BDI.L Regulatory News (BDI)

RNS Number : 1457K

Bond International Software PLC

14 April 2010

 

FOR IMMEDIATE RELEASE 14 April 2010

 

 

 

2009 PRELIMINARY RESULTS

  

  

Bond International Software plc, the specialist provider of software for the international recruitment and human resources industries, with operations in the UK, USA, Hong Kong, Japan and Australia, today announces its unaudited preliminary results for the year ended 31 December 2009.

 

 

KEY POINTS

 

·; Revenue of £32.5m (2008: £32.0m)

·; Recurring revenue grew by 10.6% to £17.4m (2008: £15.7m) representing 53% of revenue

·; Operating margins (before share of joint ventures and amortisation of intangible assets) reduced to 11% (2008: 17%) reflecting:

o Change in mix of licences and services

o Small number of labour intensive projects

·; Adjusted* profit after tax of £1.3m (2008: £3.1m)

·; Adjusted* earnings per share of 3.79p (2008: 9.44p)

·; Net cash generated from operating activities of £2.6m

·; Banking facilities renewed for a further three years

·; Proposed dividend of 0.8p (Prior year: 1.6p)

 

* Adjusted for the amortisation of acquired intangibles and share based payments expense.

 

 

Commenting on the results Chief Executive Steve Russell, said:

 

"2009 has seen some of the worst trading conditions we have experienced, particularly in the staffing industry. However the decisions we have made to diversify into other areas of Human Capital Management has allowed us to continue to trade profitably and our overall revenues have held up well.

The outlook for the staffing industry is improving and this together with our strategy for diversification ensures that we remain confident of the prospects for the group as confidence returns to the market."

 

 

 

 

 

 

 

 

 

 

For further information, please contact:

 

Bond International Software plc:	Tel: 01903 707070 ir@bond.co.uk www.bondinternationalsoftware.com
Steve Russell: Group Chief Executive
Bruce Morrison: Group Finance Director
Buchanan Communications	Tel: 020 7466 5000
Tim Thompson Nicola Cronk
Chris McMahon
Cenkos Securities Limited	Tel: 020 7397 8900
Stephen Keys

BOND INTERNATIONAL SOFTWARE PLC

Chairman's Statement

 

Financial overview

Despite being faced with some of the worst trading conditions we have ever experienced, the group has seen a small increase in revenues to £32,537,000 from £31,973,000 in 2008

Our operating margins have continued to be affected and have reduced to 11% in 2009 compared with 17% in 2008. This reflected the change in mix of licence and service revenues and the continuing trend of selling software on a rental basis rather than the traditional capital sale. There were also a small number of extremely labour intensive projects in 2009 on which our margins were lower than we traditionally expect. As a result operating profit before amortisation of intangible assets was £3,511,000 compared with £5,416,000 last year.

Recurring revenue continued its upward trend as it grew by 10.6% in 2009 to £17,391,000 (2008: £15,726,000) and represented 53% of sales, up from 49% in 2008 and covered 66% of group overheads compared with 66% last year. This continued move towards higher recurring revenue significantly increases the group's forward visibility.

Earnings per share fell to 0.52p (2008: 6.10p). In order to assist with understanding the underlying performance of the group we have reported adjusted earnings per share excluding the effects of the amortisation of intangible assets arising on acquisitions and the charge for share based payments. On this basis the adjusted profit after tax was £1,251,000 (2008: £3,112,000) and the adjusted earnings per share were 3.79p (2008: 9.44p).

The group generated £2,577,000 from its operating activities (2008: £2,763,000) although bank overdraft net of cash and cash equivalents increased by £2,169,000 following total capital expenditure of £4,222,000, the majority of which was invested in research and development, and the payment of a dividend of £528,000. I am delighted to announce that in April 2010 the group concluded an agreement to renew the bank overdraft and revolving loan facility for £6million for a further three years.

I am pleased to say that the board is recommending the payment of a dividend of 0.8p. The payment is subject to shareholder approval at the Annual General Meeting and will be made on 4 August 2010 to shareholders on the register at 9 July 2010.

