TIDMINFS
RNS Number : 9844N
Infoserve Group PLC
22 June 2010
Infoserve Group plc
("Infoserve" or "the Group")
Final Results for the year ended 31 March 2010
Infoserve, a leading online local search marketing specialist, today announces
its final results for the year ended 31 March 2010.
Highlights
· Turnover increased by 11% to GBP6.1 million (2009: GBP5.5m)
· The Group achieved a pre tax profit for the first time, with
profits up GBP1.1m on last financial year.
· Productivity per sales person increased by 15% to GBP62,775 per
sales person per annum
· Admin expenses down GBP264k (11%) as prior year cost reductions
maintained despite growing sales
· In February 2010, the Group announced the successful restructuring
of its debts, converting GBP2m debt
into equity and arranging a new GBP800k loan facility
· Post year end the Group has signed a joint venture agreement with
newspaper group Iliffe News and
Media Limited to enable the offering of a combined internet and
print advertising package.
For further information, please contact:
+----------------------------------------+----------------------------+
| Infoserve Group plc | |
+----------------------------------------+----------------------------+
| Steve Barnes, Executive Chairman | Tel +44 (0)113 238 6200 |
| steve.barnes@infoserve.com | www.infoservegroup.com |
| Jonathan Simpson, Finance Director | |
| jonathan.simpson@infoserve.com | |
| | |
| | |
+----------------------------------------+----------------------------+
| Nominated Adviser | |
| WH Ireland | |
+----------------------------------------+----------------------------+
| Robin Gwyn | Tel +44 (0) 161 832 2174 |
| robin.gwyn@wh-ireland.co.uk | |
| | |
| | |
+----------------------------------------+----------------------------+
| Media Enquiries | |
| Source Marketing Communications | |
+----------------------------------------+----------------------------+
| Peter Downey | Tel +44 (0) 113 380 1644 |
| peter@sourcemc.co.uk | |
| | |
+----------------------------------------+----------------------------+
Executive Chairman's Statement and Financial Review
Infoserve Group plc is an e-marketing company, specialising in local search.
The Company helps businesses, particularly SMEs, to maximise their performance
through online marketing.
We are pleased to report another year of good progress, both financially and
commercially, with the Group achieving profitability for the first time in
Infoserve's history.
+-----------------------------------------------+---+---------+----------+
| | | 2010 | 2009 |
+-----------------------------------------------+---+---------+----------+
| | | GBP000 | GBP000 |
+-----------------------------------------------+---+---------+----------+
| | | | Restated |
+-----------------------------------------------+---+---------+----------+
| | | | |
+-----------------------------------------------+---+---------+----------+
| Revenue | | 6,119 | 5,495 |
+-----------------------------------------------+---+---------+----------+
| Cost of sales | | (3,836) | (3,959) |
+-----------------------------------------------+---+---------+----------+
| | | | |
+-----------------------------------------------+---+---------+----------+
| Gross profit | | 2,283 | 1,536 |
+-----------------------------------------------+---+---------+----------+
| Administrative expenses | | (2,184) | (2,448) |
+-----------------------------------------------+---+---------+----------+
| | | | |
+-----------------------------------------------+---+---------+----------+
| Operating profit/(loss) | | 99 | (912) |
+-----------------------------------------------+---+---------+----------+
| Financial income | | 7 | 3 |
+-----------------------------------------------+---+---------+----------+
| Financial expenses | | (100) | (183) |
+-----------------------------------------------+---+---------+----------+
| | | | |
+-----------------------------------------------+---+---------+----------+
| Net financing expense | | (93) | (180) |
+-----------------------------------------------+---+---------+----------+
| | | | |
+-----------------------------------------------+---+---------+----------+
| Profit/(loss) before tax | | 6 | (1,092) |
+-----------------------------------------------+---+---------+----------+
| | | | |
+-----------------------------------------------+---+---------+----------+
Revenue
Revenue for the year has increased by 11% and the performance per sales
executive increased from GBP54,800 to GBP62,775, a rise of 15% on last year. The
11% growth in sales compares to 4% growth in internet advertising in 2009
(according to the Internet Advertising Bureau).
Margins
Gross margins have improved from 28% to 37% during the financial year,
reflecting the increased sales productivity and streamlining of the sales force.
