1 Jul 2010 07:00
1 July 2010
GEONG International Limited
("GEONG" or "the Company")
Preliminary Unaudited Results
GEONG International Limited (AIM: GNG), the AIM listed China based provider of online business solutions utilizing Enterprise Content Management (ECM) technology, today announces its unaudited preliminary results for the year ended 31 March 2010.
Financial Highlights:
·; Turnover down 15% to £12.5 million (2009: £14.7 million)
·; Gross margin up 500 basis points to 46% (2009: 40%)
·; Profit before tax up 34% to £2.3 million (2009: £1.7 million)
·; Underlying profit before tax* up 30% to £2.6million (2009: £2.0 million)
·; Basic earnings per share up 21% to 5.2 pence (2009: 4.3 pence)
·; Adjusted fully diluted earnings per share* up 17% to 6.2 pence (2009: 5.3 pence)
·; Cash up 78% to £6.4 million (2009: £ 3.6 million)
·; Trade receivables of £4.7 million (2009: £4.3 million)
·; Trade receivables, including accrued income of £13.1million (2009: £10.8million)
·; Cash and Trade Receivables form 88% (2009: 84%) of total assets and 120% (2009: 115%) of net assets
·; Order book of £14 million (2009: £10.6 million) including £5.6 million of recurring revenue (2009: £5 million)
(*excluding amortisation and share based expenses)
Operational Highlights:
·; SaaS business increased by 819% to £1.7 million with 10 new clients added (2009: £0.2million)
·; 24 new client wins in our core market including in the Banking, Automotive and Telecommunications sectors
·; New partnership with Oracle and a breakthrough in the insurance industry winning five new clients
·; Launched new versions of products, along with innovative solutions in IaaS (PortalAge) and SaaS (PortalAge & SmartBox)
Other highlights:
·; New £5 million equity financing facility completed today, to support the Group's future acquisition strategy, provided by Darwin Strategic (a subsidiary of the Evolution Group plc)
·; Evolution Securities Limited appointed as nominated adviser and joint broker to the Company (with Evolution Securities China Limited) with immediate effect
Wang Weidong, Chief Executive Officer of GEONG, commented:
"Whilst we are pleased with our increase in the Company's reported pre-tax profits by 34% to £2.3 million in the 2010 financial year, there was an anticipated 15% decline in revenue. This is, however, tempered by the fact that gross margins increased by 500 basis points to 45%. Following the Company's successful £2.3million fundraising in September 2009, we have embarked on a three year strategic plan. We have decided to focus on building GEONG's recurring revenues, cash generation and profit margins by migrating our current business model to a more balanced SaaS and IaaS model. Over the last five years we have managed to grow revenue at an average annualised rate of almost 30% and we now believe the Group's financial resources may be more efficiently utilised by focusing on profitability and improving cash collection. The financial benefits of the current strategy will be felt progressively during the coming 24 months, when we may re-visit our moderate but controlled revenue growth strategy.
For further information, please contact:
| GEONG International Limited | www.geong.com | Tel: +86 10 5222 0999 |
| Henry Tse, Chairman |
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| Weidong Wang, CEO |
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| Amit Thakar, CFO |
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| Evolution Securities Limited | www.evosecurities.com | Tel: +44 020 7071 4300 |
| (nominated adviser and joint broker) Barry Saint Esther Lee |
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About GEONG International Limited
Operational since 2000, GEONG specialises in providing online business solutions utilizing ECM software technology. Its products and solutions are to help customers move their business online and to streamline their business processes. These products and solutions are specifically tailored for the Chinese market and could be offered by the twin business model - IaaS (Information as a Service, product licence plus customisation and consultancy services) and SaaS (Software as a Service, long term sales of license, operation and value-added services), where the Company is recognised by Government agencies and numerous blue chip clients as a leader in its field and is a leading provider of such services to the finance services, automotive and telecommunications sectors in China, with operations also in Canada.
GEONG was named The Most Successful Enterprise in ECM Software in China 2007 and 2008 by China's Centre for Information Industry Development and CCID Consulting; and has been one of the fastest growing companies in Asia at the Deloitte Technology Fast 50 China and Deloitte Technology Fast 500 Asia Pacific awards for 5 years. The Company has expanded into North America setting up operations in Canada in 2007.
