Last checked at 23 Sep 2015 17:11
23 September 2015
Ultima Networks Plc
("Ultima", "the Group" or "the Company")
Interim Results for the six months ended 30 June 2015
Ultima, the IT and Green Technology Company, is pleased to announce its unaudited interim results for the six months ended 30 June 2015.
Highlights for the period
· Turnover of £615,000 (H1 2014: £674,000)
· Operating loss of £67,000 (H1 2014: Loss £77,000)
· Cash at bank of £94,000 as at 30 June 2015 (30 June 2014: £113,000)
Ultima operates through two divisions: the IT Services division, and the Green technology division.
The IT Services division develops and supplies computer based application software and services to the legal profession.
The Green technology division is responsible for the development and supply of electric powered bicycles and specialist electrical goods and provides renewable energy solutions for the development of clean power generation through solar and other renewable power sources with installations in the United Kingdom and in Spain.
Professor Humayun Mughal, Chairman and CEO, commented:
"During the six months ended 30 June 2015, Ultima made a group operating loss of £67,000 (H1 2014: Loss £77,000). The Group maintained its policy of investing into research and product development to ensure it retains the ability to be competitive and react to market opportunities.
The IT Services division reported a modest decrease in revenue as legal, practices continue to consolidate in a competitive market. Development of the division flagship "FiLos" legal software suite continued to make progress. The Green Technology division concentrated sales of its electronic bicycles and renewable energy solutions into the UK market.
"The Group having gone through a period of restructuring it intends to concentrate on growth in low risk recurring revenues, a continued effort to control central overheads and the expansion of the Company by a continued investment into the development of new products.
Enquiries:
Ultima Networks plc 01279 821200
Prof. Humayun Mughal, Chairman and Chief Executive
Cairn Financial Advisers LLP (Nominated Adviser and Broker) 0207 1487900
Sandy Jamieson, Liam Murray
Chairman and Chief Executive's Statement
Operational Review
Ultima continues to invest into the development of its IT Services product portfolio and the design of new products in the Green Technology division in order to generate future growth in revenues.
The IT Services division has continued the roll out of the FiLos legal software suite with a continuing reduction in sales of its legacy products as more firms switch to the new software platform. The legal market continues to contract through a combination of mergers and also as a small but significant number of client firms leave the industry. The division has a programme of continuous product development which is an essential tool in maintaining product competitiveness and providing a platform for future organic growth.
The Green Technology division has consolidated sales of its electric bicycles through outlets in the UK.
The division expects to benefit from its experience to increase activity in the UK market for RHI and EPC (Engineering, Procurement and Construction) projects.
The short term economic outlook remains challenging however the Group remains positive and is working hard to ensure it is in a position to take advantage of any upturn.
The Board of Ultima remains committed to its programme of research, design and development and expect this will provide the platform for future growth opportunities.
Financial Summary
In the six months to 30 June 2015 the Group achieved sales of £615,000 (H1 2014: £674,000) with an operating loss of (£67,000) (H1 2014 £77,000).
The IT Services division made a profit at the operating level of £122,000 (H1 2014: £163, 000) on sales of £353,000 (H1 2014: £375,000). This division comprises Cognito Software, a provider of application software and services to the legal profession.
The Green Technology division made an operating loss of (£91,000) (H1 2014: operating loss of £153,000) on sales of £262,000 (H1 2014: £299,000). This division comprises the green technology products and the green energy parts of Ultima's business.
The Group central overheads for the six months to 30 June 2015 were £98,000 (H1 2014: cost of £87,000).
As a result of the expected availability of brought forward losses there has been no adjustment for taxation in the period.
