28 Jun 2016 07:00
FOR IMMEDIATE RELEASE 28 June 2016
BOND INTERNATIONAL SOFTWARE PLC
PRELIMINARY RESULTS
Bond International Software plc, a world leading supplier of staffing, HR and payroll software and services, with operations in the UK, USA, and Asia Pacific, today announces its audited preliminary results for the year ended 31 December 2015.
KEY POINTS
· Wide ranging review undertaken of all strategic options available
· The Board has determined the way to deliver best return to shareholders was through a programme of divestments
· Disposal of Strictly Education for a total consideration of £11.3m announced on 3 May 2016
· The Board is required to treat businesses for sale as discontinued operations
· The Board is in advanced discussions in respect of further disposals
· Loss from continuing operations of £1.8m (2014: loss £1.4m), comprising principally the operating costs of the holding company
· Loss from discontinued operations of £0.4m (2014: profit £3.6m) after impairment of intangible assets of £1.9m and exceptional costs of £0.6m
· Loss per share of 5.19p (2014: earnings per share 5.17p)
· Upon completion of disposals, the Board intends to make a distribution to shareholders as soon as practicable after receipt of the net proceeds of sale
For further information, please contact:
Bond International Software plc: | Tel: 01903 707070 www.bondinternationalsoftware.com |
Steve Russell: Group Chief Executive | |
Bruce Morrison: Group Finance Director | |
| Buchanan: | Tel: 020 7466 5000 |
Richard Darby
| |
Cenkos Securities Limited | Tel: 020 7397 8900 |
Stephen Keys |
CHAIRMAN'S STATEMENT
I am pleased to report the audited results for the year ended 31 December 2015.
Strategic review
As I reported to you in March 2015, the Board had decided to undertake a wide ranging review of all the strategic options available to the Group including a strategic partnership, acquisitions to increase the scale of the Group, a sale of the Company or a new or extended bank facility to continue to invest in the Company.
Having considered all the options available to the Group, the Board determined that the way to deliver the best return to shareholders as a whole is through a programme of divestments. On 29 April 2016 the Group completed the first of these disposals with the sale of Strictly Education Limited, for a total consideration of £11.3m, comprising an initial cash consideration of £7.0m and a loan note of £4.3m which is repayable within six months of completion.
Following the announcement by Constellation Software Inc on 3 June 2016 that it was considering making an offer for the Company at a price of 105 pence per share, the Board announced that it was in advanced discussions in respect of further disposals and expects to make further announcements in the coming weeks.
Financial overview
Following the decision to pursue a programme of divestments, the Board is required to treat the activities of those businesses which it is actively considering the sale of, as discontinued operations. As a consequence the 2014 results have been restated to treat those same businesses as discontinued operations.
The Board has identified three separate disposal groups, Strictly Education Limited, HR and Payroll and Recruitment Software. The results of each of those disposal groups and their assets and liabilities are disclosed in note 2. The remaining activities of the Company are disclosed as that of a holding company.
Following the reclassification the Group has made an operating loss on continuing activities of £1,636,000 in 2015 compared with a loss of £1,365,000 for the same period in 2014 and a loss before tax of £1,770,000 (2014: £1,388,000). The loss principally comprises the operating costs of the holding company for the year.
There is a loss from discontinued activities of £443,000 (2014: Profit £3,569,000) following the impairment of intangible assets of £1,904,000 and exceptional costs of £559,000, being the additional contingent consideration payable in respect of the acquisition of Eurowage Limited. The result is a loss per share of 5.19p (2014: earnings per share 5.17p).
The Group generated £6,595,000 of cash from its operating activities (2014: £7,056,000). The Group paid out £3,370,000 for deferred and contingent consideration for Eurowage Limited, £4,536,000 on capital expenditure on property, plant and equipment and intangible assets (2014: £3,905,000) and a dividend of £1,067,000. As a result of these cash flows the Group had net bank borrowings of £3,513,000 at the end of 2015 (2014: £206,000) and further financial liabilities at 31 December 2015 comprising a loan note due to the vendor of Eurowage Limited - which had a fair value of £2,563,000 (2014: £2,626,000). The bank debt was subsequently repaid following the completion of the sale of Strictly Education Limited on 29 April 2016.
Upon completion of the disposals referred to above, the Board plan to make a distribution to shareholders as soon as practicable after receipt of the net proceeds of the disposal. As a result the Board is not recommending the payment of a dividend in respect of the 2015 accounts.
