30 Sep 2010 07:00
SGM
SIGMA CAPITAL GROUP PLC
("Sigma", "the Group" or "the Company")
Unaudited half year results to 30 June 2010
KEY POINTS
·; Good progress in establishing foundations for future growth
·; Revenue from services of £0.9m (2009: 6 months £1.3m; full year £2.4m)
·; Trading loss before tax £0.4m (2009: 6 months £0.1m; full year £0.2m)
·; Loss before tax of £1.1m (2009: 6 months profit before tax £1.5m; full year profit before tax £0.9m)
·; Loss per share of 2.24p (2009: 6 months EPS of 4.77p; full year EPS of 3.68p)
·; Net assets per share as at 30 June 2010 of 17.0p (30 June 2009: 20.3p; 31 December 2009:19.3p)
·; Unencumbered cash balances as at 30 June 2010 of £2.0m (30 June 2009: £3.2m; 31 December 2009: £2.4m)
·; Maiden dividend declared of 0.2p per share
David Sigsworth, Chairman, commented:
"So far, 2010 has been a difficult year set against very uncertain economic conditions. The two key sectors we operate in, venture capital and property investment management, are currently characterised by opportunity but there are also challenges. To date in 2010, we have spent significant time and resource on moving ahead to deliver the opportunities we see whilst also managing the challenges. We feel that we have laid the foundations for greater stability and future growth."
Enquiries
| Sigma Capital Group plc | Graham Barnet, Chief Executive Marilyn Cole, Finance Director | T: 020 7448 1000 (today) T: 0131 220 9444 | |
|
|
|
| |
| Biddicks | Katie Tzouliadis/ Sophie Lane | T: 020 7448 1000 | |
|
|
|
| |
| Arbuthnot Securities | Tom Griffiths/ Neil Kirton | T: 020 7012 2000 |
|
Company website: www.sigmacapital.co.uk
CHAIRMAN'S STATEMENT
Introduction
As I reported earlier this year, 2009 was a year of consolidation and defensive measures against a difficult economic backdrop. However, our work in 2009 has allowed us to explore the development of some significant opportunities for the business during the first half of 2010. In particular, the Group has extended its commercial relationship with its largest shareholder, West Coast Capital ("WCC"), and we are working on a number of opportunities with WCC.
As part of our growth strategy, we have invested in the Group over the first half. This investment has meant that, while the venture business traded at a profit in the first half, our property business traded at a loss as a result of its focus on creating opportunity for the future rather than short term overhead recovery. This has been a strategic decision taken by the Board and should begin to bear fruit in the second half of this year, with the full benefits coming through in 2011 and beyond.
Results
Total revenue from services for the first half of the year was £0.9m (2009: £1.3m) which resulted in a trading loss before tax of £0.4m (2009: £0.1m). Loss before tax and after investment write downs was £1.1m (2009: profit before tax of £1.5m). Most of the revenue in the first half of the year has been generated by the venture capital division, with revenue from the property investment management division falling by £0.4m as the property team concentrated on prospective new projects and with modest revenue from the university IP commercialisation subsidiary, reflecting the early stage of its development. The venture capital division was profitable at a trading level but a fall in the value of its investments in the period of £0.4m plus a full provision against the commitment given to limited partners in the Sigma Technology Venture Fund of £0.3m resulted in a loss before tax for this division. The results by segment are analysed in more detail in the notes to these unaudited half year results. The Group's overheads were contained at £1.2m (2009: £1.3m).
Loss per share was 2.24p (2009: earnings per share of 4.77p; full year, earnings per share of 3.68p) and net assets per share at 30 June 2010 were 17.0p (30 June 2009: 20.3p; 31 December 2009: 19.3p). Unencumbered cash balances at 30 June 2010 stood at £2.0m (30 June 2009: £3.2m; 31 December 2009: £2.4m) representing 4.3p per share (30 June 2009: 6.9p per share; 31 December 2009: 5.1p per share). Of the reduction in the Group's cash balances of £1.2m over the past 12 months, £0.6m is due to the purchase of the minority interest in the property division, a corporation tax payment and the maiden dividend, with the balance of £0.6m arising from the purchase of investments and trading losses.
Operational Review
The Group's activities fall into three areas: venture capital fund management, property investment management and university IP commercialisation.
