21 Dec 2012 07:19
21 December 2012
iEnergizer Limited
("iEnergizer" or the "Company")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012
iEnergizer Limited, a leading international provider of third-party integrated business process solutions, is pleased to announce its Interim Results for the six months ended 30 September 2012. iEnergizer listed on the AIM market in September 2010 under the symbol IBPO.L.
Financial Highlights
·; Revenue at $72.1m (6 months ended 30 Sept 2011: $30.5m)
·; Operating profit $17.1m (6 months ended 30 Sept 2011: $10.0m)
·; Operating profit margin at 23.7% (6 months ended 30 Sept 2011: 32.8%)
·; Profit after tax at $12.5m (6 months ended 30 Sept 2011: $9.5m)
·; Cash balance of $6.9m as of 30 September 2012 (30 Sept 2011: $11.5m)
Operational Highlights
·; Full contribution for the period following acquisition of Aptara Inc.
·; Focus on margins and moving higher up the value curve to higher margin work through digital conversion and XBRL
·; Recurring revenue from business critical processes
·; Content delivery, back office services and real time processing performed to budget
·; Dynamic and growing market of ebooks provides multiple revenue streams
·; Growth rates supported by new veritcals
Sara Latham, Chairman said:
"We are very pleased with the performance or the enlarged Company since the acquisition of Aptara. The acquisition was earnings enhancing and we remain focused on operating margins which we will continue to build on through our digital conversation and XBRL work. The print to digital market is growing rapidly and presents a huge opportunity to iEnergizer."
-Ends-
Enquiries:
iEnergizer | c/o FTI Consulting 020 7831 3113 |
Anil Aggarwal, Chief Executive |
|
Arden Partners | 020 7614 5900 |
Richard Day/Adrian Trimmings |
|
FTI Consulting | 020 7831 3113 |
Jonathon Brill/Edward Westropp |
|
Chairman's Statement
I am pleased to report the iEnergizer interim figures for the six month period to 30 September 2012. We continue to trade strongly and are in good shape for the full year figures. iEnergizer has a full service BPO offering across a range of sectors and countries with a strong financial track record of delivery which has consisted of significant organic growth. We have very low client churn and remain focused on higher margin work in the non-voice based processes including legal process outsourcing, XBRL and content technology.
Financial Overview
As part of our plan, revenues have been rationalised as the company moves away from some lower margin contracts in the US, but EBITDA and earnings have come through stronger. There has been no negative impact from foreign currency exposure as the Company largely invoices in US dollars and the majority of costs are in Indian Rupee. Net debt stands at $127m relating to the acquisition financing. The Board does not propose to pay an interim dividend as it looks to pay down the acquisition financing.
Business Review
The period under review has seen a lot of activity at iEnergizer. We are moving ahead satisfactorily. Cross-selling opportunities between iEnergizer and Aptara businesses resulting in reduction in sales cycles. Emphasis is being given to get into high margin businesses and deploying own technology platforms to service these clients. This will result in retention of clients for longer tenures and take additional business opportunities from existing clients. The Company has also renewed a two year contract with Granada which provides staff in India.
Major new contracts:
·; A telecom company based out of US has started with their customer care contract. The pilot has already started and we foresee growth from this new client.
·; Signed up a direct contract with a leading share transfer agents. The process has already gone live. Over a period of time geographies other than North America will also be serviced.
·; India to India business has got good response. A new e-commerce company account has been added with potential to grow up to 300 seats by year end.
Digitalisation is a massive market so there is plenty still to go for. Everything is going on laptops, smart phones and tablets so a lot of continual digitalisation. The US remains a key market but Europe is becoming increasingly important.
Current Trading and Outlook
We are very pleased with the performance or the enlarged Company since the acquisition of Aptara. The acquisition was earnings enhancing and we remain focused on operating margins which we will continue to build on through our digital conversation and XBRL work. The print to digital market is growing rapidly and presents a huge opportunity to iEnergizer. The Company is ideally positioned to take advantage of this growth market. Trading is in-line with market expectation for the full year figures to March 2013 as we continue to grow the content delivery vertical."