Employees

Our employees have done a great job in difficult circumstances over the last year and I take this opportunity to thank them for their contribution. I am confident that their hard work will continue as we press on with our long term strategy which I believe will put us in a strong position to benefit when the economic situation starts to recover and our principal markets improve.

Prospects

Since the end of 2009 the economic difficulties faced by the staffing industry have begun to ease and we can see some small signs of a recovery in the first half of 2010. We remain busy as a result of entering the year with a strong order book, however we will continue to monitor our cost base accordingly.

 

Martin Baldwin

Chairman

13 April 2010

BOND INTERNATIONAL SOFTWARE PLC

Group Chief Executive's Report

 

Overview

2009 has proved to be a testing year for the company. After a bright start, the second half of the year saw a downturn in trading conditions and in particular the last quarter, which has traditionally been our most profitable, proved to be the worst affected. The staffing industry has been in turmoil, with many of our customers experiencing the most difficult trading conditions they have ever faced.

However, our decision to diversify into other areas of Human Capital Management has allowed us to continue trading profitably and our overall revenues have held up well. Margins, however, have been significantly affected and as a result, we have seen a fall in operating profit, before amortisation, to £3,511,000 (2008: £5,416,000).

The group's operations are organised into four divisions covering recruitment software, HR & payroll software, outsourcing and web services.

 

Recruitment software

Recruitment software, which comprises Adapt Recruitment, Talent and eEmpACT, accounted for 56% of group revenues in 2009 which is the same proportion as 2008.

 

Revenue by type	2009 £000		2008 £000
Software sales & services	9,712		9,391
Software support	6,112		6,273
Software rental income	2,323		2,271
	18,147		17,935
Hardware and other sales	23		131
Total revenues	18,170		18,066

 

 

	Revenues				Operating profit*
Revenue and operating profit* by location of operating company	2009 £000		2008 £000		2009 £000		2008 £000
United Kingdom	9,904		10,879		2,035		3,176
USA	7,370		6,024		444		1,033
Asia Pacific	896		1,163		(215)		87
	18,170		18,066		2,264		4,296

 

 

*before amortisation of intangible assets and share of profit from joint venture

Whilst revenues have remained broadly the same as last year our operating margins have reduced significantly. There are a number of contributing factors, the principal ones being the impact of the recession on our customer base, the changing mix of licence and service revenues and the continuing transition from traditional capital sale to the rental model.

In 2009 our UK Adapt operation gained 112 new clients, of which only 6 were on the basis of a traditional licence sale, the balance being on rental. The picture was very similar in the US where every new client we took in the first 10 months of the year was a rental rather than a licence sale.

The sale of software and services to existing clients has been especially affected by the current market conditions with total revenues down by some 58% on the previous year. Whilst new business sales have fared much better increasing revenues by 30% the nature of the deals we have signed means that there is a significantly higher proportion of lower margin service revenue than in previous years.

We have also seen a small drop in recurring revenues from software support as customers downsize. The rate of this decline has started to ease towards the end of 2009 and we may finally have seen the bottom of the market for our staffing customers and the start of their recovery.

Geographically the US has grown revenues from £6,024,000 in 2008 to £7,370,000 in 2009 but operating margins have reduced from 17% to 6%, as a result of the transition to the rental model and the mix of licence and services.

Our operating margins have also been affected by losses experienced in Asia Pacific with a temporary slowdown in Australia together with the increased operating costs as a result of opening our new office in Japan.

 

HR and payroll software

Whilst revenues have remained relatively stable, the operating margins have improved from 17% to 24%. One of the strengths of this division is its recurring revenues which are up by 23% from £3,021,000 in 2008 to £3,738,000 in 2009 with the inclusion of Team Spirit revenues for the full year. The revenues derived from support now cover 95% of the fixed operating costs of this division. We are currently looking to expand this operation by maximising the opportunities presented by cross selling.

 

Outsourcing

This division comprises two distinct operations, Strictly Education which provides outsourced HR, payroll and other services to schools in the state sector, and Bond Payroll Services which provides payroll bureau services to a variety of organisations in the state and private sectors.  Strictly Education now has contracts with some 750 schools to and currently pays 33,000 staff per month through its payroll bureau.

