NASA.L Regulatory News (NASA)

30 Apr 2007 07:01

Nasstar PLC30 April 2007 30 April 2007 Nasstar plc Interim results for the six months ended 31 March 2007 Nasstar plc ("Nasstar" or "the Group"), the software broadcaster supplyingsoftware as a service, is pleased to announce its results for the six monthsended 31 March 2007. Highlights for the period • Turnover increased 120% to £490,000 for the six months ended 31 March2007 (2006: £222,000), new sales team established; • Operating loss narrowed to £225,000 (2006: loss £276,000) • The increase in operating expenses reflects the expenditure inestablishing a new sales team, customer services department and the acquisitionof Network Support International Limited trading as Virtual Email; • Balance sheet strengthened, with total net assets of £857,000 (2006:£276,000) • Six-fold increase in Hosted Exchange Subscribers at the end of theperiod to 3,492 (31 March 2006: 554 subscribers) • £500,000 raised in December 2006 at 28p per share • Sales and operations of Network Support International Limitedsuccessfully integrated following the acquisition in December 2006; • Strong sales growth being achieved Commenting on the results, Charles Black, Chief Executive Officer, said "Nasstar has achieved a stable cost base and scalable technical platform, andthe Group is now focussed on achieving strong sales growth. The Board is of theview that our software broadcasting services are at the forefront of the 'software as a service' market, and during the period we successfully launchedNasstar Desktop at Microsoft's UK headquarters. Nasstar Desktop extends softwarebroadcasting beyond our email service to enable subscribers to access securelyall of their documents and business software (including Microsoft Office,accounting software and other applications) from anywhere. The Board believesoftware broadcasting is quickly emerging as the most efficient and costeffective method for the provision of business software and that Nasstar is in astrong position to capitalise on the fast growing market. The Directors are veryconfident about the future growth prospects of the Group." Chairman's Statement I am pleased to report the results for the Group for the six months ended 31March 2007. The Group is currently experiencing strong sales growth and expectsto become cash-flow positive on a monthly basis during the second half of theperiod ending September 2007. The Board is very confident about the futureprospects of the Group. The Lord DaresburyChairman30 April 2007 About Nasstar Nasstar is a software broadcaster supplying Software-as-a-Service (SaaS).Nasstar's software broadcasting service distributes business software from acentral source to end users so that businesses can access their software fromanywhere on a subscription basis. Software broadcasting provides an innovativealternative to the traditional on-site local PC and perpetual license model ofsoftware delivery. Nasstar Desktop is Nasstar's core service enabling subscribers to access their 'My Documents', company data and software applications including Microsoft Officeand accounting software from anywhere on a pay monthly basis. Nasstar Mail is a hosted exchange email service which enables subscribers toaccess their email, calendar and contacts from anywhere using Outlook, a webbrowser or a mobile device such as Windows mobile phones or BlackBerry. Nasstar is a Microsoft Gold Certified Partner, a BlackBerry Alliance Member andCisco Partner. Nasstar plc was admitted to the London Stock Exchange AIM in December 2005 (AIM:NASA). Nasstar plc Consolidated Profit and Loss Accountfor the six months ended 31 March 2007 Notes Six months Six months Year ended 31 ended 31 ended 30 March March September 2007 2006 2006 unaudited unaudited audited £'000 £'000 £'000 Turnover 490 222 556Operating Expenses (688) (498) (1,066)Equity-settled Share-basedpayments (27) - (53) _______ ________ ________Operating Loss (225) (276) (563)Interest Payable and similar charges (26) (7) (66) _______ ________ ________ Loss on Ordinary Activitiesbefore Taxation (251) (283) (629) Tax on loss on ordinary activities 2 45 51 104 _______ ________ ________ Loss on Ordinary Activities after Taxation (206) (232) (525) ======= ======== ======== Loss per Share- Basic and Diluted 6 (1.55)p (2.36)p (5.1)p ======= ======== ======== The Consolidated Profit and Loss Account includes the figures for NetworkSupport International Limited from its date of acquisition in December 2006. Nasstar plc Consolidated Balance Sheetas at 31 March 2007 Notes As at As at As at 31 March 31 March 30 September 2007 2006 2006 unaudited unaudited audited £'000 £'000 £'000 Fixed AssetsTangible Assets 137 165 140Intangible Assets 7 718 - - _______ ________ ________ 855 165 140Current AssetsDebtors 729 270 321Cash at bank and in hand 89 177 48 _______ ________ ________ 818 447 369Creditors: Amounts falling due within one year (809) (303) (453) _______ ________ ________ Net Current Assets /(Liabilities) 9 144 (84) _______ ________ ________ Total Assets less Current Liabilities 864 309 56 Creditors: Amounts falling due after more than one year (7) (33) (20) _______ ________ ________ Net Assets 857 276 36 ======= ======== ======== Capital and ReservesCalled Up Share Capital 3 & 4 145 109 109Share Premium Account 4 1,031 67 67Merger Reserve 4 662 662 662Profit and Loss Account 4 (981) (562) (802) _______ ________ ________ Equity Shareholders' Funds 857 276 36 ======= ======== ======== Nasstar plc Consolidated Cash Flow Statementfor the six months ended 31 March 2007 Notes Six months Six months Year ended 31 ended 31 ended 30 March March September 2007 2006 2006 unaudited unaudited audited £'000 £'000 £'000 Net cash outflow from operating activities 5 (126) (440) (477) Returns on investments andservicing