Venture Capital Fund Management
The venture capital division completed two follow-on investments and made one new investment through our Sigma Sustainable Energy Fund II during the period which takes the portfolio to twenty companies. After a challenging 2009, a number of the portfolio companies have returned to their previous levels of growth and if this trend continues, it may lead to write ups in future periods. There have, however, been a few portfolio companies that have struggled, which has been recognised with some investment value impairment. There have also been several approaches from potential acquirers for a number of our portfolio companies and we continue to review possible transactions. In addition, two portfolio companies received investment from outside investors.
The team is currently working on several projects to extend the business model of this division as well as actively managing our historic funds through to exits. As Sigma is a limited partner in all of its funds this should, in time, have a positive impact on our cash flow as realisations are made. The venture capital division was profitable at a trading level in the first half (after a 50 per cent. allocation for central costs).
Property Investment Management
In light of the changing environment for private equity-led investment vehicles in the property market and a change in our approach to a more active asset management role, there were several key changes in this division in the first half. The property management arm has been re-branded as 'Sigma Property Investment Management Limited' ("SPIM"), reflecting the fact that it is now a wholly owned subsidiary of the Group and a core activity. In addition, we have strengthened the team since the start of the new financial year, with the appointment of Peter Young and Gwynn Thomson as operational directors of SPIM. Peter is a qualified Chartered Surveyor with nearly 20 years' experience in the commercial property market. Before joining Sigma he was Property Director with The Joint Properties Ltd, a private company with a substantial portfolio of commercial and residential properties. Prior to that, Peter worked with leading property consultancy firms, Savills and Montagu Evans. Gwynn is a qualified Chartered Surveyor who has 19 years' experience in the commercial property market. Prior to joining Sigma, he was a Director of international property consultants, DTZ, where he headed up its Edinburgh investment team. He has also worked for Colliers International and Ryden. The focus of his experience is in commercial property investment, development and valuation. This strengthening of the team has enabled us to support our work with WCC and to develop new opportunities for this division.
We have taken steps to improve the financial stability of each of the four property funds. We are having ongoing discussions with Bank of Scotland, the debt provider to SI Limited Partnership No 4 and SI Limited Partnership No 6 to restructure the financing as a consequence of covenant breaches. The Group has a guarantee of £1.25m to Bank of Scotland in support of this latter partnership as a result of the administration of the original provider and vendor. It should be noted that this guarantee amount is not included in our unencumbered cash figure. While none of this guarantee has been called upon, we assume that, during the course of the balance of the lending on this asset up to 2012, there will be a part call at least. Any sums drawn under the guarantee would become a debt held by the partnership and due to the Group and would be recoverable when the asset is sold if the net proceeds are in excess of the exposure to the Bank and the amount of the drawn guarantee. Until discussions with the Bank are concluded, we will not be making any provision against this amount. We continue to monitor this situation very carefully as we do not have committed debt terms on this asset as a result of covenant breaches. This remains the Group's only negative exposure to the properties under its management.
Similarly, we are in discussions with Nationwide Building Society on the debt finance for SI Limited Partnership No 5 and are also working closely with this partnership's tenant on initiatives to support the tenant through the difficult economic climate.
In relation to SI Limited Partnership No 7, the developer, Kenmore Property Group, collapsed prior to the development works being completed. Following this, it was agreed with the Bank of Ireland that the partnership would step into the developer's role and negotiate a completion contract with Miller Construction UK. The contract was signed in July of this year. The works are due to complete in October 2010 and this will bring on stream the pre-let income from NCP Car Parks and Accor Group. We are currently in discussions with a potential tenant, which is a blue chip oil and gas company, regarding approximately 40 per cent. of the office accommodation. There is also interest from other potential occupiers for the remainder of the office accommodation. We are also in early discussions with a leisure operator regarding a large proportion of the rest of the leisure accommodation available within the scheme. Sigma owns 19.3 per cent. of this partnership, which was written down to nil in last year's accounts. With the ongoing work by our team to continue to restore value, assuming we retain the support of this partnership's bank, Bank of Ireland, we would expect to see a return of value in Sigma's holding in the future.
The property division traded at loss during the period (after a 50 per cent. allocation for central costs). This reflected lower transaction income compared to the first half of 2009 as well as increased costs, both resulting from our decision to focus primarily on the work we have in progress with WCC. We anticipate an expansion of our activities in this division arising from our work with WCC and the other initiatives that the team is working on. We would therefore expect this division's performance to improve in the second half and particularly in 2011.