The company generated revenues of £3,253,000 in 2009 compared with £3,231,000 in 2008.

The group has capitalised on the knowledge and experience in this business by establishing a joint venture in December 2008, Strictly Education Solutions. The joint venture, which provides outsourced services to over 70 schools in London, contributed a profit of £87,000 in 2009.

2009 has seen continued growth for Bond Payroll Services. Significant new clients include a 2700 employee international retailer and a 3000 employee major UK charity. Other growth areas have been in the Human Capital Management arena, delivering managed HR services, and international payroll solutions increasing Bond's global offerings. This has not only helped us to gain new business but retain important multinational clients.

Bond Payroll Services made an operating profit of £283,000 in 2009 (2008: £160,000).

 

Web services

Abacus is a leading supplier of digital service development to the business-to-business media and 2009 was another strong year. Although overall revenue fell 1% from the record numbers of 2008, this was largely as a result of the move to software rental, which will result in an increasing percentage of recurring revenue in the future.

Operating profit before amortisation fell by only 7%, despite increased investment in R&D, which was reflected in the launch of the new e-Vision events software, which integrates closely with our market leading product, Webvision. Abacus also developed and received its first orders for the new version our e-recruitment product, Recruit, and the new public sector content management system, Webstructure.

 

Major projects in 2009 included the delivery of 11 magazine sites for EMAP including Construction News, Drapers Record and Retail Week, and 12 important sites for Centaur Media, including Marketing Week, Design Week and The Lawyer.

 

With strong products and an experienced team Abacus remains well placed to help its media clients manage the inevitable move from print to online revenues.

 

Product strategy

Our future is inextricably linked to our products and we have continued to invest in developing and enhancing our portfolio so that we are in the best possible position when there is an improvement in market conditions. In 2009 we have spent a total of £4,993,000 representing 15.3% of revenues compared with £4,633,000 in 2008 which was 14.5% of revenues.

The group has continued to invest in its flagship product, Adapt, as well as configuring new applications using Adapt technology to achieve, where possible, a consistent technical platform across the group. The group has spent significant sums in developing eEmpACT On Demand, a product designed to appeal to temporary staffing firms in the US, Bond Talent which provides a recruitment software solution for non-staffing companies, and eVision events software.

People

The group employs over 400 people directly as well as outsourced development teams in India and the Ukraine. I take this opportunity to thank them for all their hard work in 2009 and their continuing loyalty and support in 2010.

Outlook

There is some cause for optimism with staffing revenues improving in the second half of 2009 and weekly unemployment claims in the US starting to fall. As a result, industry analysts are forecasting growth in staffing revenues in 2010 and a majority of staffing firms surveyed are expecting to increase their own headcount during the current year. In the UK the picture will become clearer after the forthcoming election when the current uncertainty is resolved and confidence starts to return to the markets.

 

Whilst the future looks better, there is no doubt that in the short term winning new business remains a challenge. We still have the same major prospects but for reasons outside our control, there is no immediate likelihood of them signing in the first half of the year.

 

The other segments of the business have not suffered to the same extent as staffing. Whilst new clients have been difficult to find in the HR and Payroll business our existing base is holding up well. We continue to grow the outsourcing business both in the education sector, commercial and public sectors. Abacus is well placed to benefit from the continued pressure on publishing companies to move from print to on line based revenues.

 

 

 

Steve Russell

Group Chief Executive

 

13 April 2010

BOND INTERNATIONAL SOFTWARE PLC 

Unaudited consolidated income statement for the year ended 31 December 2009

 

	Note		2009 £000		2008 £000
Revenue	2		32,537		31,973
Cost of sales			(2,649)		(2,573)
Gross profit			29,888		29,400
Post-acquisition reorganisation costs Administrative expenses			(134) (26,243)		(313) (23,671)
Total administrative expenses			(26,377)		(23,984)
Operating profit before share of profit of joint ventures and amortisation of intangible assets	2		3,511		5,416
Share of post tax profits of joint ventures			87		-
Amortisation of intangible assets			(3,286)		(2,576)
Operating profit			312		2,840
Finance income			16		81
Finance costs			(111)		(88)
Profit on ordinary activities before tax			217		2,833
Income tax expense	3		(46)		(822)
Profit for the year attributable to the owners of the parent			171		2,011
Earnings per share (pence)	4
Basic Diluted			0.52p 0.52p		6.10p 6.04p

 

The operating profit for the year arises from the group's continuing operations.