Results
Despite increased sales, cost control remains tight, and in addition to
increased margins, overheads were GBP0.3 million lower than the prior year. As a
result EBITDA, EBIT and PBT were all positive for the first time in the Group's
history with profit before tax GBP1.1 million better than in the prior year.
Cash flow
Overall cash outflow in the year was just GBP47,000 down from GBP169,000 in the
prior year. As a result of the profits generated, and a GBP200,000 drawdown on
the new long term loan facility from Mr D R Hood, the Group has reduced trade
and other payables by GBP560,000 (includes GBP18,000 of non-cash movements).
Going concern
The directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable future. For
this reason, they continue to adopt the going concern basis in preparing the
financial statements.
Market Developments
· Online advertising continues to grow despite the recession, increasing
4.2% in 2009 over the prior year. This growth is mainly driven by migration from
more traditional media.
· In H1 2009 The Internet Advertising Bureau confirmed that the internet
has now overtaken TV advertising to become the UK's single biggest advertising
medium.
· Paid-for search accounted for 60.7% of all online advertising in 2009 and
grew by 9.5%.
· Online display and classified were down 4.4% and 5.3% on the prior year
respectively showing that even online is not immune from the current economic
climate.
· 60% of all online searches appear to be local in nature.
· 90% of household consumer spend on goods and services takes place within
20 miles of where individual consumers live or work.
· Figures from searchenginewatch show that online searches have grown in
length by 10% over the last 2 years as people become more specific in their
searches.
· The combination of the growing sophistication of search engines and more
specific user searches are driving more searches to a local outcome, as
evidenced by the increasing prominence of Google maps.
Business developments
The market is beginning to mature with numerous small providers purporting to
offer the "same thing for less". The Group has updated and repackaged many of
its products and the primary focus of the entire product group is to create
products that continue to deliver measurable and quantifiable business leads to
our customers. This in turn gives us the opportunity to offer real return on
investment (ROI) to customers, thereby maintaining our market USP.
The Group's exclusive partnership with Yahoo! continues to offer a point of
difference from all competitors and Infoserve will continue to use this unique
relationship over the next 12 months to offer its SME customers prominent
positions on the Yahoo! search engine.
On 10 May 2010 the Company announced that it had entered into a joint venture
agreement with Iliffe News and Media Limited ("INML"), the media arm of
Yattendon Investment Trust with interests in local media including newspaper
publishing and television.
Under the agreement, a joint venture company ("2i Local") will offer SMEs the
opportunity to purchase a combined internet and print advertising package. This
will give businesses guaranteed exposure to their target market through online
local search and local newspaper coverage. Infoserve and INML will each own 50%
of the issued share capital of 2i Local.
Change in accounting policies
The Board has changed the method by which the Group recognises revenue under
IAS18, a change which the Board believes to be a more appropriate recognition of
revenue as the service is delivered. Revenue for directory listings are now
spread evenly over the life of the listings, dispensing with any weighting
towards the start of the listing. The effect on current and prior years has been
clearly disclosed in notes 1 and 26 of the financial statements of Infoserve
Group plc for the financial year ended 31 March 2010.
Deferred tax asset
The Board has prepared appropriate forecasts and continues to believe that the
Group will be profitable in the future and therefore utilise the considerable
tax losses built up over the last few years. It has accordingly carried forward
a proportion of this recovery as a deferred tax asset in the statement of
financial position.
Dividend
The Group has insufficient distributable reserves to pay a dividend, therefore
the directors do not recommend the payment of a dividend (2009 : GBPnil).
Board changes
In October 2009, Jonathan Simpson was appointed to the Board as Finance Director
following his appointment as interim finance director in June 2009. Jonathan is
the former Finance Director of Ultralase, a leading UK laser eye surgery
provider.
In May 2010, we announced that James Newman, our Chairman, was leaving the Group
to concentrate on his other interests. The Board would like to thank James for
his very valuable contribution to the development of the Group, especially
during some difficult trading periods, and wish him well for the future. Steve
Barnes has taken up the position of Executive Chairman. The Board believe that
it is appropriate for the two roles to be combined in the short to medium term
given the size of the company.
