28 Apr 2011 07:00
Interim results for the six months ended 31 March 2011
Nasstar plc ("Nasstar" or "the Group"), which provides cloud computing, announces its results for the six months ended 31 March 2011.
Key highlights for the period
·; 36% increase in Hosted Desktop subscribers to 1,866 (31 March 2010: 1,370 subscribers)
·; EBITDA* increased to £151,000 (6 months to 31 March 2010: £143,000)
·; Operating loss reduced by 60% to £34,000 and net loss halved to £83,000 (6 months to 31 March 2010: net loss £161,000)
·; Turnover of £1.161m (2010: £1.155m)
·; New version of Hosted Desktop released with "AddApp" application store, greater product and price flexibility, strengthening Nasstar's intellectual property
·; Stronger sales flow now being achieved with several new companies each month migrating to Nasstar Hosted Desktop
*Earnings before interest, taxation, depreciation, amortisation and share-based payments
Chairman's Statement
ResultsI am pleased to report the results for the Group for the six months ended 31 March 2011. EBITDA is up to £151,000 despite incurring one-off costs on recruitment and ISO27001 consultancy and audit during the period.
Sales activity has been encouraging with a number of our partners now increasing their Hosted Desktop subscription every month. We continue to work with our partners on opportunities that will deliver significant increases in the current number of subscribers including many opportunities in the 50+ user range. In light of the greater awareness and acceptance of cloud computing that now exists we are confident that our partners will be able to win even more new business in the second half of the year.
We have just released a new version of Hosted Desktop with "AddApp" functionality to enable applications to be added on demand. We are focussed on product development that gives choice and flexibility to the end customer so that we are in the best position to win new business.
Outlook
Our strategy remains focussed on further development of our hosted desktop platform and selling through our partners. This strategy is working. Business is being won because of the quality and reliability of our service, endorsing our strategy of focussing investment on the Hosted Desktop product whilst expanding the reach of our sales potential through partners. The sales achieved so far this year, particularly in the January to March period, give us confidence that the market is moving towards mainstream adoption and Nasstar is very well positioned to take its share in the emerging hosted desktop market.
Lord Daresbury
Chairman
28 April 2011
For further information:-
Nasstar plc | |
Charles Black, Chief Executive Officer
| 020 7148 5000 |
Allenby Capital Limited, Nominated Adviser and Broker | |
Nick Naylor James Reeve | 020 3328 5656 |
About Nasstar plc
Nasstar (www.nasstar.com) provides hosted desktop and hosted exchange cloud computing services that enable subscribers to access their corporate desktop, files, applications and email in the cloud rather than using local hard drives. Cloud computing is a 'pay for what you use' approach and provides an alternative to capital expenditure necessary for traditional on-premise IT.
Nasstar was founded in 1998 by Charles Black. Nasstar plc was admitted to trading on the London Stock Exchange's Alternative Investment Market in December 2005 (AIM: NASA).
Nasstar plc
Consolidated statement of comprehensive income
for the six months ended 31 March 2011
Note | Six months to 31 March 2011 Unaudited £000
| Six months to 31 March 2010 Unaudited £000 | Year to 30 September 2010Audited £000 | |||
Revenue | 1,161 | 1,155 | 2,350 | |||
Cost of sales | (514) | (535) | (1,108) | |||
Gross profit | 647 | 620 | 1,242 | |||
Operating and administrative expenses | (670) | (686) | (1,358) | |||
Share-based payments | (11) | (16) | (42) | |||
Total operating and administrative expenses |
(681) |
(702) |
(1,400) | |||
Operating loss | (34) | (82) | (158) | |||
Finance expense | (49) | (79) | (144) | |||
Loss before taxation | (83) | (161) | (302) | |||
Taxation | - | - | - | |||
Loss for the period attributable to shareholders |
(83) |
(161) |
(302) | |||
Loss per share: | ||||||
Basic and diluted | 5 | (0.2)p | (0.5)p | (0.9)p | ||
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Nasstar plc
Statement of financial position
as at 31 March 2011
31 March 2011 Unaudited £000 | 31 March 2010 Unaudited £000 | 30 September 2010 Audited£000 | ||||
Assets | ||||||
Non-current assets | ||||||
Goodwill | 844 | 844 | 844 | |||
Intangible assets | 241 | 199 | 226 | |||
Plant and equipment | 224 | 350 | 287 | |||
Deferred taxation | 159 | 175 | 175 | |||
1,468 | 1,568 | 1,532 | ||||
Current assets | ||||||
Trade and other receivables | 424 | 433 | 460 | |||
Cash and cash equivalents | 5 | 49 | 5 | |||
429 | 482 | 465 | ||||
Total assets | 1,897 | 2,050 | 1,997 | |||
Equity and liabilities | ||||||
Capital and reserves attributable to equity holders | ||||||
Share capital | 357 | 357 | 357 | |||
Share premium | 2,706 | 2,706 | 2,706 | |||
Merger reserve | 662 | 662 | 662 | |||
