5 Dec 2012 07:00
5 December 2012
Nasstar plc
Preliminary results for the year ended 30 September 2012
Nasstar plc ('Nasstar' or 'the Company'), the hosted desktop cloud computing provider, is pleased to announce its preliminary results for the year ended 30 September 2012.
Highlights
·; Turnover £2.4m (2011: £2.3m)
·; 60% increase in Hosted Desktop subscribers to 3,200 at period end (2011: 2,000)
·; EBITDA* of £106,000 (2011: £336,000)
·; Loss after tax £313,000 (2011: loss £111,000)
·; £306,000 new equity raised during the year
·; Awarded Citrix European Service Provider of the Year 2012
·; Transformation programme to operate the Hosted Desktop platform from two data centres in progress and set to become operational in Q1 2013
·; New "App Portal" designed, strengthening the Company's intellectual property
·; New version of the Hosted Desktop platform offering Microsoft Lync 2013 as an app with optional Voice over IP (VoIP) service integration being developed for launch in 2013
*Earnings before interest, taxation, depreciation, amortisation and share-based payments
For further information, please contact:
Nasstar plc | |
Charles Black, Chief Executive Officer | 020 7148 5000 |
Allenby Capital Limited, Nominated Adviser and Broker | |
Nick Naylor James Reeve
Gresham PR Neil Boom | 020 3328 5656
07866 805 108 |
Chairman's Statement
Turnover increased to £2.4m, with subscribers of the Company's key product, Hosted Desktop, growing by 60% during the year. Hosted Desktop has a number of Unique Selling Points ("USPs"). Our Hosted Desktop platform enables us to deliver a wide variety of apps from multiple software vendors, offering real value to businesses wishing to move their IT to the cloud. Invariably companies who decide to take advantage of all the benefits of cloud computing, such as anywhere access to their desktop and data, will need to migrate their bespoke or industry specific software apps to the cloud. This is where Nasstar's Hosted Desktop platform can be leveraged because it provides a single access point through which each customer can access both the most commonly used apps, such as Microsoft Office, as well as the customer's key suite of business apps. The ability to deliver apps of all shapes and sizes to end users in a single place is the reason we have focused our resources on developing the Hosted Desktop platform, because this offers a service of real value and is one that cannot be commoditised easily by any single software vendor. As versions of apps change and new apps are released, Hosted Desktop remains the constant - a delivery platform for all the apps used by a business, all centralised in the cloud and accessible on almost any device via Hosted Desktop.
A further USP of Nasstar Hosted Desktop is that we have our own intellectual property in the architecture of the platform and in the App Portal, the device by which customers are able to manage key aspects of desktop usage and apps for their business using a simple browser-based management tool. The App Portal provides customers with control over their users' desktops, apps and data.
Revenue analysis
Our revenue is generated from monthly subscriptions to our cloud services, Hosted Desktop and Hosted Exchange. Hosted Desktop revenue consists of per-user-per-month subscriptions, cloud storage of customers' data and hosted apps. Hosted apps include standard software such as Microsoft Office and apps bespoke to the customer's business or industry.
Hosted Exchange is the name given to a hosted version of Microsoft's Exchange email software, which provides a mailbox that users can access from their desktop, through a web browser or on a mobile device. Hosted Exchange revenue is derived from a monthly fee per mailbox.
It is important to appreciate that a Hosted Exchange mailbox can be sold as a stand-alone product whereby a company just takes hosted mailboxes without Hosted Desktop. However, it is also a key app used by most customers who take the full Hosted Desktop service. So, for Nasstar, Hosted Exchange email is both an app for Hosted Desktop users and a 'stand-alone' product where a customer just wants a mailbox. Hosted Exchange revenue is therefore divided into two types - stand-alone mailbox revenue and hosted app revenue. As explained below, it is the stand-alone mailbox revenue that is non-core and which has reduced during the period. When Nasstar sells Hosted Desktop, customers can use either a Nasstar hosted mailbox or their own mailbox solution hosted by a third party. One of our largest partners, for example, sells our Hosted Desktop service with its own Hosted Exchange service. We specifically developed Hosted Desktop to be flexible enough to plug into third-party Hosted Exchange solutions such as those of partners and Microsoft Office 365.
We have operated our own Hosted Exchange platform since 2004 and it was the main focus of our sales between 2004 and 2008, whilst we developed our Hosted Desktop platform and tested it with a small number of early adopters. The result was that by 2008 nearly all of our revenue was from stand-alone mailboxes. In 2008 we switched our sales focus to Hosted Desktop in order to ensure that we built a business with our own IP and service that was substantially less susceptible to commoditisation.