Registered in Jersey, the Group's operations are headquartered in Beijing. The Company's shares were admitted to AIM in June 2006 and trade under the ticker GNG.L
For more information, please visit www.geong.com
CHAIRMAN'S STATEMENT
Overview
Yet again, we have maintained our profits growth momentum and delivered on our commitment to our shareholders, and we will continue to strive to do so. In 2005 we achieved a major milestone when we generated our first profit of £0.4m and had a cash balance of £27,000. In line with the trading update released by the Group on 4 May 2010, in the 2010 financial year we reported an operating profit of £2.3m and finished the financial year with a cash balance of £6.4m on 31 March 2010. In September 2009, the Group successfully raised £2.26m of funds for its working capital needs, including participation from the Group's directors. Following the fundraising the Group has approximately 37.8m shares in issue.
During the year, revenues declined by 15% to £12.5 million (2009: £14.7million) owing to low margin third party product declining by 69% to £1.3million (2009: £4.3 million). However, the revenue mix has significantly improved with higher margin SaaS business increasing by 819% to £1.7 million (2009: £0.2million). As a result, overall gross margins are up by 500 basis points to 45% (2009: 40%).
Pre-tax profit increased by 34% to £2.3 million (2009: £1.7 million) and the Group's net cash balance at 31 March 2010 was £6.4million, 78% higher than at the same time last year (2009: £3.6million). We expect this balance to fall over the next six months as the business is traditionally cash flow-negative in the first two quarters of the financial year but then cash collection reaches its peak in the fourth quarter.
We have significantly reduced our sales and marketing costs relating to our SME product, SmartBox, by moving from a direct sales model to a partner-led sales model and we are also in the process of implementing a SaaS (Software as a Service) delivery platform for the product. We are confident we will gradually improve our cash collection for the Group going forward, particularly in the second half of the new financial year with a more balanced IaaS and SaaS business model. Whilst the Group's IaaS revenue model is underpinned by long term contracts the SaaS model has significantly less cash burn and also has a very short cash collection period. We are also pleased to report that the markets in which we operate, being Banking, Automotive and Telecoms, have remained strong in the first quarter of the current financial year.
I would also like to take this opportunity to thank all of our staff, whose hard work and commitment, despite the global recession, enabled us to report significant profit growth during 2010. At the year end our order book stood at £14.0million (2009: £10.6 million), of which £5.6million (2009: £5 million) is recurring revenue, and this leaves us well positioned for the future.
We are also pleased to announce today in a separate announcement that GEONG has entered into a £5 million Equity Financing Facility with Darwin Strategic, a subsidiary of the Evolution Group plc. This facility provides the Board with the financial flexibility to support the Group's future acquisition strategy. Further details of this new funding facility are set out in a separate announcement released by GEONG today.
GEONG has also appointed Evolution Securities Limited as its Nominated Adviser and Joint Broker (along with Evolution Securities China Limited) with immediate effect.
Financial Review
Revenue Breakdown by Division
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| 2010 (£000) | 2009 (£000) |
| PortalAge (IaaS) | 9,457 | 10,163 |
| SaaS | 1,710 | 186 |
| Third party products | 1,346 | 4,317 |
| Total | 12,513 | 14,666 |
During the year, Group revenue declined by 15% to £12.5 million (2009: £14.7million) due to low margin third party product declining by 69% to £1.3million (2009: £4.3 million) as the Group strictly adhered to the benchmark of a minimum gross margin and cash collection. The higher margin SaaS business increased by 819% to £1.7 million (2009: £0.2million) and PortalAge related products and services declined 7% to 9.5 million (2009: £10.2million) due to the provision of product services and solutions to banking and automotive clients (classified as SaaS sales). As a result of this strategy, the Group's gross margin is up 500 basis points to 45% in the 2010 financial year (2009: 40%).
Operating profit increased by 34% to £2.3 million (2009: £1.7million) with a £0.4 million decrease in sales and marketing costs and an associated £0.1 million decrease in administrative expenses. We have significantly reduced our sales and marketing costs relating to SmartBox by moving from a direct sales model to a partner-led sales model and we are also successfully introducing a SaaS (Software as a Service) delivery platform to our new and existing PortalAge and SmartBox clients which, we are confident, will further improve cash collection for the Groupgoing forward by ensuring a more balanced IaaS and SaaS model.
£0.6million cash flow was generated from operations during the 2010 financial year (2009: £1.0 million). This was achieved through a concerted and efficient cash collection policy. Including the fund raising, there was a net cash improvement of £2.8 million during the year, from an opening position of £3.6million, to a closing net cash position of £6.4million.