Outlook and summary
The macro economic difficulties have affected most businesses in the UK, and we
have seen marked evidence of a substantial downturn in marketing expenditure in
certain of our customer categories. While online advertising, and the Group's
revenues continue to grow, in the medium term the wider economy is unlikely to
provide stimulus and impetus on its own. We believe that initiatives such as our
joint venture that bring together a range of media will continue to provide the
best opportunity for the Group as customers will seek to purchase a number of
services from a single trusted source. We will continue to focus our efforts on
delivering not only prominent online search positions to our customers, but also
measurable, transparent and quantifiable ROI offerings.
Google and others pioneered pay per performance marketing and SME's now seek a
simple model that covers a range of products and services from a trusted
supplier.
We cannot ignore the difficult paradigm shift faced by UK businesses, and our
customer base is of course affected by the difficult trading conditions. We will
need to remain flexible in switching focus away from those business categories
most affected by the downturn in order to concentrate resources on growth areas.
Once again, forecasters predict that online paid-for local search will continue
to grow and lead online advertising and marketing, but the Group expects that
this growth will be at lower rates than in previous years and that we will have
to work hard to continue the business and profitability growth experienced in
each of the last four years.
+----------------------------------+----------------------------------+
| Stephen M Barnes | Jonathan P Simpson |
+----------------------------------+----------------------------------+
| Executive Chairman | Finance Director |
+----------------------------------+----------------------------------+
Consolidated Statement of Comprehensive Income
For the year ended 31 March 2010
+--------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------+-----------+-----------+
| | | 2009 |
| | 2010 | |
+--------------------------------------------+-----------+-----------+
| | GBP000 | GBP000 |
+--------------------------------------------+-----------+-----------+
| | | Restated |
+--------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------+-----------+-----------+
| Revenue - continuing operations | 6,119 | 5,495 |
+--------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------+-----------+-----------+
| Cost of sales | (3,836) | (3,959) |
+--------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------+-----------+-----------+
| Gross profit | 2,283 | 1,536 |
+--------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------+-----------+-----------+
| Administrative expenses | (2,184) | (2,448) |
+--------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------+-----------+-----------+
| Operating profit/(loss) - continuing | 99 | (912) |
| operations | | |
+--------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------+-----------+-----------+
| Financial income | 7 | 3 |
+--------------------------------------------+-----------+-----------+
| Financial expenses | (100) | (183) |
+--------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------+-----------+-----------+
| Net financing expense | (93) | (180) |
+--------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------+-----------+-----------+
| Profit/(loss) before tax | 6 | (1,092) |
+--------------------------------------------+-----------+-----------+
| Taxation | - | - |
+--------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------+-----------+-----------+
| Profit/(loss) for the year | 6 | (1,092) |
+--------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------+-----------+-----------+
+--------------------------------------------+-----------+-----------+
| Basic and diluted earnings/(loss) per | 0.03p | (5.72p) |
| share | | |
+--------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------+-----------+-----------+
Statements of Financial Position
At 31 March 2010
+--------------------------+---------+----------+
| | 2010 | 2009 |
+--------------------------+---------+----------+
| | GBP000 | GBP000 |
+--------------------------+---------+----------+
| | | Restated |
+--------------------------+---------+----------+
| Non-current assets | | |
+--------------------------+---------+----------+
| Property, plant and | 177 | 251 |
| equipment | | |
+--------------------------+---------+----------+
| Intangible assets | 485 | 534 |
+--------------------------+---------+----------+
| Investment in subsidiary | - | - |
+--------------------------+---------+----------+
| Deferred tax assets | 838 | 838 |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
| | 1,500 | 1,623 |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