Employees
The Group employs around 490 people around the world and I would like to thank all the staff for their continuing hard work, dedication and loyalty to the Group.
Martin Baldwin
Chairman
27 June 2016
BOND INTERNATIONAL SOFTWARE PLC
Consolidated income statement for the year ended 31 December 2015
|
Note | 2015 £000 | 2014 £000 | ||||||
Continuing operations Administrative expenses | (1,636) | (1,365) | |||||||
Operating loss |
| (1,636) | (1,365) | ||||||
Finance income | 7 | 56 | |||||||
Finance costs | (411) | (288) | |||||||
Loss before income tax | (2,040) | (1,597) | |||||||
Income tax | 3 | 270 | 209 | ||||||
Loss from continuing operations | (1,770) | (1,388) | |||||||
Discontinued operations | |||||||||
(Loss)/profit for the period from discontinued operations | 7 | (443) | 3,569 | ||||||
(Loss)/profit for the year attributable to the owners of the parent | (2,213) | 2,181 | |||||||
Earnings per share attributable to the owners of the parent during the year (pence per share) | 4 | ||||||||
Basic (loss)/earnings per share (pence) | |||||||||
From continuing operations From discontinued operations | (4.15) (1.04) | (3.29) 8.46 | |||||||
(5.19) | 5.17 | ||||||||
Diluted (loss)/earnings per share (pence) From continuing operations From discontinued operations | (4.15) (1.04) | (3.29) 8.46 | |||||||
(5.19) | 5.17 | ||||||||
BOND INTERNATIONAL SOFTWARE PLC
Consolidated statement of comprehensive income for the year ended 31 December 2015
2015 £000 | 2014 £000
| |||||
(Loss)/profit for the year attributable to the owners of the parent | (2,213) | 2,181 | ||||
Other comprehensive income net of tax Item that may be subsequently reclassified to profit and loss | ||||||
Currency translation differences on foreign currency net investments | 353 | 294 | ||||
Other comprehensive income net of tax | 353 | 294 | ||||
| Total comprehensive income for the year attributable to the owners of the parent | (1,860) | 2,475 | ||||
| Total comprehensive income attributable to equity shareholders arises from: - Continuing operations - Discontinued operations | (1,770) (90) | (1,388) 3,863 | ||||
(1,860) | 2,475 | |||||
There are no taxation effects in respect of the foreign currency translation differences.
BOND INTERNATIONAL SOFTWARE PLC
Consolidated balance sheet at 31 December 2015
Note | 2015 £000 | 2014 £000 | |||
ASSETS | |||||
Non-current assets Property, plant and equipment Intangible assets Deferred tax assets Trade and other receivables |
|
1,697 - 2 631 |
2,705 41,396 1,538 630 | ||
2,330 |
46,269 | ||||
Current assets Inventories Trade and other receivables Cash and cash equivalents |
|
- 438 2,437 |
26 9,271 3,688 | ||
2,875 |
12,985 | ||||
Assets of disposal group classified as held for sale | 7 | 48,493 | - | ||
|
51,368 |
12,985 | |||
Total assets | 53,698 | 59,254 | |||
EQUITY Share capital Share premium account Merger reserve Equity option reserve Currency translation reserve Retained earnings |
|
427 24,052 989 170 (658) 9,029 |
426 23,938 989 246 (1,011) 12,233 | ||
Total equity attributable to the owners of the parent | 34,009 | 36,821 | |||
LIABILITIES | |||||
Non-current liabilities Trade and other payables Borrowings Deferred tax liabilities |
|
- 2,563 - |
478 6,484 2,787 | ||
|
2,563 |
9,749 | |||
Current liabilities Trade and other payables Current income tax liabilities Borrowings |
|
652 - 5,950 |
12,198 431 55 | ||
6,602 |
12,684 | ||||
Liabilities of disposal group classified as held for sale | 7 | 10,524 | - | ||
17,126 |
12,684 | ||||
Total liabilities | 19,689 | 22,433 | |||
Total liabilities and equity | 53,698 | 59,254 |
BOND INTERNATIONAL SOFTWARE PLC
Consolidated cash flow statement for the year ended 31 December 2015
|
Note | 2015 £000 | 2014 £000 |
| |||||||||||||
|
Cash flows from operating activities |
|
| ||||||||||||||
| Cash generated from operations Interest paid Income tax (paid)/ recovered | 6
| 6,595 (248) (866) | 7,056 (192) (790) | |||||||||||||
| |||||||||||||||||
| Net cash generated from operating activities | 5,481 | 6,074 | ||||||||||||||
| |||||||||||||||||