Hosted Desktop revenue, which has risen 50% since 2010, was £1.5m in the year. This was 63% of total turnover in the year compared to 52% in 2011 and 42% in 2010. We expect Hosted Desktop revenue as a percentage of total turnover to continue to increase in 2013.
During 2012, revenue from mailboxes fell by £0.24m to £0.74m. This reduction, from 50% of our turnover two years ago to 29% in 2012 was almost exclusively from the loss of stand-alone mailbox customers - those who had taken just the Hosted Exchange email service without Hosted Desktop.. We expect sales of mailboxes as an app for use by Hosted Desktop customers to increase in future, whilst we believe the revenue from stand-alone mailboxes has largely stabilised.
In our view the shift from stand-alone mailbox to Hosted Desktop revenue has been vital for our future prospects.
Our target number of Hosted Desktop users by September 2013 is 4,000, a 100% growth from our current number following the expiry of the contract with Allied Healthcare, and a 25% increase on the September 2012 figure of 3,200.
As stated in our Half Yearly Report, we are positioning the Company for growth rather than short-term profitability, and we have continued with this approach. This means continuing to build a bigger and better Hosted Desktop platform, with more product development and more infrastructure rather than short-term profits. We expect to be trading profitably on a monthly basis once we are in the 3,500 to 4,000 range of Hosted Desktop subscribers.
Transformation programme and product development
During the year, we continued development of our Hosted Desktop platform. This development included a newly-designed App Portal and a number of product enhancements. Most notably we began a programme to transform Hosted Desktop into a multi-site platform, hosted across two data centres. A contract was entered into with SSE Telecoms for both the provision of data centre space and for connectivity between SSE Telecom's facility and our systems hosted in London.
The Board considers this transformation of the Hosted Desktop service to a multi-site platform to be an important step for winning larger and more contracts. The result is higher costs in the short term (which started in the second half of the year) without any immediate payback, but we believe that there will be substantial economic benefits as we scale. Serving Hosted Desktop from two data centres will increase our capacity and, in our view, attract more sales from having a geographically diverse system. There will also be a reduction in per subscriber data centre costs once we reach a certain critical mass that we hope to achieve by 2014. Costs incurred during the year included the set up and ongoing rental of rack space in the second data centre and the cost of connectivity between the two sites. The transformation programme is continuing into the new financial year.
Our Research and Development team are also working on the next version of our Hosted Desktop product that will include infrastructure and networking options that will enable customers to use Voice over IP (VoIP) in the Hosted Desktop environment.
We attracted additional institutional investment during the period which strengthened our ability to pursue our transformational growth strategy and we believe we are in a strong position to capitalise on the increased adoption rate of cloud services.
Outlook
In October 2012, Nasstar received the Citrix European Service Provider of the Year award which was presented to us in Barcelona at the Citrix Synergy summit. This award is a reflection of the quality of our Hosted Desktop product and underlines our position as a market leader in the hosted desktop space. In the new financial year we have continued to make progress with our multi-site transformation programme and product development, whilst our sales team continues to work closely with a number of valuable partners to win new business. We are very positive about the product and strategy, we have a clear sales target and we are optimistic for the year ahead.
Lord Daresbury
Chairman
5 December 2012
Chief Executive's Review
Nasstar, Hosted Desktop cloud service provider
Nasstar is a cloud service provider, offering business customers Hosted Desktop and hosted apps, including Hosted Exchange as well as hundreds of bespoke apps.
Hosted Desktop enables a business to access its apps and company data online rather than using local hard drives. In addition to commonly used apps such as Microsoft Office, Nasstar also provides dedicated servers to host apps that are bespoke to the business. For example, a recruitment company will use an app to manage their recruitment business, whilst a legal firm will use legal practice management software.
The benefits of Hosted Desktop are many, including flexible working, business continuity and a reduction in capital expenditure. Flexible working is brought about because the service enables staff to work from any location, provided that they have an access device such as a tablet or laptop, and internet connectivity. Nasstar Hosted Desktop provides organisations with a business continuity solution because the IT is no longer tied to a physical office or a particular machine. Users can log into their Hosted Desktop from any location and on almost any device, meaning that if the usual workplace becomes inaccessible for any reason they can still continue to work from home or a temporary location. Nasstar Hosted Desktop reduces capital expenditure for businesses because they no longer need to purchase servers to host their data and apps, and they no longer need to purchase perpetual software licences for those apps available on the Hosted Desktop platform such as Microsoft Office. Instead, Nasstar hosts each customer's data and apps leaving the customer to replace capital expenditure on servers with a simple monthly rental based on usage during the month.