Sara Latham
Non-Executive Chairman
Unaudited Condensed Consolidated Statements of Financial Position
(All amounts in United States Dollars, unless otherwise stated)
Notes | As at | As at | |||
30 September 2012 | 31 March 2012 | ||||
Unaudited | Audited | ||||
ASSETS | |||||
Non-current | |||||
Goodwill | 4 | 102,216,617 | 102,300,503 | ||
Other intangible assets | 5 | 33,625,775 | 35,941,234 | ||
Property, plant and equipment | 6 | 4,269,040 | 4,014,833 | ||
Long term financial asset | 752,359 | 719,322 | |||
Deferred tax asset | 14,563,133 | 20,230,187 | |||
Non-current assets | 155,426,924 | 163,206,079 | |||
Current | |||||
Trade and other receivables | 29,564,708 | 25,799,898 | |||
Short term financial assets | 2,767,478 | 2,885,695 | |||
Other current assets | 1,483,813 | 1,928,467 | |||
Current tax assets | 10,187 | 114,090 | |||
Cash and cash equivalents | 6,894,080 | 11,478,220 | |||
Current assets | 40,720,266 | 42,206,370 | |||
Total assets | 196,147,190 | 205,412,449 | |||
EQUITY AND LIABILITIES | |||||
Equity | |||||
Share capital | 3,195,334 | 3,195,334 | |||
Share compensation reserve | 63,986 | 63,986 | |||
Additional paid in capital | 11,009,480 | 11,009,480 | |||
Merger reserve | (1,049,386) | (1,049,386) | |||
Retained earnings | 12,239,490 | 19,201,520 | |||
Currency translation reserve | (2,154,780) | (1,166,752) | |||
Total equity | 23,304,124 | 31,254,182 |
Notes | As at | As at | |||
30 September 2012 | 31 March 2012 | ||||
Unaudited | Audited |
Liabilities | |||||
Non-current | |||||
Long term borrowings | 931,341 | 1,012,004 | |||
Employee benefit obligations | 4,445,043 | 4,005,323 | |||
Other non-current liabilities | 128,073 | 282,557 | |||
Deferred tax liability | 5,822,788 | 13,120,619 | |||
Non-current liabilities | 11,327,245 | 18,420,503 | |||
Current | |||||
Trade and other payables | 15,413,816 | 9,627,763 | |||
Employee benefit obligations | 836,311 | 831,348 | |||
Current tax liabilities | 1,419,203 | 575,515 | |||
Current portion of long term borrowings | 508,848 | 425,034 | |||
Short term borrowings | 7 | 134,500,000 | 134,500,000 | ||
Other current liabilities | 8,837,643 | 9,778,104 | |||
Current liabilities | 161,515,821 | 155,737,764 | |||
Total equity and liabilities | 196,147,190 | 205,412,449 |
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Income Statements
(All amounts in United States Dollars, unless otherwise stated)
Notes | For the six months ended | For the six months ended | ||
30 September 2012 | 30 September 2011 | |||
Unaudited | Unaudited | |||
Revenue | ||||
Rendering of services | 72,080,141 | 30,495,757 | ||
Other operating income | 973,396 | 143,629 | ||
73,053,537 | 30,639,386 | |||
Cost and expenses | ||||
Outsourced service cost | 18,183,174 | 15,364,446 | ||
Employee benefits expense | 26,198,014 | 3,949,914 | ||
Depreciation and amortisation | 3,276,806 | 165,398 | ||
Other expenses | 8,278,894 | 1,122,738 | ||
55,936,888 | 20,602,496 | |||
Operating profit | 17,116,649 | 10,036,890 | ||
Finance income | 40,888 | 43,479 | ||
Finance cost | (4,218,838) | - | ||
Profit before tax | 12,938,699 | 10,080,369 | ||
Tax expense | 461,631 | 601,101 | ||
Profit for the period attributable to equity holders of the parent | 12,477,068 | 9,479,268 | ||
Earnings per share | ||||
Basic | 8 | 0.08 | 0.06 | |
Diluted | 0.08 | 0.06 | ||
Par value of each share in GBP | 0.01 | 0.01 | ||
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Consolidated Statements of Other Comprehensive Income
(All amounts in United States Dollars, unless otherwise stated)
For the six months ended | For the six months ended | ||
30 September 2012 | 30 September 2011 | ||
Unaudited | Unaudited | ||
Profit after tax for the period | 12,477,068 | 9,479,268 | |
