Last checked at 10 Dec 2014 07:00
10 December 2014
Daily Internet plc
("Daily Internet" or "the Group" or "the Company")
Unaudited Interim Results for the six months ended 30 September 2014
Daily Internet plc (AIM: DAIP), the hosting and cloud infrastructure provider, is pleased to announce its unaudited interim results for the six months ended 30 September 2014.
Financial Highlights
· Revenue growth of 123% to £1.79m (H1 2013: £802k)
· Maiden adjusted* operating profit of £256k (H1 2013: loss £289k)
· Cash at bank at period end up 3% to £271k (H1 2013: 263k)
· Statutory loss after tax reduced 80% to £79k (H1 2013: £401k)
· Loss per share reduced 93% to 0.02p. (H1 2013: 0.3p)
(*Operating profit, before depreciation, amortisation, acquisition and integration costs, fair value adjustment and share based payments)
Operational Highlights
· Acquisition of Evohosting Limited for £435k - adding further critical mass to SME division
· New high calibre management team appointments in Netplan
· Netplan launch VMware Cloud platforms in two New York Datacentres
· 'Daily' branded business restructured and contributed earnings before interest, tax, depreciation and amortisation ("EBITDA") profit of £97k (H1 2013: loss £130k)
· All brands now EBITDA positive
For further information please contact:
Daily Internet plc Abby Hardoon, CEO Michael Edelson, Chairman | +44 (0)161 393 6800 |
Sanlam Securities UK Limited (Nominated Adviser and Joint Broker) Simon Clements / Max Bascombe | +44 (0)20 7628 2200 |
Loeb Aron & Company Limited (Joint Broker) Dr Frank Lucas / Peter Freeman | +44 (0)20 7628 1128 |
Walbrook PR Limited Bob Huxford / Guy McDougall / Sam Allen | +44 (0)20 7933 8780 |
Chairman's Statement
Daily Internet continues to evolve as a business. We are very pleased to report our maiden EBITDA profit. However, we regrettably report that there were some management team issues which adversely affected Netplan's trading performance in the last few months of the period and as such we expect the group as a whole to be slightly behind management's expectations for the full year. I am pleased to report that we have since resolved these issues by replacing the individuals concerned with a stronger team.
We have additional changes which we hope to announce to the market in due course which will further and considerably strengthen our business offering. We expect these changes to significantly bolster us in achieving the transformation we desire - to become a Cloud SaaS provider capable of taking on much larger clients and contracts.
During the period we acquired Evohosting Limited for a cash consideration of £435k which was favourably supported through a share placing with our existing institutional investors. Evohosting has performed slightly better than we had expected and is now fully integrated into the Group.
Our Cloud capabilities continue to advance in Netplan with increases in network capacity and footprint. We successfully installed Cloud platforms in two New York datacentres, at the request of our clients, and we have plans to extend our Cloud platform to other countries to further meet the needs of our clients.
With our increased capabilities and the ongoing transformational changes we look forward with confidence.