BOND INTERNATIONAL SOFTWARE PLC 

Unaudited consolidated statement of comprehensive income for the year ended 31 December 2009

 

 

 

					2009 £000		2008 £000
Profit for the year			171				2,011
Other comprehensive income
Currency translation differences on foreign currency net investments			(411)				191
Other comprehensive income net of tax			(411)				191
Total comprehensive income for the financial year attributable to the owners of the parent			(240)				2,202

 

 

There are no taxation effects in respect of the foreign currency translation differences made.

BOND INTERNATIONAL SOFTWARE PLC

Unaudited consolidated balance sheet at 31 December 2009 Company number: 2142222

 

				2009 £000		2008 £000
ASSETS
Non-current assets Goodwill Other intangible assets Property, plant and equipment Investments in associates accounted for using equity method Deferred tax assets				14,003 16,919 3,073 177 943		13,998 16,786 3,075 - 1,157
				35,115		35,016
Current assets Inventories Trade and other receivables Cash and cash equivalents				59 10,132 1,392		61 11,565 2,024
				11,583		13,650
Total assets				46,698		48,666
EQUITY Share capital Share premium account Equity option reserve Currency translation reserve Retained earnings				331 17,906 757 (461) 12,380		330 17,879 640 (50) 12,709
Total equity attributable to the owners of the parent				30,913		31,508
LIABILITIES
Non-current liabilities Borrowings Deferred tax liabilities				141 2,991		2,635 3,365
				3,132		6,000
Current liabilities Trade and other payables Current income tax liabilities Borrowings				8,364 79 4,210		10,262 715 181
				12,653		11,158
Total liabilities				15,785		17,158
Total liabilities and equity				46,698		48,666

 

 

 

 

BOND INTERNATIONAL SOFTWARE PLC 

Unaudited consolidated cash flow statement for the year ended 31 December 2009

 

	Note		2009 £000		2008 £000
Cash flows from operating activities
Cash generated from operations Interest paid Income tax paid	6		3,307 (111)  (619)		3,163 (88) (312)
Net cash generated from operating activities			2,577		2,763
Cash flows from investing activities Acquisition of trade and assets Interest received Purchase of property, plant and equipment Purchase of intangible assets Proceeds from sale of property, plant and equipment			(26) 16 (549) (3,673) 4		(1,010) 81 (621) (2,788) 51
Net cash used in investing activities			(4,228)		(4,287)
Cash flows from financing activities Issue of ordinary share capital Increase in bank loans Repayment of bank loans Increase in other loans Repayment of other loans New finance leases Repayment of finance leases Equity dividend paid	5		28 98 (109) - (32) 71 (46)  (528)		259 - (104) 67 (14) 54 (84)  (528)
Net cash outflow from financing activities			(518)		(350)
Decrease in cash, cash equivalents and bank overdrafts for the year			(2,169)		(1,874)
Cash and cash equivalents at the beginning of the year			(402)		1,257
Effect of foreign exchange rate changes			(31)		215
Cash, cash equivalents and bank overdrafts at the end of year			(2,602)		(402)
Shown as:
Cash and cash equivalents			1,392		2,024
Bank overdraft			(3,994)		(2,426)
Cash, cash equivalents and bank overdrafts at the end of year			(2,602)		(402)

 

 

For the purposes of the cash flow statement cash includes deposits at call with financial institutions, less bank overdrafts forming part of working capital management.