University IP Commercialisation
Our university IP commercialisation activities are carried out through our subsidiary Frontier IP Group Plc ("Frontier") which has a separate listing on PLUS. Frontier traded at a loss in the first half of 2010 as expected, given its early stage of development. However, we are pleased with the progress Frontier is making. Frontier's portfolio from its existing university partnerships is expanding and Frontier is also in active discussions with a number of institutions with a view to adding new university partnerships. In addition to its two established dedicated university venture funds, it is also looking to expand these funds and is exploring the potential for further IP commercialisation funds. In positioning for its future growth, Frontier has strengthened its team with the announcement today of two new board members.
Frontier is also announcing today its maiden set of full year figures for the financial year to 30 June 2010 and provides more detail of its progress in this announcement. Sigma's aim in due course is to become a significant minority shareholder in Frontier as Frontier continues to build value and its independence from the Group.
Outlook
The general economy has continued to present challenges in 2010 and both Sigma and the underlying assets it manages have not been immune to such effects. We have seen a return to growth in some of our venture investments but also some difficulties with others which we have recognised with some write downs in value. On the property partnerships which we manage, we continue to work with the lenders to those assets to ensure their stability whilst seeking to develop other revenue streams for the property investment management division. Against this difficult backdrop, we have maintained a strong balance sheet and good cash. In trading terms, I expect the second half of 2010 to be better than the first half and if we are successful with some of the work in progress which we are engaged in, 2011 should show real progress.
David Sigsworth
Chairman
29 September 2010
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2010
|
|
Notes |
Six months ended 30 June 2010 (unaudited) £'000 | Restated Six months ended 30 June 2009 (unaudited) £'000 |
Year ended 31 December 2009 (audited) £'000 |
| Revenue |
|
|
|
|
| Revenue from services | 4 | 867 | 1,342 | 2,414 |
| Other operating income |
|
|
|
|
| Profit/(loss) on disposal of equity investments Unrealised losses on the revaluation of investments |
5 | - (713) | 3,575 (1,922) | 3,575 (2,449) |
| Total revenue |
| 154 | 2,995 | 3,540 |
| Cost of sales |
| (65) | (201) | (367) |
| Gross profit |
| 89 | 2,794 | 3,173 |
| Administrative expenses |
| (1,207) | (1, 256) | (2,283) |
| (Loss)/profit from operations |
| (1,118) | 1,538 | 890 |
| Finance income net of finance costs |
| 18 | (9) | 14 |
| (Loss)/profit before tax |
| (1,100) | 1,529 | 904 |
| Taxation | 6 | - | - | 69 |
| (Loss)/profit/total comprehensive (expense)/income after tax and for the period |
|
(1,100) |
1,529 |
973 |
|
|
|
|
|
|
| Total comprehensive (expense)/income attributable to: |
|
|
|
|
| Equity holders of the Company |
| (1,048) | 2,233 | 1,719 |
| Minority interests |
| (52) | (704) | (746) |
|
|
| (1,100) | 1,529 | 973 |
|
|
|
|
|
|
| (Loss)/earnings per share attributable to the equity holders of the Company: |
|
|
|
|
| Basic (loss)/earnings per share | 7 | (2.24) | 4.77 | 3.68 |
| Diluted (loss)/earnings per share | 7 | (2.24) | 4.77 | 3.67 |
All of the Group activities are classed as continuing and there were no comprehensive gains or losses in any period other than those included in the statement of comprehensive income.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2010
|
|
|
As at 30 June 2010 (unaudited) £'000 | Restated As at 30 June 2009 (unaudited) £'000 |
As at 31 December 2009 (audited) £'000 |
| ASSETS |
|
|
|
|
| Non-current assets |
|
|
|
|
| Goodwill |
| 3,846 | 3,723 | 3,846 |
| Property and equipment |
| 20 | 53 | 35 |
| Financial assets at fair value through profit and loss |
| 1,661 | 1, 608 | 1,958 |
| Deferred tax asset |
| 10 | 10 | 10 |
| Long term loan |
| 44 | - | 44 |
| Non-current cash |
| 1,250 | 1,250 | 1,250 |
|
|
| 6,831 | 6,644 | 7,143 |
| Current assets Trade receivables Other current assets Trading investments Short term loan Cash and cash equivalents |
|
376 282 31 94 2,016 |
504 1,159 29 125 3,225 |
528 174 48 125 2,362 |
|
|
| 2,799 | 5,042 | 3,237 |
| Total assets |