| Cash flows from investing activities Acquisition of subsidiary net of cash acquired Payment of contingent arising on business combinations Interest received Purchase of property, plant and equipment Purchase of intangible assets Proceeds from sale of property, plant and equipment |
|
- (3,370) 66 (377) (4,159) 12 |
(2,650) - 56 (370) (3,535) 16 | |||||||||||||
| |||||||||||||||||
| Net cash used in investing activities | (7,828) | (6,483) | ||||||||||||||
| |||||||||||||||||
| Cash flows from financing activities Issue of new ordinary shares Increase in bank borrowings Repayment of bank borrowings New finance leases Repayment of finance leases Equity dividend paid |
5 |
115 2,100 (216) 164 (83) (1,067) |
|
2 3,600 (2,069) 84 (142) (936) | ||||||||||||
| |||||||||||||||||
| Net cash from financing activities | 1,013 | 539 | ||||||||||||||
| |||||||||||||||||
| (Decrease)/increase in cash and cash equivalents for the year | (1,334) | 130 | ||||||||||||||
| |||||||||||||||||
| Cash and cash equivalents at the beginning of the year | 3,688 | 3,479 | ||||||||||||||
| Effects of foreign exchange rate changes | 83 | 79 | ||||||||||||||
| |||||||||||||||||
| Cash and cash equivalents at the end of the year | 2,437 | 3,688 | ||||||||||||||
| |||||||||||||||||
For the purposes of the cash flow statement, cash includes deposits at call with financial institutions
BOND INTERNATIONAL SOFTWARE PLC
Consolidated statement of changes to shareholders' equity for the year ended 31 December 2015
Attributable to owners of the parent
|
Share capital £000 |
Share premium £000 |
Merger Reserve £'000 | Equity option reserve £000 | Currency translation reserve £000 |
Retained earnings £000 |
Total £000 |
| |||||||
At 1 January 2014 |
415 |
23,935 |
- |
267 |
(1,305) |
10,967 |
34,279 |
Comprehensive income: Profit for the financial year |
- |
- |
- |
- |
- |
2,181 |
2,181 |
Other comprehensive income net of tax: Currency translation differences |
- |
- |
- |
- |
294 |
- |
294 |
Total comprehensive income for the year |
- |
- |
- |
- |
294 |
2,181 |
2,475 |
Dividend paid Issue of ordinary shares |
- 11 |
- 3 |
- 989 |
- - |
- - |
(936) - |
(936) 1,003 |
Share options lapsed | - | - | - | (21) | - | 21 | - |
At 31 December 2014 |
426 |
23,938 |
989 |
246 |
(1,011) |
12,233 |
36,821 |
Comprehensive income: Loss for the financial year |
- |
- |
- |
- |
- |
(2,213) |
(2,213) |
Other comprehensive income net of tax: Currency translation differences |
- |
- |
- |
- |
353 |
- |
353 |
Total comprehensive income for the year |
- |
- |
- |
- |
353 |
(2,213) |
(1,860) |
Dividend paid Issue of ordinary shares |
- 1 |
- 114 |
- - |
- - |
- - |
(1,067) - |
(1,067) 115 |
Share options lapsed | - | - | - | (76) | - | 76 | - |
At 31 December 2015 |
427 |
24,052 |
989 |
170 |
(658) |
9,029 |
34,009 |
The share premium account is used to record the amounts received in excess of the nominal value of shares issued.
The merger reserve comprises the premium arising on shares issued as consideration for the acquisition of subsidiaries where merger relief under section 612 of the Companies Act 2006 applies.
The currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries.
The equity option reserve is used to record the reserve set aside for share based payment expense.
The retained earnings reserve and currency translation reserve represent the cumulative net gains and losses arising in the Consolidated Income Statement and Consolidated Statement of Comprehensive Income.
BOND INTERNATIONAL SOFTWARE PLC
Notes for the year ended 31 December 2015
1. Basis of preparation
The financial information for the year ended 31 December 2015 does not constitute statutory accounts as defined in section 435 of the Companies Act 2006 but represents extracts from the Company's audited accounts which have been reported on by the auditor, and will be dispatched to the shareholders and filed with the Registrar of Companies. These extracts do not provide as full an understanding of the financial performance and position, or financial and investing activities of the Group as the complete Annual Report & Accounts.