The Chairman has outlined some of the USPs of Hosted Desktop. The most important one in my view is the ability to deliver apps from multiple sources and present them in a single place for the customer. This flexibility is important because if a popular new app is released, such as Microsoft Lync, we can host and distribute such an app as part of a centralised offering from within Hosted Desktop, which we believe has more benefits than selling such an app as a stand-alone offering. In 2013, for example, Nasstar will be offering hosted Microsoft Lync and Exchange 2013 as part of the apps available from the Hosted Desktop App Portal. Customers will be able to access these as well as their bespoke or industry specific apps, all from within Hosted Desktop.
Nasstar also provides a Hosted Exchange service. The Hosted Exchange service provides businesses with anywhere access to their email, calendar and contacts in a hosted environment rather than having the burden of purchasing and supporting an on-premise email system. Users can send and receive email using Outlook installed on their local machine (or within Hosted Desktop), or via a web browser using Outlook Web Access. Mobile access to one's email, calendar and contacts is also possible, and users have a choice whether to use Windows mobile devices (such as a Nokia Lumia), an iPhone or a BlackBerry handheld device.
The growth of the cloud computing market
Cloud computing at its broadest describes a service delivered online rather than powered from local hard drives. It's a term that is used to cover both consumer-facing services and business services. Examples of consumer cloud computing products include Apple's iCloud and iPhone/iPad products that enable consumers to store pictures, music and apps in the cloud and access them on iPhones and iPads. Other examples include Facebook and Twitter as apps that are hosted and accessed via different devices (web browsers and mobile devices). They are also 'multi-tenanted' - one platform shared by many.
The growth in cloud services used by consumers - the consumerisation of IT - has led to a growing familiarity of the concept of cloud computing and apps. Consumers who use these services are also working in business and their awareness of the cloud computing concept is helping to drive adoption in the business market.
In the business sector, cloud is sometimes designated 'private cloud' or 'public cloud'. 'Private cloud' is where a company has dedicated systems for its use only. The system is in the cloud - hosted in a data centre - and can be accessed remotely from most devices, but access is limited to a specific company or group. 'Public cloud' defines shared platforms, also known as 'multi-tenanted', because many customers share a single platform. The consumer-facing cloud apps referred to above are examples of a public cloud offering. Nasstar Hosted Desktop is a public cloud solution with the essential characteristic of having a multi-tenanted architecture. Being a cloud service, the apps and data are hosted in data centres and not on-premise, enabling those who use the service to access it using a diverse range of devices such as thin clients, tablets, PCs, laptops and mobile devices. Another key characteristic of business cloud computing is that payment is based on usage. Nasstar, for example, invoices customers monthly in arrears for the services they have consumed. In the cloud computing space Nasstar Hosted Desktop could be described as Software as a Service (SaaS) or Desktop as a Service (DaaS). As we provide a cloud service, we may also be described as a Cloud Service Provider (CSP) or a Managed Service Provider (MSP).
The evidence of the past year suggests that the market for hosted desktop cloud services is growing. The subscriber growth achieved by Nasstar is evidence that more businesses are adopting hosted desktop as an alternative to refreshing their on-premise local based desktop estate.
Certain trends in the hardware market strengthen Nasstar's Hosted Desktop proposition. The trends are the growth in the use of tablets such as iPad and the recently released Microsoft Surface tablet, and increased awareness in the concept of "Bring Your Own Device" (BYOD). BYOD is attractive for businesses because they can divest themselves of responsibility for providing and supporting each employee's access device. If the business adopts Hosted Desktop then each member of staff has access from any internet connect device to the business apps and data they need. Given that all the data is stored by Nasstar 'in the cloud' and not on the user's access device, the fate of the user's device is irrelevant from a data protection and security perspective.
Competition
As market adoption for a service grows, business follows. Nasstar was one of the first hosting companies to offer a hosted desktop service back in 2004 and is emphasising its strengths in the market place. We launched a new website during the year which communicates a number of key differentials between ourselves and other hosted desktop providers (such as our ISO 27001 certification, membership of the Cloud Industry Forum and having an established trading history and strong balance sheet). Our transformation programme - to transform our Hosted Desktop service into a diversely hosted solution - is an important step in setting Nasstar apart as a market leader. Nasstar also benefits from having been providing the service for so many years that we have a lot of 'know how'.