| 9,630 | 11,686 | 10,380 |
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
| Current liabilities |
|
|
|
|
| Loan stock |
| - | 46 | - |
| Trade and other payable |
| 1,173 | 1,150 | 769 |
| Current tax payable |
| - | 230 | - |
| Total liabilities |
| 1,173 | 1,426 | 769 |
|
|
|
|
|
|
|
Net assets |
|
8,457 |
10,260 |
9,611 |
|
|
|
|
|
|
| EQUITY |
|
|
|
|
| Equity attributable to owners of the parent Called up share capital Share premium account Merger reserve Share based payment reserve Capital reserve Retained earnings |
|
468 4,196 (249) 144 (7) 3,378 |
468 4,196 (249) 126 (7) 4,979 |
468 4,196 (249) 137 (7) 4,487 |
|
|
| 7,930 | 9,513 | 9,032 |
| Non-controlling interests |
| 527 | 747 | 579 |
|
|
|
|
|
|
|
Total equity |
|
8, 457 |
10,260 |
9,611 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2010
|
|
Share capital |
Share premium account |
Merger reserve |
Capital reserve | Share- based payment reserve | Restated Profit and loss account | Total equity attributable to owners of the parent |
|
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
| At 1 January 2009 | 468 | 18,196 | (249) | (7) | 114 | (11,254) | 7,268 |
| Capital reconstruction | - | (14,000) | - | - | - | 14,000 | - |
| Profit for the period | - | - | - | - | - | 2,280 | 2,280 |
| Change in accounting policy |
|
|
|
|
|
(47) |
(47) |
| Share-based payments | - | - | - | - | 12 | - | 12 |
| At 30 June 2009 | 468 | 4,196 | (249) | (7) | 126 | 4,979 | 9,513 |
| Loss for the period | - | - | - | - | - | (514) | (514) |
| Share-based payments | - | - | - | - | 11 | 22 | 33 |
| At 31 December 2009 | 468 | 4,196 | (249) | (7) | 137 | 4,487 | 9,032 |
| Dividends | - | - | - | - | - | (94) | (94) |
| Loss for the period | - | - | - | - | - | (1,048) | (1,048) |
| Share-based payments | - | - | - | - | 7 | 33 | 40 |
| At 30 June 2010 | 468 | 4,196 | (249) | (7) | 144 | 3,378 | 7,930 |
|
| Total equity attributable to owners of the parent |
Non-controlling interests |
Total equity |
|
| £'000 | £'000 | £'000 |
| At 1 January 2009 | 7,268 | 840 | 8,108 |
| Profit/(loss) for the period | 2,280 | (704) | 1,576 |
| Change in accounting policy | (47) | - | (47) |
| Share-based payments | 12 | - | 12 |
| Acquisition of Frontier IP Group Plc | - | 611 | 611 |
| At 30 June 2009 | 9,513 | 747 | 10,260 |
| Loss for the period | (514) | (42) | (556) |
| Share-based payments | 33 | - | 33 |
| Acquisition of remaining minority interest in subsidiary | - | (126) | (126) |
| At 31 December 2009 | 9,032 | 579 | 9,611 |
| Dividends | (94) | - | (94) |
| Loss for the period | (1,048) | (52) | (1,100) |
| Share-based payments | 40 | - | 40 |
| At 30 June 2010 | 7,930 | 527 | 8, 457 |
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2010
|
|
Notes | Six months ended 30 June 2010 (unaudited) £'000 | Six months ended 30 June 2009 (unaudited) £'000 | Year ended 31 December 2009 (audited) £'000 |
|
|
|
|
|
|
| Cash flows from operating activities |
|
|
|
|
| Cash (used in)/generated from operations | 8 | (205) | (204) | 1,764 |
| Interest paid |
| - | (1) | (23) |
| Tax paid |
| - | (150) | (311) |
| Net cash (used in)/generated from operating activities |
|
(205) |
(355) |
1,430 |
|
|
|
|
|
|
| Cash flows from investing activities |
|
|
|
|
| Net cash inflow on acquisition of Frontier IP Group Plc Purchase of shares and loan stock in subsidiaries |
| - - | 628 - | 628 (300) |
| Purchase of property and equipment |
| (2) | (12) | (13) |
| Purchase of financial assets at fair value through profit and loss |
|
(170) |
(63) |
(2,428) |
| Disposal of financial assets at fair value through profit and loss |
|
79 |
72 |
72 |
| Short term loan |
| 31 | 394 | 394 |
| Interest received |
| 15 | 14 | 32 |
| Net cash (used in)/generated from investing activities |
|
(47) |
1,033 |
(1,615) |
|
|
|
|
|
|
| Cash flows from financing activities |
|
|
|
|
| Dividend paid |
| (94) | - | - |
| Net cash used in financing activities |
| (94) | - | - |
|
|
|
|
|
|
| Net (decrease)/increase in cash and cash equivalents |
|
(346) |
678 |
(185) |
| Cash and cash equivalents at beginning of period |
| 3,612 | 3,797 | 3,797 |
|
|
|
|
|
|
| Cash and cash equivalents at end of period |
| 3,266 | 4,475 | 3,612 |
NOTES
1. General information
The Company is a limited liability company incorporated in England and with its registered office at NorthWest Wing, Bush House, Aldwych, London WC2B 4EZ. The Company's trading office is situated at 41 Charlotte Square, Edinburgh EH2 4HQ.