Retained deficit | (2,548) | (2,360) | (2,475) | |||
Total equity | 1,177 | 1,365 | 1,250 | |||
Non-current liabilities | ||||||
Interest-bearing loans and borrowings | 99 | 53 | 98 | |||
Current liabilities | ||||||
Interest-bearing loans and borrowings | 99 | 139 | 157 | |||
Trade and other payables | 522 | 493 | 492 | |||
621 | 632 | 649 | ||||
Total equity and liabilities | 1,897 | 2,050 | 1,997 | |||
Nasstar plc
Statement of cash flows
for the six months ended 31 March 2011
Six months to 31 March 2011 Unaudited £000 | Six months to 31 March 2010 Unaudited £000 | Year to 30 September 2010Audited £000 | |||
Cash flow from operating activities | |||||
Operating loss before taxation | (34) | (82) | (158) | ||
Adjustments for: | |||||
Depreciation and amortisation | 174 | 209 | 417 | ||
Share-based payments | 11 | 16 | 42 | ||
Corporation tax repaid | 16 | - | - | ||
Net cash flow from operating activities before changes in working capital | 167 | 143 | 301 | ||
Decrease in trade and other receivables | 36 | 35 | 8 | ||
Increase/(decrease) in trade and other payables | 30 | (579) | (580) | ||
Net cash flow generated from operating activities | 233 | (401) | (271) | ||
Investing activities | |||||
Payments for intangible assets | (84) | (71) | (168) | ||
Payments for property, plant and equipment | (43) | (76) | (151) | ||
Net cash outflow from investing activities | (127) | (147) | (319) | ||
Financing activities | |||||
Issue of ordinary share capital | - | 340 | 340 | ||
Proceeds from lease-finance arrangements | 21 | 34 | 73 | ||
Repayment of lease-finance arrangements | (63) | (98) | (175) | ||
Proceeds of new bank loan | - | - | 101 | ||
Repayments of bank loan | (15) | - | - | ||
Interest paid | (49) | (79) | (144) | ||
Net cash flow from financing activities | (106) | 197 | 195 | ||
Net decrease in cash & cash equivalents in the period | - |
| (351) | (395) | |
Cash & cash equivalents at the beginning of the period | 5 | 400 | 400 | ||
Cash & cash equivalents at the end of the period | 5 | 49 | 5 | ||
1 | Corporate information | |||||
Nasstar Plc ("the Company") is a company incorporated in England and Wales and quoted on the London Stock Exchange's Alternative Investment Market. | ||||||
2 | Basis of preparation | |||||
These condensed interim financial statements of the Company and its subsidiaries ("the Group") for the six months ended 31 March 2011 have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs). The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the Group's latest audited financial statements for the year ended 30 September 2010.
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These condensed interim financial statements do not constitute Statutory Accounts under the Companies Act 2006, have not been audited, and do not include all of the information required for full annual financial statements. They should be read in conjunction with the Group's consolidated annual financial statements for the year ended 30 September 2010. The auditors' opinion on those Statutory Accounts was unqualified and did not draw attention to any other matters required by the Companies Act 2006. The Statutory Accounts for the year ended 30 September 2010 have been delivered to the Registrar of Companies.
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The comparative figures presented are for the six months ended 31 March 2010 and the year ended 30 September 2010. | ||||||
3 | Total comprehensive income | |||||
There are no additional items of income and expense which are not included within the profit and loss account for the period. | ||||||
4 | Segmental analysis | |||||
A segment is a distinguishable component of the Group that is engaged in providing products or services in a particular business sector (business segment) or in providing products or services in a particular economic environment (geographic segment), which is subject to risks and rewards that are different in those other segments.
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The Group operated in the period in one segment, the provision of software as a service, and in one market, the United Kingdom. The disclosures required by IFRS8 relating to profits, losses, assets and liabilities of the segment are therefore shown by the financial statements as a whole. | ||||||
The Group had one overseas customer in the period. | ||||||
5 | Loss per share | |||||
The calculation of the basic loss per share for the six months ended 31 March 2011 is based upon the following: | ||||||
Six months to 31 March 2011 Unaudited
| Six months to 31 March 2010 Unaudited
| Year to 30 September 2010Audited
| ||||
Weighted average number of shares in issue | 35,733,224 | 32,629,560 | 34,185,643 | |||
Loss attributable to shareholders of the parent | £83,000 | £161,000 | £302,000 | |||
Loss per 1p ordinary share | (0.2p) | (0.5p) | (0.9)p | |||
The diluted loss per share for all periods is the same as the basic loss per share as the losses have an anti-dilutive effect. | ||||||
6 | Dividend | |||||
No dividend has been paid in the period. | ||||||