Replacement of RNS announcement 8321T

The announcement has been changed to reflect a tax charge of £207,000 for the six months ended 30 September 2010 which results in an amended Profit for the Period and Total Comprehensive Profit for the Period of £561,000 and the Basic and Fully Diluted Earnings per share have been amended to 0.62 pence and 0.58 pence respectively. These changes reflect the numbers reported on 7 December 2010 for the period ended 30 September 2010. These amendments are shown on the Consolidated Statement of Comprehensive Income.

BGLOBAL PLC

("Bglobal" or the "Company" or the "Group")

HALF-YEARLY FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2011

Bglobal plc (AIM: BGBL), the leading provider of smart energy solutions and services to the UK energy market is pleased to announce its half-yearly financial report for the six months ended 30 September 2011. 

Commenting on the results Peter Kennedy, Chairman said: "That the Group has remained profitable at EBITDA and cash generative despite difficult trading conditions is pleasing. Our management team led by Tim Jackson-Smith has taken the decisive action needed to enable us to take advantage of the opportunities that lie ahead. The Utiligroup acquisition and its integration into the Group gives us a platform to deliver many of the solutions required to enable new energy suppliers to compete in what we believe will be an increasingly competitive environment. We believe our smart solutions will give new entrants a competitive edge."

Highlights:

·      Group profitable at EBITDA level and cash generative despite difficult trading conditions

·      Revenues decreased by 16.3% to £10.43 million (2010: £12.46 million)

·      Gross margins increased to 53.6% (2010: 44.6%)

·      EBITDA of £1.67 million¹ (2010: £1.03 million)

·      Profit before taxation of £0.67 million¹ (2010: £0.77 million)

·      Adjusted profit before taxation of £0.05 million² (2010: £1.45 million²)

·      Net cash generated from operating activities £0.94 million (2010: £0.27 million)

·      Cash balances at 30 September 2011 of £3.58 million

·      Annualised cost savings of £1.5 million made during the period

¹ After crediting £1.46 million due to the reversal of the contingent consideration accrual relating to the acquisition of Utiligroup

² Before the credit of £1.46 million arising from the reversal of contingent consideration accrual relating to the acquisition of Utiligroup, share based payments charges of £0.07 million and amortisation of acquired intangibles of £0.77 million (2010: £0.20m exceptional charge, share based payments charge of £0.14m and amortisation of £0.35m).

Tim Jackson-Smith, Group Chief Executive Officer added: "I am pleased with the progress that the Group has made over the last six months. The markets that the Group operates in are about to undergo major change and the type of systems needed by suppliers to operate in a smart world are radically different to those that are used today. The ability of the Group to develop and deliver a fully integrated "Smart from the Start™" service will create significant value for shareholders and mean that we are well positioned to play a major role in the future development and direction of the market."

- ends -

For further information, please visit www.bglobalplc.comor contact:

CHAIRMAN'S STATEMENT

I am pleased to report the Group's results for the half year ended 30 September 2011. The Group was profitable at EBITDA level and cash generative in the period.

This has been a challenging yet exciting six months for the Group. Our CEO Tim Jackson-Smith has taken the decisive action required to enable us to take advantage of the opportunities ahead. I am confident that under his leadership we will start to reshape the industry. Our partnership with Samsung will help us deliver Smart Grid solutions from both the consumer and distribution network perspective.

Results

Revenue decreased by 16% to £10.43 million including £3.40 million from Utiligroup (2010: £3.05 million), with recurring and other services revenues increasing by 28.7% to £2.64 million (2010: £2.05 million). Administrative costs increased to £5.32 million (2010: £4.20 million). Adjusted profit before taxation was £0.05 million (before the credit of £1.46 million arising from the reversal of contingent consideration accrual relating to the acquisition of Utiligroup, share based payment charges of £0.07 million and amortisation of acquired intangibles of £0.77 million) (2010: £1.45 million). Profit before taxation was £0.67 million (2010: £0.55 million). Earnings per share were 0.72p (2010: 0.62p). The Group generated £0.94 million of cash from its operating activities and its cash balances at 30 September 2011 were £3.58 million.

Dividend

The Board is not recommending a dividend, as all funds are needed at this time to be invested in the development of the business.

Business and market developments

In my last report I commented on the importance of secure, affordable and sustainable energy to governments around the world and how the energy sector will play a key role in meeting these challenges. Whilst this is still valid, the present is beset with economic challenges that must be overcome if we are to ensure the smart delivery of energy in the future. We should also remember that consumers have seen the price of energy rise way beyond the level of inflation which has lead to more and more people slipping into fuel poverty.