Exchange differences on translating foreign operations | (988,028) | (355,037) | |
Total comprehensive income attributable to equity holders | 11,489,040 | 9,124,231 |
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statements of Changes in Equity
(All amounts in United States Dollars, unless otherwise stated)
Share capital | Additional Paid in Capital | Share compensation reserve | Merger reserve | Currency translation reserve | Retained earnings | Total stockholders' equity | |
Balance as at 01 April 2012 | 3,195,334 | 11,009,480 | 63,986 | (1,049,386) | (1,166,752) | 19,201,520 | 31,254,182 |
Dividends | - | - | - | - | - | (19,439,098) | (19,439,098) |
Transaction with owners | 3,195,334 | 11,009,480 | 63,986 | (1,049,386) | (1,166,752) | (237,578) | 11,815,084 |
Profit for the period | - | - | - | - | - | 12,477,068 | 12,477,068 |
Other comprehensive income | |||||||
Exchange difference on translating foreign operations | - | - | - | - | (988,028) | - | (988,028) |
Total comprehensive income for the period | - | - | - | - | (988,028) | 12,477,068 | 11,489,040 |
Balance as at 30 September 2012 | 3,195,334 | 11,009,480 | 63,986 | (1,049,386) | (2,154,780) | 12,239,490 | 23,304,124 |
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statements of Changes in Equity
(All amounts in United States Dollars, unless otherwise stated)
Share capital | Share compensation reserve | Merger reserve | Currency translation reserve | Retained earnings | Total stockholders' equity | |
Balance as at 01 April 2011 | 3,148,881 | 63,986 | (1,049,386) | 42,470 | 16,797,935 | 19,003,886 |
Dividends | - | - | - | - | (13,616,468) | (13,616,468) |
Tax on dividends | (97,926) | (97,926) | ||||
Transaction with owners | 3,148,881 | 63,986 | (1,049,386) | 42,470 | 3,083,541 | 5,289,492 |
Profit for the period | - | - | - | - | 9,479,268 | 9,479,268 |
Other comprehensive income | - | |||||
Exchange difference on translating foreign operations | - | - | - | (355,037) | - | (355,037) |
Total comprehensive income for the period | - | - | - | (355,037) | 9,479,268 | 9,124,231 |
Balance as at 30 September 2011 | 3,148,881 | 63,986 | (1,049,386) | (312,567) | 12,562,809 | 14,413,723 |
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statements of Cash Flows
(All amounts in United States Dollars, unless otherwise stated)
For the six month ended 30 September 2012 | For the six month ended 30 September 2011 | ||
(A) Cash flow from operating activities | |||
Profit before tax | 12,938,699 | 10,080,369 | |
Adjustments | |||
Depreciation and amortisation | 3,276,806 | 165,398 | |
Loss on disposal of property, plant and equipment | 9,470 | - | |
Trade receivables written-off | 150,362 | - | |
Foreign exchange loss | (784,460) | - | |
Finance Income | (40,888) | (43,479) | |
Finance Cost | 4,218,838 | - | |
19,768,827 | 10,202,288 | ||
Changes in operating assets and liabilities | |||
Trade and other receivables | (3,915,172) | (1,831,475) | |
Other assets | 643,924 | 1,808,962 | |
Non-current liabilities, trade payables & other current liabilities | (7,200,367) | 648,003 | |
Cash generated from operations | 9,297,212 | 10,827,778 | |
Income taxes paid | 11,861,713 | (454,714) | |
Net cash generated from operating activities | 21,158,925 | 10,373,064 | |
(B) Cash flow for investing activities | |||
Payments for purchase of property plant and equipment | (1,141,138) | (104,094) | |
Interest received | 40,888 | - | |
Consideration towards business combination net of business acquired | - | (59,951) | |
Net cash used in investing activities | (1,100,250) | (164,045) |
For the six month ended 30 September 2012 | For the six month ended 30 September 2011 |
(C ) Cash flow from financing activities | |||