Michael Edelson
Chairman
9 December 2014
Consolidated Statement of Comprehensive Income for the six months ended 30 September 2014
Unaudited | Unaudited | Audited | ||
six months | six months | year | ||
to | to | to | ||
30 Sep 2014 | 30 Sep 2013 | 31 Mar 2014 | ||
Notes | £,000 | £,000 | £,000 | |
Revenue | 1,785 | 802 | 2,331 | |
Cost of sales | (693) | (425) | (1,045) | |
Gross profit | 1,092 | 377 | 1,286 | |
Operating expenses before depreciation, amortisation, acquisition and integration costs, fair value adjustment and share based payments | 836 | 666 | 1,331 | |
Operating profit (loss), before depreciation, amortisation,acquisition and integration costs, fair value adjustment and share based payments | 256 | (289) | (45) | |
Depreciation | 119 | 52 | 166 | |
Amortisation of intangibles | 122 | - | 82 | |
Acquisition and integration costs | 102 | - | 276 | |
Fair value adjustment | 3 | - | (21) | |
Share based payments | (18) | - | 33 | |
Administrative expenses | (1,164) | (718) | (1,867) | |
Loss from operations | (72) | (341) | (581) | |
Investment income | - | - | - | |
Finance costs | (31) | (60) | (95) | |
Loss before taxation | (103) | (401) | (676) | |
Taxation | 24 | - | - | |
Total comprehensive loss attributable to the equity holders of the company | (79) | (401) | (676) | |
Basic and fully diluted loss per share | 2 | (£0.0002) | (£0.003) | (£0.003) |
The Group's results are derived from continuing operations. | ||||
Consolidated Statement of Financial Position as at 30 September 2014
Unaudited | Unaudited | Audited | ||
30 Sep 2014 | 30 Sep 2013 | 31 Mar 2014 | ||
£,000 | £,000 | £,000 | ||
Assets | ||||
Non-current assets | ||||
Goodwill | 2,794 | 392 | 2,576 | |
Intangible assets | 1,710 | - | 1,465 | |
Plant, property and equipment | 572 | 278 | 482 | |
5,076 | 670 | 4,523 | ||
Current assets | ||||
Trade and other receivables | 369 | 42 | 344 | |
Cash and cash equivalents | 271 | 263 | 999 | |
640 | 305 | 1,343 | ||
Total Assets | 5,716 | 975 | 5,866 | |
Equity and Liabilities | ||||
Equity attributable to the equity shareholders of the parent | ||||
Called up share capital | 2,246 | 595 | 2,038 | |
Share premium reserve | 6,782 | 3,438 | 6,185 | |
Share based payment reserve | 188 | 173 | 206 | |
Retained losses | (5,415) | (5,061) | (5,336) | |
3,801 | (855) | 3,093 | ||
Non-current liabilities | ||||
Obligations under finance leases | 154 | 82 | 100 | |
Convertible loan notes | 101 | 269 | 101 | |
Deferred taxation | 357 | - | 308 | |
Other loans | - | 605 | - | |
612 | 956 | 509 | ||
Current liabilities | ||||
Trade and other payables | 1,056 | 791 | 1,021 | |
Contingent consideration due on acquisitions | - | - | 933 | |
Convertible loan notes | 163 | - | 163 | |
Obligations under finance leases | 84 | 83 | 147 | |
1,303 | 874 | 2,264 | ||
Total Equity and Liabilities | 5,716 | 975 | 5,866 | |
Consolidated Statement of Changes in Equity for the six months ended 30 September 2014
Attributable to equity holders of the parent | ||||||
Share capital | Share premium account | Other reserve | Accumulatedlosses | Total | ||
£,000 | £,000 | £,000 | £,000 | £,000 | ||
At 1 April 2013 | 595 | 3,438 | 173 | (4,660) | (454) | |
Loss and total comprehensive income for the year | - | - | - | (401) | (401) | |
At 30 September 2013 | 595 | 3,438 | 173 | (5,061) | (855) | |
Loss and total comprehensive income for the period | - | - | - | (275) | (275) | |
Issue of share capital | 1,443 | 2,944 | - | - | 4,387 | |
Expenses of share issue | - | (197) | - | - | (197) | |
Movement in share option reserve | - | - | 33 | - | 33 | |
At 31 March 2014 | 2,038 | 6,185 | 206 | (5,336) | 3,093 | |
Loss and total comprehensive income for the period | - | - | - | (79) | (79) | |
Issue of share capital | 208 | 623 | - | - | 831 | |
Expenses of share issue | - | (26) | - | - | (26) | |
Movement in share option reserve | - | - | (18) | - | (18) | |
At 30 September 2014 | 2,246 | 6,782 | 188 | (5,415) | 3,801 | |
The following describes the nature and purpose of each reserve within equity: | ||||||
Reserve | Description and purpose | |||||
Share Premium | Amount subscribed for share capital in excess of nominal values. | |||||
Other Reserve | Amount reserved for share based payments to be released over the life of the instruments. | |||||
Accumulated losses | All other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere.