Revenue analysis
We first launched Hosted Desktop in 2004, at the same time as we delivered our first sales of Hosted Exchange. We foresaw that Hosted Exchange, being a Microsoft solution, would commoditise whereas Hosted Desktop was not an 'out of the box' solution. As stated by the Chairman, our strategy since 2008 has been to focus on sales of Hosted Desktop with the result that there has been a noticeable shift in the composition of our total revenue from mailboxes to Hosted Desktop.
In the past two years, Hosted Exchange has reduced from comprising half of our revenue to less than a third, due primarily to the drop-off of stand-alone mailbox revenue, with a corresponding increase in the proportion of Hosted Desktop sales. We expect this trend to continue in the 2013 financial year. The Directors expect revenue from mailboxes to stabilise, based on a core number of stand-alone mailboxes and a growing number of mailboxes used by Hosted Desktop subscribers who choose our Hosted Exchange as their email app.
Hosted Desktop
Sales of the Hosted Desktop service grew during the year with a 60% increase in subscriber numbers and revenue increasing from £1.2m to £1.5m, accounting for 63% of Nasstar's total revenue in the year to September 2012.
September 2012 was the last month of a four year contract between Allied Healthcare and Nasstar for the supply of Hosted Desktop. As a result of a take-over by Saga Group Ltd (Saga), the Allied Healthcare Hosted Desktop users were migrated to Saga's own in-house platform that was already in existence, resulting in the loss of a material number of users from our platform. Despite this we are confident we can increase our sales to the 4,000 mark during the 2013 financial year.
Route to market via channel partners
Nasstar's primary sales channel is its partner community and we are actively engaged with a number of our key partners to drive sales. We are working with some very interesting companies that we believe will be effective at delivering sales. A number of our partners sell our Hosted Desktop service under their own brand and we therefore cannot always disclose who they are. We have attracted a number of new partners during the period. Our approach is to work closely with a smaller number of key partners rather than trying to build large numbers of resellers. This is because marketing and distributing the service effectively requires focus and commitment on both sides and we would rather use our resources in the most constructive way by building strong relationships with a smaller number of partners that can deliver business. Although our primary route to market is through partners, the Company maintains direct contractual relationships with several hundred customers and, where there is no value being added by a partner and where there is no 'channel conflict', the Company may contract directly with businesses. However, Nasstar's partners add value in most cases, for example by providing local IT support. Partners also give Nasstar geographical reach both across the UK and in overseas territories. For example, Nasstar recently signed up Garnes Data, a Norwegian company based in Oslo. Their local market knowledge means that they are in a better position to sell into the Norwegian market than Nasstar could achieve on its own.
Hosted Exchange
Hosted Exchange was our core revenue generator from 2004 to 2008, whilst we developed the Hosted Desktop platform. Until 2008, Hosted Desktop revenue was derived from only a handful of early adopters and the sales of Hosted Exchange mailboxes were the lifeblood of the business. In 2008 we changed focus to Hosted Desktop sales.. The result of our approach is that mailbox revenue has fallen whilst Hosted Desktop revenue has increased. Total revenue from the Hosted Exchange service fell by £0.24m to £0.74m and accounted for 29% of total revenue in 2012, down from 43% in 2011. The biggest fall came in the first half of the year. During the second half of the year Hosted Exchange revenue was more stable with few losses and some new orders, as well as contract renewals. We expect Hosted Exchange revenue to remain stable going forward. We will continue to sell Hosted Exchange mailboxes but as an app for Hosted Desktop customers rather than as a stand-alone product. Whilst sales of stand-alone mailboxes may still fall further, any such fall should be at least offset by the take up of mailboxes from Hosted Desktop customers.
Transformation programme and road map
During the year we made the decision to begin the process of moving our data centre network to the next level. This meant achieving what is known as geographical diversity, where a service is hosted from more than one data centre, thus removing the risks of hosting from a single data centre. This is something we have planned to do for some time and an important step that we believe is essential to being a market leader for hosted desktop services and a necessity for larger sales opportunities. We knew the process would take approximately one year to achieve from start to finish, covering the planning, contractual commitments and implementation phases. We identified our second data centre earlier in the year and the racks were set up. Connectivity between our two data centres has also been put in place, and our two EMC storage devices have been set up, one in each data centre. An order for equipment for the second data centre was placed in the current financial year and we except the second data centre to be live in Q1 2013, meaning that Hosted Desktop will then be a multi-site hosted platform.