| Current assets | | |
+--------------------------+---------+----------+
| Trade and other | 267 | 345 |
| receivables | | |
+--------------------------+---------+----------+
| Cash and cash | 363 | 410 |
| equivalents | | |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
| | 630 | 755 |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
| Total assets | 2,130 | 2,378 |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
| Current liabilities | | |
+--------------------------+---------+----------+
| Bank overdraft | (250) | (250) |
+--------------------------+---------+----------+
| Interest-bearing loans | (37) | (3,278) |
| and borrowings | | |
+--------------------------+---------+----------+
| Trade and other payables | (2,885) | (3,568) |
+--------------------------+---------+----------+
| Provisions | (80) | (80) |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
| | (3,252) | (7,176) |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
| Non-current liabilities | | |
+--------------------------+---------+----------+
| Interest-bearing loans | (1,816) | (287) |
| and borrowings | | |
+--------------------------+---------+----------+
| Trade and other payables | (143) | (20) |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
| | (1,959) | (307) |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
| Total liabilities | (5,211) | (7,483) |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
| Net (liabilities)/assets | (3,081) | (5,105) |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
| Equity attributable to | | |
| equity holders of the | | |
| parent | | |
+--------------------------+---------+----------+
| Share capital | 2,954 | 954 |
+--------------------------+---------+----------+
| Share premium | 3,871 | 3,871 |
+--------------------------+---------+----------+
| Retained earnings | (9,906) | (9,930) |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
| Total equity | (3,081) | (5,105) |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
| | | |
+--------------------------+---------+----------+
Statement of Cash Flows
For the year ended 31 March 2010
+-----------------------------+-------------------+---------+----------+
| | 2010 | 2009 |
+-----------------------------+-------------------+--------------------+
| | GBP000 | GBP000 |
+-----------------------------+-------------------+--------------------+
| | | Restated |
+-----------------------------+-------------------+--------------------+
| Cash flows from operating | | | |
| activities | | | |
+-----------------------------+-------------------+---------+----------+
| Profit/(loss) for the year | 6 | (1,092) | |
+-----------------------------+-------------------+---------+----------+
| Adjustments for: | | | |
+-----------------------------+-------------------+---------+----------+
| Depreciation | 102 | 151 | |
+-----------------------------+-------------------+---------+----------+
| Amortisation | 122 | 174 | |
+-----------------------------+-------------------+---------+----------+
| Financial income | (7) | (3) | |
+-----------------------------+-------------------+---------+----------+
| Financial expense | 100 | 183 | |
+-----------------------------+-------------------+---------+----------+
| (Profit)/loss on sale of | (21) | 10 | |
| property, plant and | | | |
| equipment | | | |
+-----------------------------+-------------------+---------+----------+
| Equity-settled share-based | 18 | 37 | |
| payment expenses | | | |
+-----------------------------+-------------------+---------+----------+
| | | | |
+-----------------------------+-------------------+---------+----------+
| | 320 | (540) | |
+-----------------------------+-------------------+---------+----------+
| Decrease/(increase) in | 78 | (63) | |
| trade and other receivables | | | |
+-----------------------------+-------------------+---------+----------+
| (Decrease)/increase in | (542) | 320 | |
| trade and other payables | | | |
+-----------------------------+-------------------+---------+----------+
| Change in deferred | (2) | (1) | |
| government grant | | | |
+-----------------------------+-------------------+---------+----------+
| | | | |
+-----------------------------+-------------------+---------+----------+
| | (146) | (284) | |
+-----------------------------+-------------------+---------+----------+
| Interest paid | (7) | (9) | |
+-----------------------------+-------------------+---------+----------+
| | | | |
+-----------------------------+-------------------+---------+----------+
| Net cash from operating | (153) | (293) | |
| activities | | | |
+-----------------------------+-------------------+---------+----------+
| | | | |
+-----------------------------+-------------------+---------+----------+
| Cash flows from investing | | | |
| activities | | | |
