Last checked at 24 Feb 2010 07:00
Feedback plc ("Feedback" or the "Group")
Interim Report for the six months ended 30 November 2009
KEY POINTS
·; Turnover £3.8m (2008 - £4.5m)
·; Profit before tax £0.04m (2008 - £0.30m)
·; Earnings per share 0.02p (2008 0.27p)
·; Cash and Cash Equivalents £420k (2008 - £529k)
CHAIRMANS STATEMENT
The performance for the first half of the year was a considerable disappointment. The first quarter's trading showed some positive trends; however the second quarter witnessed a significant contraction in orders in both divisions which has continued to date.
The Instruments business was impacted both by a slowdown in orders from its overseas distributors coupled with deterioration in the UK market as school and universities slowed their spending. In addition the Data market also continued to soften as the market anticipated arrival of new terminals scheduled for March this year.
Despite these more challenging markets Feedback has maintained investment in new product development and a number of new product launches are planned for release during 2010 for both divisions. In addition significant spend has also been committed to a re-branding of the Company with the appointment of new corporate communication consultants. The initial results of this will be seen in March with the new look, logo and website scheduled for release that month. Continued additional spend is planned to support various new marketing initiatives.
Although current trading is showing some stability it is likely that the second half will prove as challenging as the first six months and, despite the board's positive expectation for new products, it is likely that the outcome for the full year will be behind that for the year ended May 2009.
Michael G Burt
Executive Chairman
23 February 2010
Enquiries:
Feedback Plc 01892 653322
Michael Burt
Executive Chairman
Charles Stanley Securities 020 7149 6000
Nominated Adviser & Broker
Russell Cook / Carl Holmes
UNAUDITED CONSOLIDATED INCOME STATEMENT
|
|
| 6 months to 30 November 2009 | 6 months to 30 November 2008 | Year to 31 May 2009 |
|
| | £'000 | £'000 | £'000 |
|
|
|
|
|
|
| Revenue |
| 3,833 | 4,464 | 8,163 |
| Cost of sales |
| (2,119) | (2,475) | (4,568) |
|
|
| ------------- | ------------- | ------------- |
| Gross profit |
| 1,714 | 1,989 | 3,595 |
|
|
|
|
|
|
| Other operating expenses |
| (1,682) | (1,716) | (2,992) |
|
|
| ------------- | ------------- | ------------- |
| Operating profit |
| 32 | 273 | 603 |
| Profit on sale of fixed asset |
|
| 27 | 27 |
|
|
| ------------- | ------------- | ------------- |
|
|
| 32 | 300 | 630 |
|
|
|
|
|
|
| Finance costs |
| 5 | (2) | (1) |
|
|
| ------------- | ------------- | ------------- |
| Profit before tax |
| 37 | 298 | 629 |
|
|
|
|
|
|
| Tax (expense)/credit |
| (12) | (2) | 18 |
|
|
| ------------- | ------------- | ------------ |
| Profit for the period attributable to the equity |
|
|
|
|
| shareholders of the parent |
| 25 | 296 | 647 |
|
|
|
|
|
|
|
|
|
|
|
|
| Other comprehensive income/(expense) |
|
|
|
|
|
|
|
|
|
|
| Translation differences on overseas operations |
| - | 24 | (68) |
|
|
| ------------- | ------------- | ------------- |
| Total comprehensive income for the period |
|
|
|
|
|
|
| 25 | 320 | 579 |
|
|
| ====== | ====== | ====== |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings per share | 2 | 0.02p | 0.27p | 0.59p |
| Diluted earnings per share | 2 | 0.02p | 0.27p | 0.59p |
All amounts relate to continuing operations.
