RNS Number : 6464K
Loanmakers (Holdings) PLC
23 December 2008
LOANMAKERS (HOLDINGS) PLC
("the Company")
Interim results for The Six Months Ended 30th September 2008
Highlights
* Significant downturn in trading performance in first half as a result of credit crunch
* Largest provider of secured loans, First Plus, exited the market in August 2008 reducing lending options
* Other lenders have tightened lending criteria
* Falling house prices have reduced equity
* Demand for loans increasing although completions declining due to difficulties in finding suitable lending products
Clearly the results for the first half of the year are disappointing, but these have been caused in large part by worsening economic
conditions and the effects of the credit crunch. Our largest provider of secured loans, First Plus, exited the market in August 2008
reducing lending options and other lenders have tightened lending criteria. Over the period the Company has reduced headcount significantly
in line with much lower levels of activity.
The Board has attempted to retain the Company's infrastructure, although this has been increasingly difficult as numbers have reduced.
Relations with both lenders and introducers remain positive but given the current economic outlook it is unlikely that trading performance
will improve in the second half of the year.
The Board is extremely disappointed that the recently proposed underwritten open offer was rejected by shareholders, as this represented
an opportunity to inject capital into the business. Given this disappointing outcome the Board continues to review its options for the
Group.
Ges Ratcliffe, Chief Executive
23 December 2008
Enquiries:
CEO, Loanmakers (Holdings plc
Ges Ratcliffe 01204 678200
Rick Thompson / Carl Holmes Charles Stanley Securities 020 7149 6000
Nominated Adviser
Loanmakers (Holdings) plc
Interim results for the six months ended 30 September 2008
Consolidated Income Statement
Unaudited Unaudited Year ended
6 months ended 30 6 months ended 30 31 March
September 2008 September 2007 2008
Notes
� � �
REVENUE 2 4,072,073 14,306,874 23,552,144
Cost of sales (2,702,253) (9,112,965) (16,452,143)
Gross Profit 1,369,820 5,193,909 7,100,001
Administrative expenses (2,777,694) (4,423,720) (9,228,756)
EBITDA (1,407,874) 770,189 (2,128,755)
Loss on sale of business - - (4,250,864)
Amortisation and depreciation (77,106) (115,609) (295,384)
Goodwill impairment - - (1,159,875)
Non trading items - - (3,923)
(LOSS)/ PROFIT FROM OPERATIONS (1,484,980) 654,580 (7,838,801)
Finance costs (118,421) (308,535) (597,332)
(LOSS)/ PROFIT BEFORE TAXATION (1,603,401) 346,045 (8,436,133)
Taxation 3 - (103,814) 1,624,076
(LOSS)/ PROFIT AFTER TAXATION (1,603,401) 242,231 (6,812,057)
Earnings per share
Basic - pence 4 (5.62)p 0.93p (23.86)p
Diluted - pence 4 (5.39)p 0.88p (23.86)p
Loanmakers (Holdings) plc
Interim results for the six months ended 30 September 2008
Consolidated Balance Sheet
Unaudited Unaudited
30 September 2008 30 September 2007
31 March 2008
Notes
� � �
Non-current assets
Intangible assets 11,151,408 13,449,490 11,178,435
Property, plant and equipment 136,649 399,825 185,344
Deferred tax assets 50,357 90,510 50,357
11,338,414 13,939,825 11,414,136
Current assets
Work in progress 354,358 737,508 354,358
Trade and other receivables 1,250,840 13,800,165 1,953,008
Cash and cash equivalents (285,887) 712,104 110,828
1,319,311 15,249,777 2,418,194
Total assets 12,657,725 29,189,602 13,832,330
Current liabilities
Trade and other payables 840,455 2,281,643 751,187
Financial liabilities 3,848,662 1,266,270 3,509,136
Current tax liabilities 1,114,670 3,086,499 1,114,670
5,803,787 6,634,412 5,374,993
Non-current liabilities
Trade and other payables - 552,728 -
Financial liabilities - 5,912,500 -
Total liabilities 5,803,787 13,099,640 5,374,993
Equity
Share capital 5 3,107,150 3,107,150 3,107,150
Contingent share consideration - 368,486 -
Share premium account 6,959,904 6,959,904 6,959,904
Merger reserve - (1,999,996) -
Share based compensation 205,393 415,244 205,393
reserve
Retained earnings (3,418,509) 7,239,174 (1,815,110)
Total equity 6,853,938 16,089,962 8,457,337
Total liabilities and equity 12,657,725 29,189,602 13,832,330
Loanmakers (Holdings) plc
Interim results for the six months ended 30 September 2008
Statement of changes in equity
Share Share Premium Merger Share Based Retained
Total