Proceeds/Repayment of borrowings | 3,149 | - | |
Dividends paid to equity holders of the parent | (19,439,098) | (13,714,395) | |
Interest paid | (4,218,838) | - | |
Net cash used in financing activities | (23,654,787) | (13,714,395) | |
Net decrease in cash and cash equivalents | (3,596,112) | (3,505,376) | |
Cash and cash equivalents at the beginning of the period | 11,478,220 | 12,232,458 | |
Effect of exchange rate changes on cash | (988,028) | (355,037) | |
Cash and cash equivalents at the end of the period | 6,894,080 | 8,372,045 | |
Cash and cash equivalents comprise | |||
Cash in hand | 26,371 | 3,464 | |
Balances with banks in current account | 5,092,843 | 7,856,743 | |
Balances with banks in deposit account | 1,774,866 | 511,838 | |
6,894,080 | 8,372,045 |
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(All amounts in United States Dollars, unless otherwise stated)
1. INTRODUCTION
iEnergizer Limited (the 'Company' or 'iEnergizer ') was incorporated in Guernsey on 12 May 2010.
iEnergizer Limited is a 'Company limited by shares' and is domiciled in Guernsey. The registered office of the Company is located at Mont Crevelt House, Bulwer Avenue, St. Sampson, Guernsey, GY2 4 LH. iEnergizer was listed on the Alternative Investment Market ('AIM') of London Stock Exchange on 14 September 2010.
iEnergizer through its subsidiaries iEnergizer Holdings Limited, iEnergizer Group FZ - LLC, iEnergizer IT Services Private Limited, iEnergizer Management Services Limited, iEnergizer BPO Limited, iEnergizer Aptara Limited and Aptara Inc and subsidiaries. (together the 'Group') is engaged in the business of call centre operations, providing business process outsourcing (BPO) and content delivery services, and back office services to their customers, who are primarily based in the United States of America and India, from its operating offices in Mauritius and India.
On 07 February 2012, iEnergizer Limited acquired Aptara Inc. and accordingly Aptara Inc. and its subsidiaries became a wholly-owned subsidiary of iEnergizer. Aptara Inc. provides content process outsourcing solutions, delivering a comprehensive offering for the transformation and management of content such as text, audio, video and graphic assets. Aptara provides services in the following areas: (i) Educational Publishing, (ii) Professional publishing, (iii) e-Learning and new media publishing, (iv) Content transformation technology (IT) services and (v) Legal solutions. Aptara customers include publishers, information aggregators, professional societies, universities, corporations and non for profit organisations located primarily in the United States, the United Kingdom and Australia.
2. GENERAL INFORMATION AND STATEMENT OF COMPLIANCE WITH IFRS
These Unaudited Condensed Consolidated Interim Financial Statements are for the six months ended 30 September 2012. They have been prepared in accordance with IAS 34 Interim Financial Reporting as developed and published by the International Accounting Standards Board ('IASB'), on a going concern basis. They do not include all of the information required in annual financial statements in accordance with IFRS, and should be read in conjunction with the consolidated financial statements of the Group for the six months ended 30 September 2012.
The Unaudited Condensed Consolidated Interim Financial Statements have been prepared and presented in United States Dollar (US$) which is the Company's functional currency.
These Unaudited Condensed Consolidated Interim Financial Statements were approved by the Board on 20 December 2012.
The Group has applied the same accounting policies in preparing these unaudited management financial information as adopted in the most recent annual audited financial information of the Group.