Prof. Humayun Akhter Mughal,
Chairman and Chief Executive Officer
23 September 2015
Consolidated Statement of Comprehensive Income
Six Months ended 30 June 2015
|
| Unaudited Half year | Unaudited Half Year | Audited Full Year |
|
| 2015 | 2014 | 2014 |
|
| £000's | £000's | £000's |
Continuing Operations |
|
|
|
|
|
|
|
|
|
Revenue |
| 615 | 674 | 1,364 |
|
|
|
|
|
Cost of Sales |
| 203 | 256 | 545 |
|
|
|
|
|
Gross Profit |
| 412 | 418 | 819 |
|
|
|
|
|
Selling and administration expenses |
| 479 | 496 | 2,545 |
|
|
|
|
|
Other Operating Income |
| - | 1 | - |
|
|
|
|
|
Operating Profit/(Loss) |
| (67) | (77) | (1,726) |
Exceptional Items |
|
|
(100) |
(756) |
|
|
|
|
|
Finance Cost |
| (3) | (4) | (5) |
|
|
|
|
|
Profit/(Loss) before taxation |
| (70) | (181) | (2,487) |
|
|
|
|
|
|
|
|
|
|
Taxation recovery |
| - | - | 93 |
|
|
|
|
|
Exchange difference on translating foreign operations |
| - | - | (16) |
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
Total comprehensive income/(Loss) for the period attributable to equity holders of the Company |
| (70) | (181) | (2,410) |
|
|
|
|
|
Basic and diluted earnings/(loss) per share -pence |
| (0.025) | (0.05) | (0.86) |
Consolidated Statement of financial position
| 30/06/2015 Unaudited Half year | 30/06/2014 Unaudited Half Year | 31/12/2014 Audited Full Year | |
| 2015 | 2014 | 2014 | |
| £000's | £000's | £000's | |
ASSETS |
|
|
| |
|
|
|
| |
Non-Current assets |
|
|
| |
Property, plant, equipment | 613 | 1,406 | 616 | |
Intangible assets - development costs | - | 1,249 | - | |
Goodwill | - | 118 | - | |
Intangible assets - other | - | 138 | - | |
|
|
|
| |
|
|
|
| |
Total non-current assets | 613 | 2,911 | 616 | |
|
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|
| |
Current assets |
|
|
| |
Inventories | 335 | 404 | 347 | |
Trade and other receivables | 483 | 694 | 539 | |
Cash and other equivalents | 94 | 113 | 347 | |
|
|
|
| |
Total current assets | 912 | 1,211 | 1,233 | |
|
|
|
| |
Total assets | 1,525 | 4,122 | 1,849 | |
|
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|
| |
LIABILITIES
Non-Current liabilities |
|
|
| |
Deferred tax | - | 53 | - | |
Total noncurrent liabilities | - | 53 | - | |
|
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|
| |
Current Liabilities |
|
|
| |
Trade and other payables | 254 | 612 | 503 | |
Current tax liabilities | 65 | 84 | 76 | |
Accruals and deferred income | 234 | 102 | 228 | |
|
|
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| |
Total current liabilities | 553 | 798 | 807 | |
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| |
Total liabilities | 553 | 851 | 807 | |
|
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| |
Net assets | 972 | 3,271 | 1,042 | |
|
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| |
EQUITY |
|
|
| |
Capital and reserves attributable to equity holders of the Company |
|
|
| |
Called up share capital | 8,299 | 8,299 | 8,299 | |
Share premium account | 5,843 | 5,843 | 5,843 | |
Other reserves | 202 | 202 | 202 | |
Retained earnings | (13,319) | (11,036) | (13,249) | |
Translations of foreign operations | (53) | (37) | (53) | |
Total equity | 972 | 3,271 | 1,042 | |
Consolidated statement of cash flows