BOND INTERNATIONAL SOFTWARE PLC 

Unaudited consolidated statement of changes to shareholders' equity for the year ended 31 December 2009

 

 

		Attributable to the owners of the parent
		Share capital £000	Share premium £000	Equity option reserve £000	Currency translation reserve £000	Retained earnings £000	Total £000
At 1 January 2008		328	17,622	441	(241)	11,176	29,326
Comprehensive income: Profit for the financial year		-	-	-	-	2,011	2,011
Other comprehensive income net of tax: Currency translation differences		-	-	-	191	-	191
Total comprehensive income for the year		-	-	-	191	2,011	2,202
Transactions with owners: Dividend paid		-	-	-	-	(528)	(528)
Issue of ordinary shares		2	257	-	-	-	259
Share based payment expense		-	-	249	-	-	249
Share options lapsed or exercised		-	-	(50)	-	50	-
Total transactions with owners		2	257	199	-	(478)	(20)
At 31 December 2008		330	17,879	640	(50)	12,709	31,508
Comprehensive income: Profit for the financial year		-	-	-	-	171	171
Other comprehensive income net of tax: Currency translation differences		-	-	-	(411)	-	(411)
Total comprehensive income for the year		-	-	-	(411)	171	(240)
Transactions with owners: Dividend paid		-	-	-	-	(528)	(528)
Issue of ordinary shares		1	27	-	-	-	28
Share based payment expense		-	-	145	-	-	145
Share options lapsed or exercised		-	-	(28)	-	28	-
Total transactions with owners		1	27	117	-	(500)	(355)
At 31 December 2009		331	17,906	757	(461)	12,380	30,913

 

 

The share premium account is used to record the amounts received in excess of the nominal value of shares issued.

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 unaudited consolidated income statement and unaudited consolidated statement of comprehensive income.

BOND INTERNATIONAL SOFTWARE PLC

Notes for the year ended 31 December 2009

 

1. Basis of preparation

The financial information set out in this preliminary announcement has been prepared in accordance with International Financial Reporting Standards adopted for use in the European Union and does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The above figures for the year ended 31 December 2009 are extracted from the company's unaudited accounts which will be finalised. These will be reported on by the auditor, despatched to the shareholders and filed with the Registrar of Companies following the AGM in June 2010, and they do not contain all of the information required to be disclosed in the financial statements prepared in accordance with the International Financial Reporting Standards ("IFRS").

The audited accounts for the year ended 31 December 2008 have been delivered to the Registrar of Companies and the report of the auditor was unqualified and did not contain statements under Sections 237(2) and 237(3) of the Companies Act 1985.

 

The announcement was approved by the board of directors on 13 April 2010.

 

2. Segmental Reporting

 

(a) Business segment

 

For management purposes, the group is currently organised into four operating divisions - Recruitment software, HR and payroll software, outsourcing and web services. These divisions are the basis on which the group reports its segment information. The operating segments presented in the following tables are presented on the same basis as that used for internal reporting purposes to the Board, who are the Chief Operating Decision makers (CODM).

 

The group measures the performance of its operating segments based on revenue and profit from operations, before any exceptional items. Accounting policies used for segment reporting reflect those used for the group. Inter-segment sales are priced on an arms-length basis. Costs and overheads incurred centrally are assigned to an unallocated segment.

 

The principal activities used to identify the segments for reporting are as follows:

 

Recruitment software:	Supply of Adapt, Talent and eEmpACT specialist recruitment software
HR and payroll software:	Supply of integrated HR and payroll solutions
Outsourcing:	Outsourced HR, payroll and other services to schools in the state sector, and payroll bureau services to a variety of organisations in the state and private sectors.
Web services:	Supplier of digital service development to the business-to-business media

Unallocated items comprise mainly corporate and head office items.

 

BOND INTERNATIONAL SOFTWARE PLC

Notes for the year ended 31 December 2009 (cont'd)

2. Segmental reporting (cont'd)

 

(a) Business segment (cont'd)

 

 

Segment information about these businesses is presented below.

