TIDMINVU
RNS Number : 9963L
Invu plc
17 May 2010
17 May 2010
Invu Plc
Preliminary Results for the Year Ended 31 January 2010
Invu plc ("Invu" or the "Company"), (INVU.L) the document management software
provider, announces its
preliminary results for the year ended 31 January 2010.
Key Financial Highlights
· Revenues of GBP2.2million (2009: GBP3.4million)
* Sales through resellers to end users of GBP2.8 million (2009: GBP3.3
million)
· Loss before tax of GBP4.5million (2009: loss: GBP9.6million)
· Net Cash outflow from operating activities GBP2.7million (2009: outflow:
GBP2.4million)
· Equity and debt fundraising during the year GBP4.0million (2009: nil)
Operational Highlights
· New executive management team appointed in the year
* New CEO appointed in April 2009
* New Finance Director appointed in August 2009
· Achieved progress against stated strategy
* Focus on core business
* Reseller channel reorganised
* Progress in the mid-market with new contract wins
· Increase in end user sites from 4,208 in FY 2009 to 4,505 in FY 2010
Daniel Goldman, Non Executive Chairman, said:
"It has undoubtedly been a tough year for the Group. We have worked hard to
address the company's revised strategic priorities, aided by additional
financing, to stabilise the business for a more sustainable and profitable
future. There is still much work to be done but we are starting to see some
improvements, customers continue to appreciate the value of our core products
and the Board expects the benefits of the steps taken to be realised in
subsequent financial years. The Group would like to thank its staff and
shareholders for their support during this turnaround period."
Colin Gallick, Chief Executive, said:
"Our target market remains the SME and the quality of our products continues to
attract new customers. Our revised strategy has enabled us to focus on our core
business by re-engaging with existing successful partners, dominating existing
verticals, attacking new verticals and extending the "M" of SME. As announced,
since the year end we have made further progress against our objectives,
establishing partnerships and a white-label agreement with IRIS which is a great
achievement and puts us in a better position for the year ahead."
+--------------------+--------------------+
| Enquiries: | |
| Invu Plc | 01604 859893 |
+--------------------+--------------------+
| Colin Gallick, CEO |
+-----------------------------------------+
| Ian Smith, CFO |
| |
| |
| Canaccord Genuity |
| 020 7050 6500 |
| Simon Bridges |
| |
+-----------------------------------------+
| Financial Dynamics | 020 7831 3113 |
| | |
| | |
+--------------------+--------------------+
| Juliet Clarke/Haya Herbert-Burns/Emma |
| Appleton |
+--------------------+--------------------+
About Invu
Invu [LSE, AIM, Symbol: INVU] develops software that incorporates document
management, content management, workflow, automation and collaboration
specialising in solutions for the mid-market and smaller businesses.
Also known as the paperless office, Invu typically gives a return on investment
in under six months, allowing companies to see efficiency savings in terms of
both money and time.
Invu's Open Search integration allows SharePoint users to utilise fully the
benefits of WSS or MOSS whilst retaining the functions of specialist document
and content management.
Invu's solutions enable automated scan, capture and management, processing and
output transformation. Invu also integrates with all major accounting systems
including ERP and CRM systems.
For more information about Invu: www.invu.net
Chairman's statement
In the 2009 annual report, the Board identified the strategic priorities
necessary to restore the Group to profitability and positive cash flow as well
as restoring stakeholder confidence in the business through management changes,
good governance and adequate funding of the business.
As anticipated, the results for this financial year carry the costs of the
necessary changes taken to rebuild sustainable profitability and positive cash
flow. The Board expects the benefits of the steps undertaken to be realised in
future financial years when the changes have had time to take effect.
The Board has implemented several management changes during the year,
principally the recruitment of a new CEO (Colin Gallick joined in April 2009)
and Finance Director (Ian Smith joined at the end of August 2009). These two
executives respectively replace David Morgan who stepped down as CEO in February
2009 and left the Group in May 2009, John Agostini who resigned as Finance
Director in July 2009 and left the Group in September 2009 and Jon Halestrap who
resigned as Sales Director and left the Group in October 2009. The position of
Sales Director will not be replaced and this role will be fulfilled by Colin
Gallick, who is an experienced sales professional.
The Board had identified the need for a new Senior Independent Director and in
August 2009 the Group announced the appointment of Mark Wells as a non-executive
director. Tom Maxfield resigned from the Board during that month, following ten
years as a non-executive director.
The Board decided that it wished to change the Company broker and appointed
Canaccord Genuity as broker and NOMAD on 30th October 2009.
Invu's poor financial performance in the last two financial years has led to a
requirement to refinance the business and during the year the Group raised GBP4
million in a mix of equity and debt. The equity funding came via a placing of 50
million new Ordinary Shares at a price of 2 pence per share and an issue of
GBP0.5 million of Convertible Loan Notes in August 2009. The debt funding has
been spread throughout the year, with debt funding at the year-end of GBP2.6
million (including interest rolled on certain loans) on the Balance Sheet. This
debt is repayable on 30 June 2011, following an extension of the repayment dates
post year end.
All of the changes stated above have been achieved to better align Invu for the
next stage of its development and the additional financing will provide support
to the Group in order for it to execute its revised strategy.