The audited consolidated financial statements of the Group for the year ended 31 December 2015 were prepared in accordance with International Financial Reporting Standards adopted for use in the European Union and by applying the accounting policies and presentation that were used in the preparation of the Group's financial statements for the year ended 31 December 2014.
Under terms of the acquisition of Eurowage Limited in 2014 there were contingent consideration arrangements requiring the Group to pay the former owners of Eurowage Limited an amount based on the financial performance of Eurowage Limited in the twelve months following acquisition. Further contingent consideration is payable of three times the amount by which the average profit for the three years to 31 December 2016 exceeds £3,500,000 up to a maximum average profit of £5,000,000. Because the payment of the contingent consideration is linked to the former owners remaining as an employees of the Group, IFRS3 requires it to be treated as part of their remuneration and expensed to the Income Statement. The Board does not believe that this a fair reflection of the nature of the contingent consideration and for that reason has treated it as part of the consideration for the acquisition. As a result the Group has not complied with the requirements of IFRS 3 in its treatment of contingent consideration on the acquisition of Eurowage Limited and the Auditor has included a qualification in his audit report.
The comparative figures for the financial year ended 31 December 2014 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditor and have been delivered to the Registrar of Companies. The report of the auditor was qualified, but did not include a reference to any matter to which the auditor drew attention by way of emphasis without qualifying their report, and did not contain a statement under Sections 498(2) or 498(3) of the Companies Act 2006.
The announcement was approved by the Board of Directors and authorised for issue on 27 June 2016.
2. Segmental Reporting
(a) Operating segments
For management purposes, the Group was until recently organised into operating segments, which were represented by three divisions - Recruitment software, HR and Payroll software and Outsourcing. These divisions were the basis on which the Group has historically reported its segment information. Following the decision to dispose of one or divisions of the Group, the activities of those divisions have been reclassified as discontinued and the segments reorganised into disposal groups. The results and assets and liabilities of those disposal groups are set out in note 7.
Unallocated items comprise mainly corporate and head office items.
BOND INTERNATIONAL SOFTWARE PLC
Notes for the year ended 31 December 2015 (cont'd)
2. Segmental reporting (cont'd)
(a) Operating segments (cont'd)
Segmental information about these businesses is presented below.
Discontinued activities |
|
| |||||||
Year ended 31 December 2015 |
Recruitment software £000 | HR and payroll software £000 |
Outsourcing £000 |
Unallocated £,000 |
Total £000 | Reclassified as discontinued £000 |
Total Group £000 | ||
Revenue Sales to external customers |
17,825 |
4,432 |
17,430 |
- |
39,687 |
(39,687) |
- | ||
Result Operating loss before the amortisation of intangible assets |
2,089 |
1,329 |
3,971 |
(1,636) |
5,753 |
(7,389) |
(1,636) | ||
Amortisation of internally generated intangible assets |
(3,270) |
(4) |
- |
- |
(3,274) |
3,274 | - | ||
Operating loss before amortisation of acquired intangibles |
(1,181) |
1,325 |
3,971 |
(1,636) |
2,479 |
(4,115) | (1,636) | ||
Amortisation of acquired intangibles | (361) | (264) | (745) | - | (1,370) | 1,370 | - | ||
Operating loss |
(1,542) |
1,061 |
3,226 |
(1,636) |
1,109 |
(2,745) | (1,636) | ||
Finance income Finance costs | 7 (411) | ||||||||
Loss before income tax | (2,040) | ||||||||
Income tax | 270 | ||||||||
Loss for the year from continuing operations |
(1,770) | ||||||||
Assets and liabilities Segment assets Segment liabilities |
24,675 (6,829) |
7,453 (1,356) |
16,365 (2,339) |
5,205 (9,165) |
53,698 (19,689) |
48,493 (10,524) |
5,205 (9,165) | ||
Total net assets/(liabilities) |
17,846 |
6,097 |
14,026 |
(3,960) |
34,009 |
(37,969) |
