15 Nov 2011 07:00
ILA GROUP LIMITED
("ILA" or "the Company")
PRELIMINARY RESULTS FOR THE 12 MONTH PERIOD ENDED 30 JUNE 2011
ILA Group Limited (AIM: ILA), the UK based international marketing and distribution specialist, announces its unaudited preliminary results for the year ended 30 June 2011.
Highlights:
·; Turnover up 253% to £1.76m
·; Acquisition and successful integration of Premium Factory
·; Major contract win from multi-national blue chip customer for over $800,000 for Premium Factory
·; Performance post year end shows continued growth, new customer interest and opportunities
·; Announcement of rebranding of group name to enable launches of multiple new brands and product ranges.
Simon McGivern, Executive Chairman of ILA Group Limited commented:
"2010 has been transformational for ILA Group and we are continuing to target organic growth by increasing core sales and product ranges. I am particularly happy with the performance of Premium Factory, and we are actively considering further acquisitions. Our targets will have products, routes to market and production capabilities that can be integrated into ILA's growing sales and distribution network.
Overall, ILA has made remarkable progress in a short space of time, and I look forward to reporting further progress in due course."
For further information, please contact:
ILA Group Limited
Simon McGivern, Chief Executive 0203 384 7134
FinnCap
Charles Cunningham/Ben Thompson - Corporate Finance 0207 600 1658
Joanna Weaving/Victoria Bates - Corporate Broking
Lothbury Financial Services
Gary Middleton 0207 868 2010
Simon Astley
The Annual General Meeting is being held at the offices of Fladgate LLP at 16 Great Queen Street, London WC2B 5DG on 30 November 2011 at 12.00 noon.
The Report and Accounts have been sent to shareholders and are available to download from www.ilasecurity.com.
CHAIRMAN'S STATEMENT
The twelve months to 30 June 2011 has been a period of substantial change and development for ILA Group Ltd ("ILA" or the "Company"), progressing from a company specialising in its initial brand "ILA" (innovative personal alarms) to an acquisitive company with international distribution and marketing expertise. The company is imminently launching its second brand and is considering a number of other acquisition opportunities and brand launches.
In the 12 months, the Company has increased its retail footprint to over 30 countries, and following the acquisition of Premium Factory now develops and manufactures for blue chip consumer goods companies such as Nestle and Unilever. The group is also developing a range of children's products under major licenses, including Disney and Marvel characters, which it sells through major high-street retailers.
The start of the financial year saw good trading progress in line with the planned roll out strategy to new territories and countries. Initial orders were placed in North America with the appointment of sales agents in multiple states across the USA. This is a key first step to establishing a new product range in the US market. ILA also received its first orders from Abbott in Canada during December 2010. Sales were introduced across different sales channels with ILA products appearing on the QVC television channel in the UK as well as in catalogue companies and through internet retailers.
In March of 2011 ILA announced its first acquisition of a private company, Premium Factory Ltd (Premium Factory). Premium Factory has been fully integrated in the group and enhances a number of areas of operation within the business. The management team that joined from Premium Factory have a strong background in new product development, with wide experience of designing and manufacturing for major blue chip multinationals. These skills are complementary to the existing ILA team and should help accelerate the growth of the group and with the roll out of new products and brands.
As announced earlier in the year, the group continues to position itself as an innovative fast growing company with the goal of supplying major retailers with high quality brand ranges. To reflect these changes, the company plans to rebrand the Group name. This will enable us to launch further new brands and ranges, preventing confusion with the company's first product line, which also trades under the ILA brand. Subject to successfully passing the resolutions at the AGM, the group name will change from ILA Group Ltd. to LiteBulb Group Ltd.
Financial performance
Despite the poor retail climate, we are pleased to report strong growth over the 12 months with sales more than tripling year on year to £1.76m from £501k in 2009/10. Considerable investment has been made to ensure that the company has the infrastructure to handle further strong growth over the next 3 years. The loss for the year (excluding exceptional administrative expenses) was £876,167.
The sales performance for the period was better than budgeted. This performance reflects the continued efforts of the ILA management and the positive impact the Premium Factory business and staff have had on the group.
Current trading and prospects
Post the year end, trading has been most encouraging, including a large new order announced within the ILA Security range from Germany and further orders from Scandinavia. As well as this there have been major orders announced in the Premium Factory division.
Revenues are significantly ahead of prior periods. The pipeline of potential demand from around the world is encouraging and we anticipate good growth for the financial year.
The company is currently launching its next branded product line "Scootrix" in the area of children's Scooter accessories and is in talks with a major national retailer. We expect to rapidly increase the number of products in the range and look forward to providing further updates on the progress of the brand in due course.
