TIDMIGP
RNS Number : 8631O
Intercede Group PLC
02 June 2015
2 June 2015
INTERCEDE GROUP plc
("Intercede", the "Group" or the "Company")
Preliminary Results for the Year Ended 31 March 2015
Intercede, the software and service company specialising in
identity, credential management and secure mobility, today
announces its preliminary results for the year ended 31 March
2015.
Highlights
-- Sales revenues of GBP8.8m (2014: GBP9.8m).
-- Operating expenses increased to GBP10.2m (2014: GBP9.4m), as
a result of continuing investment in infrastructure, technology
development and sales capacity.
-- Headcount increased to 119 at 31 March 2015 (2014: 105).
-- Loss for the year of GBP1.3m (2014: profit of GBP0.8m).
-- Loss per share 2.7p (2014: earnings per share 1.6p).
-- Cash balances of GBP5.9m remain strong at 31 March 2015 (2014: GBP7.2m).
-- The Group has no debt.
-- Launch of MyTAM, a fully hosted cloud service that provides
security for applications needing to store personal data, enable
financial transactions or protect valuable content. MyTAM can be
used with many Android devices, including Samsung and HTC
handsets.
-- Since launch of MyTAM, partnerships announced with five
organisations engaged in mobile cybersecurity, covering mobile
payments, voice encryption, app development and the provision of
security solutions for Bitcoin.
Richard Parris, Chairman & Chief Executive of Intercede,
said:
"Our strategy remains unchanged, because the cybersecurity
market opportunity is, if anything, bigger than previously thought,
especially in mobile, even though the immediate fiscal and
political landscape has slowed down initial orders. Investment in
exploiting this opportunity will continue, especially as interest
in our new technology is growing, evidenced by the number of MyTAM
partnerships we have recently entered into. In the short term, our
investment in this new and growing market will be supported by
Intercede's established MyID product which generates a high margin
from a secure base of recurring revenues and provides cash for this
investment. In the medium term, we expect the returns from our
investment to create larger, growing and more diverse revenue
streams."
About Intercede:
Intercede is a software and service company specialising in
identity, credential management and secure mobility. Its solutions
create a foundation of trust between connected people, devices and
apps and combine expertise with innovation to provide world-class
cybersecurity.
Intercede has been delivering solutions to high profile
customers, from the US and UK governments to some of the world's
largest corporations, telecommunications providers and information
technology firms, for over 20 years.
Intercede's MyID software is an identity and credential
management system that enables organisations to create and assign
trusted digital identities to employees, citizens and machines and
in turn allows secure access to services, facilities, information
and networks. MyID adheres to international standards, while
remaining simple enough to be deployed onto consumer devices such
as smartphones, tablets and other devices in the Internet of
Things.
In 2015 Intercede launched MyTAM; enabling trusted applications
to be loaded into a mobile device's Trusted Execution Environment
(TEE), providing hardware-level security for Android apps. The
cloud-based service provides a cost-effective and convenient way
for developers and corporations to protect their apps and users'
sensitive data.
For more information visit: www.intercede.com
ENQUIRIES
Intercede Group plc Tel. +44 (0)1455 558111
Richard Parris, Chairman & Chief
Executive
Andrew Walker, Finance Director
finnCap Ltd. Tel. + 44 (0)20 7220 0500
Stuart Andrews, Corporate Finance
Joanna Weaving, Corporate Broking
Pelham Bell Pottinger Tel. +44 (0) 7802 442486
Archie Berens
INTERCEDE GROUP plc
Preliminary Results for the Year Ended 31 March 2015
CHAIRMAN'S STATEMENT
The Chairman's Statement has been extracted from the Company's
forthcoming Annual Report, which contains several charts, images
and other graphics. These can only be viewed by reading a PDF
version of the statement, which can be accessed by clicking the
link below.
http://www.rns-pdf.londonstockexchange.com/rns/8631O_-2015-6-1.pdf
Introduction
During the past year Intercede has met its strategic objective
of positioning the Company as a key player in a rapidly developing
market; the creation of digital trust for people, devices and
applications in an increasingly mobile world. This extends our
portfolio beyond our digital identity solutions to now include
trusted application management services to new and existing
markets.