+-----------------------------+-------------------+---------+----------+
| Interest received | 7 | 3 | |
+-----------------------------+-------------------+---------+----------+
| Acquisition of property, | (28) | (15) | |
| plant and equipment | | | |
+-----------------------------+-------------------+---------+----------+
| Acquisition of other | (73) | (114) | |
| intangible assets | | | |
+-----------------------------+-------------------+---------+----------+
| | | | |
+-----------------------------+-------------------+---------+----------+
| Net cash from investing | (94) | (126) | |
| activities | | | |
+-----------------------------+-------------------+---------+----------+
| | | | |
+-----------------------------+-------------------+---------+----------+
| Cash flows from financing | | | |
| activities | | | |
+-----------------------------+-------------------+---------+----------+
| Advance of loans | 200 | 250 | |
+-----------------------------+-------------------+---------+----------+
| | | | |
+-----------------------------+-------------------+---------+----------+
| Net cash from financing | 200 | 250 | |
| activities | | | |
+-----------------------------+-------------------+---------+----------+
| | | | |
+-----------------------------+-------------------+---------+----------+
| Net decrease in cash and | (47) | (169) | |
| cash equivalents | | | |
+-----------------------------+-------------------+---------+----------+
| Cash and cash equivalents | 160 | 329 | |
| at 1 April | | | |
+-----------------------------+-------------------+---------+----------+
| | | | |
+-----------------------------+-------------------+---------+----------+
| Cash and cash equivalents | 113 | 160 | |
| at 31 March | | | |
+-----------------------------+-------------------+---------+----------+
| | | | |
+-----------------------------+-------------------+---------+----------+
1 Accounting policies and basis of information
The financial information in this announcement has been prepared in accordance
with the accounting policies set out in the financial statements of Infoserve
Group plc for the financial year ended 31 March 2010. The financial information
in this document does not constitute the company's statutory financial
statements for the financial year but is derived from those financial
statements. Statutory financial statements for the period will be delivered to
the registrar of companies following the company's Annual General Meeting. The
auditors' opinion was unqualified, did not include references to any matters to
which the auditors drew attention by way of emphasis without qualifying their
report, and does not include any statements under sections 498(2) or 498(3) of
the Companies Act 2006.
Basis of preparation
The financial statements have been prepared on a going concern basis,
notwithstanding the net liabilities and net current liabilities, which the
directors believe to be appropriate for the following reasons.
The Group meets its day to day working capital requirements through an
overdraft. The terms of the overdraft are still being finalised with the bank,
however under the Group's loan facility with David Hood a further GBP250,000,
equivalent to the value of the overdraft, can be drawn down in the event that
this overdraft facility is withdrawn. The Group continues to operate within this
facility; April management accounts place the headroom at GBP233,000 and the
Group has been regularly generating cash from trading activities.
During the year, the Group has agreed a restructuring of its loans. This has
resulted in reducing capital and interest outstanding to Mr D R Hood to GBP1.85m
from GBP3.57m, and a reduction in the amount due within one year to GBP0.04m
from GBP3.28m. In addition, one of the Group's landlords, Amerdale LLP (of which
Mr D R Hood is the majority partner) has agreed to a long term deferral of rent
payments. Rent payments outstanding for part of 2009 total GBP223,000. Since
November 2009, rent for each of the subsequent periods has been paid in full
when due.
As the Group has now reached breakeven and it has greater certainty of funding
than in the prior year, the directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence for the
foreseeable future. For this reason, they continue to adopt the going concern
basis in preparing the financial statements.
Change in revenue recognition accounting policy
The Group's policy was to recognise a fixed percentage of new customer sales of
term advertising at the point of sale to reflect the cost of acquiring the
customer and producing the advert. The balance was spread evenly over the
agreed initial term. Renewal revenues were spread evenly over the term of the
agreement.
Following a review, all term advertising revenue is recognised evenly over the
agreed term, as this better matches the period over which the service is
provided by Infoserve.
