23 Sep 2008 07:00
| Under embargo until 7:00am | 23 September 2007 |
@UK PLC
("@UK" or the "Company")
Unaudited Interim Results for the six months ended 30 June 2008
@UK PLC (AIM:ATUK.L), a provider of software solutions that facilitate eCommerce and eProcurement in the government, health and private sectors, today announces its unaudited interim results for the six months ended 30 June 2008.
OPERATING AND FINANCIAL REVIEW
Financial results
Revenue for the six months to 30 June 2008 decreased 7% to £1,078,000 (2007: £1,165,000), reflecting a slow down in the market for new company formations in the second quarter.
The operating loss was £706,000 (2007: £1,521,000). After net interest income of £32,000 (2007: £90,000), the loss before tax was £674,000, compared to £1,431,000 in 2007. During the six months our cash reduced by £602,000 to £1,189,000 (2007: reduction of £1,237,000). The loss before tax and cash outflow in the first half were both substantially reduced from the levels in the second half of 2007, by 28% and 45% respectively, as the benefits of cost reductions flowed through.
Operating Review
We have made progress in some areas in the half year. Costs have been reduced; full supplier engagement commenced on our contract with NHS Supply Chain, and work started on the first full implementation of our wider marketplace offering for the Health Sector.
Throughout the year we have been developing a new "spend analysis" product to analyse the procurement data of public sector organisations. This builds on the existing expertise of @UK and Coding International in this area. The product is now at pilot stage with a large collaborative procurement organisation within the NHS.
Since the half year we have received the first marketplace order from an NHS Trust providing acute hospital services and our marketplace has been chosen by a major English university. This will be our first major client in that sector. These projects are expected to be completed by the year end.
The major issue continues to be the time taken to convert prospects to sales. The level of interest from both NHS suppliers and trusts is good, but conversion is taking longer than foreseen. This is unlikely to change in the second half.
Company Formations
Revenues in our Company Formation services business fell by 12% compared to the same period last year. This ended a number of years continuous growth in this business and reflected a fall in the number of companies incorporated in England & Wales in the first half of around 34%. We have made some changes to our marketing and since 30 June sales have recovered to nearer 2007 levels.
Outlook and current trading
Activity in our markets is likely to remain slow for the rest of the year, with the work on generating new business unlikely to show through in sales until the start of 2009.
John Aiken
Chief Executive
23 September 2008
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
| Notes | 6 months to 30 June 2008 £'000 | 6 months to 30 June 2007 £'000 | Year ended 31 Dec 2007 £'000 | |
| Revenue | 2 | 1,078 | 1,165 | 2,330 |
| Cost of sales | (307) | (414) | (851) | |
| Gross profit | 771 | 751 | 1,479 | |
| Administrative expenses | (1,396) | (2,254) | (3,889) | |
| Share based payments | (14) | (18) | (26) | |
| Operating loss before exceptional item | (639) | (1,521) | (2,436) | |
| Exceptional reorganisation costs | 3 | (67) | - | (84) |
| Operating loss | (706) | (1,521) | (2,520) | |
| Finance income | 34 | 93 | 160 | |
| Finance cost | (2) | (3) | (7) | |
| Loss before taxation | (674) | (1,431) | (2,367) | |
| Taxation | - | - | - | |
| Loss for the year attributable to equity shareholders of the parent | (674) | (1,431) | (2,367) | |
| Loss per share - basic and diluted | 4 | 1.8p | 3.8p | 6.3p |
Revenue and operating loss all derive from continuing operations.
CONSOLIDATED BALANCE SHEET (UNAUDITED)
| 30 June 2008 £'000 | 30 June 2007 £'000 | 31 Dec 2007 £'000 | ||
| Assets | ||||
| Non-current assets | ||||
| Goodwill | 96 | 96 | 96 | |
| Other intangible assets | 32 | 58 | 47 | |
| Property, plant and equipment | 374 | 589 | 502 | |
| 502 | 743 | 645 | ||
| Current assets | ||||
| Trade and other receivables | 330 | 336 | 312 | |
| Cash and cash equivalents | 1,189 | 2,882 | 1,791 | |
| 1,519 | 3,218 | 2,103 | ||
| Total assets | 2,021 | 3,961 | 2,748 | |
| Liabilities | ||||
| Current liabilities | ||||
| Trade and other payables | (526) | (866) | (586) | |
| Income tax | (3) | (3) | (3) | |
| Financial liabilities - borrowings | (12) | (12) | (12) | |
| (541) | (881) | (601) | ||
| Non-current liabilities | ||||
| Financial liabilities - borrowings | (48) | (60) | (55) | |
| (48) | (60) | (55) | ||
| Total liabilities | (589) | (941) | (656) | |
| Net assets | 1,432 | 3,020 | 2,092 | |
| Shareholders' equity | ||||
| Called up share capital | 378 | 378 | 378 | |
| Share premium | 10,114 | 10,114 | 10,114 | |
| Other reserve | 630 | 630 | 630 | |
| Share based payment reserve | 91 | 69 | 77 | |
| Accumulated losses | (9,781) | (8,171) | (9,107) | |
| Total equity attributable to equity shareholders of the parent | 1,432 | 3,020 | 2,092 | |
CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
| 6 months to 30 June 2008 £'000 | 6 months to 30 June 2007 £'000 | Year ended 31 Dec 2007 £'000 | ||
| Cash flows from operating activities | ||||
| Loss for the period | (674) | (1,431) | (2,367) | |
| Adjustments for: | ||||