The company is also looking to launch new product lines in the licensed product markets and is currently in talks with a number of leading brands. We expect to announce a deal in this area in the coming months.
We will continue to aggressively target organic growth by increasing sales and expanding product ranges, and we are also continuously assessing acquisition opportunities.
Overall, ILA has made good progress in a short space of time, and I look forward to reporting further progress in due course.
Simon McGivern
14 November 2011
Consolidated statement of comprehensive income
Year to 30 June 2011 | 6 months to30 June 2010 | ||
£ | £ | ||
Revenue | 1,755,901 | 136,105 | |
Cost of sales | (1,281,463) | (87,094) | |
Gross profit | 474,438 | 49,011 | |
Administrative expenses | (1,350,605) | (647,763) | |
Exceptional administrative expense | (96,838) | (280,938) | |
Operating loss | (973,005) | (879,690) | |
Finance costs | (14,379) | (1,333) | |
Interest income | 3,667 | 40 | |
Loss before tax | (983,717) | (880,983) | |
Deferred tax | 40,000 | 123,617 | |
Total comprehensive loss for the year | (943,717) | (757,366) | |
Loss per share | |||
Basic and diluted loss per ordinary share | (0.0012) | (0.0012) |
The above results are derived from continuing activities.
Consolidated statement of financial position
At 30 June 2011
2011 | 2010 | ||
Assets | £ | £ | |
Non-current assets | |||
Intangible assets | 9 | 956,511 | - |
Property, plant and equipment | 10 | 39,258 | - |
Deferred tax assets | 11 | 163,617 | 123,617 |
Current assets | |||
Inventories | 13 | 360,418 | 60,922 |
Trade and other receivables | 14 | 764,549 | 295,764 |
Cash and cash equivalents | 15 | 383,294 | 163,958 |
1,508,261 | 520,644 | ||
Total assets | 2,667,647 | 644,261 | |
Equity and liabilities | |||
Capital and reserves attributable to equity shareholders | |||
Issued share capital | 16 | 16,127,970 | 13,480,954 |
Contingent consideration reserve | - | 972,725 | |
Share based payment reserve | 102,148 | 102,148 | |
Reverse acquisition reserve | (13,221,177) | (13,221,177) | |
Retained earnings | (1,948,288) | (1,004,571) | |
Total equity | 1,060,653 | 330,079 | |
Non-current liabilities | |||
Interest bearing borrowings | 19 | 478,273 | 98,456 |
Current liabilities | |||
Trade and other payables | 20 | 938,980 | 184,727 |
Interest bearing borrowings | 19 | 189,741 | 30,999 |
1,128,721 | 215,726 | ||
Total equity and liabilities | 2,667,647 | 644,261 |
Consolidated statement of cash flows
Year to 30 June 2011 | 6 months to 30 June 2010 | ||
£ | £ | ||
Cash flows from operating activities | |||
Loss after tax | (943,717) | (775,366) | |
Non-cash adjustments | |||
Increase in deferred tax assets | (40,000) | (123,617) | |
Amortisation | 14,038 | - | |
Depreciation | 4,974 | - | |
Write off goodwill | - | 30,990 | |
Arbuthnot fee | - | 35,795 | |
Share based payments | - | 35,550 | |
Increase in working capital | |||
Increase in inventories | (182,775) | (44,729) | |
(Increase)/decrease in trade and other receivables | (232,378) | 68,998 | |
Increase in trade and other payables | 20,176 | 23,130 | |
Net cash flows from operating activities | (1,359,682) | (749,249) | |
Cash flows from financing activities | |||
Repayment of bank loans | (134,806) | (15,230) | |
Purchase of fixed assets | (34,208) | - | |
Product development costs | (49,136) | - | |
Proceeds of fixed asset disposals | 34,991 | - | |
Acquisition cash | 87,935 | 672,010 | |
Purchase of subsidiary | (49) | - | |
Shares issued | 1,674,291 | - | |
Net cash from financing activities | 219,336 | (92,469) | |
Opening cash | 163,958 | 256,427 | |
Closing cash | 383,294 | 163,958 |
Consolidated statement of changes in equity
Share capital | Contingent consideration reserve | Share premium | Reverse acquisition reserve | Share based payment reserve | Retained earnings | Total equity | |
£ | £ | £ | £ | £ | £ | ||
Group | |||||||
Balance 31 December 2010 as restated | 1,189 | - | 273,823 | - | 84,598 | (247,205) | 112,405 |
Comprehensive income: | |||||||
Loss for the period | (757,366) | (757,366) | |||||
Shares issued in period | |||||||
Initial Consideration Shares | 659,614 | - | - | - | - | - | 659,614 |
Contingent Consideration Shares | 262,081 | - | - | - | - | 262,081 | |
To Nomad | 35,795 | - | - | - | - | - | 35,795 |
Share based payment | - | - | - | - | 17,550 | - | 17,550 |
IFRS 3 reverse acquisition conversion | 12,784,356 | 710,644 | (273,823) | (13,221,177) | - | - | - |
At 30 June 2010 | 13,480,954 | 972,725 | 0 | (13,221,177) | 102,148 | (1,004,571) | 330,079 |
Shares issued in period | |||||||
Contingent consideration | 972,725 | (972,725) | - | - | - | - | - |
Cash | 1,674,291 | - | - | - | - | - | 1,674,291 |
Comprehensive income: | |||||||
Loss for the year | - | - | - | - | - | (943,717) | (943,717) |
At 30 June 2011 | 16,127,970 | - | - | (13,221,177) | 102,148 | (1,948,288) | 1,060,653 |
1. Basis of preparation
The financial information for the year ended 30 June 2011 has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively Adopted IFRSs). The financial information for the year ended 30 June 2011 is unaudited and does not constitute the Group's statutory financial statements for the year. The comparative financial information for the full year ended 30 June 2010 has, however, been derived from the audited statutory financial statements for that year. A copy of those statutory financial statements is being delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2)-(3) of the Companies Act 2006.