In the period Intercede has achieved a number of significant
breakthroughs with IT industry partners that will underpin growth
in the next financial year and beyond. Although FY2015 was
disappointing in terms of recognisable revenues due to a number of
external factors outside of the Company's influence, described more
fully in the Strategic Report, the longer term outlook for the
Company is encouraging, and the strategy to exploit the
considerable market opportunities remains unchanged.
As evidence of this, Intercede has already made good progress
against its strategic objectives in FY2015 by remaining focused on
achieving short term goals, while simultaneously investing in
longer term opportunities. Time and resource has been centred on
three key principles:
Protect
To protect our solid foundation by retaining and maximising
revenue opportunities from our existing customers and markets. This
entails a clear focus on the high assurance enterprise security
space to execute major MyID deployments with large scale customers
in the US and Europe.
Highlights include:
-- A breakthrough order with a major US Healthcare provider with
revenue to be recognised in FY2016.
-- A 3(rd) US aerospace manufacturer ready to go live with an
enterprise-wide deployment of MyID for employee authentication.
-- Repeat orders for national identity and critical national infrastructure projects.
-- Major oil and gas company contracted for the provision of
Intercede's secure mobile applications.
Enhance
To enhance our current proposition by advancing the MyID 10
family of products for the benefit of existing and new digital
identity customers.
Highlights include:
-- First orders for MyID v10.1 Mobile Derived Credential
platform from a US Federal Agency - material revenue in FY2016.
-- A further order received via CertiPath for a 'PIV in a box'
identity solution from a branch of the US Armed Forces.
-- A strategic partnership with Citrix, a leader in mobile
workspaces, to offer Citrix Ready(R) MyID technology to XenMobile
customers.
Grow
To grow by creating new opportunities through penetrating new
markets with new products and services.
Highlights include:
-- First orders received for Intercede's newly announced MyTAM,
a Cloud-based Trusted Application Management service for managing
the distribution of trusted applications on mobile devices such as
Android phones. Orders have been received from Good Technology,
Koolspan, Ledger and Rivetz, plus an announcement with Interpay,
with revenue to be realised from FY2016 onwards. This was in line
with another goal we set ourselves in 2014, namely taking the proof
of concept to market and progressing it to the point of revenue
generation.
-- The formation of a cybersecurity collaboration group for
connected vehicles with industry experts MIRA and Plextek, moving
Intercede into the Internet of Things (IoT) market.
Further update re FY15 Strategic Goals (from 2014 Annual
Report)
Goals Progress
-------------------------------------- --------------------------------------
Progress revenue generation Co-selling with Microsoft field
from Microsoft partnership through sales teams, product collaboration
exploitation of TPM for virtual on Win 8 and 10 virtual smart
smart card deployments on Windows card, joint participation with
Phone and tablets. NIST at NCSCoE and RSA.
-------------------------------------- --------------------------------------
Grow the MyID ecosystem by developing New partners secured in US (e.g.
channel partners to both capture TriVir) and Korea (e.g. Interpay).
existing demand and create new Breakthrough healthcare project
demand for product. secured via Gemalto channel
in the US.
-------------------------------------- --------------------------------------
Continued research and development New MyID architecture launched:
in expanding the MyID platform MyID v10.1/10.2/10.3.
to provision digital identities MyTAM service designed, built
onto mobile, portable and wearable and launched. Increased investment
devices. in R&D.
-------------------------------------- --------------------------------------
Revenue generation from Cloud Newly launched MyTAM service
services/MyID in the Cloud. is 100% cloud based using an
extension of Intercede's MyID
server platform.