Year ended 31 December 2009	Recruitment software £'000	HR and payroll software £'000	Outsourcing £'000	Web services £'000	Unallocated £'000	Total Group  £000
Revenue Sales to external customers	18,170	5,309	4,842	4,216	-	32,537
Result Operating profit before share of profit of joint venture and amortisation of intangible assets	2,264	1,299	545	570	(1,167)	3,511
Share of profit of joint venture	-	-	87	-	-	87
Amortisation of intangible assets	(1,965)	(1,115)	(145)	(61)	-	(3,286)
Operating profit/(loss)	299	184	487	509	(1,167)	312
Finance income Finance costs						16 (111)
Profit before tax						217
Income tax charge						(46)
Profit for the year						171
Assets and liabilities Segment assets Segment liabilities	25,757 (7,116)	11,312 (3,039)	5,060 (1,147)	4,000 (1,253)	569 (3,230)	46,698 (15,785)
Total net assets/(liabilities)	18,641	8,273	3,913	2,747	(2,661)	30,913
Other segment information
Amount of investment in joint ventures	-	-	177	-	-	177
Revenues from transactions with other operating segments	-	100	256	81	-	437
Capital expenditure Property, plant & equipment Intangible assets	315 3,369	16 72	125 -	24 233	69 -	549 3,673
Depreciation	329	36	59	56	42	522
Amortisation of intangible assets Development costs Customer contracts Software	1,903 7 55	23 589 503	- 145 -	61 - -	- - -	1,987 741 558

BOND INTERNATIONAL SOFTWARE PLC

Notes for the year ended 31 December 2009 (cont'd)

2. Segmental reporting(cont'd)

 

(a) Business segment (cont'd)

 

Year ended 31 December 2008	Recruitment software £'000	HR and payroll software £'000	Outsourcing £'000	Web services £'000	Unallocated £'000	Total Group  £000
Revenue Sales to external customers	18,066	5,276	4,357	4,274	-	31,973
Result Operating profit before share of profit of joint venture and amortisation of intangible assets	4,296	915	696	614	(1,105)	5,416
Share of profit of joint venture Amortisation of intangible assets	-   (1,417)	-   (867)	-   (145)	-   (147)	-   -	-   (2,576)
Operating profit	2,879	48	551	467	(1,105)	2,840
Finance income Finance costs						81 (88)
Profit before tax						2,833
Income tax expense						(822)
Profit for the year						2,011
Assets and liabilities Segment assets Segment liabilities	24,342 (7,910)	14,409 (5,334)	5,291 (897)	4,249 (1,851)	375 (1,166)	48,666 (17,158)
Total net assets/(liabilities)	16,432	9,075	4,394	2,398	(791)	31,508
Other segment information
Revenues from transactions with other operating segments	-	37	480	273	-	790
Capital expenditure Property, plant & equipment Intangible assets	485 2,788	33 -	37 -	66 -	- -	621 2,788
Depreciation	348	31	43	54	-	476
Amortisation of intangible assets Development costs Customer contracts Software	1,355 6 56	- 475 392	- 145 -	38 - 109	- - -	1,393 626 557

 

BOND INTERNATIONAL SOFTWARE PLC

Notes for the year ended 31 December 2009 (cont'd)

2. Segmental reporting(cont'd)

 

(b) Revenue by income type:

				2009 £000		2008 £000
Sales
Software sales & services				15,093		15,940
Hardware and other sales				53		307
				15,146		16,247
Recurring revenue
Software support				11,361		10,228
Software rental income				2,323		2,270
Software as a service				3,707		3,228
				17,391		15,726
Total revenue				32,537		31,973

 

 

(c) Geographical areas

 

The further segmental information is provided in respect of the geographical region in which the subsidiary operates:

 

Year ended 31 December 2009		United Kingdom £'000		North America £'000		Asia Pacific £'000		Total Group  £000
Revenue
Sales to external customers		24,271		7,370		896		32,537
Result Operating profit before amortisation		3,282		444		(215)		3,511
Share of profit of joint venture		87		-		-		87
Amortisation of intangible assets		(2,538)		(748)		-		(3,286)
Operating profit /(loss)		831		(304)		(215)		312
Finance income Finance costs								16 (111)
Profit before tax								217
Income tax charge								(46)
Profit for the year								171
Assets and liabilities Segment assets Segment liabilities		38,166 (13,942)		7,436 (1,447)		1,096 (396)		46,698 (15,785)
Total net assets		24,224		5,989		700		30,913

 

BOND INTERNATIONAL SOFTWARE PLC

Notes for the year ended 31 December 2009 (cont'd)

2. Segmental reporting(cont'd)

 

(c) Geographical areas (cont'd)

 