(3,960) | ||
Other segment information | |||||||||
Capital expenditure Property, plant & equipment Intangible assets | 165 4,088 | 16 68 | 196 3 |
- - | 377 4,159 |
(377) (4,159) |
- - | ||
Depreciation | 253 | 26 | 81 |
45 | 405 |
(360) |
45 | ||
Amortisation of intangible assets Internally generated intangible assets Customer contracts Software | 3,270 207 81 | 4 244 98 | - 678 62 |
- - - | 3,274 1,129 241 |
(3,274) (1,129) (241) |
- - - | ||
BOND INTERNATIONAL SOFTWARE PLC
Notes for the year ended 31 December 2015 (cont'd)
2. Segmental reporting (cont'd)
(a) Operating segments (cont'd)
Discontinued activities |
|
| ||||||
Year ended 31 December 2014 |
Recruitment software £000 | HR and payroll software £000 |
Outsourcing £000 |
Unallocated £000 |
Total £000 | Reclassified as discontinued £000 |
Total Group £000 | |
Revenue Sales to external customers |
18,737 |
4,702 |
16,672 |
- |
40,111 |
(40,111) |
- | |
Result Operating loss before the amortisation of intangible assets |
3,378 |
1,439 |
4,621 |
(1,365) |
8,073 |
(9,438) |
(1,365) | |
Amortisation of internally generated intangible assets |
(2,947) |
(2) |
- |
- |
(2,949) |
2,949 | - | |
Operating loss before amortisation of acquired intangibles |
431 |
1,437 |
4,621 |
(1,365) |
5,124 |
(6,489) | (1,365) | |
Amortisation of acquired intangibles |
(295) |
(983) |
(705) |
- |
(1,983) |
1,983 | - | |
Operating profit/(loss) |
136 |
454 |
3,916 |
(1,365) |
3,141 |
(4,506) | (1,365) | |
Finance income Finance costs | - - | - - | - - | 56 (288) | 56 (288) | - - | 56 (288) | |
Loss before income tax |
136 |
454 |
3,916 |
(1,597) |
2,909 |
(4,506) | (1,597) | |
Income tax | 26 | (150) | (813) | 209 | (728) | 937 | 209 | |
Loss for the year from continuing operations |
162 |
304 |
3,103 |
(1,388) |
2,181 |
(3,569) |
(1,388) | |
Assets and liabilities Segment assets Segment liabilities |
31,531 (6,496) |
5,639 (1,552) |
20,539 (9,705) |
1,545 (4,680) |
|
5,205 (9,165) | ||
Total net assets/(liabilities) |
25,035 |
4,087 |
10,834 |
(3,135) |
|
(3,960) | ||
Other segment information | ||||||||
Capital expenditure Property, plant & equipment Intangible assets | 256 3,465 | 16 68 | 98 2 |
- - | 370 3,535 |
(370) (3,535) |
- - | |
Depreciation | 251 | 26 | 65 |
46 | 388 |
(342) |
46 | |
Amortisation of intangible assets Internally generated intangible assets Customer contracts Software | 2,947 194 101 | 2 589 394 | - 625 80 |
- - - | 2,949 1,408 575 |
(2,949) (1,408) (575) |
- - - | |
BOND INTERNATIONAL SOFTWARE PLC
Notes for the year ended 31 December 2015 (cont'd)
2. Segmental reporting (cont'd)
(b) Geographical areas
Further segmental information is provided in respect of the geographical region in which the subsidiary operates:
Year ended 31 December 2015 | United Kingdom £000 | North America £000 |
Asia Pacific £000 |
Total £'000 | Discontinued Activities £'000 | Total Group £000 |
Revenue | 29,642 | 7,708 | 2,337 | 39,687 | (39,687) | - |
Non-current Assets Property, plant & equipment Intangible assets Trade and other receivables |
2,391 31,762 631 |
262 7,018 - |
25 635 - |
2,678 39,415 631 |
(981) (39,415) - |
1,697 - 631 |
Total non-current assets |
34,784 |
7,280 |
660 |
42,724 |
(40,396) |
2,328 |
Year ended 31 December 2014 | United Kingdom £000 | North America £000 |
Asia Pacific £000 | Total Group £000 | ||
Revenue | 30,345 | 7,387 | 2,379 | 40,111 | ||
Non-current Assets Property, plant & equipment Intangible assets Trade and other receivables |
2,367 32,346 630 |
313 8,610 - |
25 440 - |
2,705 41,396 630 | ||
Total non-current assets |
35,343 |
8,923 |
465 |
44,731 |
3. Income tax expense
2015 £000 | 2014 £000 | ||||
Current tax expense | |||||
UK Corporation tax | (250) | (197) | |||
Adjustment in respect of prior years | (7) | (22) | |||
Total current tax | (257) | (219) | |||
Deferred tax expense | |||||
Origination and reversal of temporary differences | (13) | 10 | |||
(13) | 10 | ||||
Income tax expense | (270) | (209) | |||
BOND INTERNATIONAL SOFTWARE PLC
Notes for the year ended 31 December 2015 (cont'd)
4. Earnings per share
(a) Basic
The basic earnings/(loss) per share is calculated by dividing the loss attributable to equity holders of the parent company by the weighted average number of ordinary shares in issue during the year.
