RE: Intellego Holdings (IHP)8 Aug 2011 08:22
[IHP] Recent £300k fundraising at a deep discount has taken the shine off these positive results.
Financial statements for the year ended 31 March 2011 The [IHP] today announces that its audited financial statements for the year ended 31 March 2011, extracts below, Chairman's Statement Overview Intellego Holdings plc saw positive changes in its position during the year under review, as the business turn-around realised key milestones, making its first ever profit of GBP146,000, improving gross margins to 71% and reducing current liabilities by £974,000. Results for the year In the first quarter of the year we sold the main learning management system customer base to NetDimensions which resulted in us generating cash to: * reduce our creditor backlog materially and * finance the transition from being a software distributor to a digital content creator. At the beginning of the second quarter we agreed Company Voluntary Arrangements (CVAs) for Intellego Holdings Plc and its subsidiary Intellego Group Limited. These agreements both strengthened the balance sheet. In parallel we have refocused and are investing in the business. This has included developing new products, updating our existing portfolio and the recruitment of new people and advisers. These changes have already started to impact the business and are beginning to make the step-change in contribution we aim to achieve. Much of that benefit will be felt in the current and subsequent years. But as we can see from the 2011 results we are already making progress. There are several measurements and indicators which demonstrate our progress cementing Intellego's turnaround and growth prospects: * Improvement in financial performance of each segment of the business - this is due to structured day to day management, reduction of costs, and focusing the team on putting in place processes that achieve higher margins. * The company showed its first ever net profit of £146,000 (2010 loss GBP1,043,000) * Gross margin improved by 27% to 71% (2010 44%) * Sales increasing 8% to £2,006,000 (2010 £1,853,000) * Current liabilities fell by £974,000 to £809,000 (2010 £1,783,000) * Intellego continues to build closer relationships with its customers. This is generating more repeat business and larger sales per client. All our key customers increased their spend with Intellego, some by more than 50% compared with the previous year. * Attraction of high quality people and advisers to join us and work with us to help us execute our growth strategy.