-------------------------------------- --------------------------------------
Continued investment in growing Head of Marketing appointed
sales channel and support capacity 12th May 2014. Head of Global
in order to be able to fully Sales appointed 1st April 2015.
exploit new market opportunities. Additional sales, support and
marketing staff appointed throughout
FY15. Expanded US office facility.
More conference and exhibition
participation.
-------------------------------------- --------------------------------------
Financial results
The following section is extracted from the Company's
forthcoming Annual Report and contains graphics to support the
commentary. These graphics can only be viewed by reading a PDF
version of this announcement, which can be accessed by clicking the
link below.
http://www.rns-pdf.londonstockexchange.com/rns/8631O_-2015-6-1.pdf
For those unable to access the PDF, the data represented
graphically is instead set out in tabular format below.
Revenue, Profit & Cash
GBPm Revenue Profit/Loss Cash OpEx
2013 6.7 -0.6 6.8 7.5
2014 9.8 0.8 7.2 9.4
2015 8.8 -1.3 5.9 10.2
The three year trend in revenues is positive but lumpiness in
orders has resulted in a 10% decrease in revenue from 2014 to 2015.
Profits and cash reserves have moved in line with revenue while
operating expenses have grown in line with planned corporate
expansion.
Employees and MyID Identities managed
Identities under MyID
Number of Employees Management (millions)
2013 80 7
2014 105 9
2015 119 11
Intercede's investment plan for people and corporate
infrastructure has resulted in a progressive increase in the number
of employees. This has enabled the delivery of an increased number
of digital identities managed by the MyID platform and leaves the
Company well-structured for future growth.
Investment
R&D Tax Credit Property,
GBPm R&D Expenditure (in arrears) Plant & Equipment
2013 2.3 0.1 0.6
2014 2.9 0.4 0.8
2015 3.6 0.4 0.9
Research and development is an important part of Intercede's
investment strategy. Money spent on people qualifies, in arrears,
for UK government tax credits which are paid in cash in the
following year.
Regional Sales
GBPm Rest of World North America
2013 1.9 4.8
2014 3.8 6.0
2015 4.3 4.5
A slowdown in US government sales has been partly offset by a
steady increase in sales for the rest of the world.
Revenue Breakdown
Professional
GBPm S&M Services Software Licences Other
2013 2.5 1.7 2.4 0.1
2014 2.8 2.1 4.6 0.3
2015 3.1 2.5 2.6 0.6
Over the last three years there has been progressive growth in
recurring Support & Maintenance (S&M) fees and Professional
Services fees, which tend to be independent of the lumpiness of
licence revenue. We expect this trend to continue. The introduction
of the MyTAM service is also expected to introduce a new revenue
item in FY2016. This is expected to increase growth and smooth the
volatility of software licence sales.
Our vision
Intercede believes that in the future everybody and everything
will need a unique digital identity, which will need to be
available on whatever platform a user chooses and will need to be
trusted and managed.
Additionally, as a result of the implementation of fully trusted
identities, more and more transactions will be carried out on
mobile devices via a potentially infinite number of applications,
which in turn will need to be trusted in order to protect sensitive
data.
MyTAM
Consumer research carried out by Intercede in the Summer of 2014
demonstrates a growing acceptance that password-based
authentication is incompatible with the convenience and security
demanded by today's digital economy. The results of our survey "The
Rise of the Identity Centric Economy" received widespread coverage
on US network TV and on-line media. A key finding was that 44% of
US consumers would never use mobile banking services and 48% would
never use bill payment apps on their mobile phone. The data reveals
that while adoption of smartphones is widespread in the US (close
to 80%), and more than half say that security is a primary factor
in choosing a new smartphone, current security measures are
inadequate for consumers to feel confident enough to fully utilise
mobile technology.