Daniel Goldman
Non Executive Chairman
14 May 2010
Chief Executive Officer's statement
The full year trading performance of the business has been disappointing with
revenue of GBP2.2 million (last year GBP3.4 million). However, we have begun to
see some signs of improvement in the trading level of the business with an
improvement in second half year revenue to GBP1.0 million compared GBP0.9
million last year. A review of the group's business model led to revenue after
31 January 2009 being recognised on sales to resellers provided that shipment of
product is for a specific end user. The business model in prior years resulted
in revenue being recognised when orders were received. The sales through
resellers to end users of GBP2.8 million (last year GBP3.3 million) better
reflects real market demand. All of our major reseller partners are now free of
inventory.
This level of business is significantly lower than the business was sized to
pursue when I joined the company and the immediate priority this year has been
to reduce the cash burn and align the cost base with the current level of
trading. This has resulted in a significant reduction in headcount and winding
down a number of commitments that the company had made that were beyond its
operating level. These changes have taken some time to yield cash savings and,
as outlined in the Finance Review, have resulted in some exceptional costs as
well as leading to some significant changes to the balance sheet. The financial
support of shareholders has been, and will continue to be, essential in this
turnaround period. The extent of this support is outlined in the Chairman's
statement. We are very grateful for the support from both our debt and equity
stakeholders.
I believe the major cause of the weak financial performance in recent years has
been a lack of focus. The Group is now focused on its core business, which is
the design, development and distribution of software that enables customers to
manage paper and electronic documents and information, as well as business
process workflow, in a simple and effective way. During the year, we have
stopped work on all activities (for example Ergo), that do not serve this core
business. Our target market remains small and medium sized business. We have
closed our loss-making Dutch subsidiary, and we continue to support our 120
Dutch customers through our distributor Bell Micro BV.
The business has a large user base, a competitive product and a dedicated and
able core employee base serving a market with good long term growth prospects.
In last year's annual report I set out some clear strategic priorities designed
to build on these business assets. These were: to re-engage with existing
successful partners, dominate existing verticals, attack new verticals, extend
into the "M" of SME and return to market-driven innovation. Our progress in the
period has been as follows:
Re-engage with successful partners
We have a number of high quality resellers who in previous years have not
received the level of attention they warranted because of the volume of
resellers being supported across the Group. We are now focused on the
management and support of these key channel partners who meet periodically as a
group and they have given input into the Group's product strategy, channel
management performance, policies and procedures.
We now directly manage fewer resellers, during the year we reduced the number of
resellers from over 200 to less than 50.
Dominate existing verticals
We have focused our resources on verticals where we already have traction. The
accountancy market is our most significant vertical market. Post year-end, on 30
April 2010, we announced a new white-label agreement with IRIS, the UK's largest
private software house. Under the agreement, IRIS will sell Invu's document
management product to the UK accountants market as an integrated offering under
the IRIS brand.
Attack new verticals
We have examined a number of new verticals during the year and are starting to
see some success with initial approaches, one example of which is Housing
Associations.
Extend into the "M" of SME
During the year our efforts to extend into the "M" of SME included the
recruitment of employees and agents with experience of this tier, the
recruitment of partners with a mid-tier customer base and the recruitment of
software partners with complementary products. Following the period-end we
announced partnerships with ABBYY and Planet Press. During the year we made
sales to a number of mid tier companies including PZ Cussons plc, the FTSE 250
consumer products groups focusing on emerging markets and Vestra Wealth
Management, the provider of wealth management services to private clients,
companies, charities, trusts and financial intermediaries.
Return to market-driven innovation
During the year, we focused our product road map on market driven innovation. In
prior years the development activity on the Series 6 product had been limited by
the amount of maintenance work required to support existing installations. In
the course of this financial year the level of maintenance work required
decreased significantly and the release of additional functionality to Series 6
has been well received by customers and partners. The Series 5 customers were
also supported with a new release of the product and the number of migrations
from Series 5 to Series 6 is now accelerating.
One of the Group's major business assets is its customer base which increased
from 4,208 end user sites at 1 February 2009 to 4,505 end user sites 1 February
2010 , with the addition of 297 (last year: 508) new customer sites in the
period. The customer base represents around 89,702 end user licences. Repeat
sales of software were made at 180 sites (last year: 387 sites).
Outlook
FY 2010 has been a difficult year for shareholders and employees. The measures
undertaken in the period have been necessary to establish a stable business base
that can be used as a platform for growth.
Since we announced significant cost reductions in December 2009, the business
has performed at the expected level and we anticipate this to continue through
the next financial year.
The changes made during the financial year put us in a position to get back
towards breakeven in the next financial year, with ensuing revenue and profit
growth in future years.
Colin Gallick
Chief Executive Officer
14 May 2010
Financial Review
The Consolidated Income Statement shows an operating loss of GBP4.4 million
compared to a loss of GBP9.6 million last year. The loss includes GBP1.2 million
of exceptional costs related to the reorganisation of the business. The
operating loss before exceptional costs was GBP3.2 million.
Revenue in the year was GBP2.2 million compared to GBP3.4 million reported in
the prior year. The UK saw a revenue decline of 9.2% to GBP2.1 million which is
a function both of a change in the Group sales strategy and general economic
conditions. The Dutch business saw a decline in revenue from GBP1.0 million to
GBP0.1 million. Some of this decline is a result of devoting less resource to
the Dutch market, however, the greater part of this decline relates to the
recognition last year of GBP0.9 million of revenue which was later provided for
as a bad debt in the same year.