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
| Share Capital | Share premium Service | Capital redemption reserve | Retained earnings | Total |
|
|
|
|
|
|
|
|
| £'000 | £'000 | £'000 | £'000 | £'000 |
|
|
|
|
|
|
|
| Balance at 31st May 2008 | 273 | 633 | 300 | 2,175 | 3,381 |
|
|
|
|
|
|
|
| Total comprehensive income for the period |
- |
- |
- |
320 |
320 |
|
| ------------- | ------------- | ------------- | ------------- | ------------- |
|
|
|
|
|
|
|
| Balance at 30th November 2008 | 273 | 633 | 300 | 2,495 | 3,701 |
|
|
|
|
|
|
|
| Total comprehensive income for the period |
- |
- |
- |
259 |
259 |
|
| ------------- | ------------- | ------------- | ------------- | ------------- |
| Balance at 31st May 2009 | 273 | 633 | 300 | 2,754 | 3,960 |
|
|
|
|
|
|
|
| Total comprehensive income for the period |
- |
- |
- |
25 |
25 |
|
| ------------- | ------------- | ------------- | ------------- | ------------- |
| Balance at 30th November 2009 | 273 | 633 | 300 | 2,779 | 3,985 |
|
| ------------- | ------------- | ------------- | ------------- | ------------- |
UNAUDITED CONSOLIDATED BALANCE SHEET
|
|
| 30 November 2009 | 30 November 2008 | 31 May 2009 |
|
|
| £'000 | £'000 | £'000 |
|
|
|
|
|
|
| ASSETS |
|
|
|
|
| Non-current assets |
|
|
|
|
| Property, plant and equipment |
| 1,566 | 1,555 | 1,577 |
| Intangible assets |
| 636 | 677 | 590 |
| Deferred tax asset |
| 313 | 316 | 313 |
|
|
| ------------- | ------------- | ------------- |
|
|
| 2,515 | 2,548 | 2,480 |
|
|
| ------------- | ------------- | ------------- |
| Current assets |
|
|
|
|
| Inventories |
| 1,212 | 1,130 | 1,334 |
| Trade receivables |
| 1,303 | 1,675 | 1,699 |
| Other receivables |
| 174 | 92 | 223 |
| Cash and cash equivalents |
| 420 | 529 | 269 |
|
|
| ------------- | ------------- | ------------- |
|
|
| 3,109 | 3,426 | 3,525 |
|
|
| ------------- | ------------- | ------------- |
| Total assets |
| 5,624 | 5,974 | 6,005 |
|
|
| ====== | ====== | ====== |
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
| Non-current liabilities |
|
|
|
|
| Deferred tax liabilities |
| 178 | 189 | 165 |
|
|
| ------------- | ------------- | ------------ |
| Current liabilities |
|
|
|
|
| Trade payables |
| 712 | 791 | 745 |
| Other payables |
| 749 | 1,293 | 1,135 |
|
|
| ------------- | ------------- | ------------ |
|
|
| 1,461 | 2,084 | 1,880 |
|
|
| ------------- | ------------- | ------------ |
| Total liabilities |
| 1,639 | 2,273 | 2,045 |
|
|
| ------------- | ------------- | ------------ |
| Net assets |
| 3,985 | 3,701 | 3,960 |
|
|
| ====== | ====== | ====== |
|
|
|
|
|
|
|
|
|
|
|
|
| EQUITY |
|
|
|
|
| Capital and reserves attributable to the Company's equity shareholders |
|
|
|
|
| Called up share capital |
| 273 | 273 | 273 |
| Share premium account |
| 633 | 633 | 633 |
| Capital reserve |
| 300 | 300 | 300 |
| Retained earnings |
| 2,779 | 2,495 | 2,754 |
|
|
| ------------- | ------------- | ------------ |
| Total equity |
| 3,985 | 3,701 | 3,960 |
|
|
| ====== | ====== | ====== |
|
|
|
|
|
|
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
|
|
| 6 months to 30 November 2009 | 6 months to 30 November 2008 | Year to 31 May 2009 |
|
|
| £'000 | £'000 | £'000 |
|
|
|
|
|
|
| Cash flows from operating activities |
|
|
|
|
| Profit before tax |
| 37 | 298 | 629 |
| Adjustments for: |
|
|
|
|
| Finance charges |
|
| - |
|
| Depreciation and amortisation |
| 212 | 248 | 511 |
| Profit on disposal of tangible fixed assets |
| - | (27) | (27) |
| Foreign exchange difference |
|
| 27 | (68) |
| Decrease/(increase) in inventories |
| 122 | 129 | (75) |
| Decrease/(increase) in trade receivables |
| 396 | (268) | (291) |
| Decrease in other receivables |
| 49 | 157 | 25 |
| (Decrease)/increase in trade payables |
| (33) | 186 | 140 |
| Decrease in other payables |
| (386) | (455) | (613) |
|
|
| -------------- | -------------- | -------------- |
| Net cash generated from operating activities |
| 397 | 295 | 231 |
|
|
| -------------- | -------------- | -------------- |
| Cash flows from investing activities |
|
|
|
|
| Interest received |
| - | - | - |
| Purchase of tangible fixed assets |
| (21) | (134) | (185) |
| Proceeds from sale of tangible fixed assets |
| - | 32 | 40 |
| Purchase of intangible assets |
| (225) | (227) | (379) |
|
|
