17 Dec 2013 07:00
17 December 2013
Nasstar plc
("Nasstar" or the "Company")
Second Interim results for the six months ended 30 September 2013
Nasstar plc ("Nasstar" or the "Company"), which provides Hosted Desktop cloud computing, announces its second interim results for the six months ended 30 September 2013. These second interim results are published in connection with the announcement today of the conditional acquisition of Denara Holdings Limited ("Denara") and the related proposal to change Nasstar's year end to 31 December in line with that of Denara.
Key highlights for the period:
· 14% rise in live Hosted Desktop subscribers since 31 March 2013, to over 2,400
· 33% increase in live Hosted Desktop subscribers since October 2012
· Turnover for the period of £1m (6 months to 31 March 2013: £1m)
· EBITDA* loss for the period of £241,000 (6 months to 31 March 2013: £190,000)
*Earnings before interest, taxation, depreciation, amortisation and share-based payments
Chairman's statement
The Board's key objective for the year has been to accelerate growth of the Company's key Hosted Desktop product. Since the start of the current financial year the number of live users of Hosted Desktop has risen by 33% to over 2,400.
The Hosted Desktop subscriber additions come against the loss of a substantial number of users as a result of the end of our fixed term contract with Allied Healthcare in September last year, as previously announced.
Following the receipt of additional equity investment of £880,000 (before expenses) in December 2012 we were able to undertake further investment in our Hosted Desktop architecture and hardware in anticipation of sales growth.
Outlook
The sales achieved during the period give the Directors confidence that the market for cloud services is continuing to grow and that Nasstar is well positioned for the future.
Lord Daresbury (Peter)
Chairman
Contacts:
Nasstar plc | |
Charles Black, Chief Executive Officer
| 020 7148 5000 |
finnCap Limited, Nominated Adviser and Broker | |
Julian Blunt, Corporate Finance Director | 020 7220 0500
|
Gresham PR Limited 07866 805108
Neil Boom
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. Hosted Desktop is a highly scalable service that provides benefits including anywhere access to computing, a standardised corporate desktop solution that can be accessed globally and in multiple languages and cost savings when compared to the traditional IT ownership model, replacing capital expenditure with a simple usage based payment model.
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 30 September 2013
Note | Six months to 30 September 2013 Unaudited £000
| Six months to 31 March 2013 Unaudited £000 | Year to 30 September 2012Audited £000 | |||
Revenue | 1,017 | 980 | 2,391 | |||
Cost of sales | (621) | (629) | (1,113) | |||
Gross profit | 396 | 351 | 1,278 | |||
Operating and administrative expenses | (924)
| (805) | (1,592) | |||
Impairment of goodwill | 5 | - | (844) | - | ||
Share-based payments | (14) | (9) | (36) | |||
Total operating and administrative expenses | (938) | (1,658) | (1,628) | |||
Operating loss | (542) | (1,307) | (350) | |||
Finance expense | (34) | (26) | (44) | |||
Finance income | 3 | 7 | 11 | |||
Loss before taxation | (573) | (1,326) | (383) | |||
Taxation | - | (174) | 70 | |||
Loss for the period/year attributable to shareholders | (573) | (1,500) | (313) | |||
Loss per share: | ||||||
Basic and diluted | 6 | (1.0)p | (2.7)p | (0.6)p | ||
Nasstar plc
Statement of financial position
as at 30 September 2013
| 30 September 2013 Unaudited £000
| 31 March 2013 Unaudited £000 | 30 September 2012 Audited£000 | |||
Assets | ||||||
Non-current assets | ||||||
Goodwill | - | - | 844 | |||
Intangible assets | 308 | 346 | 348 | |||
Plant and equipment | 569 | 663 | 456 | |||
Deferred taxation | - | - | 175 | |||
877 | 1,009 | 1,823 | ||||
Current assets | ||||||
Trade and other receivables | 395 | 425 | 581 | |||
Cash and cash equivalents | 560 | 880 | 513 | |||
955 | 1,305 | 1,094 | ||||
Total assets | 1,832 | 2,314 | 2,917 | |||
Equity and liabilities | ||||||
Capital and reserves attributable to equity holders | ||||||
Share capital | 619 | 618 | 538 | |||
Share premium | 4,723 | 4,717 | 3,957 | |||