A review of the Group's sales strategy resulted in eradicating the use of stock
at resellers which has effectively led to revenue being recognised on sales to
resellers provided that shipment of product is for a specific end user order. In
this financial year, the transition to this approach in the UK market has
resulted in reported revenue being GBP0.6 million (last year GBP0.7million)
lower due to the reduction in stock held by resellers. The Board believes that
sales through resellers to end users is a key performance metric and that the
drop in UK revenue from GBP3.1 million to GBP2.7 million is a more relevant
measure of the decline in the UK business (13%) and for sizing the business in
order to stabilise it before commencing a growth strategy.
Revenue comprises the sale of software and related implementation and
installation services and the sale of annual software support contracts. The
Group reported sales of software and related services in the UK of GBP0.4
million. The revenue arising from the sale of support contracts is recognised
evenly over the life of the contract and UK revenue increased by 12% to GBP1.8
million in the period. The key performance metric for the sale of software
support contracts is the renewal rate which was 80% compared to 82% last year.
The cost of sales includes, for the first time this year, the direct costs of
the delivery of services which form the majority of revenue. These costs were
included in administrative expenses and distribution costs in prior years. The
prior year has been restated to show the cost of sales on a consistent basis.
The gross margin percentage is down from 69.9% to 52.0% due to a significant
decrease in the stock balance, as discussed below, increased commission expense
due to software partners and the volume impact on a low relatively fixed cost
base.
In prior years the profit and loss has shown a separate line for distribution
costs. The expenses included here have been included in administrative expenses
or where related directly to service revenue, in cost of sales, and the prior
year has been restated to reflect this change.
Administrative expenses have decreased 14.3% from GBP4.9 million to GBP4.2
million as a result of the combination of reductions in headcount (the average
headcount decreased from 65 to 53 with 30 heads employed at year end), property
related expenses and a focus on reducing every expense line item to be
consistent with the level of current trading. The impact of cost reduction
announced in December 2009 will have a more significant impact in the next
financial year.
Our strategy to better align the business resulted in reorganisation costs which
have been shown as exceptional costs of GBP1.2 million, covering severance
payments to former employees, an impairment to intangible fixed assets and the
costs of terminating leases on property.
Last year GBP7.0 million was recorded as a bad debt expense to provide against
sales previously made. No such expense was incurred in the current year.
Finance costs have increased from GBP13,000 to GBP136,000 as a result of
borrowings increasing from an overdraft of GBP0.6 million last year to loans and
convertible debt of GBP3.1 million this year. The convertible debt of GBP0.5
million has been accounted for as a compound financial instrument, of which
GBP0.4 million is recognised in equity.
The Group Balance Sheet shows total shareholders' equity as a deficit of GBP2.9
million (last year surplus of GBP0.3 million) funded principally by borrowings
and working capital. The company Balance Sheet shows total shareholders' funds
of GBP1.8 million (2009: GBP6.8million).
The net book value of non-current assets has reduced from GBP1.6 million last
year to GBP0.6 million. This is as a result of a reduction of intangible assets
of GBP0.6 million, due mainly to the disposal of previously recognised assets
related to Ergo, and disposal of tangible fixed assets of GBP0.2 million no
longer used in the business. There was also a reduction in the deferred tax
asset which is also indirectly caused by the reduction in the book value of
fixed assets.
Working capital investment has been reduced. Inventories have been reduced by
GBP0.2 million as a result of the Group's policies which provide for inventory
in excess of one year's use and commercial practices to move away from prepaid
towards "pay as you go" licensing of software from third parties. Trade and
other receivables have reduced by GBP1.3 million as a result of the change in
sales strategy mentioned above. Days sales outstanding, measured using the
exhaustion method, have dropped from 150 days to 89 days.
The net cash flow consumed by operating activities in the period was GBP2.7
million compared to GBP2.4 million in the prior year.
Ian Smith
Finance Director
14 May 2010
INVU PLC
Consolidated Income Statement
For the year ended 31 January 2010
+---------------------------------+-------+---------------+---------------+
| | | | |
+---------------------------------+-------+---------------+---------------+
| | | | |
+---------------------------------+-------+---------------+---------------+
| | Notes | 2010 | 2009 |
+---------------------------------+-------+---------------+---------------+
| | | GBP'000 | GBP'000 |
+---------------------------------+-------+---------------+---------------+
| | | | (Restated, |
| | | | Note 5) |
+---------------------------------+-------+---------------+---------------+
| | | | |
+---------------------------------+-------+---------------+---------------+
| Revenue | 2 | 2,198 | 3,362 |
+---------------------------------+-------+---------------+---------------+
| | | | |
+---------------------------------+-------+---------------+---------------+
| Cost of sales | | (1,054) | (1,011) |
+---------------------------------+-------+---------------+---------------+
| | | ----- | ----- |
+---------------------------------+-------+---------------+---------------+
| | | | |
+---------------------------------+-------+---------------+---------------+
| Gross profit | | 1,144 | 2,351 |
+---------------------------------+-------+---------------+---------------+
| | | | |
+---------------------------------+-------+---------------+---------------+
| Administration expenses | | (4,290) | (4,910) |
+---------------------------------+-------+---------------+---------------+
| Exceptional items | | (1,213) | - |
+---------------------------------+-------+---------------+---------------+