| Unaudited Half year | Unaudited Half Year | Audited Full Year |
| 2015 | 2014 | 2014 |
| £000's | £000's | £000's |
Cash Flows from operating activities |
|
|
|
Profit/(Loss) for the financial period | (70) | (181) | (2,394) |
Taxation expense | - | - | (93) |
Interest receivable | - | - | 5 |
Interest payable | 3 | 4 | - |
Comprehensive Income | - | - | (16) |
Depreciation charges | 13 | 18 | 532 |
Amortisation of intangibles | - | 47 | 1,207 |
|
|
|
|
Operating profit before changes in working capital | (54) | (112) | (759) |
|
|
|
|
Decrease/(Increase) in inventories | 12 | 31 | 88 |
Decrease/(Increase) in trade and other receivables | 56 | 178 | 333 |
(Decrease)/increase in trade payables and other current liabilities
| (254) | (51) | (42) |
Cash (used in)/generated from operations | (240) | 46 | (380) |
|
|
|
|
Taxation | - | - | 40 |
|
|
|
|
Net cash (used in)/generated by operating activities | (240) | 46 | (340) |
|
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|
Cash flow from investing activities |
|
|
|
|
|
|
|
Purchase of property, plant and equipment | (10) | (32) | 218 |
Development expenditure | - | (82) | 289 |
Other intangibles | - | - | - |
Disposal of Property, plant and equipment |
| - | - |
|
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|
|
Net cash used in investing activities | (250) | (68) | 167 |
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|
Cash flows from financing activities |
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Interest (received)/payable | (3) | (4) | (5) |
|
|
|
|
Net cash(used in)/generated by financing activities | (3) | (4) | (5) |
|
|
|
|
Net increase/(decrease) in cash and cash equivalents | (253) | (72) | 162 |
|
|
|
|
Cash and cash equivalents at beginning of the period | 347 | 185 | 185 |
|
|
|
|
Cash and cash equivalents at end of the period | 94 | 113 | 347 |
Consolidated statement of changes in equity
(i) Six months ended 30 June 2015 - unaudited
| Called up share capital | Share Premium | Other reserves | Retained earnings | Translation of foreign operations | Total Equity |
At 1 January 2015 | 8,299 | 5,843 | 202 | (13,249) | (53) | 1,042 |
Loss for the period |
|
|
| (70) |
| (70) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June 2015 | 8,299 | 5,843 | 202 | (13,319) | (53) | 972 |
(ii) Six months ended 30 June 2014 - unaudited
| Called up share capital | Share Premium | Other reserves | Retained earnings | Translation of foreign operations | Total Equity |
At 1 January 2014 | 8,299 | 5,843 | 202 | (10,855) | (37) | 3,452 |
Loss for the period |
|
|
| (181) |
| (181) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June 2014 | 8,299 | 5,843 | 202 | (11,036) | (37) | 3,271 |
(iii) Year ended 31 December 2014 - Audited
| Called up share capital | Share Premium | Other reserves | Retained earnings | Translation of foreign operations | Total Equity |
At 1 January 2014 | 8,299 | 5,843 | 202 | (10,855) | (37) | 3,452 |
Total comprehensive income for the year | - | - | - | (2,394) | (16) | (2,410) |
|
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|
|
|
|
|
At 31 December 2014 | 8,299 | 5,843 | 202 | (13,249) | (53) | 1,042 |
1. Segmental reporting
The Group operates in the United Kingdom, Italy and Spain.