Strong underlying trading, particularly in the IaaS (PortalAge) business unit, saw a substantial increase in accrued income by 28% to £8.3 million (2009: £6.5 million) and trade receivables to £4.7 million (2008: £4.3 million). Our rise in accrued income is directly related to the Group working with IBM and our long-term clients and having taken on larger and longer contracts which results in a lengthened working capital cycle.
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| 2010 (£000) | 2009 (£000) |
| Trade receivables | 4,693 | 4,272 |
| Accrued income | 8,361 | 6,543 |
| Total | 13,054 | 10,815 |
The Group's successful strategy of targeting and winning large and long-term IaaS contracts has led to extended payment terms resulting in an unusually high level of debtor days especially since we are delivering a large contract for a global telecom equipment manufacturer where we are working in collaboration with IBM. The Group remains convinced that debtor days will decline as the Group continues to roll out its new SaaS delivery models. This is expected to result in payment terms that are almost instantaneous, as the offering will be sold on a per-usage basis.
Operations
IaaS
Sales of the Company's PortalAge IaaS model, our customised, high performance and scalable platform designed for online business, aimed at large enterprise customers, performed well throughout the year, enjoying particular success in the Group's core markets of Banking, Automotive and Telecommunications and 24 new clients were won during the period.
We have continued to invest in developing the PortalAge product set, launching new versions of the PortalAge Content Service Platform (CSP), Web Content Management Solution (WCM) and PortalAge Application Infrastructure(PAI) products during the period.
Based on these new products, our innovative solutions enable clients to build Web 2.0, Enterprise 2.0, Mobile and Cloud Computing functions. Through these solutions GEONG's clients can successfully transfer their traditional business models online and streamline their business processes.
The Company's new partnership with Oracle has helped us to enter a new industry - the insurance industry, with five new clients including Taiping Insurance Group, Xinhua Insurance, Happy Insurance utilising our PortalAge solutions.
SaaS
Sales of SaaS, accounting for 15% of the Company's total revenue in the 2010 financial year, via our long term sales of licenses and value-added services, achieved great success during the year. We launched a series of new SaaS solutions by integrating the proven PortalAge and SmartBox solutions.This solution, which includes Customer Experience Management (CEM), Social Networking Computing (SNC) and Application Management Service (AMS), is designed to help our customers improve the revenue and efficiency of their online business.
Our SaaS solutions were already accepted by existing large clients in our core market, including China Construction Bank (CCB), Bank of China (BOC), China Bond (CB), Guangdong Development Bank (GDB), Bank of Communications (BCOMM), Bank of Shanghai (BOSH), Haitong Securities, Shanghai General Motor and EMC.
Market
With GEONG's products specifically tailored for our core market of China, the Company is pleased to report that the Chinese economy continues to outperform most other world markets, with GDP expected to be up 10% in the 2010 calendar year (Source: National Bureau of Statistics of China, Dec 2009). Additionally, the focused industries in which GEONG operates continue to perform well.
Among GEONG's target industries, the automotive industry in China has became the largest national market worldwide in 2009 (Source: 21st Century Business Highlight, Dec 2009), growing by another 10% in 2010. The signs of renewed IT investment in this sector were clearly apparent from Q1 of 2010.
In GEONG's existing markets, the Chinese banking sector showed a net profit increase of 15% in 2009 to RMB668.4 billion (2008:RMB583.4 billion) (Source: China Banking Regulatory Committee).
In addition, in the Chinese telecommunications sector, the Government has pledged RMB400 billion for 3G development in the coming three years, of which another RMB170 billion is expected to be spent in 2010. (Source: China Centre Television, Dec 2009).
Overall, online businesses in the above core markets are growing at a rapid rate, driven by the demand by Web 2.0, Enterprise 2.0, mobile and cloud computing. In the meantime, the SaaS model for software delivery is becoming more accepted and popular with customers.
Strategy
Following the Company's successful fundraising in September 2009, GEONG has embarked on a three year strategic plan. We have decided to manage our revenue growth in a more controlled manner. We have grown revenue at a CAGR of almost 30% over the last five years. Whilst the Board is confident this revenue growth could continue to be generated in coming years, the continuous strain on working capital would ultimately prove to be a limiting factor.