2. Segment information
As the Company operates in one business segment and as such this is the primary reporting segment. The Company's secondary segment is geographical. The segmental results by geographical area are shown below:
2011 | 2010 | 2011 | 2010 | ||
Sales | Sales | Assets | Assets | ||
£ | £ | £ | £ | ||
UK | 912,763 | 15,560 | 1,257,949 | 76,222 | |
EU | 52,071 | 61,037 | 5,542 | 6,568 | |
North America | 152,851 | 56,259 | 314,588 | 47,550 | |
Rest of the World | 638,216 | 3,249 | 4,538 | 226,346 | |
1,755,901 | 136,105 | 1,582,617 | 356,686 |
3. Loss per share
The calculation of basic loss per share is based on the loss attributable to ordinary shareholders and the weighted average number of ordinary shares in issue during the period.
The calculation of diluted loss per share is based on loss per share attributable to ordinary shareholders and the weighted average number of ordinary shares that would be in issue, assuming conversion of all dilutive potential ordinary shares into ordinary shares.
Reconciliations of the loss and weighted average number of shares used in the calculations are set out below:
Year to 30 June 2011 | 6 months to 30 June 2010 | ||
£ | £ | ||
Basic loss per share | |||
Reported loss | (943,717) | (775,366) | |
Reported loss per share (pence) | (0.0012) | (0.0012) | |
2011 | 2010 | ||
Weighted average number of ordinary shares: | |||
Shares issued for ILA Security Ltd | 388,600,221 | 388,600,221 | |
Contingent Consideration shares issued (see note 24) | 154,400,846 | 154,400,846 | |
Effect of ILA shares post-reverse acquisition | 146,300,787 | 95,378,414 | |
effect of shares issued to NOMAD | 5,681,819 | 3,704,169 | |
Shares issued on 5 August 2010 | 24,437,306 | - | |
Shares issued on 24 December 2010 | 60,583,562 | - | |
Weighted average number of ordinary shares | 780,004,541 | 642,083,650 |
Due to the Group's loss for the period, the diluted loss per share is the same as the basic loss per share.
4. Share capital
Allotted and called up:
2011 | 2010 | 2011 | 2010 | ||
Authorised | |||||
Founder shares of no par value | 10 | 10 | |||
Ordinary shares of no par value | Unlimited | Unlimited | |||
£ | £ | ||||
Issued and fully paid | |||||
Founder shares of no par value | 2 | 2 | - | - | |
Ordinary shares of no par value | 839,012,814 | 540,582,827 | 16,127,970 | 13,480,954 |
On 19 February 2009, the Company purchased 30,000,000 if its own shares for 1p per share. The closing middle market price on 26 February 2009 (being the last practicable date before publication of the relevant announcement) was 1.25p per Share.
On 5 March 2010 the Company issued 388,600,221 shares at 0.63p each as consideration for the reverse acquisition of Ila Security Ltd and 5,681,819 shares were issued to Arbuthnot Securities Ltd, the nominated advisor and broker in consideration for services provided.
On 3 August 2011 the Company issued 27,029,141 shares for cash at 1p per share.
On 6 December 2010 the Company issued 117,000,000 shares for cash at 1.2p per share.
On 13 April 2011 the Company issued 154,400,846 Contingent Consideration Shares.