Since our first version of Hosted Desktop was launched in 2004, Nasstar has continually invested resources in research and development, focusing on scalability, user experience and flexibility.
Nasstar Hosted Desktop is a platform for delivering apps from multiple vendors in the cloud - not just Microsoft, but other apps such as accounting software, recruitment apps, and industry-specific apps. We believe that this approach future-proofs Nasstar Hosted Desktop because no single large vendor will host another's software apps - the future lies in an integrated portal that brings multiple vendor apps and data together in the cloud and that is what Nasstar Hosted Desktop does.
We have an exciting road map for the product with a new version being developed on Windows 2012 server, with additional apps including Microsoft Office 2013, Hosted Exchange 2013, SharePoint 2013 and Lync 2013. We are also exploring networking options to enable customers to integrate Voice over IP solutions into the service.
Financial review
Sales for the year grew 6% to £2.4m. The important point to note, however, is that the proportion of turnover made up from Hosted Desktop versus Hosted Exchange shifted during the year with the result that approximately two-thirds of turnover is now accounted for by Hosted Desktop.
We raised further share capital of £300,000 before expenses during the year in January 2012 from an institutional placing that was achieved at the mid-market price of the shares at the time. In addition, an employee exercised share options with an exercise price of £6,000 during the year.
Payroll costs increased quite significantly during the year which was a result of both pay rises and an increase in relatively-expensive technical staff.
Investment in our infrastructure continued with our transformation programme. This is continuing in the new period and we have recently ordered new servers and networking equipment necessary to begin operating the Hosted Desktop service from two data centres.
Employees
We have had a net increase in technical staff during the year to strengthen our team. We have been fortunate to benefit from a very hard working and skilled team of employees who believe in our vision and pursue it with passion and professionalism. We anticipate recruiting additional technical resource as the business grows and as we continue to develop our intellectual property and grow the subscription base.
Conclusion
We operate a Hosted Desktop platform which has a number of USPs including our own intellectual property and, most importantly, the flexibility to deliver apps from multiple vendors in a single place: a cloud desktop accessible from almost anywhere on any device. We believe this approach means we offer a service that cannot be commoditised by the major IT companies and which means we can offer a valuable service. The transformation programme will see us take the next big step, operating Hosted Desktop as a geographically diverse cloud system. Furthermore, we have an exciting product roadmap for 2013 that will see us taking the next version of Hosted Desktop to market. We operate in a growing market with awareness and adoption rates for cloud computing increasing - so we believe it's a good time to be in the position we are in, with all the experience we have and with an award-winning service. We are confident of sales growth and will work closely with our partners to continue to drive sales toward our target of 4,000 subscribers by September 2013. We look forward to the future with confidence.
Charles Black
Chief Executive Officer
5 December 2012
Consolidated statement of comprehensive income
for the year ended 30 September 2012
Note | 2012 | 2011 | ||
£000 | £000 | |||
Revenue | 2,391 | 2,257 | ||
Cost of sales | (1,113) | (1,001) | ||
Gross profit | 1,278 | 1,256 | ||
Operating and administrative expenses | (1,592) | (1,268) | ||
Share-based payments | (36) | (38) | ||
Total operating and administrative expenses | (1,628) | (1,306) | ||
Operating loss | (350) | (50) | ||
Finance charges | (44) | (92) | ||
Finance income | 11 | 2 | ||
Loss before taxation | (383) | (140) | ||
Taxation | 70 | 29 | ||
Loss for the year and total comprehensive income for the year attributable to shareholders | (313) | (111) | ||
Loss per share: | ||||
Basic and diluted | 2 | (0.6)p | (0.3)p | |
All amounts relate to continuing operations. | ||||
Consolidated statement of financial position
30 September 2012
| 2012 £000 | 2011 £000 |
Assets | ||
Non-current assets | ||
Goodwill | 844 | 844 |
Intangible assets | 348 | 281 |
Property, plant and equipment | 456 | 253 |
Deferred taxation | 175 | 175 |
1,823 | 1,553 | |
Current assets | ||