| Bad debts written off | | - | (7,038) |
+---------------------------------+-------+---------------+---------------+
| Total administration expenses | | (5,503) | (11,948) |
+---------------------------------+-------+---------------+---------------+
| | | ----- | ----- |
+---------------------------------+-------+---------------+---------------+
| Loss from operations | | (4,359) | (9,597) |
+---------------------------------+-------+---------------+---------------+
| | | | |
+---------------------------------+-------+---------------+---------------+
| Finance income | | - | 21 |
+---------------------------------+-------+---------------+---------------+
| | | | |
+---------------------------------+-------+---------------+---------------+
| Finance costs | | (136) | (13) |
+---------------------------------+-------+---------------+---------------+
| | | ----- | ----- |
+---------------------------------+-------+---------------+---------------+
| Loss before income tax | | (4,495) | (9,589) |
+---------------------------------+-------+---------------+---------------+
| | | | |
+---------------------------------+-------+---------------+---------------+
| Income tax credit | 3 | 51 | 762 |
+---------------------------------+-------+---------------+---------------+
| | | ----- | ----- |
+---------------------------------+-------+---------------+---------------+
| Loss for the year | | (4,444) | (8,827) |
+---------------------------------+-------+---------------+---------------+
| | | ----- | ----- |
+---------------------------------+-------+---------------+---------------+
| Attributable to: | | | |
+---------------------------------+-------+---------------+---------------+
| Equity holders of the Company | | (4,444) | (8,827) |
+---------------------------------+-------+---------------+---------------+
| | | ----- | ----- |
+---------------------------------+-------+---------------+---------------+
| | | | |
+---------------------------------+-------+---------------+---------------+
| Earnings per share | | | |
+---------------------------------+-------+---------------+---------------+
| Basic (pence per share) | 4 | (3.24) | (7.89) |
+---------------------------------+-------+---------------+---------------+
| | | ----- | ----- |
+---------------------------------+-------+---------------+---------------+
| Diluted (pence per share) | 4 | (3.24) | (7.89) |
+---------------------------------+-------+---------------+---------------+
| | | ----- | ----- |
+---------------------------------+-------+---------------+---------------+
INVU PLC
Statement of Comprehensive Income
For the year ended 31 January 2010
Group
+---------------------------------------------+-------+----------+-----------+
| | | | |
+---------------------------------------------+-------+----------+-----------+
| | | 2010 | 2009 |
+---------------------------------------------+-------+----------+-----------+
| | | GBP'000 | GBP'000 |
+---------------------------------------------+-------+----------+-----------+
| | | | |
+---------------------------------------------+-------+----------+-----------+
| Loss for the year | | (4,444) | (8,827) |
+---------------------------------------------+-------+----------+-----------+
| | | | |
+---------------------------------------------+-------+----------+-----------+
| Other comprehensive income | | | |
+---------------------------------------------+-------+----------+-----------+
| Exchange differences on translating foreign | | (1) | 125 |
| operations | | | |
+---------------------------------------------+-------+----------+-----------+
| | | ------ | ------ |
+---------------------------------------------+-------+----------+-----------+
| Other comprehensive income for the year | | (1) | 125 |
| (net of tax) | | | |
+---------------------------------------------+-------+----------+-----------+
| | | | |
+---------------------------------------------+-------+----------+-----------+
| | | ------ | ------ |
+---------------------------------------------+-------+----------+-----------+
| Total comprehensive income for the year | | (4,445) | (8,702) |
+---------------------------------------------+-------+----------+-----------+
| | | ------ | ------ |
+---------------------------------------------+-------+----------+-----------+
| Attributable to: | | | |
+---------------------------------------------+-------+----------+-----------+
| Equity holders of the Company | | (4,445) | (8,702) |
+---------------------------------------------+-------+----------+-----------+
| | | ------ | ------ |
+---------------------------------------------+-------+----------+-----------+
The Company did not have any other income or expense other than the loss for the
year.
INVU PLC
Consolidated Balance Sheet
As at 31 January 2010
+--------------------------------------+---------+----------+----------+
| | | | |
+--------------------------------------+---------+----------+----------+
| Company number 06283181 | Notes | 2010 | 2009 |
+--------------------------------------+---------+----------+----------+
| | | GBP'000 | GBP'000 |
+--------------------------------------+---------+----------+----------+
| Non-current assets | | | |
+--------------------------------------+---------+----------+----------+
| Intangible assets | | 351 | 951 |
+--------------------------------------+---------+----------+----------+
| Property, plant and equipment | | 160 | 377 |
+--------------------------------------+---------+----------+----------+
| Deferred tax asset | | 64 | 244 |
+--------------------------------------+---------+----------+----------+
| | | ------ | ------ |
+--------------------------------------+---------+----------+----------+
| | | 575 | 1,572 |
+--------------------------------------+---------+----------+----------+
| Current assets | | ------ | ------ |
+--------------------------------------+---------+----------+----------+
| Inventories | | 17 | 184 |
+--------------------------------------+---------+----------+----------+
| Trade and other receivables | | 791 | 2,098 |
+--------------------------------------+---------+----------+----------+
| Cash and cash equivalents | | 488 | - |
+--------------------------------------+---------+----------+----------+
| | | ------ | ------ |
+--------------------------------------+---------+----------+----------+
| | | 1,296 | 2,282 |
+--------------------------------------+---------+----------+----------+