Merger reserve | 662 | 662 | 662 | |||
Retained deficit | (4,875) | (4,316) | (2,825) | |||
Total equity | 1,129 | 1,681 | 2,332 | |||
Non-current liabilities | ||||||
Interest-bearing loans and borrowings | 46 | 141 | 50 | |||
Current liabilities | ||||||
Interest-bearing loans and borrowings | 206 | 169 | 98 | |||
Trade and other payables | 451 | 323 | 437 | |||
657 | 492 | 535 | ||||
Total liabilities | 703 | 633 | 585 | |||
Total equity and liabilities | 1,832 | 2,314 | 2,917 | |||
Nasstar plc
Statement of cash flows
for the six months ended 30 September 2013
Six months to 30 September 2013
Unaudited £000 | Six months to 31 March 2013 Unaudited £000 | Year to 30 September 2012Audited £000 | |||
Cash flow from operating activities | |||||
Operating loss | (542) | (1,307) | (350) | ||
Adjustments for: | |||||
Depreciation and amortisation | 287 | 1,110 | 419 | ||
Share-based payments | 14 | 9 | 36 | ||
Corporation tax receipts | - | 71 | 70 | ||
Net cash flow from operating activities before changes in working capital | (241) | (117) | 175 | ||
Decrease/(increase) in trade and other receivables | 30 | 86 | (142) | ||
Increase/decrease in trade and other payables | 128 | (114) | 78 | ||
Net cash flow from operating activities | (83) | (145) | 111 | ||
Investing activities | |||||
Payments for intangible assets | (78) | (110) | (261) | ||
Payments for property, plant and equipment | (77) | (361) | (428) | ||
Net cash flow from investing activities | (155) | (471) | (689) | ||
Financing activities | |||||
Issue of ordinary share capital | 6 | 880 | 306 | ||
Expenses of issue of ordinary shares | - | (40) | (7) | ||
Proceeds from lease-finance arrangements | 21 | 253 | 140 | ||
Repayment of lease-finance arrangements | (78) | (73) | (92) | ||
Repayment of bank loan | - | (18) | (37) | ||
Interest paid | (34) | (26) | (44) | ||
Interest received | 3 | 7 | 11 | ||
Net cash flow from financing activities | (82) | 983 | 277 | ||
Net increase/(decrease) in cash and cash equivalents in the period | (320) | 367 | (301) | ||
Cash and cash equivalents at the beginning of the period | 880 | 513 | 814 | ||
Cash and cash equivalents at the end of the period | 560 | 880 | 513 | ||
NOTES TO THE INTERIM REPORT
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 subsidiary ("the Group") for the six months ended 30 September 2013 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 both of the interim condensed sets of financial statements as applied in the Group's latest audited financial statements for the year ended 30 September 2012. While the financial figures included within this half-yearly report have been computed in accordance with IFRSs applicable to interim periods, this half-yearly report does not contain sufficient information to constitute an interim financial report as set out in IAS34. | ||||||
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 2012. 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 2012 have been delivered to the Registrar of Companies. | ||||||
The comparative figures presented are for the six months ended 31 March 2013 and the year ended 30 September 2012. | ||||||
3 | Total comprehensive income | |||||
There are no additional items of income and expense which are not included within the statement of comprehensive income. | ||||||
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. | ||||||
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. | ||||||
5 | Impairment of goodwill | |||||
The amount attributed to goodwill was fully impaired at 31 March 2013. | ||||||
6 | Loss per share | |||||
The calculation of the basic loss per share for the six months ended 30 September 2013 is based upon the following: | ||||||
Six months to 30 September 2013 Unaudited
| Six months to 31 March 2013 Unaudited | Year to 30 September 2012Audited
| ||||
Weighted average number of shares in issue | 60,160,875 | 54,910,738 | 52,727,892 | |||
Loss attributable to shareholders of the parent | £573,000 | £1,500,000 | £313,000 | |||
Loss per 1p ordinary share | (1.0)p | (2.7)p | (0.6)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. | ||||||
7 | Dividend | |||||
No dividend has been paid or proposed in the period. | ||||||