated with this strategy are being incurred now but the
benefits, in terms of increased revenues and cash flow generation,
are anticipated to arise in future periods.
The main areas of selective investment are:
-- The development of mobile security applications involving
interoperability with technologies such as iOS, Android, Windows
and BlackBerry.
-- Increased collaboration with major industry players such as Microsoft and ARM.
-- The establishment of accredited PIV-I platforms with a number
of new entrants to a market which is forecast to involve in excess
of 50 million identities.
-- Re-engineering and expansion of the MyID platform to improve
scalability and to ensure that all of the new areas of opportunity
are supported.
-- Sales and marketing to promote and protect the MyID name and
technology and to build industry relationships.
These activities have resulted in further growth in headcount
and a commensurate need for office and IT infrastructure and
equipment. The Company has taken on additional office space during
the past year in both the UK and US.
Trading Results
The Group's financial targets were to deliver a 30%+ increase in
sales revenues whilst accelerating investment in people and
resources to take advantage of the opportunities provided by the
impact of smartphones and global cyber security concerns, as
described in the Chairman's Statement.
Following a strong end to the year, revenue for the year ended
31 March 2014 was GBP9,783,000, which was ahead of expectations and
45% higher than the prior year (2013: GBP6,727,000). This increase
reflects high levels of demand for Intercede's proprietary MyID
technology with notable contract wins secured in the
telecommunications, aerospace & defence and public service
sectors. No single project represented more than 28% of total
revenue (2013: 25%). Over the last five years, exports have
increased from 56% to 91% of total revenue.
The planned investment in additional resources outlined above
has resulted in a 25% increase in operating expenses from
GBP7,467,000 to GBP9,366,000 but, with revenues ahead of
expectations and gross profit margins remaining high, Intercede has
returned to profitability reporting a GBP318,000 operating profit
(2013: GBP764,000 operating loss).
Staff costs continue to represent the main area of expense,
representing 76% of total operating costs (2013: 74%). Intercede
had 105 employees and contractors as at 31 March 2014 (2013: 80).
The average number of employees and contractors increased from 77
to 90 year on year.
Expenditure on research and development (R&D) activities
totalled GBP2,876,000 (2013: GBP2,328,000), approximately 52% of
which related to the areas of strategic investment outlined above
(2013: 54%). In accordance with the IFRS recognition criteria, 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 2014 (2013: GBPnil).
Finance income for the year was GBP77,000 (2013: GBP91,000) as
the Group maintained cash and interest bearing short term deposits
in excess of GBP6 million throughout the period notwithstanding
increased levels of investment.
A GBP385,000 taxation credit for the period (2013: GBP101,000
taxation credit) primarily reflects a higher level of cash received
following the 2013 R&D claim as a result of the investment
activities outlined above. The Group is a beneficiary of the UK
Government's efforts to encourage innovation by allowing 125% of
qualifying R&D expenditure to be offset against taxable
profits.
As at 31 March 2014, the Group has GBP6,606,000 (2013:
GBP6,843,000) of prior year tax losses available for carry
forward.
A profit for the year of GBP780,000 (2013: loss of GBP572,000)
resulted in a basic and fully diluted earnings per share of 1.6p
(2013: loss per share 1.2p).
Financial Position
Cash performance also continues to be strong with an increase in
net cash from GBP6,770,000 to GBP7,247,000 year on year,
notwithstanding the increased investment outlined above and the
GBP475,000 impact of a share buyback programme in support of the
new Intercede Share Incentive Plan for UK employees.
The Group has no debt and is in a position to be able to
commence the payment of dividends as and when the Board considers
this to be appropriate.
Treasury
The Group manages its treasury function as part of the finance
department. Whilst the Group's operations are primarily based in
the UK it has successfully exported its technology throughout the
world for many years. This results in invoices being raised in
currencies other than sterling; the most notable being US dollars
and euros. A number of suppliers also invoice the Group in US
dollars and euros. The Group's current policy is not to hedge these
exposures and the exchange differences are recognised in the
statement of comprehensive income in the year in which they
arise.
Key Performance Indicators (KPIs)
The following KPIs are some of the tools used by management to
monitor performance in addition to the more traditional financial
statement and sales pipeline information that is provided to the
Board each month.
