HPAC.L Regulatory News (HPAC)

23 Jun 2005 07:01

India Outsourcing Services PLC23 June 2005 For immediate release 23 June 2005 INDIA OUTSOURCING SERVICES PLC ("India Outsourcing" or "the Company") Interim Results for the 17-week period ended 31 March 2005 India Outsourcing Services plc (AIM: IOS), a company formed to capitalise onacquisition and investment opportunities in the Indian business processoutsourcing (BPO) market, is pleased to announce its maiden interim resultsfollowing its flotation on AIM in December 2004. The Company, which is in the early stages of its development, recorded a pre-taxloss of £101, 633 and a loss per share of (0.68p). Net cash as at 31 March 2005was £394,527. Haresh Kanabar, India Outsourcing's Chairman, commented: "Since our successfulflotation in December we have pursued our strategy of identifying and evaluatingpotential acquisitions in the Indian BPO market. We have drawn up a shortlist ofpotential targets and are in the process of carrying out full due diligence onone of our targets and are considering another closely." For further information: India Outsourcing Services plc Tel: 020 7070 7241Haresh Kanabar, ChairmanAmit Pau, Chief Executive Panmure Gordon & Co Tel: 020 7459 3600Jonathan RetterKatherine Roe Buchanan Communications Tel: 020 7466 5000Mark CourtElly Williamson CHAIRMAN'S STATEMENT I am pleased to report India Outsourcing's maiden interim results. The figuresrepresent the first 17 weeks of trading at the Company. The pre-tax loss for theperiod was £101,633 and the loss per share was 0.68p. The financial performanceof the Company was in line with our expectations. By far the most significant event for the Company during the half year was itssuccessful flotation on AIM in December, when the Company raised gross proceedsof £500,000. This allowed IOS to conduct a rigorous selection process, theresults of which confirmed our view that there is a significant businessopportunity for us in creating a leading international outsourcing company thatcombines the best of Indian and other international BPO companies. Since December, the Company has pursued its strategy of seeking acquisitions inthe attractive Indian BPO market. The Indian BPO industry grew by 44.2% toUS$5.2 billion between April 2004 and March 2005 (source: NASSCOM). It isexpected to continue to grow at a significant rate over the next few years We have already drawn up a shortlist of potential acquisitions. Our investmentcriteria include a requirement for annual revenues of approximately $2-15million; strong, dynamic management; long-term clients producing recurringrevenues; and a cash-flow positive and profitable financial profile. We haveappointed advisers and are in the process of doing full legal and financial duediligence on one target and are considering another closely. India's BPO market is dynamic and exciting. It is growing at a formidable pace,largely driven by competitive forces that are making companies look long andhard at their cost bases. We will continue to execute our strategy and look forward to updatingshareholders in due course. Haresh KanabarChairman Profit and Loss AccountFor the period ended 31 March 2005 (unaudited) 17 Week Period ended 31 March 2005 (unaudited) Note £ Turnover 0Cost of Sales 0 Gross Profit 0Administrative Expenses (106,037) Operating loss (106,037) Net interest ( payable ) / receivable 4,404 Loss on ordinary activities before taxation (101,633) Taxation 2 0 Loss after taxation (101,633) Loss per share 4 (0.68) p All recognised gains and losses are included in the profit and loss account. Balance SheetAs at 31 March 2005 (unaudited) 31 March 2005 (unaudited) Note £ Fixed AssetsTangible Assets 5,162Total Fixed assets 5,162 Current Assets/ ( Liabilities )Cash 394,527Debtors & prepayments 61,541Creditors: amounts falling due within one year (113,458) Total assets less Current Liabilities 347,772 Creditors: amounts falling de after more than one year 0 Net Assets 347,772 Capital and reservesShare capital issued and fully paid up 150,000Share premium account 299,405Profit & loss account (101,633) Shareholders' Funds 347,772 Cash flow statementFor the period ended 31 March 2005 (unaudited) 17 Week Period ended 31 March 2005 (unaudited) £ Net cash outflow from operating activities (53,776) Returns on investments and servicing of financeInterest Received 4,404 Net cash flow from returns on investments and 4,404 servicing of finance Capital expenditure and financial investmentPurchase of tangible fixed assets (5,505) Net cash outflow from capital expenditure and financial investment (5,505) FinancingIssue of shares 449,404 Net cash inflow from financing 449,404 Increase in cash 394,527 Notes to the interim report 1: BASIS OF PREPARATION The interim accounts for the six months ended 31 March 2005 are unaudited and donot constitute statutory accounts in accordance with section 240 of theCompanies Act 1985. The financial information has been prepared in accordance with applicableaccounting standards and under the historical cost accounting convention. 2: TAXATION There is no tax charge for the period due to the loss arising. 3: DIVIDENDS The Directors are not declaring a dividend for the six months ended 31 March2005. 4: LOSS PER SHARE The calculation of the loss per share is based on the loss for the period of£101,633 and the weighted average number of shares in issue during the period of15,000,000 COPIES OF INTERIM RESULTS Copies of the interim results are available from the Company's office, 22 SohoSquare, London W1D 4NS This information is provided by RNS The company news service from the London Stock Exchange