As at 30 June 2015, the Group is organised into two principal business segments:
· IT services division (comprising legal and publishing application software)
· Green technology division (comprising electric bicycles, energy saving lamps and educational electronic kits and development and installation of renewable energy solutions)
The segmental results for the half year ended 30 June 2015 are as follows:
| Unaudited Half year | Unaudited Half Year | Audited Full Year |
| 2015 | 2014 | 2014 |
| £000's | £000's | £000's |
|
|
|
|
Revenue |
|
|
|
United Kingdom | 615 | 674 | 1,364 |
Total | 615 | 674 | 1,364
|
Revenue |
|
|
|
IT Services Division | 353 | 375 | 828 |
Green Technology Division | 262 | 299 | 399 |
Unallocated | -. | - | 137 |
Total | 615 | 674 | 1,364 |
|
|
|
|
Operating profit before exceptional items |
|
|
|
IT Services Division | 122 | 163 | (1,186) |
Green Technology Division | (91) | (153) | (352) |
Unallocated | (98) | (87) | (188) |
|
|
|
|
Profit before Finance Charges | (67) | (77) | (1,726) |
|
|
|
|
Exceptional items |
| (100) | (756) |
Finance Income/(payable) | (3) | (4) | (5) |
|
|
|
|
Operating profit | (70) | (181) | (2,487) |
Taxation Recovered | - | - | 93 |
Exchange difference on translating foreign operations | - | - | (16) |
Profit before taxation | (70) | (181) | (2,410) |
|
|
|
|
|
|
|
|
| Unaudited Half year | Unaudited Half Year | Audited Full Year |
| 2015 | 2014 | 2014 |
| £000's | £000's | £000's |
Depreciation |
|
|
|
IT Services (UK) | 1 | 1 | 38 |
Green technology division | - | 17 | 2 |
Unallocated | 12 | - | 492 |
Group Total | 13 | 18 | 532 |
|
|
|
|
Amortisation |
|
|
|
IT Services (UK) | - | - | 804 |
Green technology division | - | 47 | 393 |
Unallocated | - | - | 10 |
Group Total | - | 47 | 1,207 |
|
|
|
|
Segment Assets |
|
|
|
IT Services (UK) | 746 | 689 | 953 |
Green technology division | 779 | 3,433 | 896 |
Unallocated | - | - | - |
|
|
|
|
Group | 1,525 | 4,122 | 1,849 |
|
|
|
|
Segmental liabilities |
|
|
|
IT Services (UK) | (410) | (160) | (420) |
Green technology division | (143) | (691) | (387) |
Unallocated | (0) | - | - |
|
|
|
|
Group | (553) | (851) | (807) |
|
|
|
|
Net assets |
|
|
|
IT Services (UK) | 336 | 529 | 533 |
Green technology division | 636 | 2,742 | 509 |
Unallocated | - | - | - |
|
|
|
|
Group | 972 | 3,271 | 1,042 |
|
|
|
|
Capital Expenditure |
|
|
|
|
|
|
|
IT Services (UK) | 10 | 82 | 218 |
Green technology division | - | 32 | 289 |
Green Technology Division (disposals) | - | - | -
|
|
|
|
|
Group | 10 | 114 | 507 |
2 Basis of preparation
The consolidated interim financial statements have been prepared in accordance with the AIM Rules for Companies and prepared on a basis consistent with International Financial Reporting Standards ("IFRS") as adopted by the EU and the accounting policies set out in the Group's financial statements for the year ended 31 December 2014.
The interim financial statements do not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006.
The consolidated interim financial statements are unaudited and include all adjustments which management considers necessary for a fair presentation of the Group's financial position, operating results and cash flows for the 6 month periods ended 30 June 2015 and 30 June 2014.
The Group has chosen not to adopt IAS 34 'Interim Financial Statements' in preparing these interim financial statements and therefore the interim financial information is not in full compliance with IFRS disclosure.
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
These interim financial statements have been prepared under the historical cost convention.
3 Taxation
Due to expected availability of brought forward losses, no provision has been made for application of tax for the period under review.
4 Dividends
The Company has not proposed or declared an interim dividend.
5 Earnings per share
Basic earnings per share has been calculated based on the profit/ (loss) on ordinary activities after taxation and the weighted average number of shares in issue for the period of 279,176,538 (June 2014: 279,176,538 and December 2014: 279,176,538). There are no options having a dilutive impact on earnings per share.
6 Other information
This interim statement was approved by the Board on 22nd September 2015 and has not been audited by the Company's auditors Hills Jarrett. The comparatives for the full year ended 31 December 2014 are not the Company's full statutory accounts for that year. A copy of the statutory accounts for that year, which were prepared under IFRS, has been 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) or (3) of the Companies Act 2006.
No adjustments have been made for any changes in estimates made at the time of approval of the 2015 accounts.
A copy of this interim statement will be available shortly at the Company's registered office at Ultima Networks plc, Akhter House, Perry Road, Harlow, CM18 7PN and on the Company's website, www.ultima-networks.co.uk.