The Government's eagerly awaited Spring Package delivered a blow to our strategic objectives by delaying the start of the rollout of smart meters until at least 2014. The current programme is in my view overly complex and beset with issues and even for the rollout to commence in 2015 looks like an ambitious goal. Fortunately the Government will allow smart meters to be rolled out during what it is calling the "foundation phase" before 2014 and this has allowed us to set objectives to deliver a "Smart from the Start™" platform of systems and services that will enable a major retail player to come into the market at scale in 2012.

I firmly believe that our model of supplying an end-to-end fully funded "Smart from the Start™" solution will deliver benefits to consumers by empowering them to manage their energy consumption dynamically and to achieve the concomitant savings.

Outlook

Our strategic direction is now clear and we have the team in place lead by Tim Jackson-Smith to deliver on the objectives we have set ourselves. Our "Smart from the Start™" proposition will increase competition and help the consumer.   

Peter B Kennedy

Chairman

CHIEF EXECUTIVE'S STATEMENT

Despite the first six months of this financial year having presented the Group with a number of challenging conditions, I am pleased to report that the Group made significant progress over the period and has continued to be profitable at EBITDA level, and cash generative at an operational level. The Group has a strong balance sheet with in excess of £3.5 million of cash and is well positioned to become a trusted provider of smart energy efficiency services to end users.

Bglobal Metering

There continues to be uncertainty around the mass rollout of smart metering in the UK and this has lead to some of our customers reducing the rate at which they are installing smart meters. Accordingly, the business has seen a marked slowdown in the volume of installations taking place in the industrial and commercial sector. However, despite this expected slow down the business has delivered an operating profit in the period. Revenue from meter installations was £4.56m (2010: £8.76m). The Group's accredited data collection, data aggregation and meter operation revenue for the period was £2.08m (2010: £1.66m).

It became apparent during the first 6 months of this financial year that the cost savings made at the beginning of the financial year had not gone far enough and the Board has, therefore, taken additional steps to further reduce the cost base within the business. These steps will generate annual savings of approximately £1.5 million in addition to the £1 million achieved earlier this year. The savings have been achieved by reducing head count within the business and by a reduction in certain associated costs. This process was completed at the end of October and these additional savings will be seen in the second half of this financial year.

Utiligroup

Utiligroup has performed in line with the Board's expectations in the period and has been profitable and cash generative. Revenue for the period was £3.40m (2010: £3.05m). In the UK, Utiligroup continues to see strong and growing interest from new entrants to the energy supply sector, with a range of domestic and SME focused companies in advanced discussions for their market entry underpinned by our solutions. In addition, the service offering has been expanded to address further complex areas, such as the energy settlement process, to provide additional support to new entrants.

Utiligroup's solutions for energy wholesale trading continue to attract new clients, and we are seeing signs of this market being stimulated by the government's Electricity Market Review. Likewise, the evolution of the electricity distribution role is creating an opportunity for us to expand our offerings and client base.

In Australia, Utilisoft continues to grow its customer base with new contract wins including Endeavour Energy and APA Group, who have both completed successful software implementations. Existing customers, Essential Energy, Aurora Energy and TRUenergy have all moved into production with major projects using Utilisoft software and services. Furthermore, energy retailer TRUenergy has awarded a contract to Utilisoft to provide 24 x 7 market interaction support services, thus increasing recurring revenues and providing a platform to offer further services to TRU and similar support for other clients.

Strategy

As mentioned in our recent trading update, the Group is currently working with an experienced retail player to establish a new energy supplier that will enter the market at scale. I am pleased to report that we are making good progress in these discussions and I hope to be able to provide further details about this transaction early in the New Year. Our relationship with Samsung C&T is also valuable to this initiative as it will help to provide the new entrant with a fully funded solution for the installation of smart meters across its portfolio of customers.  We are also continuing to move this initiative forward and again should be in a position to update shareholders on the structure and nature of this deal in the New Year.

Outlook

The markets in which the Group operates are evolving and this has resulted in the Group needing to fundamentally alter its approach to the way it wins work and who its customers are. It is clear that this financial year will be a transitional period for the Group in which we will seek to position ourselves so as to benefit from the opportunities that this evolution will bring.  As key Government policy and industry initiatives take shape around smart metering, such as the Renewable Heat Incentive and the Green Deal, we also anticipate new opportunities opening up for the Group in which its broad, integrated capability can play a major role.