Year ended 31 December 2008	United Kingdom £'000	North America £'000	Asia Pacific £'000	Total Group  £000
Revenue
Sales to external customers	24,786	6,024	1,163	31,973
Result Operating profit before amortisation Share of profit of associate	4,296 -	1,033 -	87 -	5,416 -
Amortisation of intangible assets	(2,090)	(486)	-	(2,576)
Operating profit	2,206	547	87	2,840
Finance income Finance costs				81 (88)
Profit before tax				2,833
Income tax expense				(822)
Profit for the year				2,011
Assets and liabilities Segment assets Segment liabilities	39,111 (14,856)	8,518 (1,897)	1,037 (405)	48,666 (17,158)
Total net assets	24,255	6,621	632	31,508

 

 

 

3. Income tax expense

			2009 £000		2008 £000
Current tax expense
UK Corporation tax			258		843
Foreign tax			2		36
Adjustment in respect of prior years			(1)		(242)
Total current tax			259		637
Deferred tax expense
Origination and reversal of temporary differences			(404)		257
Tax losses			191		(72)
			(213)		185
Total taxation expense			46		822

 

BOND INTERNATIONAL SOFTWARE PLC

Notes for the year ended 31 December 2009 (cont'd)

4. Earnings per share

 

The basic earnings per share is calculated by dividing the profit attributable to equity shareholders of the parent company by the weighted average number of ordinary shares in issue during the year.

 

The diluted earnings per share is calculated by dividing the profit attributable to equity shareholders of the parent company by the weighted average number of ordinary shares in issue during the year (adjusted for the effects of potentially dilutive share options).

 

The calculation of earnings per share is based on the following data:

 

				2009				2008
			Basic	Potentially dilutive share options		Diluted	Basic	Potentially dilutive share options	Diluted
Earnings:
Profit after tax (£'000)			171	-	171		2,011	-	2,011
Weighted average number of shares (000's)			33,017	18	33,035		32,971	310	33,281
Earnings per share (pence)			0.52	-	0.52		6.10	(0.06)	6.04

 

The Chairman's Statement discusses a comparison between the earnings per share adjusted for the impact of the amortisation of certain intangible assets and share based payments. The adjusted earnings per share are based on attributable profit calculated as follows:

 

		2009	2008
		£000	£000
Profit for the financial year		171		2,011
Adjustments:
Amortisation of intangible assets arising on acquisitions		1,299		1,183
Share based payment expense		145		249
Taxation effect		(364)		(331)
Adjusted profit		1,251		3,112
Adjusted earnings per share Basic Diluted		3.79p 3.79p		9.44p 9.35p

 

 

5. Dividends

 

			2009 £000		2008 £000
Amounts recognised as distributions to equity holders in the period:
Final dividend paid in the year ended 31 December 2009 of 1.6p per share (2008: 1.6p per share)			528		528
Proposed final dividend for the year ended 31 December 2009 of 0.8p per share (2008: 1.6p per share)			265		528

 

The proposed final dividend, which was approved by the Board of Directors on 13 April 2010, is payable to all shareholders on the Register of Members on 18 June 2010 and is subject to the approval of shareholders at the Annual General Meeting. In accordance with IAS10 'Events after the balance sheet date', the proposed final dividend has not been included as a liability in the financial statements.

BOND INTERNATIONAL SOFTWARE PLC

Notes for the year ended 31 December 2009 (cont'd)

 

6. Reconciliation of net operating profit to net cash flow from operations

	2009 £000		2008 £000
Profit before tax	217		2,833
Adjustments for: Depreciation of property, plant & equipment	522		476
Amortisation of intangible assets	3,286		2,576
Loss on sale of property, plant & equipment	-		31
Share based payment expense	145		249
Profit from share of joint venture	(87)		-
Finance income	(16)		(81)
Interest expense	111		88
Operating cash flow before movements in working capital	4,178		6,172
Decrease in inventories	2		5
Decrease/(increase) in trade and other receivables	975		(2,579)
Decrease in trade and other payables	(1,848)		(435)
Cash generated from operations	3,307		3,163

 

 

 

7. Report and Accounts

 

Copies of the 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.

 

 

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