| | | ------ | ------ |
+--------------------------------------+---------+----------+----------+
| Total assets | | 1,871 | 3,854 |
+--------------------------------------+---------+----------+----------+
| | | ------ | ------ |
+--------------------------------------+---------+----------+----------+
| Current liabilities | | | |
+--------------------------------------+---------+----------+----------+
| Trade and other payables | | 1,991 | 2,601 |
+--------------------------------------+---------+----------+----------+
| Borrowings | | 2,595 | 642 |
+--------------------------------------+---------+----------+----------+
| Obligations under finance leases | | 20 | 31 |
+--------------------------------------+---------+----------+----------+
| | | ------ | ------ |
+--------------------------------------+---------+----------+----------+
| | | 4,606 | 3,274 |
+--------------------------------------+---------+----------+----------+
| | | ------ | ------ |
+--------------------------------------+---------+----------+----------+
| Net current liabilities | | (3,310) | (992) |
+--------------------------------------+---------+----------+----------+
| | | ------ | ------ |
+--------------------------------------+---------+----------+----------+
| Non-current liabilities | | | |
+--------------------------------------+---------+----------+----------+
| Borrowings | | 98 | - |
+--------------------------------------+---------+----------+----------+
| Obligations under finance leases | | 11 | 32 |
+--------------------------------------+---------+----------+----------+
| Deferred tax | | 64 | 244 |
+--------------------------------------+---------+----------+----------+
| | | ------ | ------ |
+--------------------------------------+---------+----------+----------+
| | | 173 | 276 |
+--------------------------------------+---------+----------+----------+
| | | ------ | ------ |
+--------------------------------------+---------+----------+----------+
| Total liabilities | | 4,779 | 3,550 |
+--------------------------------------+---------+----------+----------+
| | | ------ | ------ |
+--------------------------------------+---------+----------+----------+
| Net (liabilities)/assets | | (2,908) | 304 |
+--------------------------------------+---------+----------+----------+
| | | ------ | ------ |
+--------------------------------------+---------+----------+----------+
| Equity | | | |
+--------------------------------------+---------+----------+----------+
| Share capital | | 1,635 | 1,135 |
+--------------------------------------+---------+----------+----------+
| Convertible loan notes | | 375 | - |
+--------------------------------------+---------+----------+----------+
| Shares to be issued | | 29 | 29 |
+--------------------------------------+---------+----------+----------+
| Share premium | | 412 | - |
+--------------------------------------+---------+----------+----------+
| Merger reserve | | 29,260 | 29,260 |
+--------------------------------------+---------+----------+----------+
| Share option reserve | | 229 | 283 |
+--------------------------------------+---------+----------+----------+
| Reverse acquisition reserve | | (20,570) | (20,570) |
+--------------------------------------+---------+----------+----------+
| Retained earnings | | (14,341) | (9,897) |
+--------------------------------------+---------+----------+----------+
| Foreign currency translation reserve | | 63 | 64 |
+--------------------------------------+---------+----------+----------+
| | | ------ | ------ |
+--------------------------------------+---------+----------+----------+
| Total (deficit)/equity | | (2,908) | 304 |
+--------------------------------------+---------+----------+----------+
| | | ------ | ------ |
+--------------------------------------+---------+----------+----------+
| Attributable to: | | | |
+--------------------------------------+---------+----------+----------+
| Equity holders of the Company | | (2,908) | 304 |
+--------------------------------------+---------+----------+----------+
| | | ------ | ------ |
+--------------------------------------+---------+----------+----------+
Consolidated statement of changes in equity
For the year ended 31 January 2010
+---------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| | Share | Shares | Share | Merger | Reverse | Share |Retained |Convertible |Translation | Total |
| |Capital | to be |premium |reserve |acquisition | option |earnings | loan notes | reserve | |
| | | issued | | | reserve |reserve | | | | |
+---------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| |GBP'000 |GBP'000 |GBP'000 |GBP'000 | GBP'000 |GBP'000 | GBP'000 | GBP'000 | GBP'000 |GBP'000 |
+---------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| At 1 | 1,068 | 1,466 | - | 27,539 | (20,570) | 315 | (1,070) | - | (61) | 8,687 |
| February | | | | | | | | | | |
| 2008 | | | | | | | | | | |
+---------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| Total | - | - | - | - | - | - | (8,827) | - | 125 |(8,702) |
| comprehensive | | | | | | | | | | |
| income | | | | | | | | | | |
+---------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| Movement | - | - | - | - | - | (32) | - | - | - | (32) |
| on share | | | | | | | | | | |
| option | | | | | | | | | | |
| reserve | | | | | | | | | | |
+---------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| Issue | 67 |(1,437) | - | 1,721 | - | - | - | - | - | 351 |
| of | | | | | | | | | | |
| shares | | | | | | | | | | |
+---------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| At 31 | 1,135 | 29 | - | 29,260 | (20,570) | 283 | (9,897) | - | 64 | 304 |
| January | | | | | | | | | | |
| 2009 | | | | | | | | | | |
+---------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| | Share | Shares | Share | Merger | Reverse | Share |Retained |Convertible |Translation | Total |
| |Capital | to be |premium |reserve |acquisition | option |earnings | loan notes | reserve | |
| | | issued | | | reserve |reserve | | | | |
+---------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| |GBP'000 |GBP'000 |GBP'000 |GBP'000 | GBP'000 |GBP'000 | GBP'000 | GBP'000 | GBP'000 |GBP'000 |
+---------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| At 1 | 1,135 | 29 | - | 29,260 | (20,570) | 283 | (9,897) | - | 64 | 304 |
| February | | | | | | | | | | |
| 2009 | | | | | | | | | | |
+---------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| Total | - | - | - | - | - | - | (4,444) | - | (1) |(4,445) |
