NASA.L Regulatory News (NASA)

28 Apr 2008 07:15

Nasstar PLC28 April 2008 Interim results for the six months ended 31 March 2008 Nasstar plc ("Nasstar" or "the Group"), which provides computing over theinternet, is pleased to announce its results for the six months ended 31 March2008. Highlights for the period • Turnover increased 100% to £1m (2007: £490k) • EBITDA profit of £100k (2007: EBITDA loss of £109k) • Operating loss narrowed to £35k (2007: loss £199k) • Increase in Hosted Exchange subscribers to 7,000 (2007: 3,492) • Sales of Hosted Desktop showing promise with contract wins during the period including Stelios' easyGroup and Pinnacle Staffing Group plc • Very encouraging sales pipeline for Hosted Desktop • New web site and PR campaign launched in March, expected to further strengthen the existing sales pipeline • Post balance sheet sale of non-core web hosting contracts for £120k cash, further streamlining operations Chairman's Statement ResultsI am pleased to report the results for the Group for the six months ended 31March 2008. The growth in turnover and the swing to EBITDA profitability duringthe period show the effect of Hosted Desktop sales coming through. As stated inour final results last year we maintain that Hosted Desktop is the key todriving future growth and profitability. The marketNasstar's Hosted Desktop service delivers desktop computing over the internet, adelivery model known as Software as a Service (SaaS). SaaS provides analternative to traditional on-premise software which is sold as a boxed productand installed and run on 'local' computers. The SaaS market is set to continueto grow with research by Gartner predicting that the worldwide market for SaaSwill more than double from US$5bn in 2007 to US$11bn by 2011. Outlook The Board believes that the market for SaaS will continue to grow and thatNasstar is increasingly being recognised as an influential force in the UKmarket. The sales pipeline is very encouraging and gives the Board confidence inthe Group's growth potential for the second half of the year and beyond. Lord DaresburyChairman28 April 2008 About Nasstar plcNasstar plc, an AIM-quoted company, makes computing a simple internetsubscription service, enabling subscribers of its Hosted Desktop service to doall of their computing in the internet cloud rather than on a local computer.Nasstar's Hosted Desktop provides subscribers with access to their desktop,files, applications and email over the internet, providing a real alternative totraditional on-premise computing. The company vision is that everyday computing is becoming a utility in theworkplace - just like mobile phones - and should therefore be a simplesubscription service. Nasstar's vision is to use the internet to delivereveryday computing, removing the need for traditional on-premise IT. Nasstar is fast establishing itself as a force for change within the ITindustry, and customers who have already adopted this service approach includeStelios' easyGroup. Nasstar was founded in 1998 by Charles Black. Nasstar plc was admitted totrading on the London Stock Exchange Alternative Investment Market in December2005 (AIM: NASA). For further information please visit www.nasstar.com and for investor relationscontent please visit www.nasstar.com/ir Nasstar plc Consolidated Income Statement for the six months ended 31 March 2008 Notes Six months Six months Year to to to 31 Mar 2008 31 Mar 2007 30 Sep 2007 Unaudited Unaudited Unaudited £'000 £'000 £'000Turnover 1,010 490 1,193Operating Expenses before (899) (572) (1,260)Depreciation and AmortisationDepreciation (135) (90) (212) Operating Expenses (1,034) (662) (1,472)Share-based payments (11) (27) (69)EBITDA 100 (109) (136)Operating Loss _______ _______ _______ (35) (199) (348)Finance costs (82) (44) (128) _______ _______ _______Loss before Taxation (117) (243) (476) Income tax expense - 45 6 ________ ________ ________ Loss for the period attributable to (117) (198) (470)equity shareholders _______ _______ _______ Loss per Share 3 (0.81)p (1.49)p (3.39)pBasic and diluted _______ _______ _______ Nasstar plc Consolidated Balance Sheet as at 31 March 2008 Notes 31 Mar 2008 31 Mar 2007 30 Sep 2007 Unaudited Unaudited Unaudited £'000 £'000 £'000Non-current AssetsIntangible assets 844 718 844Plant and equipment 2 531 332 292 _______ _______ _______ 1,375 1,050 1,136 _______ _______ _______Current AssetsTrade and other receivables 393 729 489Cash and cash equivalents 4 89 58 _______ _______ _______ 397 818 547 Current Liabilities 2 (1,096) (887) (951)Trade and other payables _______ _______ _______Net Current Liabilities (699) (69) (404) _______ _______ _______Total Assets less Current 676 981 732Liabilities Non-current liabilities 2 (133) (102) (84) _______ _______ _______Net Assets 543 879 648 _______ _______ _______EQUITYCalled Up Share Capital 145 145 145Share Premium Account 1,031 1,031 1,031Merger Reserve 662 662 662Retained earnings (1,295) (959) (1,190) _______ _______ _______TOTAL EQUITY 543 879 648 _______ _______ _______ Nasstar plc Consolidated Cash Flow Statement for the six months ended 31 March 2008 Six months to Six months to Year to 31 Mar 2008 31 Mar 2007 30 Sep 2007 Unaudited Unaudited Unaudited £'000 £'000 £'000Cash flow from operating activitiesLoss from operations (35) (199) (348) Adjusted for:Depreciation of tangible assets 135 90 212Share-based payments 11 27 69Decrease/(increase) in trade and other 96 (269) (75)receivablesIncrease in trade payables 85 289 209Finance costs (82) (44) (128) Tax paid - - (25)Net cash from operating activities _______ _______ _______ 210 (106) (86) _______ _______ _______ Cash flows from investing activitiesProceeds from the disposal of plant - - 13and equipmentPurchase of property, plant and (374) (146) (156)equipmentPurchase of subsidiary undertaking - (278) (778)Net cash outflow from investing _______ _______ _______activities (374) (424) (921) _______ _______ _______ Net cash outflow before management of (164) (530) (1,007)liquid resources and financing Financing activitiesIssue of ordinary share capital - 500 1,000New finance leases 176 130 90Capital element of hire purchase (77) (59) (123)contracts & finance leases _______ _______ _______Net cash inflow from management of liquid resources and financing 99 571 967 _______ _______ _______ Net (decrease)/increase in cash & cash (65) 41 (40)equivalents Cash & cash equivalents at beginning 8 48 48of period _______ _______ _______Cash & cash equivalents at end of (57) 89 8period _______ _______ _______ Nasstar plc Statement of Changes in Equity for the six months ended 31 March 2008 Share Share Merger Profit and Capital Premium Reserve Loss Account £'000 £'000 £'000 £'000 At 1 October 2007 145 1,031 662 (1,189) Loss for the period - - - (117)Equity-settled share-based - - - 11paymentsAt 31 March 2008 _______ _______ _______ _______ 145 1,031 662 (1,295) _______ _______ _______ _______ Notes to the Interim Report 1. Accounting policies Basis of preparation The interim financial information for the six months ended 31 March 2008 hasbeen prepared on an historical cost basis and in accordance with the accountingpolicies that will apply for the year ended 30 September 2008, which willfollow the International Financial Reporting Standards (IFRS) and theinterpretations as endorsed by the European Union. The comparative figures included in this report for the six months ended 31March 2007 and the full year ended 30 September 2007 are restated for IFRS andare unaudited. IFRS 1 permits companies adopting IFRS for the first time to take certainexemptions from the full requirements of IFRS in the transition period.Accordingly business combinations prior to the date of transition to IFRS havenot been restated to comply with IFRS 3 'Business Combinations'. Changesresulting from the adoption of IFRS 2 / FRS 20 had already been recognised inthe accounts for the year ended 30 September 2007. The comparatives for full year ended 30 September 2007 are based on the latestpublished audited accounts, but are subject to unaudited restatement to IFRS asendorsed for use in the European Union. Accordingly they are not the company'sfull statutory accounts for the year. A copy of the statutory accounts for thatyear was prepared in accordance with UK GAAP and has been delivered to theRegister of Companies. The auditors' report on those accounts was unqualified,did not include any references to matters to which the auditors drew attentionby way of emphasis without qualifying their report; and did not contain astatement under section 237 (2) or (3) of the Companies Act 1985. As permitted,the Company has chosen not to adopt IAS34 "Interim Financial Reporting".Exceptas noted above, the following accounting policies have been applied consistentlyin the preparation of these accounts: Basis of consolidation The Group financial statements consolidate the financial statements of theCompany and its subsidiary undertakings and exclude all Intra-Group transactionsand balances. The results of subsidiary undertakings acquired are included from the date ofacquisition using the acquisition method of accounting. The results ofsubsidiary undertakings disposed of are included up to the date of disposal, andthe profit or loss on disposal is calculated based on net proceeds receivableand the net assets at the date of disposal, including any goodwill. Revenue Revenue represents amounts receivable for services net of VAT and tradediscounts. Revenue from service contracts is accrued evenly over the period ofthe contract except that set-up revenues are recognised over the length of theset-up period on a percentage to completion basis.. Research and development Research costs are expensed as incurred. Development expenditure on anindividual project is recognised as an intangible asset when the Group candemonstrate the technical feasibility of completing the intangible asset so thatit will be available for use or sale, its intention to complete and its abilityto use or sell the asset, how the asset will generate future economic benefits,the availability of resources to complete the asset and the ability to measurereliably the expenditure during development. Notes to the Interim Report (continued) Goodwill The directors undertake an impairment review of goodwill at the end of eachannual reporting period. Deferred consideration The terms of an acquisition may provide that part of the total value of thetotal of the purchase consideration, which may be payable at a future date,depends on uncertain future events such as the future performance of theacquired company. Where it is not possible to estimate amounts payable with anydegree of certainty, the amounts recognised in the financial statements arethose are reasonably expected to be paid as at the balance sheet date. Plant and equipment Tangible fixed assets are stated at cost less