of financeInterest paid (26) (7) (66) Capital expenditurePayments to acquire tangible fixed assets (16) (46) (66) Acquisitions and disposals Purchase of subsidiaryundertaking (net of cashacquired) (278) - - _______ ________ ________ Net cash outflow beforemanagement of liquid resourcesand financing (446) (493) (609) Management of liquid resourcesCapital element of finance leaseobligations (13) 9 (4) FinancingIssue of ordinary share capital 500 624 624 _______ ________ ________ Increase in cash 41 140 11 ======= ======== ======== Nasstar plc Notes to the accounts for the six months ended 31 March 2007 1. Basis of preparation The interim results for the six months ended 31 March 2007 and 31 March 2006have not been audited and do not constitute statutory accounts within themeaning of section 240 of the Companies Act 1985. The comparative figures for the year ended 30 September 2006 have been extractedfrom the statutory accounts of Nasstar plc. These accounts received anunqualified auditors' report and have been filed with the Registrar ofCompanies. The financial information has been prepared in accordance with applicableaccounting standards and under the historical cost accounting convention.Accounting policies consistent with those applied in the financial statementsfor Nasstar plc for the year ended 30 September 2006 have been used in preparingthe consolidated unaudited interim results for the six months ended 31 March2007. 2. Taxation There is no provision for corporation tax due to trading losses incurred duringthe period and brought forward from previous periods. The directors haverecognised a deferred tax asset of £167,000 (2006: £122,000) which is expectedto be recovered against future profits. 3. Share Capital On 8 December 2006 Nasstar plc allotted 3,571,428 ordinary shares of 1p at apremium of 27p. Of these shares, 1,785,714 were allotted in connection with theacquisition of Network Support International Limited. 4. Movements in Shareholders' Funds Profit Share and Share Premium Merger Loss Capital Account Reserve Account £'000 £'000 £'000 £'000 Balance as at 1 October 2006 109 67 662 (802)Retained loss for the period - - - (206)Equity-settled share-based payments - - 27Issue of shares 36 964 - - ________ ________ ________ ________ Balance as at 31 March 2007 145 1,031 662 (981) ======== ======== ======== ======== Nasstar plc Notes to the accounts for the six months ended 31 March 2007 (continued) 5. Reconciliation of Net Cash Flow to movement in Net Funds/(Debt) Six months Six months Year ended 31 ended 31 ended 30 March March September 2007 2006 2006 unaudited unaudited audited £'000 £'000 £'000 Increase in cash 41 140 11Cash flow from lease financing 13 (9) 4 _______ ________ ________ Change in net funds resulting from cash flows 54 131 15Opening net funds /(debt) 1 (14) (14) _______ ________ ________ Closing net funds 55 117 1 ======= ======== ======== Reconciliation of Operating Loss to Net Cash Outflow from operating activities Six months Six months Year ended 31 ended 31 ended 30 March March September 2007 2006 2006 unaudited unaudited audited £'000 £'000 £'000 Operating loss (225) (276) (563)Depreciation 52 45 90Increase in Debtors (269) (98) (96)Increase/(decrease) in Creditors 289 (111) 39Equity-settled Share-based payments 27 0 53 _______ ________ ________ Net cash outflow from operating activities (126) (440) (477) ======= ======== ======== Nasstar plc Notes to the accounts for the six months ended 31 March 2007 (continued) 6. Loss per ordinary share Loss per share has been calculated on the loss after tax divided by the weightedaverage number of shares in issue during the six months ended 31 March 2007 of13,280,952 (year ended 30 September 2006 - 10,367,361). The exercise of outstanding options in the Group is anti-dilutive. 7. Intangible Assets Intangible assets comprise goodwill arising on the acquisition of NetworkSupport International Limited and research and development costs. Noamortisation or impairment provision has been provided for the period on thegoodwill element. It is the Directors' intention to carry out regular impairmentreviews of intangible assets. 8. Dividends The Directors do not recommend the payment of an interim dividend. 9. Copies of interim results Copies of this statement are being sent to shareholders. Further copies can bedownloaded from the Group's investor relations web site, www.nasstar.com/ir/reports.html or on request from the Company Secretary, Nasstar plc, 14-18 OldStreet, London EC1V 9BH. Nasstar plc Pro Forma Consolidated Profit and Loss Account - for illustrative purposes only The current interim figures include only four months trading from thesubsidiary, Network Support International Limited, which was acquired inDecember 2006. In order to demonstrate the progress of the Group the followingpro forma consolidated profit and loss account illustrates results for the sixmonths as if Network Support International Limited had been part of the Groupfor the entire six months ended 31 March 2007 Six months Six months Year ended 31 ended 31 ended 30 March March September 2007 2006 2006 unaudited unaudited audited £'000 £'000 £'000 Turnover 568 222 556Operating Expenses (734) (498) (1,066)Equity-settled Share-based Payments (27) 0 (53) _______ ________ ________ Operating Loss (193) (276) (563)Interest Payable and similar charges (27) (7) (66) _______ ________ ________ Loss on Ordinary Activities beforeTaxation (220) (283) (629)Tax on loss on ordinary activities 39 51 104 _______ ________ ________ Loss on Ordinary Activities after Taxation (181) (232) (525) ======= ======== ======== Loss per Share - Basic and Diluted (1.30)p (2.36)p (5.1)p ======= ======== ======== This information is provided by RNS The company news service from the London Stock Exchange