Intercede's MyTAM service goes straight to the heart of the
problem, resolving the barrier to mass adoption by providing a way
of fully securing trusted applications on mobile devices. By way of
example, 80% of the US population over the age of 14 are smartphone
users, which amounts to 200 million users. Since almost half of
these say they refuse to use mobile banking or bill payment
applications, that means there are almost 100 million people who
might be persuaded to use these apps by securely deploying them
with the MyTAM service. Given that this is just one geographic
market, it shows how significant the potential is for Intercede's
MyTAM.
MyTAM currently has the capacity to secure more than 80% of the
known trusted applications in the market. As a result significant
annual revenues are expected to start flowing from FY2016 onwards.
We believe that within the next five years there will be in excess
of 1,000 applications that could be secured using a MyTAM.
A further exciting aspect of the MyTAM business is that it is
taking Intercede into new sectors such as secure voice, payments
and Bitcoin. This opens up additional customer bases with the
prospect of upselling MyTAM users with MyID services at a later
date. This is a force multiplier.
MyID
Intercede's MyID platform currently manages over 10 million
identities and generates an annual average revenue of approximately
GBP1 per identity. In the next five years, there are likely to be
in excess of 5 billion people and entities requiring a digital
identity, used on 50 billion devices, each of which will be loaded
with at least one (and possibly many) trusted applications.
The Internet of Things
The next stage beyond all of this is using MyID and MyTAM in the
Internet of Things market. Intercede has already announced a
partnership with MIRA and PlexTek to investigate automotive IOT
opportunities. We are also engaged in early stage work with leading
mobility OEMs and strategic discussions with aerospace &
defence contractors investigating the security of weapons
platforms.
Positioning ourselves for growth
Intercede delivers a strong foundation for digital trust that
ensures the correct access, by the right person, on any device,
anywhere. This is a universal requirement for enterprise,
government and consumer applications.
To exploit this large opportunity Intercede is building a smart
channel to market. Much of this channel will be pivoted around the
mobile device stack, which has a trusted service manager (TSM) at
the 'cross-roads' of the ecosystem. MyID and MyTAM comprise a large
part of the technology required to operate a TSM and adjacent parts
of the stack. By forming business and technology partnerships with
the leading companies in each part of the stack we are in a strong
position to enable widespread deployment of our products and
services in a very efficient manner.
Our recently announced partnerships with Good Technologies and
Citrix are evidence of the success of this strategy and we hope to
be able to make further announcements can be expected in the coming
months.
To help drive this channel strategy, Intercede has appointed Rob
Chandhok, a renowned Silicon Valley technology strategist, to the
Board as a non-executive director. The sales team has been
restructured and Rory Gray has been hired to the new role of Global
Head of Sales. The Gartner Group has been appointed to give advice
on the execution of our sales strategy and the marketing team has
been substantially strengthened and expanded to better support
channel partners. In the immediate future we are focusing our
primary marketing and communications outreach on the US market
where most channel partners are based.
Outlook
In FY2016 Intercede will continue to strengthen its position as
a leader in digital trust solutions that solve the problem of
securing people, facilities, networks and information in an
increasingly mobile, digital world.
Intercede's strategy is to further grow its identity and
credential management business in its historically strong markets
and to reinvest in the significantly higher growth opportunity that
is anticipated in the mobile and Internet of Things markets.
Our expanding solutions portfolio and long term customers enable
the Group to ride the inherent risks associated with selling
products based on new technology and to focus on maximising market
penetration ahead of nascent competition.
It has become clear that we operate in a market where passwords
are not enough and, because of this, we believe the potential for
growth is huge. We have never been better placed to take advantage
of the imminent need for trusted digital identities and trusted
applications across a wide range of corporate, government and
consumer markets. We expect the results of our progress in
developing this opportunity to become increasingly apparent in
FY2016 and beyond.
Richard Parris
Chairman & Chief Executive
Strategic Report
Introduction
Intercede is a cybersecurity company specialising in identity,
credential management and secure mobility to enable digital
trust.