Target 2014 2013
Identities under MyID Management 100 million 9 million 7 million
Sales growth 30%+ 45% (3%)
Export sales 80%+ 91% 88%
North American Sales 50%+ 61% 72%
New deployments with revenues
over GBP20,000 10+ 10 9
All of the above KPIs support the overall target of 100 million
identities under MyID management by 2020.
Principal Risks and Uncertainties
The principal risks and uncertainties facing the Group are as
follows:
-- The Group operates in multiple markets, both geographically
and by sector, so there is a risk that territory and global
macro-economic conditions may result in one or more of these
markets being adversely affected and the revenues of the business
impacted accordingly. This risk is mitigated to an extent, both
through the long term nature of customer relationships and the
diversification that results from operating in multiple
markets.
-- The Group operates in a complex and competitive technological
environment so the business will be negatively affected if the
Group does not enhance its product offerings and/or respond
effectively to technological change. This risk is mitigated by
ongoing investment in research and development.
-- Technology companies are exposed to intellectual property
infringement and piracy. The Group rigorously defends its
intellectual property in the primary jurisdictions within which it
operates.
-- The Group's performance is largely dependent on the
experience and expertise of its employees. The loss or lack of key
personnel is likely to adversely impact the Group's results. To
mitigate this risk, the Group aims to put in place appropriate
management structures and to provide competitive remuneration
packages to retain and attract key personnel.
Andrew Walker
Finance Director
INTERCEDE GROUP plc
Consolidated Statement of Comprehensive Income for the year
ended 31 March 2014
2014 2013
GBP'000 GBP'000
Continuing operations
Revenue 9,783 6,727
Cost of sales (99) (24)
___________ __________
Gross profit 9,684 6,703
Operating expenses (9,366) (7,467)
___________ __________
Operating profit/(loss) 318 (764)
Finance income 77 91
___________ __________
Profit/(loss)
before tax 395 (673)
Taxation 385 101
___________ __________
Profit/(loss)
for the year 780 (572)
Total comprehensive
income/(expense)
attributable to
owners of the
parent company 780 (572)
Earnings/(loss)
per share (pence)
- basic 1.6p (1.2p)
- diluted 1.6p (1.2p)
There is no other comprehensive income for the current or
preceding year.
INTERCEDE GROUP plc
Consolidated Balance Sheet at 31 March 2014
2014 2013
GBP'000 GBP'000
Non-current assets
Property, plant and equipment 757 644
__________ __________
Current assets
Trade and other receivables 1,785 991
Cash and cash equivalents 7,247 6,770
__________ __________
9,032 7,761
__________ __________
Total assets 9,789 8,405
__________ __________
Equity
Share capital 487 487
Share premium account 232 232
Other reserves 1,508 1,508
Retained earnings 3,972 3,530
__________ __________
Total equity attributable
to owners of the parent
company 6,199 5,757
__________ __________
Current liabilities
Trade and other payables 1,719 998
Deferred revenue 1,871 1,650
__________ __________
3,590 2,648
__________ __________
Total equity and liabilities 9,789 8,405
_________ _________
INTERCEDE GROUP plc
Consolidated Statement of Changes in Equity for the year ended
31 March 2014
Share Share Other Retained Total
capital premium reserves earnings
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
'
At 1 April 2012 484 110 1,508 3,930 6,032
Issue of shares, net of costs 3 122 - - 125
Employee share option plan
charge - - - 172 172
Total comprehensive expense - - - (572) (572)
________ ________ ________ _______ _______
At 31 March 2013 487 232 1,508 3,530 5,757
Purchase of own shares - - - (475) (475)
Employee share option plan
charge - - - 136 136
Employee share incentive plan
charge - - - 1 1
Total comprehensive income - - - 780 780
________ ________ ________ _______ _______
At 31 March 2014 487 232 1,508 3,972 6,199
_______ _______ _______ _______ ______
All amounts included in the table above are attributable to
owners of the parent company.