Tim Jackson-Smith

Chief Executive Officer

Bglobal plc

Consolidated statement of Financial Position at 30 September 2011

Bglobal plc

Consolidated statement of comprehensive income for the period ended 30 September 2011

The results for the period are derived from continuing activities.

Bglobal plc

Consolidated statement of cash flows for the period to 30 September 2011

Bglobal plc-

Consolidated statement of changes in equity for the period ended 30 September 2011

Notes to the accounts

1.         Basis of preparation and accounting policies

Basis of preparation

The Group's half-yearly financial report consolidates the results of the company and its subsidiary undertakings made up to 30 September 2011. The company is a limited liability company incorporated and domiciled in England & Wales and whose shares are quoted on AIM, a market operated by The London Stock Exchange. The consolidated financial information of Bglobal plc is presented in Pounds Sterling (£), which is also the functional currency of the parent.

The financial information contained in this half-yearly financial report does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. It does not therefore include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as at 31 March 2011. 

The financial information for the 6 months ended 30 September 2011 is also unaudited.

The Group's statutory accounts for the year ended 31 March 2011 have been delivered to the Registrar of Companies. The report of the auditors on these accounts was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006. 

Significant accounting policies

The accounting policies used in the preparation of the financial information for the six months ended 30 September 2011 are in accordance with the recognition and measurement criteria of International Financial Reporting Standards ('IFRS') as adopted by the European Union and are consistent with those which will be adopted in the annual statutory financial statements for the year ended 31 March 2012.

While the financial information included has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS), as adopted by the European Union (EU), this announcement does not in itself contain sufficient information to comply with IFRS's.  

2.         Segmental information

The Group has three reportable segments, Central costs, Metering and data services, and Software and related services.  This disclosure correlates with the information which is presented to the Group's Chief Decision Maker, the CEO.  The Group's revenue, profit before taxation and net assets were all derived from its principal activities. Operations are carried out within the United Kingdom and Australia.

3          Separately disclosable items

4          Taxation

5          Earnings per share

            The calculation of basic earnings per ordinary share is based on profits attributable to equity holders of £726,483 (6 months ended 30 September 2010: £561,187, year ended 31 March 2011: £1,431,210 loss) and on 100,815,787 ordinary shares (6 months ended 30 September 2010: 90,431,035 year ended 31 March 2011: 94,975,117) being the weighted average number of shares in issue during the year.

6          Restatement of prior period comparatives

The directors have restated the prior period comparatives to exclude from administrative expenses and operating profits the costs relating to acquisitions. In the opinion of the directors this change in presentation is required in order for the financial information to reflect more fairly the results from normal operating activities of the group. They have reclassified "separately disclosable items", which represent exceptional non-recurring gains and losses relating to corporate acquisitions, including adjustments to contingent consideration, to be shown after operating profit. The effect of this restatement is to show a profit from operations of £2,458k (previously stated as loss of £651k) in the results for the year ended 31 March 2011. There is no impact on net loss for that year.

7          The half-yearly financial report was approved for issue by the Board of Directors on 12 December 2011.

8          A copy of this half-yearly financial report is available from the Company's Registered Office or by visiting our website at www.bglobalplc.com.

INDEPENDENT REVIEW REPORT TO BGLOBAL PLC

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2011 which comprises the Consolidated Statement of Financial Position, Consolidated Statement of Comprehensive Income, Consolidated Statement of Cash Flows, Consolidated Statement of Changes in Equity and the related explanatory notes.  We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "'Review of Interim Financial Information performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our review work has been undertaken so that we might state to the Company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.

Directors' Responsibilities

The half-yearly financial report, is the responsibility of, and has been approved by the directors.  The directors are responsible for preparing and presenting the half-yearly financial report in accordance with the AIM Rules of the London Stock Exchange.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards and International Financial Reporting Interpretations Committee pronouncements as adopted by the European Union.  The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with the presentation, recognition and measurement criteria of International Financial Reporting Standards and International Financial Reporting Interpretations Committee pronouncements, as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom.  A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.  A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2011 is not prepared, in all material respects, in accordance with the presentation, recognition and measurement criteria of International Financial Reporting Standards and International Financial Reporting Interpretations Committee  pronouncements as adopted by the European Union, and the AIM Rules of the London Stock Exchange.

Baker Tilly UK Audit LLP

Chartered Accountants

3 Hardman Street

Manchester

M3 3HF

13 December 2011