3. BASIS OF CONSOLIDATION
Details of the entities, which as of 30 September 2012 form part of the Group and are consolidated under iEnergizer are as follows:
Name of the entity | Holding company | Country of incorporation | Effective group shareholding (%) as of 30 September 2012 |
iEnergizer Holdings Limited ('IHL') | iEnergizer | Mauritius | 100 |
iEnergizer Group FZ - LLC ('IEG') | iEnergizer | Dubai | 100 |
iEnergizer IT Services Private Limited ('IITS') | IHL | India | 100 |
iEnergizer Aptara Limited | iEnergizer | Guernsey | 100 |
iEnergizer Management Services Limited | iEnergizer | Hong Kong | 100 |
iEnergizer BPO Limited | IHL | Mauritius | 100 |
Aptara Inc. | iEnergizer | USA | 100 |
iEnergizer Aptara Limited | iEnergizer | Mauritius | 100 |
Techbooks International Private Limited | Aptara Inc. | India | 100 |
Techbooks Electronic Services Private Limited | Aptara Inc. | India | 100 |
Global Content Transformation Private Limited | Aptara Inc. | India | 100 |
Maximize Learning Private Limited | Aptara Inc. | India | 100 |
Aptara Learning Private Limited | Aptara Inc. | India | 100 |
Aptara New Media Private Limited | Aptara Inc. | India | 100 |
Aptara Technologies Private Limited | Aptara Inc. | India | 100 |
All inter-company transactions and balances are eliminated on consolidation and the unaudited condensed consolidated interim financial statements reflect external transactions only. The accounting periods of the subsidiaries are co-terminus with that of the Company.
4. GOODWILL
The net carrying amount of goodwill can be analysed as follows:
Particulars | Amount |
Balance as at 01 April 2012 | 102,300,503 |
Acquired through business combination | - |
Impairment loss recognised | - |
Translation adjustment | (83,899) |
Balance as at 30 September 2012 | 102,216,617 |
For the purpose of annual impairment testing goodwill is allocated to the following CGU, which is expected to benefit from the synergies of the business combinations in which the goodwill arises.
5. OTHER INTANGIBLE ASSETS
The Intangible assets comprise of computer software, customer contracts.
Particulars | Customer Contracts | Computer software | Patent | Trade mark | Intangibles under development | Total |
Cost | ||||||
Balance as at 01 April 2012 | 24,161,846 | 712,350 | 100,000 | 12,000,000 | 270,114 | 37,244,310 |
Additions | - | 414,752 | - | - | - | 414,752 |
Disposals (Net) | - | (33,162) | - | - | (270,114) | (303,276) |
Translation adjustment | (5,754) | (10,232) | - | - | - | (15,986) |
Balance as at 30 September 2012 |
24,156,092 |
1,083,708 |
100,000 | 12,000,000 |
- |
37,339,800 |
Accumulated amortization | ||||||
Balance as at 01 April 2012 | 1,081,658 |
221,418 |
- |
- |
- |
1,303,076 |
Amortisation for the period | 2,074,265 |
367,563 |
- |
- |
- | 2,441,828 |
Disposals (Net) | - | (30,712) | - | - | - | (30,712) |
Translation adjustment | (5,643) | 5,476 | - | - | - | (167) |
Balance as at 30 September 2012 | 3,150,280 |
563,745 |
- |
- |
- |
3,714,025 |
Net carrying value as at 30 September 2012 | 21,005,812 |
519,963 |
100,000 | 12,000,000 |
- |
33,625,775 |
Particulars | Customer Contracts | Computer software | Patent | Trade mark | Intangibles under development | Total |
Cost | ||||||
Balance as at 01 April 2011 | 485,363 | 212,691 | - | - | - | 698,054 |
Acquired under business combination | 23,700,000 | 215,300 | 100,000 | 12,000,000 | 270,114 | 36,285,414 |
Additions | - | 306,576 | - | - | - | 306,576 |
Disposals (Net) | - | - | - | |||