INTERCEDE GROUP plc
Consolidated Cash Flow Statement for the year ended 31 March
2014
2014 2013
GBP'000 GBP'000
Cash flows from operating activities
Operating profit/(loss) 318 (764)
Depreciation 116 92
Employee share option plan charge 136 172
Employee share incentive plan charge 1 -
(Increase)/decrease in trade and other receivables (795) 317
Increase in trade and other payables 721 88
Increase in deferred revenue 221 130
Interest received 78 94
__________ __________
Cash generated from operations 796 129
Taxation 385 101
__________ __________
Cash generated from operating activities 1,181 230
__________ __________
Investing activities
Purchases of property, plant and equipment (229) (553)
__________ __________
Cash used in investing activities (229) (553)
__________ __________
Financing activities
Purchase of own shares (475) -
Proceeds on issue of shares - 125
__________ __________
Net cash (used)/generated from financing
activities (475) 125
__________ __________
Net increase/(decrease) in cash and cash
equivalents 477 (198)
Cash and cash equivalents at the beginning
of the year 6,770 6,968
__________ __________
Cash and cash equivalents at the end of
the year 7,247 6,770
__________ __________
INTERCEDE GROUP plc
Preliminary Results for the Year Ended 31 March 2014
NOTES
1. The financial information set out in this announcement does
not constitute the Group's Statutory Accounts for the years ended
31 March 2013 or 2014, but is derived from those accounts.
Statutory Accounts for 2013 have been delivered to the Registrar of
Companies and those for 2014, 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 on
Wednesday 17 September 2014. Copies of the full Statutory Accounts
and the Notice of Annual General Meeting 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:
2014 2013
GBP'000 GBP'000
UK 928 806
Rest of Europe 2,195 651
North America 5,990 4,823
Rest of World 670 447
__________ __________
9,783 6,727
_________ _________
3. TAXATION
The tax credit comprises:
2014 2013
GBP'000 GBP'000
Current year - UK corporation tax - -
Current year - US corporation tax (26) (13)
Prior year - US corporation tax - 6
Research and Development tax credits
relating to prior years 411 108
__________ __________
385 101
_________ _________
The Group has unused tax losses of GBP6,606,000 (2013:
GBP6,843,000) and unrecognised deferred tax assets of GBP1,321,000
calculated at the UK corporation tax rate of 20% that came into
effect from 1 April 2014 (2013: GBP1,574,000 calculated at the
previous UK corporation tax rate of 23%).
4. EARNINGS/(LOSS) PER SHARE
The calculations of earnings/(loss) per ordinary share are based
on the profit/(loss) for the financial year and the weighted
average number of ordinary shares in issue during each year.
2014 2013
GBP'000 GBP'000
Profit/(loss) for the year 780 (572)
__________ __________
Number Number
Weighted average number of shares -
basic 48,661,716 48,615,263
- diluted 50,228,664 50,228,664
__________ __________
Pence Pence
Earnings/(loss) per share - basic 1.6p (1.2p)
- diluted 1.6p (1.2p)
__________ __________
The weighted average number of shares used in the calculation of
basic and diluted earnings per share for each year were calculated
as follows:
2014 2013
Number Number
Issued ordinary shares at start of
year 48,735,005 48,428,005
Effect of exercise of share options - 245,233
Effect of purchase of own shares (73,289) (57,975)
__________ __________
Weighted average number of shares -
basic 48,661,716 48,615,263
Add back effect of purchase of own
shares 73,289 57,975
Effect of share options in issue 1,493,659 1,555,426
__________ __________
Weighted average number of shares -
diluted 50,228,664 50,228,664
_________ _________
5. DIVIDEND
The Directors do not recommend the payment of a dividend.
6. SHARE CAPITAL
2014 2013
GBP'000 GBP'000
Authorised
481,861,616 ordinary shares of 1p each
(2013: 481,861,616) 4,819 4,819
__________ __________
Issued and fully paid
48,735,005 ordinary shares of 1p each
(2013: 48,735,005) 487 487
___________ __________
As at 31 March 2014 the Company had 164,000 ordinary shares held
in treasury (2013: 57,975). During the year the Company purchased
250,000 ordinary shares (2013: nil) for a consideration of
GBP475,000 and transferred 143,975 ordinary shares from treasury to
Capita IRG Trustee Limited as trustees of the new employee share
incentive plan.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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