| comprehensive | | | | | | | | | | |
| income | | | | | | | | | | |
+---------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| Movement | - | - | - | - | - | (54) | - | - | - | (54) |
| on share | | | | | | | | | | |
| option | | | | | | | | | | |
| reserve | | | | | | | | | | |
+---------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| Issue | - | - | - | - | - | - | - | 375 | - | 375 |
| of loan | | | | | | | | | | |
| notes | | | | | | | | | | |
+---------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| Issue | 500 | - | 412 | - | - | - | - | - | - | 912 |
| of | | | | | | | | | | |
| shares | | | | | | | | | | |
+---------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| At 31 | 1,635 | 29 | 412 | 29,260 | (20,570) | 229 |(14,341) | 375 | 63 |(2,908) |
| January | | | | | | | | | | |
| 2010 | | | | | | | | | | |
+---------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
+--------------------------------------------+-------+----------+--+---------+
| INVU PLC | | | |
| | | | |
| Consolidated cash flow statement | | | |
| For the year ended 31 January 2010 | | | |
| | | | |
| | | | |
+----------------------------------------------------+----------+--+---------+
| | Notes | 2010 | | 2009 |
+--------------------------------------------+-------+----------+--+---------+
| | | GBP'000 | | GBP'000 |
+--------------------------------------------+-------+----------+--+---------+
| | | | | |
+--------------------------------------------+-------+----------+--+---------+
| | | | | |
+--------------------------------------------+-------+----------+--+---------+
| Net cash flows from operating activities | 6 | (2,710) | | (2,388) |
+--------------------------------------------+-------+----------+--+---------+
| | | | | |
+--------------------------------------------+-------+----------+--+---------+
| Taxation | | 231 | | (200) |
+--------------------------------------------+-------+----------+--+---------+
| | | - | | 21 |
| Interest received | | | | |
+--------------------------------------------+-------+----------+--+---------+
| Purchases of property, plant and equipment | | (17) | | (35) |
+--------------------------------------------+-------+----------+--+---------+
| Sales of property, plant and equipment | | - | | - |
+--------------------------------------------+-------+----------+--+---------+
| Expenditure on internally developed | | (204) | | (543) |
| intangible assets | | | | |
+--------------------------------------------+-------+----------+--+---------+
| | | ------ | | ------ |
+--------------------------------------------+-------+----------+--+---------+
| Net cash used in investing activities | | (221) | | (557) |
+--------------------------------------------+-------+----------+--+---------+
| | | | | |
+--------------------------------------------+-------+----------+--+---------+
| Financing activities | | | | |
| | | | | |
+--------------------------------------------+-------+----------+--+---------+
| Net proceeds from the issue of shares | | 912 | | - |
+--------------------------------------------+-------+----------+--+---------+
| Proceeds from issue of convertible loan | | 500 | | - |
| notes | | | | |
+--------------------------------------------+-------+----------+--+---------+
| Proceeds from borrowings | | 2,500 | | - |
+--------------------------------------------+-------+----------+--+---------+
| Interest paid | | (50) | | (13) |
+--------------------------------------------+-------+----------+--+---------+
| Repayment to shareholders | | - | | - |
+--------------------------------------------+-------+----------+--+---------+
| Repayment of obligations under finance | | (32) | | (53) |
| leases | | | | |
+--------------------------------------------+-------+----------+--+---------+
| | | ------ | | ------ |
+--------------------------------------------+-------+----------+--+---------+
| Net cash flow from financing activities | | 3,830 | | (66) |
+--------------------------------------------+-------+----------+--+---------+
| | | ------ | | ------ |
+--------------------------------------------+-------+----------+--+---------+
| | | | | |
+--------------------------------------------+-------+----------+--+---------+
| Net increase/(decrease) in cash and cash | | 1,130 | | (3,211) |
| equivalents | | | | |
+--------------------------------------------+-------+----------+--+---------+
| | | | | |
+--------------------------------------------+-------+----------+--+---------+
| Cash and cash equivalents at the beginning | | (642) | | 2,569 |
| of the year | | | | |
+--------------------------------------------+-------+----------+--+---------+
| Cash and cash equivalents at the end of | 5 | 488 | | (642) |
| the year | | | | |
+--------------------------------------------+-------+----------+--+---------+
INVU PLC
Notes to the preliminary announcement
For the year ended 31 January 2010
1. ANNUAL REPORT
The financial information set out above/ below does not constitute the company's
statutory accounts for 2009 or 2010. Statutory accounts for the years ended 31
January 2010 and 31 January 2009 have been reported on by the Independent
Auditors. The Independent Auditors' Report on the Annual Report and Financial
Statements for 2009 was unqualified, did draw attention to going concern by way
of emphasis, and did not contain a statement under 237(2) or 237(3) of the
Companies Act 1985. The Independent Auditor's Report on the Annual Report and
Financial Statements for 2010 was unqualified, did draw attention to going
concern by way of emphasis, and did not contain a statement under 498(2) or
498(3) of the Companies Act 2006.
Statutory accounts for the year ended 31 January 2009 have been filed with
the Registrar of Companies. The statutory accounts for the year ended 31 January
2010 will be delivered to the Registrar in due course and will be posted to
shareholders shortly and thereafter will be available from the Company's
registered office at The Beren, Blisworth Farm, Stoke Road, Blisworth,
Northampton, Northamptonshire NN7 3DB and from the Company's website
www.invu.net.
While the financial information included in this preliminary announcement
has been prepared in accordance with the recognition and measurement criteria of
International Financial Reporting Standards (IFRSs), this announcement does not
itself contain sufficient information to comply with IFRSs.