With the objective of further enhancing the Group's utilisation of its working capital, we have now established a Quality Control unit, driven and managed by technology and product development unit managers, which now monitors every contract that has been won by GEONG's sales and marketing team. A process of filtering takes place in the Company's business development process to ensure sufficient weighting is given to margins and cash collection in addition to revenue growth. The Board's objective is to ensure that revenue growth, whilst continuing at a more measured rate, will not compromise our profitability but will enhance our margins and gradually begin to improve cash collection. The impact of the strategy will be felt progressively during the period to March 2012.
Going forward, we are implementing our proven 'Go-Deep-and-Broad' sales strategy for the Company's SaaS model. This involves the leveraging of our existing client base to sell more SaaS solutions to improve gross margins and cash collection substantially.
Finally, we continue to seek opportunities for geographical expansion and are working closely with our business partners in the Asia Pacific and Canada to explore overseas opportunities.
Current trading and outlook
In the first quarter of the current financial year, GEONG has won new contracts in our core, Banking, Automotive and Telecommunications sector markets, as well as a number of repeat contracts from our core, e.g. Diamond, Gold and Silver clients. At the same time, working closely with our new partner - Oracle, we won some important contracts and long-term clients in new industries, such as insurance and manufacturing. In this way, the Company's market coverage and customer base in its IaaS segment has been extended.
The Company's SaaS business is expanding very quickly with our existing clients and two contracts have been renewed and extended so far in the current financial year. We also significantly enhanced our SaaS offerings in the banking sector by partnering with our US partners, such as Backbase and Moneytstrands.
Also noteworthy is that the payment process of some large Chinese customers is beginning to show faint signs of improvement. In the first quarter, one of our Diamond clients changed from annual payments to a quarterly payment cycle. GEONG continues to believe that any significant change in the payment process of all of all our large Chinese clients will still take time to be realised. However, this is still a positive initial sign.
In 2005 we achieved a major milestone when we generated our first profit of £0.4m and had a cash balance of £27,000. This financial year we generated an exceptionally robust profit of £2.3m. Our underlying business is strong and we have a cash balance of £6.4m. Geong's current position has never been stronger in its 10 year history.
However, the management is also prepared for possible headwinds ahead. Globally all companies worldwide face an outlook of heightened uncertainty. Of all the major countries, the Chinese authorities were possibly the most successful in navigating the China economy through the financial crisis of 2008 and 2009. The Chinese authorities are now engaged in a delicate balancing act of preventing economic overheating without depressing aggregate demand. Their task, to achieve orderly growth, is a challenging one. Despite the uncertainty in magnitude, pace and timing of the "fine tuning" by the Chinese authorities, the Group's trading conditions since the year end have been in line with management expectations. Whilst we and our clients, have seen no discernable impact of such fine tuning on business, we are planning ahead with caution and circumspection, budgeting for a prudent growth path.
Henry H.Y.Tse
Chairman
1 July 2010
GEONG international Limited
Consolidated Statement of Comprehensive Income for the year ended 31 March 2010
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| Note | 2010 | 2009 |
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| £'000 | £'000 |
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| Revenue |
| 12,512 | 14,666 |
| Cost of sales |
| (6,812) | (8,728) |
| Gross profit |
| 5,700 | 5,938 |
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| Other income |
| 193 | 30 |
| Research and development cost |
| (222) | (307) |
| Selling and distribution expenses |
| (736) | (1,129) |
| Administrative expenses |
| (2,308) | (2,432) |
| Other operating expenses |
| (17) | (113) |
| Underlying operating profit* |
| 2,610 | 1,987 |
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| Amortisation charge |
| (206) | (201) |
| Share based payment charge |
| (134) | (99) |
| Operating profit |
| 2,270 | 1,687 |
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| Finance cost |
| (6) | - |
| Finance income |
| 1 | 2 |
| Profit before tax |
| 2,265 | 1,689 |
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| Taxation | 3 | (468) | (330) |
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| Profit for the year attributable to equity shareholders of the parent company |
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1,797 |
1,359 |
| Other comprehensive income |
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| Exchange differences arising on translation of foreign operations |
| (353) | 3,504 |
| Total comprehensive income for the year |
| 1,444 | 4,863 |
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| Earnings per ordinary share (pence) |
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| Basic | 4 | 5.22 | 4.31 |
| Adjusted basic* | 4 | 6.21 | 5.26 |
| Diluted | 4 | 5.13 | 4.16 |
*Operating profit before amortisation and share based payment charges
GEONG international Limited
Consolidated Statement of Financial Position as at 31 March 2010
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| 2010 | 2009 |
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| £'000 | £'000 |
| ASSETS |
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| Non-current assets |
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| Property, plant and equipment | 399 | 559 |