The change to the treatment of term advertising revenue has the following impact
on the financial results of the Group:
+----------+--------------+----------+------------+-----------+----------+------------+-----------+
| | Year ended 31 March 2009 | Year ended 31 March 2008 |
+-------------------------+-----------------------------------+-----------------------------------+
| | As | Adjustment | Restated | As | Adjustment | Restated |
| | reported | | | reported | | |
+-------------------------+----------+------------+-----------+----------+------------+-----------+
| | GBP000 | GBP000 | | GBP000 | GBP000 | |
| | | | GBP000 | | | GBP000 |
+-------------------------+----------+------------+-----------+----------+------------+-----------+
| | | | | | | |
+-------------------------+----------+------------+-----------+----------+------------+-----------+
| Statement of | | | | | | |
| comprehensive income | | | | | | |
+-------------------------+----------+------------+-----------+----------+------------+-----------+
| Revenue | 5,595 | (100) | 5,495 | 4,651 | 487 | 5,138 |
+-------------------------+----------+------------+-----------+----------+------------+-----------+
| Loss/(profit) before | (992) | (100) | (1,092) | (2,890) | 487 | (2,403) |
| tax | | | | | | |
+-------------------------+----------+------------+-----------+----------+------------+-----------+
| Loss/(profit) before | (992) | (100) | (1,092) | (2,945) | 487 | (2,458) |
| tax | | | | | | |
+-------------------------+----------+------------+-----------+----------+------------+-----------+
| Earnings/(loss) per | (5.20) | (0.52) | (5.72) | (16.22) | 2.68 | (13.54) |
| share (p) | | | | | | |
+-------------------------+----------+------------+-----------+----------+------------+-----------+
| | | | | | | |
+-------------------------+----------+------------+-----------+----------+------------+-----------+
| Statement of financial | | | | | | |
| position | | | | | | |
+-------------------------+----------+------------+-----------+----------+------------+-----------+
| Current liabilities - | (3,050) | (518) | (3,568) | (2,825) | (418) | (3,243) |
| trade and other | | | | | | |
| payables | | | | | | |
+-------------------------+----------+------------+-----------+----------+------------+-----------+
| | | (4,587) | (518) | (5,105) | (3,632) | (418) | (4,050) |
+----------+--------------+----------+------------+-----------+----------+------------+-----------+
| | | | | | | | |
+----------+--------------+----------+------------+-----------+----------+------------+-----------+
+---------------------------+----------+----------+------+----------+----------+----------+----------+-------------+
| | | Year ended 31 March 2010 |
+-------------------------------------------------+----------------------------+-----------------------------------+
| | | | | | | As | Impact | Results |
| | | | | | | reported | on | under |
| | | | | | | | current | old |
| | | | | | | | year | revenue |
| | | | | | | | | recognition |
| | | | | | | | | policy |
+---------------------------+----------+----------+------+----------+----------+----------+----------+-------------+
| | | | | | | GBP000 | GBP000 | |
| | | | | | | | | GBP000 |
+---------------------------+----------+----------+------+----------+----------+----------+----------+-------------+
| | | | | | | | | |
+---------------------------+----------+----------+------+----------+----------+----------+----------+-------------+
| Statement of | | | | | | | | |
| comprehensive income | | | | | | | | |
+---------------------------+----------+----------+------+----------+----------+----------+----------+-------------+
| Revenue | | | | | | 6,119 | (171) | 5,948 |
+---------------------------+----------+----------+------+----------+----------+----------+----------+-------------+
| Profit/(loss) before tax | | | | | | 6 | (171) | (165) |
+---------------------------+----------+----------+------+----------+----------+----------+----------+-------------+
| Profit/(loss) after tax | | | | | | 6 | (171) | (165) |
+---------------------------+----------+----------+------+----------+----------+----------+----------+-------------+
| Earnings/(loss) per share | | | | | | 0.03 | (0.73) | (0.70) |
| (p) | | | | | | | | |
+---------------------------+----------+----------+------+----------+----------+----------+----------+-------------+
| | | | | | | | | |
+---------------------------+----------+----------+------+----------+----------+----------+----------+-------------+
| Statement of financial | | | | | | | | |
| position | | | | | | | | |
+---------------------------+----------+----------+------+----------+----------+----------+----------+-------------+
| Current liabilities - | | | | | | (2,885) | 328 | (2,557) |
| trade and other payables | | | | | | | | |
+---------------------------+----------+----------+------+----------+----------+----------+----------+-------------+
| Net liabilities | | | | | | (3,081) | 328 | (2,753) |
+---------------------------+----------+----------+------+----------+----------+----------+----------+-------------+
2 Earnings per share
The calculation of earnings per share is based upon the profit after taxation of
GBP5,927 (2009 restated loss: GBP1,092,865) divided by 23,566,392 (2009:
19,073,241), being the weighted average number of ordinary shares in issue
during the year. Share options in issue do not have a material dilutive impact
on the earnings/(loss) per share calculation.
3 Interest-bearing loans and borrowings
This note provides information about the contractual terms of the Group and
Company's interest-bearing loans and borrowings.