Translation adjustment | (23,517) | (22,217) | - | - | - | (45,734) |
Balance as at 31 March 2012 |
24,161,846 |
712,350 |
100,000 | 12,000,000 |
270,114 |
37,244,310 |
Accumulated amortisation | ||||||
Balance as at 01 April 2011 | 447,299 | 37,558 | - | - | - | 484,857 |
Amortisation for the year | 654,516 | 185,337 | - | - | - | 839,853 |
Translation adjustment | (20,157) | (1,478) | - | - | - | (21,634) |
Balance as at 31 March 2012 | 1,081,658 | 221,418 | - | - | - | 1,303,076 |
Net carrying value as at 31 March 2012 | 23,080,188 | 490,932 | 100,000 | 12,000,000 | 270,114 | 35,941,234 |
6. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment comprise of the following:
Particulars | Computer and data equipment | Office equipment | Furniture and fixtures | Air conditioner and generator | Vehicle | Leasehold improvements | Plant and machinery | Capital lease asset | Capital work in progress | Total |
Cost | ||||||||||
Balance as at 01 April 2012 | 1,270,082 | 136,640 | 358,204 | 149,997 | 19,399 | 707,347 | 735,793 | 967,458 | 413,780 | 4,758,700 |
Additions | 509,849 | 56,815 | 72,041 | 1,264 | - | 627,000 | 164,923 | - | (530,934) | 900,958 |
Disposals (Net) | (10,589) | (488) | (8,331) | - | - | - | (122,615) | (191,349) | 280,063 | (53,309) |
Translation adjustment | (24,655) | (2,411) | (7,127) | (4,610) | (603) | 3,470 | (20,029) | (27,180) | 8,912 | (74,233) |
Balance as at 30 September 2012 | 1,744,687 | 190,556 | 414,787 | 146,651 | 18,796 | 1,337,817 | 758,072 | 748,929 | 171,821 | 5,532,116 |
Accumulated depreciation | ||||||||||
Balance as at 01 April 2012 | 322,642 | 14,808 | 128,645 | 18,449 | 7,497 | 106,507 | 82,345 | 62,974 | - | 743,867 |
Depreciation for the period | 325,708 | 29,791 | 108,393 | 6,986 | 1,801 | 128,150 | 225,889 | 9,210 | - | 835,928 |
Disposals (Net) | (4,411) | (488) | (8,331) | - | - | - | (122,615) | (182,442) | - | (318,287) |
Translation adjustment | 1,272 | 653 | (908) | (301) | (163) | 1,337 | 1,520 | (1,842) | - | 1,568 |
Balance as at 30 September 2012 | 645,211 | 44,764 | 227,799 | 25,134 | 9,135 | 235,994 | 187,139 | (112,100) | - | 1,263,076 |
Net carrying values as at 30 September 2012 |
1,009,476 |
145,792 |
186,988 |
121,517 |
9,661 |
1,101,823 |
570,933 |
861,029 |
171,821 |
4,269,040 |
Particulars | Computer and data equipment | Office equipment | Furniture and fixtures | Air conditioner and generator | Vehicle | Leasehold improvements | Plant and machinery | Capital lease asset | Capital work in progress | Total |
Cost | ||||||||||
Balance as at 01 April 2011 | 454,172 | 5,889 | 161,206 | 103,698 | 37,127 | 252,919 | - | - | 11,470 | 1,026,481 |
Asset acquired under business combination | 434,311 | 129,438 | 69,102 | - | - | 101,783 | 607,899 | 954,820 | 560,190 | 2,857,543 |
Additions | 468,505 | 27,721 | 144,290 | 57,368 | - | 378,315 | 176,795 | - | 23,864 | 1,276,858 |
Disposals (Net) | (17,535) | (28,428) | - | - | (15,085) | - | (1,021) | - | (220,981) | (283,050) |
Translation adjustment | (69,371) | 2,020 | (16,394) | (11,069) | (2,643) | (25,670) | (47,880) | 12,638 | 39,237 | (119,132) |
Balance as at 31 March 2012 | 1,270,082 | 136,640 | 358,204 | 149,997 | 19,399 | 707,347 | 735,793 | 967,458 | 413,780 | 4,758,700 |
Accumulated depreciation | ||||||||||
Balance as at 01 April 2011 | 144,059 | 2,564 | 68,266 | 10,221 | 6,883 | 46,402 | - | - | - | 278,395 |
Depreciation for the period | 197,922 | 12,296 | 69,770 | 9,655 | 5,175 | 66,235 | 80,414 | 61,390 | - | 502,857 |