| Intangible assets | 460 | 514 |
| Total non-current assets | 859 | 1,073 |
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| Current assets |
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| Inventories | 272 | 281 |
| Trade receivables | 13,054 | 10,815 |
| Other receivables | 1,513 | 1,333 |
| Cash and cash equivalents | 6,358 | 3,567 |
| Total current assets | 21,197 | 15,996 |
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| Total assets | 22,056 | 17,069 |
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| LIABILITIES & EQUITY |
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| Current liabilities |
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| Trade payables | 1,473 | 1,781 |
| Other payables | 2,190 | 1,224 |
| Tax payable | 1,221 | 1,052 |
| Total current liabilities | 4,884 | 4,057 |
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| Non-current liabilities |
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| Deferred taxation | 856 | 521 |
| Total non-current liabilities | 856 | 521 |
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| Total liabilities | 5,740 | 4,578 |
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| Capital and reserves |
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| Share capital | 378 | 315 |
| Reserves | 15,938 | 12,176 |
| Total shareholders' equity | 16,316 | 12,491 |
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| Total liabilities & equity | 22,056 | 17,069 |
GEONG international Limited
Consolidated Statement of Cash Flow for the year ended 31 March 2010
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| 2010 | 2009 |
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| £'000 | £'000 |
| Operating activities |
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| Profit from operations | 2,265 | 1,689 |
| Adjustments for: |
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| Interest income | (1) | (6) |
| Interest expense | 6 | - |
| Allowance for doubtful debts | 21 | 3 |
| Depreciation of property, plant and equipment | 146 | 144 |
| Amortisation of intangible assets | 206 | 201 |
| Loss on disposal of fixed assets, net | 4 | - |
| Share based payment charge | 134 | 99 |
| Operating cash flows before movement in working capital | 2,781 | 2,130 |
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| Increase in inventories | (7) | (8) |
| Increase in trade and other receivables | (3,156) | (2,288) |
| Increase in trade and other payables | 1,068 | 1,210 |
| Cash generated from operations | 686 | 1,044 |
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| Income tax paid | (117) | - |
| NET CASH GENERATED FROM OPERATING ACTIVITIES | 569 | 1,044 |
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| Investing activities |
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| Interest received | 1 | 6 |
| Interest paid | (6) | - |
| Purchase of property, plant and equipment | (15) | (85) |
| Proceeds from disposal of fixed assets | 6 | - |
| Purchase of intangible assets | (175) | (221) |
| NET CASH USED IN INVESTING ACTIVITIES | (189) | (300) |
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| Financing activities |
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| Net proceeds from issue of shares | 2,261 | - |
| NET CASH GENERATED FROM FINANCING ACTIVITIES | 2,261 | - |
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| NET INCREASE IN CASH AND CASH EQUIVALENTS | 2,641 | 744 |
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| Effect of exchange rate changes | 150 | 827 |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 3,567 | 1,996 |
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| CASH AND CASH EQUIVALENTS AT THE END OF YEAR | 6,358 | 3,567 |
GEONG international Limited
Consolidated Statement of Changes in Equity for the year ended 31 March 2010
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| Share Capital | Share Premium | Merger Reserve | Other reserve | Equity Compensation Reserve | Retained Earnings | Exchange Reserve | Total |
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| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
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| Balance at 1 April 2008 | 315 | 5,432 | (698) | 3 | 106 | 1,936 | 434 | 7,528 |
| Profit for the year | - | - | - | - | - | 1,359 | - | 1,359 |
| Foreign exchange movement | - | - | - | - | - | - | 3,504 | 3,504 |
| Total comprehensive income for the year | - | - | - | - | - | 1,359 | 3,504 | 4,863 |
| Share options granted | - | - | - | - | 100 | - | - | 100 |
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| Balance at 31 March 2009 | 315 | 5,432 | (698) | 3 | 206 | 3,295 | 3,938 | 12,491 |
| Profit for the year | - | - | - | - | - | 1,797 | - | 1,797 |
| Foreign exchange movement | - | - | - | - | - | - | (353) | (353) |
| Total comprehensive income for the year | - | - | - | - | - | 1,797 | (353) | 1,444 |
| Share options granted | - | - | - | - | 134 | - | - | 134 |
| Issue of shares | 61 | 2,269 | - | - | - | - | - | 2,330 |
| Share issue costs | - | (133) | - | - | - | - | - | (133) |
| Exercise of share options | 2 | 48 | - | - | (14) | 14 | - | 50 |
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| Balance at 31 March 2010 | 378 | 7,616 | (698) | 3 | 326 | 5,106 | 3,585 | 16,316 |
NOTES TO THE FINANCIAL INFORMATION
1. Financial Information
The preliminary results were approved by the Board of Directors on 30 June 2010. The financial information set out above does not comprise the Company's statutory financial statements for the year ended 31 March 2010. Whilst the auditors have yet to sign their report on the 2010 accounts, they anticipate issuing an unqualified report. The statutory financial statements for the year ended 31 March 2010 will be finalised on the basis of the financial information presented by the Directors in this preliminary announcement. The financial information for the year ended 31 March 2009 is derived from the financial statements for that year. The auditors have reported on the 2009 financial statements; their report was unqualified.
