N4 Pharma Plc Regulatory News (N4P)

RNS Number : 5867M

Ultima Networks PLC

26 May 2010

 

The following amendments have been made to the "Final Results" announcement released on 24/05/2010 at 07:00 under RNS No 3838M

- In the Financial Highlights section the earnings per share figure for 2009 was amended to 0.10p from 0.09p

 

- The basic and diluted earnings per share figure in the Consolidated Statement of Comprehensive Income for the year ended 31 December 2009 was amended to 0.10p from 0.09p

All other details remain unchanged.

The full amended text is shown below.

 

ANNOUNCEMENT OF AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2009

ULTIMA NETWORKS PLC

('Ultima' or the 'Company')

26 May 2010

The Directors are pleased to announce the audited results of the company and its subsidiaries (the 'Group 'or the 'Ultima Group) for the year ended 31 December 2009.

 

The Ultima Group's operations consist of three divisions; IT Services, Green technology products and Green power. These divisions are involved respectively in the sale of software to the legal profession, the development and sale of specialist electrical goods and the development of clean power generation through solar parks in Spain and Italy.

 

 

Highlights of 2009

 

·; Developed new legal software suite "Cognito FiLOS"

 

 

·; Developed a new range of electrically assisted bicycles for the European market.

 

 

·; £1.0 million capital raised (before expenses) to fund development of solar parks in Southern Italy.

 

·; Development of 100KW Solar Park in Spain.

 

·; Income 2009 £255,000 (2008:£260,000)...

 

Financial highlights

 

·; Group revenue was £1,867,000 (2008: £1,977,000)

 

·; Group administration expenses were £936,000 (2008: £1,097,000)

 

·; Operating profit was £221,000 (2008: £246,000)

 

·; Profit on ordinary activities before taxation for the year was £214,000 (2008: £281,000)

 

·; Earnings per share were 0.10p (2008: 0.13p)

 

·; Cash at bank at the year end was £886,000 (2008: £122,000)

 

 

·; Consolidated statement of financial position shows an increase in net assets of £1,199,000 to £2,627,000 (2008:£1,428,000)

 

 

 

 

Chairman's statement

 

I am very pleased to present the audited accounts for the Group in what has been a year of investment in new products by the Company. We have continued to make substantive progress in the Group's objective of developing a green technology business. Despite difficult operating circumstances, the year has seen significant developments in all three divisions, with the IT services and Green technology product divisions reaching significant milestones in the development of new products which we expect to capitalise on over the forthcoming years. The Green power division has now completed the development of a 100KW solar park in Spain and has seen progress in our project to develop a 3 MW solar park in southern Italy.

 

In the year ended 31st December 2009, the group achieved sales of £1,867,000 (2008:£1,977,000) with operating profit of £221,000 (2008:£246,000).

 

IT services division

The IT services division made an operating profit of £237,000 (2008:£126,000) on sales of £816,000 (2008:£708,000). Principally, this division provides computer application software and related support and other services to small and medium sized legal practices in England and Wales. The division operates under the name "Cognito Software Limited" and has benefited from the first full year contribution following the acquisition of JCS Computing Solutions Ltd, a supplier of legal software. This acquisition strengthened the division's management team substantially as well as widened its product range. The merged entity increased sales and profitability through its range of copyrighted products and plans to launch a new software suite during 2010 under the brand name Cognito FiLOS. This is expected to augment the competitive position and also widen the client base by attracting interest from larger legal practices.

 

The outlook for the division is for growing profitability and the division expects that it will continue to benefit from its focus on product development and the strength of its management team.

 

The enlarged division is the only supplier of legal software to have been included in every Law Society Software Solutions Guide ("SSG") continuously from 2000 and in 2009; Cognito came top in five of the most important client satisfaction categories. The SSG is the premier reference guide to assist Solicitors in reaching purchasing decisions.

 

The legal software market is fragmented and is expected to undergo further consolidation, providing opportunities for the division to accelerate growth through carefully targeted acquisition. The division is actively seeking a number of potential targets.

 

I believe the IT services division has had a successful year helped by the integration of the management teams and product ranges of Cognito and JCS Computing Solutions. This improved performance has delivered an increase in sales and operational cost efficiencies and will be further enhanced by sales of the new legal software suite developed by division which will be released for sale during 2010.