+--------------------------+----------+----------+
| | 2010 | 2009 |
+--------------------------+----------+----------+
| | GBP000 | GBP000 |
+--------------------------+----------+----------+
| Non-current liabilities | | |
+--------------------------+----------+----------+
| D R Hood loan account | 1,716 | 187 |
+--------------------------+----------+----------+
| Shares classified as a | 100 | 100 |
| liability | | |
+--------------------------+----------+----------+
| | | |
+--------------------------+----------+----------+
| | 1,816 | 287 |
+--------------------------+----------+----------+
| | | |
+--------------------------+----------+----------+
| Current liabilities | | |
+--------------------------+----------+----------+
| Current portion of D R | 37 | 3,278 |
| Hood loan account | | |
+--------------------------+----------+----------+
| | | |
+--------------------------+----------+----------+
| | 37 | 3,278 |
+--------------------------+----------+----------+
| | | |
+--------------------------+----------+----------+
Terms and debt repayment schedule
+------------+----------+----------+----------+--------+----------+--------+----------+
| | Currency | Nominal | | Fair | Carrying | Fair | Carrying |
| | | interest | Year | value | amount | value | amount |
| | | rate | of | | | | |
| | | | maturity | | | | |
+------------+----------+----------+----------+--------+----------+--------+----------+
| | | | | 2010 | 2010 | 2009 | 2009 |
+------------+----------+----------+----------+--------+----------+--------+----------+
| | | | | GBP000 | GBP000 | GBP000 | GBP000 |
+------------+----------+----------+----------+--------+----------+--------+----------+
| | | | | | | | |
+------------+----------+----------+----------+--------+----------+--------+----------+
| D R | GBP | Linked | 2024 | 1,533 | 1,533 | 3,209 | 3,209 |
| Hood | | to base | | | | | |
| loan | | rate | | | | | |
+------------+----------+----------+----------+--------+----------+--------+----------+
| | | | | | | | |
+------------+----------+----------+----------+--------+----------+--------+----------+
| D R | GBP | Linked | N/A | 18 | 18 | 256 | 256 |
| Hood | | to base | | | | | |
| loan | | rate | | | | | |
+------------+----------+----------+----------+--------+----------+--------+----------+
| | | | | | | | |
+------------+----------+----------+----------+--------+----------+--------+----------+
| D R | GBP | 10% per | 2014 | 202 | 202 | - | - |
| Hood | | annum | | | | | |
| loan | | | | | | | |
+------------+----------+----------+----------+--------+----------+--------+----------+
| | | | | | | | |
+------------+----------+----------+----------+--------+----------+--------+----------+
| Shares | GBP | 5% per | N/A | 100 | 100 | 100 | 100 |
| classified | | annum | | | | | |
| as a | | | | | | | |
| liability | | | | | | | |
+------------+----------+----------+----------+--------+----------+--------+----------+
| | | | | | | | |
+------------+----------+----------+----------+--------+----------+--------+----------+
| | | | | 1,853 | 1,853 | 3,565 | 3,565 |
+------------+----------+----------+----------+--------+----------+--------+----------+
| | | | | | | | |
+------------+----------+----------+----------+--------+----------+--------+----------+
4 Trade and other payables
+--------------------------+----------+----------+
| | 2010 | 2009 |
+--------------------------+----------+----------+
| | GBP000 | GBP000 |
+--------------------------+----------+----------+
| | | Restated |
+--------------------------+----------+----------+
| | | |
+--------------------------+----------+----------+
| Trade payables | 477 | 690 |
+--------------------------+----------+----------+
| Non-trade payables and | 882 | 1,287 |
| accrued expenses | | |
+--------------------------+----------+----------+
| Deferred income | 1,524 | 1,589 |
+--------------------------+----------+----------+
| Deferred government | 2 | 2 |
| grants | | |
+--------------------------+----------+----------+
| | | |
+--------------------------+----------+----------+
| Current liabilities | 2,885 | 3,568 |
+--------------------------+----------+----------+
| | | |
+--------------------------+----------+----------+
| | | |
+--------------------------+----------+----------+
| Trade payables | 125 | - |
+--------------------------+----------+----------+
| Deferred government | 18 | 20 |
| grants | | |
+--------------------------+----------+----------+
| | | |
+--------------------------+----------+----------+
| Non-current liabilities | 143 | 20 |
+--------------------------+----------+----------+
| | | |
+--------------------------+----------+----------+
Included within accrued expenses is GBP20,000 (2009: GBP15,000) in respect of
accrued interest on shares classified as a liability. This amount is payable
when the Company has distributable profits.