| -------------- | -------------- | -------------- |
| Net cash used in investing activities |
| (246) | (329) | (524) |
|
|
| -------------- | -------------- | -------------- |
| Cash flows from financing activities |
|
|
|
|
| Interest paid |
| - | - | (1) |
| Capital element of finance leases and rental payments |
| - | (4) | (4) |
|
|
| -------------- | -------------- | -------------- |
| Net cash generated from financing activities |
| - | (4) | (5) |
|
|
| -------------- | -------------- | -------------- |
|
|
|
|
|
|
| Net movement in cash and cash equivalents |
| 151 | (38) | (298) |
| Cash and cash equivalents at beginning of period |
| 269 | 567 | 567 |
|
|
| -------------- | -------------- | -------------- |
| Cash and cash equivalents at end of period |
| 420 | 529 | 269 |
|
|
| ======= | ======= | ======= |
NOTES TO THE UNAUDITED INTERIM REPORT
| 1. | BASES OF PREPARATION | |||
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| The consolidated interim financial statements have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards as endorsed by the European Union ("IFRS") and expected to be effective at the year end of 31 May 2010, which are mandatory for accounting periods beginning on or after 1 January 2009. The accounting policies are unchanged from the financial statements for the year ended 31 May 2009.
The information set out in this interim report for the six months ended 30 November 2009 does not comprise statutory accounts within the meaning of section 434 of The Companies Act 2006. The results for the period ended 31 May 2009 are based on the published accounts for that period on which the auditors gave a report which did not contain statements under section 498 of the Companies Act 2006. The accounts for the period ended 31 May 2009 have been filed with the Registrar of Companies.
This interim report was approved by the directors on 23 February 2010. |
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| 2. | EARNINGS PER SHARE |
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| The earnings per share for the six months ended 30 November 2009 is based on the Group profit on ordinary activities after taxation of £24,000 (2008: £296,000) attributed to Ordinary Shares of 109,146,746 (2008: 109,146,746), being the weighted average number of shares in issue throughout the year. |
| ||
INDEPENDENT REVIEW REPORT TO FEEDBACK PLC
Introduction
We have been engaged by the Company to review the condensed set of financial statements in the interim financial report for the six months ended 30 November 2009 which comprises the Consolidated Income Statement, the Consolidated Statement of Total Recognised Income and Expense, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement and the Notes to the Unaudited Interim Report. We have read the other information contained in the interim 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, including the conclusion, has been prepared for and only for the Company for the purpose of meeting the requirements of the AIM Rules for Companies and for no other purpose. We do not, therefore, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Directors' Responsibilities
The interim financial report, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing and presenting the interim financial report in accordance with the AIM Rules for Companies.
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 ("IFRIC") pronouncements as adopted by the European Union. The condensed set of financial statements included in this interim financial report has been prepared in accordance with the measurement and recognition criteria of International Financial Reporting Standards and International Financial Reporting Interpretations Committee ("IFRIC") 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 interim 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 interim financial report for the six months ended 30 November 2009 is not prepared, in all material respects, in accordance with the measurement and recognition criteria of International Financial Reporting Standards and International Financial Reporting Interpretations Committee ("IFRIC") pronouncements as adopted by the European Union, and the AIM Rules for Companies.
haysmacintyre
Chartered Accountants
Fairfax House
15 Fulwood Place
London
WC1V 6AY
23 February 2010