depreciation. Depreciation isprovided at rates calculated to write off the cost less estimated residual valueof each asset over its expected useful life, as follows: Computer equipment & software development over three years on straight line basisFixtures & fittings 25% on reducing balance basisOffice equipment 25% on reducing balance basis Leasing Rentals payable under operating leases are charged against income on a straightline basis over the lease term Deferred taxation Deferred tax is provided in full in respect of taxation deferred by timingdifferences between the treatment of certain items for taxation and accountingpurposes. Recognition of the deferred tax asset is limited to the extent thatthe company anticipates making sufficient taxable profits in the future toabsorb the reversal of the underlying timing differences. The deferred taxbalance has not been discounted. Share-based payments The group operates executive and employee share schemes. For all grants of shareoptions, the fair value as at the date of grant is calculated using an optionpricing model and the corresponding expense is recognised over the vestingperiod. The expense is recognised as a staff cost and the associated creditentry is made against equity. Pension costs The group operates a defined contribution pensions scheme on behalf of itsemployees, the costs of which are charged to the income statement on an accrualsbasis. Financial instruments Financial instruments are classified and accounted for, according to thesubstance of the contractual arrangement, as financial assets, financialliabilities or equity instruments. An equity instrument is any contract thatevidences a residual interest in the assets of the company after deducting allof its liabilities. Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand. Bank overdrafts areincluded within current liabilities unless there is a right of offset with cashbalances. Notes to the Interim Report (continued) 2. First time adoption of IFRS The Group reported under UK GAAP in its previously published financialstatements for the year ended 30 September 2008. The tables below reconcilebetween the loss and net assets as reported previously under GAAP and thosereported under IFRS for the periods ended 30 September 2007 and 31 March 2007. Areconciliation of net assets is also provided at 1 October 2006, being thetransition date to IFRS. Reconciliation of loss under UK Note Six Months to 12 months toGAAP and IFRS 31 Mar 2007 30 Sep 2007 £'000 £'000Loss reported under UK GAAP (206) (476)Adjustment to IFRS:Lease rentals 64 135Depreciation (38) (90)Finance charge (18) (39) _______ _______ (a) 8 6 _______ _______Loss reported under IFRS (198) (470) _______ _______ Reconciliation of net assets under Note As at As at As atUK GAAP and IFRS 01 Oct 2006 31 Mar 2007 30 Sep 2007 £'000 £'000 £'000Tangible fixed assets reported 140 137 119under UK GAAPAdjustment to IFRS:Finance leases (a) 103 195 173 _______ _______ _______Fixed assets reported under IFRS 243 332 292 _______ _______ _______Current liabilities reported under (453) (809) (881)UK GAAPAdjustment to IFRS:Finance leases (a) (55) (78) (70) _______ _______ _______Current liabilities reported under (508) (887) (951)IFRS _______ _______ _______Creditors falling due after more (20) (7) -than one year under UK GAAPAdjustment to IFRS:Finance leases (a) (34) (95) (84) _______ _______ _______Creditors falling due after more (54) (102) (84)than one year under IFRS _______ _______ _______ Equity reported under UK GAAP (a) 36 857 629Adjustment to IFRS:Net finance leases (a) 14 22 20 _______ _______ _______ 50 879 649 _______ _______ _______ Explanation of reconciling item between UK GAAP and IFRS (a) From 1 October 2006, the date of transition to IFRS, the Group's accountingtreatment of leases is required to comply with International Accounting Standard17 (IAS 17). UK GAAP, under SSAP 21, provided greater flexibility over theaccounting treatment. Under IAS 17, whether a lease is a finance lease or anoperating lease depends on the substance of the transaction rather than the formof the contract. The equipment leases entered into by the Group provide for thepayment to the lessor of a nominal sum at the end of the primary lease term inexchange for title to the equipment that has been subject to the lease and theGroup does, in practice, make such payments. Under UK GAAP, the Group designatedsuch leases as operating leases. Under IFRS, the Group now designates suchleases as finance leases with the resultant change in accounting treatment. 3. Loss per share The basic earnings per share is calculated by dividing the profit or loss forthe financial period attributable to equity holders by the weighted averagenumber of shares in issue. Six months Six months Year to to to 31 Mar 30 Sep 31 Mar 2007 2007 2008 Unaudited Unaudited UnauditedWeighted average number of shares 14,471,428 13,280,952 13,876,190 _______ _______ _______ Loss for the period (117) (198) (470) _______ _______ _______ Basic and diluted loss per 1p ordinary (0.81)p (1.49)p (3.39)pshare _______ _______ _______ Due to the losses incurred, there is no dilution effect from the issued shareoptions. Contact information Nasstar plcCharles Black, Chief Executive020 7148 5000 - Telephone W.H. Ireland Limited, Nominated Adviser to Nasstar plcNicola Rayner0121 616 2101 - Telephone END This information is provided by RNS The company news service from the London Stock Exchange