Capital account Reserve Compensation Reserve Earnings
(Restated)
(Restated)
� � � � �
�
Equity as at 1 April 2007 7,123,765 1,956,614 (1,999,996) 338,518 6,996,943
14,415,844
Shares issued under contingent
equity consideration 382,839 2,427,203 - - -
2,810,042
Adjustment to contingent
equity consideration (4,293,740) - - - -
(4,293,740)
Shares issued on AIM placing 262,772 2,706,552 - - -
2,969,324
Share issue costs - (130,465) - - -
(130,465)
Share based payments - - - 76,726 -
76,726
Profit for the period - - - - 242,231
242,231
------------------- ------------------ ---------------- -------------------- ------------------
-------------------
----
Equity as at 30 September 2007 3,475,636 6,959,904 (1,999,996) 415,244 7,239,174
16,089,962
------------------- ------------------ ---------------- -------------------- ------------------
-------------------
----
Share Share Premium Merger Share Based Retained
Total
Capital account Reserve Compensation Reserve Earnings
� � � � �
�
Equity as at 1 April 2008 3,107,150 6,959,906 - 205,393 (1,815,110)
8,457,339
Share based payments - - - - -
-
Loss for the period - - - - (1,603,401)
(1,603,401)
------------------- ------------------- -------------- -------------------- -------------------
-------------------
--
Equity as at 30 September 2008 3,107,150 6,959,906 - 205,393 (3,418,511)
6,853,938
------------------- ------------------- -------------- -------------------- -------------------
-------------------
---
Loanmakers (Holdings) plc
Interim results for the six months ended 30 September 2008
Consolidated Cash Flow Statement
Unaudited Unaudited
6 months ended 30 6 months ended 30
September 2008 September 2007
� Year ended 31 March 2008
�
�
Cash flows from continuing
operating activities
(Loss)/ Profit from operations (1,484,980) 654,580 (276,891)
Share based compensation - 76,726 (133,125)
Depreciation 47,987 70,417 100,919
Amortisation of IPS licences 27,025 45,192 51,270
Loss on disposal of tangible fixed assets - - 3,923
Impairment of goodwill - - 984,900
Profit on sale of business - - (165,266)
Finance costs - - 262,448
Decrease / (Increase) in work in progress - 104,558 (4,878)
Decrease / (Increase) in trade and other 702,174 346,034 (421,433)
receivables
(Decrease) / Increase in trade and other payables 89,266 (938,064) 422,589
Cash generated from continuing operations (618,528) 359,443 824,456
Interest paid (118,421) (308,535) (262,448)
Income taxes paid - (425,191) (1,377,994)
Cash used in continuing operating activities (736,949) (374,283) (815,986)
Cash used in discontinued operating - - (2,271,676)
activities
Total cash used in operating activities (736,949) (374,283) (3,087,662)
Cash flows from continuing investing activities
Payments to acquire property, plant and equipment - (72,290) (128,627)
Payments to acquire intangible assets - (66,968) (40,977)
Receipts from sale of property, plant and equipment 708 - 562
Acquisition of subsidiary undertaking - - (1,014,395)
Net cash disposed with disposal of business - - (126,628)
Receipts from disposal of business - - 6,200,000
Cash generated /(used in) from continuing 708 (139,258) 4,889,935
investing activities
Cash generated from discontinued investing - - 752,544
activities
Total cash (used in)/ generated from investing 708 (139,258) 5,642,479
activities
Cash flows from continuing financing activities
Proceeds on issue of ordinary shares - 2,969,324 2,969,324
Share issue costs - (130,465) (130,465)
Repayment of borrowings - - (7,787,500)
Net movement in long term borrowings - (625,000) -
Capital element of finance lease agreements - (14,770) -
Cash generated from continuing financing - 2,199,089 (4,948,641)
activities
Cash used in discontinued financing activities - - (31,040)
Total cash generated /(used in ) financing - 2,199.089 (4,979,681)
activities
Net increase/(decrease) in cash and cash (736,241) 1,685,548 (2,424,864)
equivalents
Cash & cash equivalents at the beginning (3,398,308) (973,444) (973,444)
of the financial period
Cash & cash equivalents at the end of (4,134,549) 712,104 (3,398,308)
the financial period
Loanmakers (Holdings) plc
Interim results for the six months ended 30 September 2008
Notes to the Interim Financial Statements
1. Basis of preparation
These financial statements are the unaudited interim consolidated financial statements for the six month period ended 30 September 2008.