| Interest | (32) | (90) | (153) | |
| Depreciation of property, plant & equipment | 132 | 129 | 262 | |
| Amortisation of other intangible assets | 15 | 14 | 28 | |
| Share based payments | 14 | 18 | 26 | |
| Changes in working capital | ||||
| Trade and other receivables | (18) | 61 | 86 | |
| Trade and other payables | (60) | 15 | (264) | |
| Net cash used by operations | (623) | (1,284) | (2,382) | |
| Tax paid | - | - | - | |
| Net cash outflow from operating activities | (623) | (1,284) | (2,382) | |
| Cash flows from investing activities | ||||
| Interest received | 34 | 93 | 160 | |
| Interest paid | (2) | (3) | (7) | |
| Purchase of intangible assets | - | (11) | (15) | |
| Purchase of property, plant and equipment | (4) | (25) | (72) | |
| Net cash inflow from investing activities | 28 | 54 | 66 | |
| Cash flows from financing activities | ||||
| Repayments of borrowings | (7) | (7) | (12) | |
| Net cash outflow from financing | (7) | (7) | (12) | |
| Net decrease in cash and cash equivalents | (602) | (1,237) | (2,328) | |
| Cash and cash equivalents at beginning of period | 1,791 | 4,119 | 4,119 | |
| Cash and cash equivalents at end of period | 1,189 | 2,882 | 1,791 | |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
| Share capital £'000 | Share premium £'000 | Other reserve £'000 | Share based payment reserve £'000 | Accumul-ated losses £'000 | Total
£'000 | |
| Balance as at 1 January 2007 | 376 | 10,114 | 607 | 51 | (6,740) | 4,408 |
| Loss for the period | - | - | - | - | (1,431) | (1,431) |
| Share based payments | - | - | - | 18 | - | 18 |
| Shares issued in the period | 2 | - | 23 | - | - | 25 |
| Balance as at 30 June 2007 | 378 | 10,114 | 630 | 69 | (8,171) | 3,020 |
| Loss for the period | - | - | - | - | (936) | (936) |
| Share based payments | - | - | - | 8 | - | 8 |
| Balance as at 31 December 2007 | 378 | 10,114 | 630 | 77 | (9,107) | 2,092 |
| Loss for the period | - | - | - | - | (674) | (674) |
| Share based payments | - | - | - | 14 | - | 14 |
| Shares issued in the period | - | - | - | - | - | - |
| Balance as at 30 June 2008 | 378 | 10,114 | 630 | 91 | (9,781) | 1,432 |
NOTES TO THE FINANCIAL STATEMENTS
1. Basis of preparation
These interim financial statements have been prepared in accordance with the accounting policies set out in the
Annual Report and Accounts for the year ended 31 December 2007 and the interpretation of those
accounting standards underlying the accounting policies. IAS 34, Interim Financial Reporting, has not been
applied. The interim financial statements have been issued in accordance with the AIM Rules of the London Stock
Exchange and are unaudited. The financial information set out does not constitute statutory accounts for the
purposes of section 240 of the Companies Act 1985. The auditors' report on the statutory accounts for the year
ended 31 December 2007 which have been filed with the Registrar of Companies was unqualified and does not
contain a statement under Companies Act 1985 sections 237(2) or (3).
The preparation of financial statements requires estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Although the estimates are based on management's best knowledge of the amounts,
events or actions, actual results may differ from those estimates.
Copies of the interim statements for the six months ended 30 June 2008 are being sent to all shareholders and
to the AIM Team. Details can also be found on the company's website at www.ukplc.net. Further copies of the
interim statements and copies of the accounts for the year ended 31 December 2007 can be obtained by writing
to the Company Secretary, @UK PLC, 5 Jupiter House, Calleva Park, Aldermaston, Berkshire RG7 8NN.
This announcement was approved by the board of @UK PLC on 22 September 2008.
2. Revenue (unaudited)
Set out below is an analysis of revenue recognised between principal product categories, which the Directors use to assess
future revenue flows from customers.
| Revenue | 6 months to 30 June 2008 £'000 | 6 months to 30 June 2007 £'000 | Year ended 31 Dec 2007 £'000 |
| Company formation services | 627 | 709 | 1,305 |
| Web and ecommerce services | 451 | 456 | 1,025 |
| 1,078 | 1,165 | 2,330 |
3. Exceptional reorganisation costs
Reorganisation costs represent the costs incurred in reducing staff numbers.
4. Loss per share (unaudited)
The calculations for loss per share are based on the weighted average number of shares in issue during the period
37,779,822 (6 months to 30 June 2007: 37,665,515; year ended 31 December 2007: 37,723,138) and the following losses:
| 6 months to 30 June 2008 £'000 | 6 months to 30 June 2007 £'000 | Year ended 31 Dec 2007 £'000 | |
| Unadjusted earnings: | |||
| Loss on ordinary activities after tax | ( 674) | (1,431) | (2,367) |
| Add back: | |||
| Exceptional reorganisation costs | 67 | - | 84 |
| Share based payments | 14 | 18 | 26 |
| Adjusted earnings: | (593) | (1,413) | (2,257) |
The share options and warrants are not dilutive as they would not increase the loss per share in the year.
The basic and diluted loss per share calculated on the adjusted earnings is 1.6p (6 months to 30 June
2007: 3.8p; year ended 31 December 2007: 6.0p).
5. Post Balance Sheet Events
There are no post balance sheet events requiring disclosure.
For further information please contact:
| @UK PLC John Aiken, CEO | +44 (0) 118 963 7000 |
| Beaumont Cornish Limited Roland Cornish | +44 (0) 20 7628 3396 |