The directors do not propose a dividend in respect of the year ended 31 March 2010 (2009: nil).
GEONG international Limited
2. Basis of Preparation
These preliminary results have been prepared in accordance with the accounting polices adopted by the Company which are consistent with those adopted in the annual report and accounts for the year ended 31 March 2009. These preliminary results have also been prepared in accordance with International Financial Reporting Standards.
3. Taxation
The tax expense recognised in the consolidated profit and loss account:
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| 2010 | 2009 |
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| £'000 | £'000 |
| Current year: |
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| Current tax | 133 | 130 |
| Deferred tax expenses | 335 | 200 |
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| 468 | 330 |
Reconciliation of tax charge:
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| 2010 | 2009 |
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| £'000 | £'000 |
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| Profit before tax | 2,265 | 1,689 |
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| Tax calculated at domestic tax rates applicable to profits in the respective countries at 15% (2009 : 15%) |
340 |
253 |
| Tax effect of different tax rates in different jurisdictions | 19 | (56) |
| Unrecoverable withholding tax | 127 | 130 |
| Unrecognised deferred tax asset | (18) | - |
| Other | - | 3 |
| Tax expense for the year | 468 | 330 |
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GEONG international Limited
4. Earnings per Share
Basic earnings per share
The calculation of basic earnings per share at 31 March 2010 was based on the profit attributable to equity shareholders of the Group of £1,797,085 (2009: £1,359,249) and a weighted average number of ordinary shares outstanding during the year ended 31 March 2010 of 34,410,220 (2009: 31,537,032), calculated as follows:
Weighted average number of ordinary shares
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| 2010 | 2009 |
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| (Number) | (Number) |
| Issued ordinary shares at beginning of the year |
31,537,032 | 31,537,032 |
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| Effect of shares issued | 2,873,188 | - |
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Weighted average number of ordinary shares at end of the year |
34,410,220 | 31,537,032 |
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| Basic earnings per share (pence) | 5.22 | 4.31 |
Diluted earnings per share
The calculation of diluted earnings per share at 31 March 2010 was based on profit attributable to equity shareholders of the Group of £1,797,085 (2009: £1,359,249) and a weighted average number of ordinary shares outstanding during the year ended 31 March 2010, calculated as follows:
Weighted average number of ordinary shares (diluted)
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| 2010 | 2009 |
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| (Number) | (Number) |
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Weighted average number of ordinary shares at end of the year |
34,410,220 | 31,537,032 |
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| Effect of conversion of share options | 639,570 | 1,104,986 |
| Weighted average number of ordinary shares for diluted earnings per share |
35,049,790 |
32,642,018 |
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| Diluted earnings per share (pence) | 5.13 | 4.16 |
GEONG international Limited
Adjusted earnings per share
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| 2010 | 2009 |
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| (£000) | (£000) |
| Profit for the year attributable to equity shareholders of the parent Group |
1,797 | 1,359 |
| Amortisation charge | 206 | 201 |
| Share based payment charge | 134 | 99 |
| Adjusted profit on ordinary activities after taxation | 2,137 | 1,659 |
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| Adjusted earnings per share (pence) |
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| - basic | 6.21 | 5.26 |
| - diluted | 6.10 | 5.08 |