 

Green technology products division

The green technology products division operated profitability prior to the application of central costs resulting in a breakeven position for the year (2008 operating profit: £124,000) on sales of £1,023,000 (2008:£1,269,000). This division has had continued success with its sales of Powacycle branded electric bicycles in the United Kingdom, although tougher trading conditions for luxury products resulted in a fall in market demand. The division's Infineum R&D team have designed a bicycle in conjunction with EQ Bikes of Holland, suitable for the Benelux market, incorporating the division's patented stackable battery system and the division is expected to launch this model during 2010. The potential for growth of the division's range of electric bicycles through continental Europe remains strong and it is and is expected that this will lead to an increase in both sales and profitability.

 

I have confidence that the developments undertaken by the Green technology products division in designing new products and increasing sales channels through growth in UK based dealers and agreements to distribute the division's products in mainland Europe will result in a restoration of growth and improved profitability. Whilst the division suffered during 2009 from the difficult economic conditions it should benefit from a return to growth in its major markets with the expectation for a substantial increase in sales in continental Europe.

 

 

Green power division

The development of 100KW solar park in Spain has been completed and will generate fixed revenue based on a tariff of 32 euro cents for a period of 25 years. The completion of this project provides a platform to demonstrate the division's ability to deliver solar technology and is a basis for other projects and developments in Spain.

 

The Company raised £1.0 million (before expenses) through the placement of 71,428,574 new ordinary shares representing 25.86% of the Company's enlarged issued ordinary share capital. The net proceeds are being used by the Company for the development of its solar park operations in Italy.

 

 

A geological survey for the foundations has been completed on the 22 hectares of land acquired by the company in the Puglia region of Southern Italy and construction of a security fence protecting the development area has been commissioned. The division continues to negotiate with ENEL Spa to agree terms for connecting the Italian solar parks to the Italian high voltage grid. Despite recent legislative changes in Italy, the Company does not consider there will be any impact on current projects as work has commenced. The division has appointed Lombarda & Associata Srl to raise the debt finance element of the funding required to support the construction of the three 1 MW Solar Parks planned for Puglia. Further update on the debt financing will be provided in the future.

 

We remain confident that the Groups move into the solar power arena will be a major part of the group's strategy for growth in the coming years. The divisions' first solar park located in Spain was under construction during the year and has now been completed. The funding raised during the year is being applied to the development of planned projects in Italy with work continuing to raise the debt finance required to begin construction.

 

Outlook

 

Whilst the economic outlook remains uncertain, we believe the 2009 results demonstrate the resilience of the group in delivering profit against a background of difficult financial circumstances and at the same time developing significant product improvements with the potential for substantial growth through supply of green energy.

 

With the planned launch of the IT Services new software suite we anticipate it will provide the division the opportunity to sell into large scale legal practices opening avenues for growth in market share. In addition, the launch of new products developed by the Green technology products division designed to attract consumers in new countries has the potential to accelerate growth in sales and profitability.

 

The expansion of the Green power division remains potentially the most exciting for the Group with the achievement of significant milestones in establishing the Groups first solar park development in Spain and the progressing of plans to build solar parks in Italy.

 

There remain challenges ahead in the economic conditions we face which will have an impact on all divisions of the business but we are confident that the milestones reached in 2009 will allow us to grow across all areas of the Group. The company will need to raise additional funding through borrowings in order to construct the solar parks planned for southern Italy and we are confident we will be able to find the extra funding necessary in order to continue to complete the projects and expand in this direction which we feel is an essential ingredient in the growth of the group and which we hope to deliver to the benefit of our shareholders over the coming years.

 

We look forward to a successful year despite the tough economic outlook and to achieving the targets set to ensure growth in 2010.

 

Enquiries:

 

Ultima Networks plc +44 (0)1279 821 200

Prof. Humayun Mughal

 

Allenby Capital Limited (nominated adviser) +44 (0)2033 285656

Nick Naylor/Alex Price

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEARENDED 31 DECEMBER 2009

			2009 £000		2008 £000
Revenue			1,867		1,977
Cost of sales			(713)		(648)
Gross profit			1,154		1,329
Administration expenses			(936)		(1,097)
Other operating income			3		14
Operating profit			221		246
Finance income			(7)		35
Profit before taxation			214		281
Taxation expenses			-		(21)
Profit for the year			214		260
Other comprehensive income: Exchange difference on translating foreign operations			41		_
Total comprehensive income for the year attributable to equity holders of the parent			255		260
Basic and diluted earnings per share - pence			0.10		0.13

 

All amounts relate to continuing activities.