Trade and other receivables | 581 | 444 |
Cash and cash equivalents | 513 | 814 |
1,094 | 1,258 | |
Total assets | 2,917 | 2,811 |
Equity and liabilities | ||
Capital and reserves attributable to equity holders of the parent | ||
Share capital | 538 | 507 |
Share premium | 3,957 | 3,689 |
Merger reserve | 662 | 662 |
Retained deficit | (2,825) | (2,548) |
Total equity | 2,332 | 2,310 |
Non-current liabilities | ||
Interest-bearing loans and borrowings | 50 | 43 |
Current liabilities | ||
Interest-bearing loans and borrowings | 98 | 94 |
Trade and other payables | 437 | 364 |
535 | 458 | |
Total equity and liabilities | 2,917
| 2,811 |
Consolidated statement of changes in equity
year ended 30 September 2012
|
| ||||||
Share Capital | Share Premium | Merger Reserve | Retained Deficit | Total Equity | |||
£000 | £000 | £000 | £000 | £000 | |||
At 1 October 2010 | 357 | 2,706 | 662 | (2,475) | 1,250 | ||
Comprehensive income | |||||||
Loss for the year recognised in profit and loss | - | - | - | (111) | (111) | ||
Total comprehensive income for the year | - | - | - | (111) | (111) | ||
Shares issued in year | 150 | 1,050 | - | - | 1,200 | ||
Expenses of share issue | - | (67) | - | - | (67) | ||
Share-based payment recognised in equity | - | - | - | 38 | 38 | ||
At 1 October 2011 | 507 | 3,689 | 662 | (2,548) | 2,310 | ||
Comprehensive income | |||||||
Loss for the year recognised in profit and loss | - | - | - | (313) | (313) | ||
Total comprehensive income for the year | - | - | - | (313) | (313) | ||
Shares issued in year | 31 | 275 | - | - | 306 | ||
Expenses of share issue | (7) | (7) | |||||
Share-based payment adjustment | - | - | - | 36 | 36 | ||
At 30 September 2012 | 538 | 3,957 | 662 | (2,825) | 2,332 | ||
Consolidated statement of cash flows
year ended 30 September 2012
| 2012 £000 | 2011 £000 | |
Cash flow from operating activities | |||
Operating loss before taxation | (350) | (50) | |
Adjustments for: | |||
Depreciation and amortisation | 419 | 348 | |
Share-based payments | 36 | 38 | |
Corporation tax receipts | 70 | 29 | |
Net cash flow from operating activities before changes in working capital | 175 | 365 | |
(Increase)/decrease in trade and other receivables | (142) | 16 | |
Increase/(decrease) in trade and other payables | 78 | (128) | |
Net cash flow generated from operating activities | 111 | 253 | |
Investing activities | |||
Payments for intangible assets | (261) | (204) | |
Payments for property, plant and equipment | (428) | (165) | |
Net cash flow from investing activities | (689) | (369) | |
Financing activities | |||
Issue of ordinary shares | 306 | 1,200 | |
Expenses of issue of ordinary shares | (7) | (67) | |
Proceeds from lease-finance arrangements | 140 | 21 | |
Repayment of lease-finance arrangements | (92) | (107) | |
Repayment of bank loan | (37) | (32) | |
Interest paid | (44) | (92) | |
Interest received | 11 | 2 | |
Net cash flow from financing activities | 277 | 925 | |
Net (decrease)/increase in cash and cash equivalents in the year | (301) | 809 | |
Cash and cash equivalents at the beginning of the year | 814 | 5 | |
Cash and cash equivalents at the end of the year | 513 | 814 | |
1 Basis of preparation
Whilst the financial information included in this announcement has been prepared in accordance with International Financial Reporting Standards (IFRS), this announcement does not contain sufficient information to comply with IFRS. The Company will publish full financial statements in January 2013 that comply with IFRS.
The financial information set out in the announcement does not constitute the Company's statutory accounts for the year ended 30 September 2012 or the year ended 30 September 2011. The financial information for the year ended 30 September 2011 is extracted from the statutory accounts of Nasstar plc. The auditors, Gerald Edelman, reported on those accounts; their report was unqualified and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006.
The 2012 accounts have been prepared on a basis consistent with the accounting policies set out in the 2011 accounts.
2 Loss per share
The calculation of the basic loss per share arising is based upon the loss after tax attributable to ordinary shareholders of £313,000 (2011: loss £111,000) and a weighted average number of shares in issue for the year of 52,727,892 (2011: 40,212,676).
The diluted loss per share in 2012 and 2011 is the same as the basic loss per share as the losses have an anti-dilutive effect. | |
3 Dividends
The directors have not paid a dividend for the year.
4 Annual General Meeting
The Company's Annual General Meeting will be held on 25 January 2013 at 10.30 a.m. at the Company's registered office.