The Company is quoted on AIM.
This condensed consolidated interim financial information was approved and authorised for issue by a duly appointed and authorised committee of the Board of Directors on 28 September 2010.
This condensed consolidated interim financial information has not been audited or reviewed by the Company's auditor.
2. Basis of presentation
This condensed consolidated interim financial information for the six months ended 30 June 2010 has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting". The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2009, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU.
This condensed consolidated interim financial information does not constitute statutory accounts within the meaning of s434 of the Companies Act 2006. The comparatives for the full year ended 31 December 2009 are not the Company's full statutory accounts for that year. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain a statement under sections 498(2) or 498(3) of the Companies Act 2006.
3. Accounting policies
The accounting policies applied by the Group in these unaudited half year results are consistent with those applied in the annual financial statements for the year ended 31 December 2009 as described in the Group's Annual Report for that year and as available on our website www.sigmacapital.co.uk. No new standards that have become effective in the period have had a material effect on the Group's financial statements.
The goodwill that arose on the acquisition of the holding in Frontier IP Group Plc has been tested for impairment in line with the Group's accounting policy and, as a result, at 30 June 2010 it is considered that there has been no impairment. The recoverable amount of Frontier was estimated using discounted cash flow techniques based on assumptions as to the forward cash generation of Frontier. Due to the short trading history of Frontier, these assumptions are subjective and will be kept under review and revised as Frontier progresses.
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.
4. Segmental information
The chief operating decision-maker has been identified as the Group board of directors. The board reviews the Group's internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on these reports. All of the Group's activities are carried out in the UK.
The board of directors assesses the performance of the operating segments based on turnover, trading profit and operating profit.
|
| Venture Capital |
Property | Frontier IP | Intra Group adjustments |
Total |
|
| £'000 | £'000 | £'000 | £'000 | £'000 |
| Six months ended 30 June 2010 |
|
|
|
|
|
| Revenue from services | 715 | 124 | 53 | (25) | 867 |
| Trading profit/(loss) | 12 | (233) | (184) | - | (405) |
| Unrealised loss on the revaluation of investments |
(668) |
- |
(45) |
- |
(713) |
| Loss from operations | (656) | (233) | (229) | - | (1,118) |
| Finance income | 34 | 2 | - | (18) | 18 |
| Finance costs | - | (18) | - | 18 | - |
| Loss before tax | (622) | (249) | (229) | - | (1,100) |
|
|
|
|
|
|
|
| Six months ended 30 June 2009 |
|
|
|
|
|
| Revenue from services | 823 | 567 | 8 | (56) | 1,342 |
| Trading (loss)/profit | (126) | 52 | (43) | 2 | (115) |
| Profit on disposal of equity investments |
3,575 |
- |
- |
- |
3,575 |
| Unrealised (loss)/profit on the revaluation of investments |
(134) |
(1,818) |
30 |
- |
(1,922) |
| Restated profit/(loss) from operations |
3,315 |
(1,766) |
(13) |
2 |
1,538 |
| Finance income | 80 | 4 | - | (70) | 14 |
| Finance costs | (1) | (85) | - | 63 | (23) |
| Profit/(loss) before tax | 3,394 | (1,847) | (13) | (5) | 1,529 |
|
|
|
|
|
|
|
| Year ended 31 December 2009 |
|
|
|
|
|
| Revenue from services | 1,744 | 775 | 97 | (202) | 2,414 |
| Trading profit/(loss) | 118 | (187) | (171) | 4 | (236) |
| Unrealised profit on the revaluation of investments |
3,575 |
- |
- |
- |
3,575 |
| Unrealised profit/(loss) on the revaluation of investments |
128 |
(2,604) |
27 |
- |
(2,449) |
| Profit/(loss) from operations | 3,821 | (2,791) | (144) | 4 | 890 |
| Finance income | 165 | 5 | 2 | (152) | 20 |
| Finance costs | (1) | (153) | - | 148 | (6) |
| Profit/(loss) before tax | 3,985 | (2,939) | (142) | - | 904 |
|
|
|
|
|
|
|
| Total net assets |
|
|
|
|
|
| Six months ended 30 June 2010 | 9,403 | (842) | 2,394 | (2,498) | 8,457 |
| Six months ended 30 June 2009 restated |
5,440 |
380 |
2,686 |
1,754 |
10,260 |
| Year ended 31 December 2009 | 10,163 | (642) | 2,591 | (2,501) | 9,611 |
5. Unrealised losses on the revaluation of investments
The total fair value adjustments made against investments during the period, both financial assets at fair value through profit and loss and trading investments, is set out below.