2015 £000 | 2014 £000 | ||
Loss attributable to equity holders of the Company (Loss)/profit from discontinued operations attributable to equity holders of the company | (1,770)
(443) | (1,388)
3,569 | |
Total |
(2,213) |
2,181 | |
Weighted average number of shares in issue (thousands) | 42,661 | 42,191 |
(b) Diluted
The diluted earnings/(loss) per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. For these share options a calculation is done to determine the number of shares that could have been acquired at fair value determined as the average annual market share price of the Company's shares based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated above is compared with the number of shares that would have been issued assuming the exercise of the share options.
2015 £000 | 2014 £000 | ||
Loss attributable to equity holders of the Company (Loss)/profit from discontinued operations attributable to equity holders of the company | (1,770)
(443) | (1,388)
3,569 | |
Total |
(2,213) |
2,181 | |
Weighted average number of shares in issue (thousands) - basic | 42,661 | 42,191 | |
Adjustments for: | |||
- Share options (thousands) | 1 | 26 | |
Weighted average number of shares in issue (thousands) - diluted | 42,662 | 42,217 |
Options over 145,200 shares (2014: 221,350 shares) are antidilutive because the exercise price is higher than the average share price in the year and have not been included in the calculation of diluted earnings per share.
5. Dividends
2015 £000 | 2014 £000 | ||
Amounts recognised as distributions to equity holders in the period: | |||
Final dividend paid in the year ended 31 December 2015 of 2.5p per share (2014: 2.2p per share) |
1,067 |
936 | |
Proposed final dividend for the year ended 31 December 2015 of nil per share (2014: 2.5p per share) |
- |
1,067 |
BOND INTERNATIONAL SOFTWARE PLC
Notes for the year ended 31 December 2015 (cont'd)
6. Reconciliation of profit before tax to net cash flow from operations
2015 £000 | 2014 £000 | ||
Continuing operations | |||
(Loss)/profit before tax | (2,040) | 2,909 | |
Adjustments for: | |||
Depreciation of property, plant & equipment | 50 | 388 | |
Amortisation of internally generated development costs | - | 2,949 | |
Amortisation of acquired intangible assets | - | 1,983 | |
Loss on sale of property, plant & equipment | - | 25 | |
Finance income | (7) | (56) | |
Finance costs | 411 | 288 | |
Operating cash flow before movements in working capital | (1,586) | 8,486 | |
Decrease in inventories | - | 2 | |
Decrease/(increase) in trade and other receivables | 3 | (655) | |
Decrease in trade and other payables | (123) | (777) | |
Cash (used)/generated from continuing operations |
(1,706) |
7,056 | |
Discontinued activities | |||
Loss after tax | (443) | - | |
Adjustments for: | |||
Income tax | 785 | - | |
Depreciation of property, plant & equipment | 355 | - | |
Amortisation of internally generated development costs | 3,274 | - | |
Amortisation of acquired intangible assets | 1,370 | - | |
Impairment of goodwill | 1,904 | ||
Loss on sale of property, plant & equipment | 1 | - | |
Finance income | (59) | - | |
Operating cash flow before movements in working capital | 7,187 | - | |
Increase in inventories | (10) | - | |
Decrease in trade and other receivables | 1,774 | - | |
Decrease in trade and other payables | (650) | - | |
Cash generated from discontinued activities |
8,301 |
- | |
Cash generated from operations |
6,595 |
7,056 |
BOND INTERNATIONAL SOFTWARE PLC
Notes for the year ended 31 December 2015 (cont'd)
7. Non-current assets held for sale and discontinued operations
Following the strategic review the board has identified three disposal groups which are to be treated as held for resale in accordance with the requirements of IFRS 5.
Strictly Education Limited
The assets and liabilities of Strictly Education Limited have been presented as held for sale following the approval of the group's management to sell the company. Strictly Education Limited was sold on 29 April 2016.