During 2008, the Group received a government grant of GBP25,000 for the fit out
of the leased property at Pioneer House in Darlington, GBP1,667 of the grant has
been recognised within administrative expenses in the Consolidated Statement of
Comprehensive Income.
Deferred income relates to sales invoiced for which the revenue has not yet been
recognised.
5 Capital and reserves
Reconciliation of movement in capital and reserves - Group
+----------------------------+--+-+---------+---------+----------+---------+
| | | | Share | Share | Retained | Total |
| | | | capital | premium | earnings | equity |
+----------------------------+--+-+---------+---------+----------+---------+
| | | | GBP000 | GBP000 | GBP000 | GBP000 |
+----------------------------+--+-+---------+---------+----------+---------+
| | | | | | | |
+----------------------------+--+-+---------+---------+----------+---------+
| Balance at 1 April 2008 | | | 954 | 3,871 | (8,875) | (4,050) |
| (restated) | | | | | | |
+----------------------------+--+-+---------+---------+----------+---------+
| Total recognised income | | | - | - | (1,092) | (1,092) |
| and expense (restated) | | | | | | |
+----------------------------+--+-+---------+---------+----------+---------+
| Equity-settled share-based | | | - | - | 37 | 37 |
| payment transactions | | | | | | |
+----------------------------+--+-+---------+---------+----------+---------+
| | | | | | | |
+----------------------------+--+-+---------+---------+----------+---------+
| Balance at 31 March 2009 | | | 954 | 3,871 | (9,930) | (5,105) |
| (restated) | | | | | | |
+----------------------------+--+-+---------+---------+----------+---------+
| | | | | | | |
+----------------------------+--+-+---------+---------+----------+---------+
| | | | | | | |
+----------------------------+--+-+---------+---------+----------+---------+
| Balance at 1 April 2009 | | | 954 | 3,871 | (9,930) | (5,105) |
| (restated) | | | | | | |
+----------------------------+--+-+---------+---------+----------+---------+
| Total recognised income | | | - | - | 6 | 6 |
| and expense | | | | | | |
+----------------------------+--+-+---------+---------+----------+---------+
| Equity-settled share-based | | | - | - | 18 | 18 |
| payment transactions | | | | | | |
+----------------------------+--+-+---------+---------+----------+---------+
| Equity shares issued in | | | 2,000 | - | - | 2,000 |
| the year | | | | | | |
+----------------------------+--+-+---------+---------+----------+---------+
| | | | | | | |
+----------------------------+--+-+---------+---------+----------+---------+
| Balance at 31 March 2010 | | | 2,954 | 3,871 | (9,906) | (3,081) |
+----------------------------+--+-+---------+---------+----------+---------+
| | | | | | | |
+----------------------------+--+-+---------+---------+----------+---------+
6 Post balance sheet events
In May 2010, we announced that James Newman, our Chairman, was leaving the Group
to concentrate on his other interests. Steve Barnes has taken up the position
of Executive Chairman. The Board believe that it is appropriate for the two
roles to be combined in the short to medium term given the size of the Company.
On 10 May 2010 the Company announced that it had entered into a joint venture
agreement with Iliffe News and Media Limited ("INML"), the media arm of
Yattendon Investment Trust with interests in local media including newspaper
publishing and television.
Under the agreement, a joint venture company ("2i Local") will offer SMEs the
opportunity to purchase a combined internet and print advertising package. This
will give businesses guaranteed exposure to their target market through online
local search and local newspaper coverage. Infoserve Limited and INML each own
50% of the issued share capital of 2i Local.
Delivery of the year end accounts to shareholders
The Group will post the annual accounts to shareholders and make them available
on the Group's website www.infoservegroup.com on 22 June 2010.
Notice of AGM
The Annual General Meeting of Infoserve Group plc is to be held at The Café Bar,
Multiflight Training Centre, South Side Aviation, Leeds Bradford International
Airport, Leeds LS19 7UG at 9.00 a.m. on 20 July 2010. Notification will be sent
to shareholders with the annual accounts.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR KKDDPPBKDQAB
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