| |||||
Consolidated Statement of Cash Flows for the six months ended 30 September 2014
Unaudited | Unaudited | Audited | ||
six months | six months | year | ||
to | to | to | ||
30 Sep 2014 | 30 Sep 2013 | 31 Mar 2014 | ||
£,000 | £,000 | £,000 | ||
Cash flows used in operating activities | ||||
Loss after tax | (79) | (401) | (676) | |
Adjustments for: | ||||
Depreciation and other amortisation | 241 | 52 | 248 | |
Fair value adjustment on contingent consideration | 3 | - | (21) | |
Finance costs | 31 | 60 | 95 | |
Acquisition and integration costs | 102 | - | 276 | |
Share based payments | (18) | - | 33 | |
Operating cash flows before movement in working capital | 280 | (289) | (45) | |
Decrease/(increase) in trade and other receivables | (14) | 7 | 160 | |
(Decrease)/increase in trade and other payables | (63) | 42 | (44) | |
Taxation paid | (95) | - | - | |
Net cash flow from operating activities | 108 | (240) | 71 | |
Cash flows from investing activities | ||||
Payments to acquire property, plant & equipment | (125) | - | (38) | |
Acquisition and integration costs | (94) | - | (233) | |
Payment for acquisitions net of cash received | (916) | - | (2,640) | |
Net cash used in investing activities | (1,135) | - | (2,911) | |
Cash flows from financing activities | ||||
Issue of ordinary share capital | 411 | - | 3,428 | |
Drawdown of loan facility | - | 200 | 200 | |
Loan note interest paid | (13) | (13) | (26) | |
Interest element of finance lease payments | (18) | (19) | (38) | |
Capital repayment of finance leases | (81) | (38) | (98) | |
Net cash from financing activities | 299 | 130 | 3,466 | |
Net (decrease)/increase in cash and cash equivalents | (728) | (110) | 626 | |
Cash and cash equivalents at the beginning of the period/year | 999 | 373 | 373 | |
Cash and cash equivalents at the end of the period/year | 271 | 263 | 999 | |
Notes to the Consolidated Financial Statements for the six months ended 30 September 2014
1 Accounting policies
The financial information for the year ended 31 March 2014 set out in this half yearly report does not constitute statutory financial statements as defined in section 434 of the Companies Act 2006. The figures for the year ended 31 March 2014 have been extracted from the Group financial statements for that year. Those financial statements have been delivered to the Registrar of Companies and included an independent auditor's report, which was unqualified and did not contain a statement under section 493 of the Companies Act 2006.
The half yearly financial information has been prepared using the same accounting policies and estimation techniques as will be adopted in the Group financial statements for the year ending 31 March 2015. The Group financial statements for the year ended 31 March 2014 were prepared under International Financial Reporting Standards as adopted by the European Union. These half yearly financial statements have been prepared on a consistent basis and format with the Group financial statements for the year ended 31 March 2014. The provisions of IAS 34 'Interim Financial Reporting' have not been applied in full.
The half year financial statements to 30 September 2014 have neither been audited nor reviewed pursuant to guidance issued by the Auditing Practices Board
2 Loss per share
Unaudited | Unaudited | Audited | |
six months | six months | year | |
to | to | to | |
30 Sep 2014 | 30 Sep 2013 | 31 Mar 2014 | |
Loss for the financial year attributable to shareholders | £79,000 | £401,000 | £676,000 |
Weighted number of equity shares in issue | 428,022,700 | 118,984,892 | 217,600,479 |
Basic/diluted loss per share | £0.0002 | £0.003 | £0.003 |
Since the conversion of potential ordinary shares to ordinary shares would decrease the net loss per share, they are not dilutive. Accordingly diluted loss per share is the same as basic loss per share.