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 2009 2008

AS AT 31ST DECEMBER 2009 £000 £000

ASSETS
Noncurrent assets
Property, plant and equipment			1,171		621
Intangible assets - development costs			464		78
Goodwill			118		118
Intangible assets - other			172		181
Deferred tax assets			-		6
Total noncurrent assets			1,925		1,004
Current assets
Inventories			339		452
Trade and other receivables			637		404
Cash and cash equivalents			886		122
Total current assets			1,862		978
Total assets			3,787		1,982
LIABILITIES
Noncurrent Liabilities
Deferred tax			45		50
Total noncurrent liabilities			45		50
Current liabilities
Trade and other payables			711		81
Current tax liabilities			111		132
Accruals and deferred income			293		291
Total current liabilities			1,115		504
Total liabilities			1,160		554
Net assets			2,627		1,428
EQUITY
Capital and reserves attributable to equity holders of the parent
Called up share capital			8,269		7,554
Share premium account			5,831		5,602
Other reserves			202		202
Retained Earnings			(11,716)		(11,930)
Translation of foreign operations			41		-
			2,627		1,428

 

 

 

 

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2009

 

			2009 £000		2008 £000
Profit for the financial year			214		260
Taxation expense			-		21
Interest receivable			7		(35)
Depreciation charges			14		13
Amortisation of intangibles			33		19
Operating profit before changes in working capital			268		278
(Decrease)/Increase in inventories			113		(195)
Increase in trade and other receivables			(233)		(19)
(Decrease)/increase in trade payables and other capital liabilities			624		(248)
Cash (used in)/generated from operations			772		(184)
Taxation			(17)		-
Net cash (used in)/generated from operating activities			755		(184)
Cash flows from investing activities
Purchase of property, plant and equipment			(518)		(510)
Development expenditure			(410)		(82)
Other intangibles			-		(163)
Net proceeds of ordinary shares issue			944		-
Net cash used in investing activities			16		(755)
Cash flows from financing activities
Interest received			(7)		35
Net cash generated from financing activities			(7)		35
Net (decrease)/increase in cash and cash equivalents			764		(904)
Cash and cash equivalents at beginning of the period			122		1,026
Cash and cash equivalents at end of the period			886		122

 

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2009

 

		Called up share capital £000	Share premium   £000	Other reserves   £000	Retained earnings   £000)	Translation of foreign operations   £000	Total Equity   £000
Year ended 31 December 2009
As 1 January 2009		7,554	5,602	202	(11,930)	-	1,428
Issue of share capital		715	229	-		-	944
Total comprehensive income for the year		-	-	-	214)	41	255
At 31 December 2009		8,269	5,831	202	(11,716)	41	2,627
Year ended 31 December 2008
As 1 January 2008		7,554	5,602	202	(12,190)	-	1,168
Total comprehensive income for the year		-	-	-	260)	-	260
At 31 December 2008		7,554	5,602	202	(11,930)	-	1,428

 

 

 

The Group operates in the United Kingdom, Italy and Spain.

At 31 December 2009, the Group is organised into two principal business segments:

 

IT and related services (comprising legal and publishing application software)

 

Green technology (comprising electric bicycles, energy saving lamps, educational electronic kits and development of solar power parks)

 

The segmental results for the year ended 31 December 2009 are as follows:

 

		IT and related services UK £000	Green technology UK £000	Green technology ITALY £000	Unallocated     £000	Group     £000
Revenue		816	1,023	-	28	1,867
Depreciation		6	4	-	4	14
Amortisation		12	16	5	-	33
Interest payable		-	5	-	2	7
Operating profit/(loss)		237	11	(27)	-	221

 

 

 

The segmental results for the year ended 31 December 2008 are as follows:

			IT and related services UK £000	Green technology UK £000	Green technology ITALY £000	Unallocated     £000	Group     £000
Revenue			708	1,269	-	-	1,977
Depreciation			5	4	-	4	13
Amortisation			9	6	4	-	19
Finance income			-	-	-	35	35
Operating profit/(loss)			126	133	(9)	(4)	246
The other information of the segments are as follows:
2009			IT and related services UK £000	Green technology UK £000	Green technology Italy £000	Unallocated     £000	Group     £000
Segment assets			563	726	1,251	1,247	3,787
Segment liabilities			(240)	(308)	(15)	(597)	(1,160)
Net assets			323	418	1,236	650	2,627

 

STATEMENT

 

This statement was approved by the directors on 21 May 2010. This statement does not constitute the Group's statutory accounts for the year ended 31 December 2009. Statutory accounts for the year ended 31 December 2008 have been delivered to the Registrar of companies. The auditor's report on those accounts was unqualified and did not contain any statement under section 495 of the Companies Act 2006. The auditor's report for the accounts to 31 December 2009 is unqualified.

 

The Annual report for 2010 will be available to the shareholders and the public on the Company's web site (www.ultima-networks.co.uk) over the next few days and the Company will make a further announcement in this regard as appropriate.

This information is provided by RNS

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