The consolidated financial statements for the year ended 31 January 2009
comprise the consolidated financial information for Invu plc ("the company") and
its subsidiaries.
2. SEGMENTAL ANALYSIS
The Group has one operating segment, the design, sale and support of computer
software for the electronic management of information and documents.
The segment results are as follows:
+----------------------------------+------+-----+------+-----+------+
| | | |
+-----------------------------------------+------------+------------+
| | 2010 | 2009 |
+-----------------------------------------+------------+------------+
| | | |
+-----------------------------------------+------------+------------+
| | GBP'000 | GBP'000 |
+-----------------------------------------+------------+------------+
| | | |
+-----------------------------------------+------------+------------+
| Sales through resellers to end users | 2,835 | 3,286 |
+-----------------------------------------+------------+------------+
| Net effect of stock deployed | (637) | 76 |
+-----------------------------------------+------------+------------+
| | | |
+-----------------------------------------+------------+------------+
| Revenue | 2,198 | 3,362 |
+-----------------------------------------+------------+------------+
| | | |
+-----------------------------------------+------------+------------+
| Loss before income tax | (4,495) | (9,589) |
+-----------------------------------------+------------+------------+
| Loss for the period | (4,444) | (8,827) |
+-----------------------------------------+------------+------------+
| | | | |
+----------------------------------+------------+------------+------+
| | | | | | |
+----------------------------------+------+-----+------+-----+------+
Included in revenue above are GBP0.05 million (2009 GBP1 million) related to
sales in Europe. All other revenue relates to the UK.
Include in revenue above are sales of software and related services GBP0.4
million (2009: GBP1.8 million). The remaining revenue comprised software
maintenance contracts GBP1.8 million (2009: GBP1.6 million).
All non-current assets and liabilities are held within the UK.
The Group had one reseller who was responsible for 24 percent (last year 18%) of
the Group's sales through resellers to end users. No other reseller was
responsible for more than ten percent of the Group's sales through resellers to
end users.
3. TAXATION
+----------------------------------------+-+---------+--+-------+
| | | |
+----------------------------------------+-----------+----------+
| | 2010 | 2009 |
+----------------------------------------+-----------+----------+
| | GBP'000 | GBP'000 |
+----------------------------------------+-----------+----------+
| Current taxation | | |
+----------------------------------------+-----------+----------+
| - Adjustment in respect of prior years | (16) | (796) |
+----------------------------------------+-----------+----------+
| - Current tax credit | (35) | - |
+----------------------------------------+-----------+----------+
| | | | | |
+----------------------------------------+-+---------+--+-------+
| | | |
+----------------------------------------+-----------+----------+
| Deferred taxation | | |
+----------------------------------------+-----------+----------+
| - Current year charge | - | 34 |
+----------------------------------------+-----------+----------+
| | | |
+----------------------------------------+-----------+----------+
| | | | | |
+----------------------------------------+-+---------+--+-------+
| Total tax credit | | (51) | | (762) |
+----------------------------------------+-+---------+--+-------+
The tax rate used for the reconciliations below is the corporate tax rate of 28%
payable by corporate entities in the United Kingdom on taxable profits under tax
law in that jurisdiction, the effective rate of taxation used for the
calculation of the deferred taxation being 28%.
The charge for the year can be reconciled to the loss per the income statement
as follows:
+---------------------------------------+-+---------+--+---------+
| | 2010 | 2009 |
+---------------------------------------+-----------+------------+
| | GBP'000 | GBP'000 |
+---------------------------------------+-----------+------------+
| | | |
+---------------------------------------+-----------+------------+
| Loss before taxation | | (4,495) | | (9,589) |
+---------------------------------------+-+---------+--+---------+
| | | |
+---------------------------------------+-----------+------------+
| Profit multiplied by standard rate of | (1,259) | (2,685) |
| corporation tax in the UK of 28% | | |
| (2009 28%) | | |
+---------------------------------------+-----------+------------+
| Tax effect of: | | |
| | | |
+---------------------------------------+-----------+------------+
| Expenses not deductable | | 4 | | 13 |
+---------------------------------------+-+---------+--+---------+
| Unrecognised losses utilised in the | | - | | (12) |
| year | | | | |
+---------------------------------------+-+---------+--+---------+
| Enhanced relief on research and | | (30) | | (60) |
| development | | | | |
+---------------------------------------+-+---------+--+---------+
| Tax effect of share options | | (15) | | (9) |
+---------------------------------------+-+---------+--+---------+
| Fixed asset temporary differences | | 218 | | 8 |
+---------------------------------------+-+---------+--+---------+
| Unutilised losses carried forward | | 995 | | 1,949 |
+---------------------------------------+-+---------+--+---------+
| Losses surrendered for tax credit | | 71 | | - |
+---------------------------------------+-+---------+--+---------+
| Research and development tax credit | | (35) | | - |
+---------------------------------------+-+---------+--+---------+
| Deferred tax movement | | - | | 34 |
+---------------------------------------+-+---------+--+---------+
| Total tax (credit)/charge for the | | (51) | | (762) |
| year | | | | |
+---------------------------------------+-+---------+--+---------+
4.EARNINGS PER SHARE
+-----------------------------------------------+----+----------+--------+-+---+-+--------+----------+---+
| | | | |
+-----------------------------------------------+--------------------------+--------------+--------------+
| | 2010 | 2009 | |
+-----------------------------------------------+--------------------------+--------------+--------------+
| | GBP'000 | GBP'000 | |
+-----------------------------------------------+--------------------------+--------------+--------------+
| Basic earnings per share | | | |
+-----------------------------------------------+--------------------------+--------------+--------------+