|
| Six months ended 30 June 2010 (unaudited) £'000 | Six months ended 30 June 2009 (unaudited) £'000 | Year ended 31 December 2009 (audited) £'000 |
| Financial assets at fair value through profit and loss: |
|
|
|
| - Venture capital assets | (343) | (121) | 80 |
| - Property assets | - | (1,818) | (2,604) |
| - Frontier IP assets | (45) | 30 | 27 |
| Loans repayable in more than one year | - | - | 42 |
| Trading investments | (17) | (13) | 6 |
| Provision against commitment to Venture Fund limited partners |
(308) |
- |
- |
|
| (713) | (1,922) | (2,449) |
6. Taxation
The taxation expense is recognised based on management's best estimate of the weighted average annual tax rate expected for the full financial year. Management expects that there will be no taxation expense for the year due to the losses arising. In the prior period the tax credit arose from the losses arising in the property division.
7. Loss per share
The basic loss per share is calculated by dividing the losses attributable to the equity holders of the Company, Sigma Capital Group plc, for the six months ended 30 June 2010 of £(1,048,000) (2009: six months profit £2,233,000; full year profit £1,719,000) by the weighted average number of ordinary shares in issue during the six months ended 30 June 2010 of 46,772,435 (2009: six months 46,772,435; full year 46,772,435).
Diluted (loss)/earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue on the assumption of conversion of all dilutive potential ordinary shares. The Company has only one category of dilutive ordinary shares, those share options granted where the exercise price is less than the average price of the Company's shares during the period. Diluted (loss)/earnings per share is calculated by dividing the same loss and profit figures attributable to equity holders of the Company as above by the adjusted number of ordinary shares in issue during the six months ended 30 June 2010 of 46,934,699 (2009: six months 46,774,936; full year 46, 893,695). For the six months ended 30 June 2010, as the calculation for dilutive loss per share reduces the net loss per share, the diluted loss per share shown is the same as the basic loss per share.
8. Cash used in operations
|
|
Six months ended 30 June 2010 (unaudited) £'000 | Restated Six months ended 30 June 2009 (unaudited) £'000 |
Year ended 31 December 2009 (audited) £'000 |
| (Loss)/profit before tax | (1,100) | 1,529 | 904 |
| Adjustments for: |
|
|
|
| Share-based payments | 40 | 12 | 45 |
| Depreciation | 17 | 19 | 39 |
| Net finance cost/(income) | (18) | 9 | (14) |
| Profit on disposal of subsidiary | - | (3,575) | (3,575) |
| Changes in working capital: |
|
|
|
| Trade and other receivables | 47 | (75) | 2,337 |
| Other financial assets at fair value through profit or loss |
405 |
1,922 |
2,491 |
| Trade and other payables | 404 | (45) | (463) |
|
| (205) | (204) | 1,764 |
9. Copies of the interim financial statements
Copies of the Half Yearly Report 2010 will be sent to shareholders and copies will be available on request from the Company's office at 41 Charlotte Square, Edinburgh EH2 4HQ no later than 29 October 2010 and on the Company's website, www.sigmacapital.co.uk.