The Group's vision can be outlined as follows:
-- Everybody and everything will need a digital identity.
-- Digital IDs will be used for all forms of identity security:
authentication, content protection, entitlement, safety,
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.
-- Intercede's MyID can be established as a market leading
platform to exploit this opportunity.
In addition:
-- More and more transactions will be carried out online from mobile devices.
-- The applications used to carry out transactions need to protect data.
-- Hardware protection of apps is becoming widely available in
the form of Trusted Execution Environments (TEE).
-- Applications need to be securely provisioned to the TEE.
-- Intercede's MyTAM can be established as a market leading
service to exploit this opportunity.
Strategic Investment
Intercede has embarked upon a period of substantial investment
in order to take advantage of the opportunities 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.
-- The establishment and launch of MyTAM, a cloud-based service
that enables organisations such as app developers, service
providers, banks and media streaming companies to load apps into
the TEE built into chipsets in a rapidly increasing proportion of
Android devices.
-- Increased collaboration with major industry players such as Microsoft, ARM and Citrix.
-- 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.
-- Enhancing the core MyID platform to support FIPS 201-2
compliant derived credentials, thereby extending Intercede's
dominant position in the US federal government PIV market to mobile
devices.
-- Re-engineering and expansion of the MyID platform to improve
scalability to consumer levels and to ensure that all of the new
areas of opportunity are supported.
-- Sales and marketing to promote and protect the MyID and MyTAM
names 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, both on-premise and cloud-based. The Company has taken
on additional office space during the past year in the US.
Trading Results
The Group's short to medium term financial target is to deliver
accelerated revenue growth by investing in people and resources to
take advantage of the opportunities provided by the impact of smart
phones and global cybersecurity concerns, as described in the
Chairman's Statement. This strategic investment has been funded
organically to date.
Following a 45% increase in sales revenues last year, revenue
for the year ended 31 March 2015 was GBP8,819,000 (2014:
GBP9,783,000). A stronger than expected end to the previous year
was followed by a weak start to the year under review. The
anticipated recovery did not materialise as a result of a number of
market related delays, notably including:
-- A decline in North American revenues from $9.5m to $7.4m
against a backdrop of US Government funding constraints (Debt
Ceiling, Department of Homeland Security).
-- A number of our existing customers made slower progress than
forecast on large scale modernisation projects incorporating our
technology, resulting in delays in the receipt of follow on licence
orders.
-- In the US, two key standards FIPS 201-2 and SP800-157 were
released and ratified more than three months later than anticipated
thereby delaying the time to revenue of our MyID v10.1/v10.2
derived credential platform.
-- The availability of TEE capability on OEM handsets has also
been slower than anticipated thereby delaying the monetisation of
the newly launched MyTAM service.
Whilst good progress has been made on multiple fronts with the
new mobile security activities which are taking the Group into new
and larger potential markets for our technology, the revenues from
these activities represented less than 5% of total revenues in
FY15.
Planned investment in additional resources as outlined above has
resulted in a 9% increase in operating expenses from GBP9,366,000
to GBP10,215,000. The combined effect of lower revenues and higher
costs has lead to a GBP1,740,000 operating loss (2014: GBP318,000
operating profit).
Staff costs continue to represent the main area of expense,
representing 79% of total operating costs (2014: 76%). Intercede
had 119 employees and contractors as at 31 March 2015 (2014: 105).
The average number of employees and contractors increased from 90
to 113 year on year.
Expenditure on research and development (R&D) activities
totalled GBP3,576,000 (2014: GBP2,876,000), approximately 78% of
which related to the areas of strategic investment outlined above
(2014: 52%). 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 2015 (2014: GBPnil).
Finance income for the year was GBP68,000 (2014: GBP77,000) as
the Group maintained cash and interest bearing short term deposits
in excess of GBP5 million throughout the period notwithstanding
increased levels of investment.