Disposals (Net) | (919) | - | - | - | (3,745) | - | - | - | - | (4,664) |
Translation adjustment | (18,420) | (52) | (9,391) | (1,427) | (816) | (6,130) | 1,931 | 1,584 | - | (32,721) |
Balance as at 31 March 2012 | 322,642 | 14,808 | 128,645 | 18,449 | 7,497 | 106,507 | 82,345 | 62,974 | - | 743,867 |
Net carrying values as at 31 March 2012 |
947,440 |
121,832 |
229,559 |
131,548 |
11,902 |
600,840 |
653,448 |
904,484 |
413,780 |
4,014,833 |
7. SHORT TERM BORROWINGS
Particulars | 30 September 2012 | 31 March 2012 | |
Loan from Parent Company | 20,000,000 | 20,000,000 | |
Loan from others# | 114,500,000 | 114,500,000 | |
134,500,000 | 134,500,000 | ||
# Loan from others consists of loan received from a company named Gynia Holdings Ltd (a non-related company) repayable on demand and carrying an interest rate of 5.25% p.a. No assets have been pledged as security for this loan.
8. EARNINGS PER SHARE
The calculation of the basic earnings per share is based on the profits attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.
Calculation of basic and diluted profit per share for the period ended 30 September 2012 is as follows:
Basic earnings per share
Particulars | 30 September 2012 | 30 September 2011 | |
Profit attributable to shareholders | 12,477,068 | 9,479,268 | |
Weighted average numbers shares outstanding | 153,010,000 | 150,010,000 | |
Basic earnings per share (USD) | 0.08 | 0.06 | |
Diluted earnings per share
Particulars | 30 September 2012 | 30 September 2011 | |
Profit attributable to shareholders | 12,477,068 | 9,479,268 | |
Potential ordinary shares* | 66,076 | 66,076 | |
Weighted average numbers shares outstanding | 153,076,076 | 150,076,076 | |
Diluted earnings per share (USD) | 0.08 | 0.06 | |
* Shares to be issued under share options granted
9. RELATED PARTY TRANSACTIONS
The related parties for each of the entities in the Group have been summarised in the table below:
Nature of the relationship | Related Party's Name | |
I. Ultimate controlling party | Mr. Anil Agarwal | |
II. Entities directly or indirectly through one or more intermediaries, control, are controlled by, or are under common control with, the reported enterprises | EICR Limited (Parent of iEnergizer Limited) Barker Shoes Limited (Under common control) | |
III. Key management personnel ("KMP") and significant shareholders | Mr. Anil Agarwal (Ultimate Shareholder, EICR Limited) | |
Mr. John Behar, (Director, iEnergizer Limited) | ||
Ms. Sara Latham, (Director, iEnergizer Limited) | ||
Mr. Chris de Putron (Director, iEnergizer Limited) Mr. Mark De La Rue (Director, iEnergizer Limited) | ||
Disclosure of transactions between the Group and related parties and the outstanding balances is as under:
Transactions with parent company
Particulars | 30 September 2012 | 30 September 2011 |
Transactions during the period ended | ||
Dividend paid | 14,840,054 | - |
Interest paid | 1,030,385 | - |
Reimbursement of share issue expenses received from EICR Limited (under cost agreement dated 15 June 2010) | - | 155,298 |
Interest free demand loan payment received from EICR Limited | - | 1,500,149 |
Balances at the end of | ||
Interest payable | 1,030,385 | - |
Demand loan facility | 20,000,000 | - |
Expenses recoverable | - | 63,986 |
Above payables from related parties bears an interest rate of 10% and are repayable on demand. Hence, the management is of the view that fair values of such receivables and payable closely approximates their carrying values.