| (Loss)/profit for the financial year | (4,444) | (8,827) | |
+-----------------------------------------------+--------------------------+--------------+--------------+
| | | |
+---------------------------------------------------------------+----------------+-----------------------+
| | 2010 | 2009 | |
+-----------------------------------------------+------------------------+---------------------------+---+
| | Number | Number | |
+-----------------------------------------------+------------------------+---------------------------+---+
| | | | |
+-----------------------------------------------+------------------------+---------------------------+---+
| Weighted average number of common shares in | 137,034,306 | 111,899,731 | |
| issue during the year | | | |
+-----------------------------------------------+------------------------+---------------------------+---+
| | | | |
+-----------------------------------------------+------------------------+---------------------------+---+
| Basic earnings per share | (3.24)p | (7.89)p | |
+-----------------------------------------------+------------------------+---------------------------+---+
| | | | |
+-----------------------------------------------+------------------------+---------------------------+---+
| Diluted earnings per share | (3.24)p | (7.89)p | |
+-----------------------------------------------+------------------------+---------------------------+---+
| | | |
+----------------------------------------------------+-------------------------+-------------------------+
| | | | | | | | | | |
+-----------------------------------------------+----+----------+--------+-+---+-+--------+----------+---+
The basic earnings per share is based on the loss after taxation of
GBP4,444,000 (2009: loss of GBP8,827,000) and on the weighted average number of
shares in issue during the year of 137,034,306 (2009: 111,899,731).
In accordance with IAS 33 and IFRS 3, there is no difference calculated between
the basic and diluted earnings per share figures on the basis of the average
market value and exercise prices prevailing during the period.
5. CASH AND CASH EQUIVALENTS
+------------------------------------------------+---------+-----+--------+----------+
| | | |
+------------------------------------------------+---------+-------------------------+
| | Group | Group |
+------------------------------------------------+---------+-------------------------+
| | 2010 | 2009 |
+------------------------------------------------+---------+-------------------------+
| | GBP000 | GBP000 |
+------------------------------------------------+---------+-------------------------+
| | | |
+------------------------------------------------+---------+-------------------------+
| Cash at bank and in hand | 488 | - |
+------------------------------------------------+---------+-------------------------+
| Bank overdraft | - | (642) |
+------------------------------------------------+---------+-------------------------+
| Cash and cash equivalents per the cash flow | 488 | (642) | |
| statement | | | |
+------------------------------------------------+---------+-----+--------+----------+
6. CASH GENERATED FROM OPERATIONS
Group
+------------------------------------------+-------------+--------------+
| | | |
+------------------------------------------+-------------+--------------+
| | 2010 | 2009 |
+------------------------------------------+-------------+--------------+
| | GBP000 | GBP000 |
+------------------------------------------+-------------+--------------+
| | | |
+------------------------------------------+-------------+--------------+
| Loss for the year | (4,444) | (8,827) |
+------------------------------------------+-------------+--------------+
| | | |
+------------------------------------------+-------------+--------------+
| Adjustments for: | | |
+------------------------------------------+-------------+--------------+
| Tax | (51) | (762) |
+------------------------------------------+-------------+--------------+
| Depreciation | 166 | 151 |
+------------------------------------------+-------------+--------------+
| Amortisation | 427 | 435 |
+------------------------------------------+-------------+--------------+
| Loss on disposal of property, plant and | 68 | 7 |
| equipment | | |
+------------------------------------------+-------------+--------------+
| Loss on disposal of intangible assets | 377 | - |
+------------------------------------------+-------------+--------------+
| Foreign currency translation | (1) | 125 |
+------------------------------------------+-------------+--------------+
| Employee share scheme | (54) | (32) |
+------------------------------------------+-------------+--------------+
| Interest income | - | (21) |
+------------------------------------------+-------------+--------------+
| Interest expense | 136 | 13 |
+------------------------------------------+-------------+--------------+
| | | |
+------------------------------------------+-------------+--------------+
| Changes in working capital | | |
+------------------------------------------+-------------+--------------+
| Inventories | 167 | 74 |
+------------------------------------------+-------------+--------------+
| Trade and other receivables | 1,127 | (8,934) |
+------------------------------------------+-------------+--------------+
| Trade and other payables | (628) | (2,485) |
+------------------------------------------+-------------+--------------+
| | | |
+------------------------------------------+-------------+--------------+
| Net cash used in operating activities | (2,710) | (2,388) |
+------------------------------------------+-------------+--------------+
7. AVAILABILITY OF THIS ANNOUNCEMENT
Copies of this announcement will be available from the Company's registered
office: The Beren, Blisworth Farm, Stoke Road, Blisworth, Northampton,
Northamptonshire NN7 3DB, and on the Company's website, www.invu.net.
8. CAUTIONARY STATEMENT
Invu Plc has made forward looking statements in this press release, including:
statements about the market for and benefits of its products and services;
financial results; product development plans; the potential benefits of business
relationships with third parties; and business strategies. These statements
about future events are subject to risks and uncertainties that could cause Invu
Plc's actual results to differ materially from those that might be inferred
from the forward-looking statements. Invu Plc can make no assurance that any
forward-looking statements will prove correct.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR FMGMKVDMGGZM
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