Assets of the disposal group classified as held for sale
2015 £000 | 2014 £000 | ||
Property, plant and equipment |
263 |
- | |
Intangible assets | 2,603 | - | |
Current assets | 915 | - | |
3,781 | - |
Liabilities of the disposal group classified as held for sale
2015 £000 | 2014 £000 | ||
Trade and other payables |
1,110 |
- | |
Deferred tax | 80 | - | |
1,190 | - |
Analysis of the results of discontinued operations and the results recognised on remeasurement of assets of the Strictly Education disposal group is as follow:
2015 £000 | 2014 £000 | ||
Revenue |
9,960 |
10,137 | |
Expenses (excluding amortisation of intangible assets on acquisition) | (8,307) | (8,194) | |
Operating profit before the amortisation of intangible assets on acquisition Amortisation of intangible assets on acquisition |
1,653 (184) |
1,943 (335) | |
Profit before tax of discontinued operations |
1,469 |
1,608 | |
Tax | (293) | (294) | |
Profit after tax of discontinued operations | 1,176 | 1,331 |
BOND INTERNATIONAL SOFTWARE PLC
Notes for the year ended 31 December 2015 (cont'd)
7. Non-current assets held for sale and discontinued operations (cont'd)
HR and payroll software and services
The assets and liabilities of the disposal group comprising the HR and payroll software and outsourced services have been presented as held for resale following the acceptance of a conditional offer to buy the group. The sale is expected to complete in July 2016.
Assets of the disposal group classified as held for sale
2015 £000 | 2014 £000 | ||
Property, plant and equipment |
97 |
- | |
Intangible assets | 17,647 | - | |
Inventory Other current assets | 36 2,257 | - - | |
20,037 | - |
Liabilities of the disposal group classified as held for sale
2015 £000 | 2014 £000 | ||
Trade and other payables |
1,878 |
- | |
Deferred tax | 627 | - | |
2,505 | - |
Analysis of the results of discontinued operations and the results recognised on remeasurement of assets of HR and payroll software and services disposal group is as follow:
2015 £000 | 2014 £000 | ||
Revenue |
11,960 |
11,236 | |
Expenses (excluding amortisation of intangible assets on acquisition) | (8,257) | (7,121) | |
Operating profit before the amortisation of intangible assets on acquisition and exceptional items Amortisation of intangible assets on acquisition Exceptional items Finance income |
3,644 (818) (559) 59 |
4,115 (1,353) - - | |
Profit before tax of discontinued operations |
2,326 |
2,762 | |
Tax | (540) | (669) | |
Profit after tax of discontinued operations | 1,786 | 2,093 |
BOND INTERNATIONAL SOFTWARE PLC
Notes for the year ended 31 December 2015 (cont'd)
7. Non-current assets held for sale and discontinued operations (cont'd)
Recruitment software disposal group
The assets and liabilities of the disposal group comprising the recruitment software businesses have been presented as held for resale following the acceptance of a conditional offer to buy the group. The sale is expected to complete in July 2016.
Assets of the disposal group classified as held for sale
2015 £000 | 2014 £000 | ||
Property, plant and equipment |
620 |
- | |
Intangible assets Deferred tax assets | 19,166 1,036 | - | |
Current assets | 3,923 | - | |
24,745 | - |
Liabilities of the disposal group classified as held for sale
2015 £000 | 2014 £000 | ||
Trade and other payables Finance lease liabilities |
4,927 146 |
- - | |
Deferred tax | 1,756 | - | |
6,829 | - |
Analysis of the results of discontinued operations and the results recognised on remeasurement of assets of the recruitment software disposal group is as follow:
2015 £000 | 2014 £000 | ||
Revenue |
17,825 |
18,737 | |
Expenses (excluding amortisation of intangible assets on acquisition) | (19,006) | (18,306) | |
Operating profit before the amortisation of intangible assets on acquisition and the impairment of intangible assets Amortisation of intangible assets on acquisition Impairment of intangible assets |
(1,181) (368) (1,904) |
431 (295) - | |
Loss before tax of discontinued operations |
(3,453) |
136 | |
Tax | 48 | 26 | |
Loss after tax of discontinued operations | (3,405) | 162 |
8. Annual Report and Accounts
Copies of the Annual Report and Accounts will be circulated to shareholders shortly and may be obtained after the posting date from the Company Secretary, Bond International Software plc, Courtlands, Parklands Avenue, Goring by Sea, Worthing, West Sussex, BN12 4NG.