Transactions with KMP and relative of KMP
Particulars | 30 September 2012 | 30 September 2011 |
Transactions during the period ended | ||
Short term employee benefits | ||
Remuneration paid to directors | ||
Sara Latham | 23,684 | 26,650 |
John Behar | 23,718 | 26,650 |
Chris de Putron | 7,993 | - |
Mark De La Rue | 7,993 | - |
Balances at the end of | ||
Total remuneration payable | 16,166 | 11,720 |
10. SEGMENT REPORTING
Management currently identifies the Group's three services lines real time processing, back office services and content delivery as operating segments on the basis of operations. These operating segments are monitored and strategic decisions are made on the basis of adjusted segment operating results.
The Chief Operating Decision Maker ("CODM") evaluates the Group's performance and allocates resources based on an analysis of various performance indicators by reportable segments. The Group's reportable segments are as follows:
1. Real time processing
2. Back office services
3. Content delivery
4. Others
The measurement of each segment's revenues, expenses and assets is consistent with the accounting policies that are used in preparation of the Consolidated Financial Statements. In addition, two minor operating segments, for which the quantitative thresholds have not been met, are currently combined below under 'Others'. Segment information can be analysed as follows for the reporting periods under review:
30 September 2012
Real time processing | Back office services | Content delivery | Others | Total | |
Revenue from external customers | 6,304,873 | 19,795,763 | 45,917,677 | 61,827 | 72,080,140 |
Other operating revenue | 17,793 | 1,465 | 921,828 | 32,311 | 973,397 |
Segment revenues | 6,322,666 | 19,797,228 | 46,839,505 | 94,138 | 73,053,537 |
Cost of outsourced services | - | 12,884,937 | 5,298,237 | - | 18,183,174 |
Employee benefit expense | 3,886,455 | - | 22,253,429 | 58,130 | 26,198,014 |
Depreciation and amortisation | 197,119 | - | 3,073,635 | 6,052 | 3,276,806 |
Other expenses | 547,345 | 361,807 | 7,009,917 | 359,827 | 8,278,896 |
Segment operating profit | 1,691,747 | 6,550,484 | 9,204,287 | (329,869) | 17,116,649 |
Segment assets | 5,800,025 | 10,339,071 | 175,846,359 | 1,271,490 | 193,256,945 |
30 September 2011
Real time processing | Back office services | Others | Total | |
Revenue from external customers | 6,514,752 | 22,403,554 | 1,577,450 | 30,495,757 |
Other operating revenue | 2,987 | - | 140,642 | 143,629 |
Segment revenues | 6,517,739 | 22,403,554 | 1,718,092 | 30,639,386 |
Cost of outsourced services | - | 14,409,646 | 954,800 | 15,364,446 |
Employee benefit expense | 3,913,805 | - | 36,109 | 3,949,914 |
Depreciation and amortisation | 163,491 | - | 1,907 | 165,398 |
Other expenses | 608,705 | 268,527 | 245,507 | 1,122,739 |
Segment operating profit | 1,831,738 | 7,725,382 | 479,769 | 10,036,889 |
Segment assets | 5,513,460 | 10,738,548 | 5,386,108 | 21,638,116 |
Revenue from two of the customer's amounted to more than 10% of consolidated revenue during the period presented.
30 September 2012
Revenue from | Segment | Amount |
Customer 1 | Content Delivery | 15,951,787 |
30 September 2011
Revenue from | Segment | Amount |
Customer 1 | Back office services | 7,187,233 |
Customer 2 | Back office services | 4,551,147 |
11. DIVIDEND
The Company paid a dividend of 8p per share amounting to 12,240,800 pounds during the period ended 30 September 2012. The Company will continue to review any future dividend policy with the need to utilize its cash generation for repayment of acquisition financing and invest in its operational growth, in-line with its long term stated requirements. The Board is committed to maintaining a strong but efficient balance sheet.
12. ESTIMATES
The preparation of interim financial statements require management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the significant judgments made by the management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 March 2012.
13. DEFERRED TAX
During the period, the Group transferred some of the intangible assets acquired under the Aptara business combination to a lower tax jurisdiction. Accordingly, the underlying deferred tax liability has been reversed.
14. FINANCIAL RISK MANAGEMENT
The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 31 March 2012.