A GBP363,000 taxation credit for the period (2014: GBP385,000
taxation credit) primarily reflects cash received following the
2014 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 2015, the Group has GBP9,544,000 (2014:
GBP6,606,000) of prior year tax losses available for carry
forward.
A loss for the year of GBP1,309,000 (2014: profit of GBP780,000)
resulted in a basic and fully diluted loss per share of 2.7p (2014:
earnings per share 1.6p).
Financial Position
The Group's cash position remains strong with cash and short
term deposits totalling GBP5,895,000 as at 31 March 2015 (2014:
GBP7,247,000). The year on year reduction reflects the increased
investment outlined above and the GBP688,000 impact of a share
buyback programme in support of the Intercede Share Incentive Plans
for UK and US 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.
2013 2014 2015 Target
Trusted identities,
devices and apps under
MyID management 7 million 9 million 11 million 250 million
Sales growth (3%) 45% (10%) 30%+
Export sales 88% 91% 85% 80%+
North American sales 72% 61% 51% 50%+
New deployments with
revenues over GBP20,000 9 10 6 10+
All of the above KPIs support the overall target of 250 million
identities, devices and apps 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.
By order of the Board
Andrew Walker
Finance Director
INTERCEDE GROUP plc
Consolidated Statement of Comprehensive Income for the year
ended 31 March 2015
2015 2014
GBP'000 GBP'000
Continuing operations
Revenue 8,819 9,783
Cost of sales (344) (99)
-------- -------
Gross profit 8,475 9,684
Operating expenses (10,215) (9,366)
-------- -------
Operating (loss)/profit (1,740) 318
Finance income 68 77
-------- -------
(Loss)/profit before tax (1,672) 395
Taxation 363 385
-------- -------
(Loss)/profit for the year (1,309) 780
-------- -------
Total comprehensive (expense)/income attributable
to owners of the parent company (1,309) 780
-------- -------
(Loss)/earnings per share (pence)
- basic (2.7)p 1.6p
- diluted (2.7)p 1.6p
-------- -------
There is no other comprehensive income for the current or
preceding year.
INTERCEDE GROUP plc
Consolidated Balance Sheet at 31 March 2015
2015 2014
GBP'000 GBP'000
Non-current assets
Property, plant and equipment 853 757
------- -------
Current assets
Trade and other receivables 1,074 1,785
Cash and cash equivalents 5,895 7,247
------- -------
6,969 9,032
------- -------
Total assets 7,822 9,789
------- -------
Equity
Share capital 487 487
Share premium account 232 232
Other reserves 1,508 1,508
Retained earnings 2,257 3,972
------- -------
Total equity attributable to owners of
the parent company 4,484 6,199
------- -------
Non-current liabilities
Deferred revenue 229 -
------- -------
Current liabilities
Trade and other payables 1,126 1,719
Deferred revenue 1,983 1,871
------- -------
3,109 3,590
------- -------
Total liabilities 3,338 3,590
------- -------
Total equity and liabilities 7,822 9,789
------- -------
INTERCEDE GROUP plc
Consolidated Statement of Changes in Equity for the year ended
31 March 2015
Share Share Other Retained Total
capital premium reserves earnings
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 April 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
Profit for the year and total
comprehensive income - - - 780 780
------- ------- -------- -------- -------
At 31 March 2014 487 232 1,508 3,972 6,199
Purchase of own shares - - - (688) (688)
Employee share option plan charge - - - 118 118
Employee share incentive plan
charge - - - 164 164
Loss for the year and total comprehensive
expense - - - (1,309) (1,309)
------- ------- -------- -------- -------
At 31 March 2015 487 232 1,508 2,257 4,484
------- ------- -------- -------- -------
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
2015
2015 2014
GBP'000 GBP'000
Cash flows from operating activities
Operating (loss)/profit (1,740) 318
Depreciation 153 116
Employee share option plan charge 118 136
Employee share incentive plan charge 164 1
Decrease/(increase) in trade and other receivables 709 (795)
(Decrease)/increase in trade and other payables (593) 721
Increase in deferred revenue 341 221
Interest received 70 78
------- -------
Cash (used in)/generated from operations (778) 796
Taxation 363 385
------- -------
Net cash (used in)/generated from operating
activities (415) 1,181
------- -------
Investing activities
Purchases of property, plant and equipment (249) (229)
------- -------
Cash used in investing activities (249) (229)
------- -------
Financing activities
Purchase of own shares (688) (475)
------- -------
Cash used in financing activities (688) (475)