They have been prepared in accordance with IAS 34 "Interim Financial Reporting" and should be read in conjunction with the Consolidated
Financial Statements for the year ended 31 March 2008.
The Interim Financial Statements have been prepared in accordance with the accounting policies set out in the Consolidated Financial
Statements for the year ended 31 March 2008.
2. Revenue
Revenue in the Consolidated Income Statement represents amounts billed or to be billed in respect of services performed on behalf of
clients. The amounts taken to turnover are calculated as follows:
Loan commissions: on approval of loan applications.
3. Taxation
Taxation is provided for at an estimated effective rate of 30%.
4. Earnings per share
Earnings and the number of shares used in the calculations of earnings per share are set out below:
Unaudited 6 months Unaudited 6 months
ended 30 September ended 30 September Year ended
2008 2007 31 March
2008
� � �
(Loss)/ Profit for the period (1,603,401) 242,231 (6,812,057)
Weighted average number of No. No. No.
shares in issue:
For basic earnings per share 28,554,090 26,015,157 28,554,090
Executive share options 1,216,802 1,295,764 1,216,802
Contingent share consideration - 231,752 -
------------------ ----------------- --------------------
For diluted earnings per share 29,770,892 27,542,673 29,770,892
------------------ ----------------- --------------------
Earnings per share:
Basic (5.62)p 0.93p (23.86)p
Diluted (5.39)p 0.88p (23.86)p
Loanmakers (Holdings) plc
Interim results for the six months ended 30 September 2008
Notes to the Interim Financial Statements continued*
5. Called up share capital
No. �
Authorised:
Ordinary shares of 10p each 35,200,000 3,520,000
Unaudited Unaudited
30 September 2008 30 September 2007
31 March 2008
No. No. No.
Allotted and called up:
Ordinary shares of 10p each 31,071,499 24,615,385 24,615,385
Contingent share consideration - 3,828,394 3,828,394
Ordinary shares issued - 2,627,720 2,627,720
--------------------- -------------------- -----------------
31,071,499 31,071,499 31,071,499
--------------------- -------------------- -----------------
� � �
Allotted and called up:
Ordinary shares of 10p each 3,107,150 2,461,539 2,461,539
Ordinary shares of 10p each - 262,772 262,772
issued
--------------------- -------------------- -----------------
3,107,150 2,724,311 2,724,311
Contingent share consideration - 382,839 382,839
--------------------- -------------------- -----------------
3,107,150 3,107,150 3,107,150
--------------------- -------------------- -----------------
Ordinary Shares
On 19th September 2007, 3,828,394 ordinary shares of 10p each were issued at �0.73 per ordinary share as a part of the contingent
consideration in respect of the acquisition of Loanmakers Limited in June 2006. On 13th July 2007, 2,627,720 ordinary shares of 10p each
were issued at a price of �1.13 per ordinary share.
Interim Report
The interim report will be posted to all shareholders. Copies can be obtained from the Company's head office: Sefton House, Northgate
Close, Horwich, Lancashire, BL6 6PQ and are available to download from the Company's website www.loanmakers.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
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