------- -------
Net (decrease)/increase in cash and cash
equivalents (1,352) 477
Cash and cash equivalents at the beginning
of the year 7,247 6,770
------- -------
Cash and cash equivalents at the end of
the year 5,895 7,247
------- -------
INTERCEDE GROUP plc
Preliminary Results for the Year Ended 31 March 2015
NOTES
1. The financial information set out in this announcement does
not constitute the Group's Statutory Accounts for the years ended
31 March 2014 or 2015, but is derived from those accounts.
Statutory Accounts for 2014 have been delivered to the Registrar of
Companies and those for 2015, 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 16 September 2015. 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:
2015 2014
GBP'000 GBP'000
UK 1,301 928
Rest of Europe 1,848 2,195
North America 4,493 5,990
Rest of World 1,177 670
------- -------
8,819 9,783
------- -------
3. TAXATION
The tax credit comprises: 2015 2014
GBP'000 GBP'000
Current year - UK corporation tax - -
Current year - US corporation tax (20) (26)
Research and development tax credits relating
to prior years 383 411
------- -------
Taxation 363 385
------- -------
The Group has unused tax losses of GBP9,544,000 (2014:
GBP6,606,000) and unrecognised deferred tax assets of GBP1,909,000
calculated at the UK corporation tax rate of 20% (2014:
GBP1,321,000).
4. (LOSS)/EARNINGS PER SHARE
The calculations of (loss)/earnings per ordinary share are based
on the (loss)/profit for the financial year and the weighted
average number of ordinary shares in issue during each year. Basic
and diluted loss pershare are the same as potential dilution cannot
be applied to a loss making period.
2015 2014
GBP'000 GBP'000
(Loss)/profit for the year (1,309) 780
---------- ----------
Number Number
Weighted average number of shares - basic 48,526,457 48,661,716
- diluted 48,526,457 50,228,664
---------- ----------
Pence Pence
(Loss)/earnings per share - basic (2.7)p 1.6p
- diluted (2.7)p 1.6p
---------- ----------
The weighted average number of shares used in the calculation of
basic and diluted earnings per share for each year were calculated
as follows:
2015 2014
Number Number
Issued ordinary shares at start of year 48,735,005 48,735,005
Effect of exercise of share options - -
Effect of purchase of own shares (208,548) (73,289)
---------- ----------
Weighted average number of shares - basic 48,526,457 48,661,716
---------- ----------
Add back effect of purchase of own shares N/A 73,289
Effect of share options in issue N/A 1,493,659
---------- ----------
Weighted average number of shares - diluted 48,526,457 50,228,664
---------- ----------
5. DIVIDEND
The Directors do not recommend the payment of a dividend.
6. SHARE CAPITAL
2015 2014
GBP'000 GBP'000
Authorised
481,861,616 ordinary shares of 1p each (2014:
481,861,616) 4,819 4,819
------- -------
Issued and fully paid
48,735,005 ordinary shares of 1p each (2014:
48,735,005) 487 487
------- -------
As at 31 March 2015 the Company had 309,000 ordinary shares held
in treasury (2014: 164,000). During the year the Company purchased
160,000 ordinary shares (2014: 250,000) and 15,000 options were
exercised using treasury shares (2014: nil). No ordinary shares
(2014:143,975) were transferred 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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