Interim Results

27 Oct 2006 12:13

Intellego Holdings PLC27 October 2006 FOR IMMEDIATE RELEASE 27 October 2006 INTELLEGO HOLDINGS PLC UNAUDITED INTERIM STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2006 CHAIRMAN'S STATEMENT I should like to thank all our shareholders for their support throughout theperiod. "Turnover in the period rose by over 32% to £416,379 (six months to 30 September2005, £313,859), and featured several major new client wins. The value and quality of our gross margin at 62% continued to be strong, for thesector, albeit not at the exceptional level of last year (2005: 72%). The Group incurred pre-tax losses in the period of £316,848 (six months to 30September 2005, pre-tax loss £179,915), in line with the Board's expectations,due in part to the exceptional asset write-offs described in note 1, which amounted to £123,903. The Board has been concentrating on improving the financial performance of thebusiness which over the six months shows significant improvement beforeadjustments for exceptional items. The Board is confident that with the work inprogress and current prospect list this will continue to improve and theturnaround will be completed in the second half. Product update and new client wins Intellego now offers a range of products and services that are oriented towardsthe provision of complete turnkey content development, and managed learningimplementation and hosting services. Overall, we continue to see a shift away from departmental purchases of rapid e-Learning tools towards more complex company-wide deployments of integratedlearning management systems. The Group has moved significantly up the value chain incorporating a greater proportion of value added services into itsrevenue mix. The business now has more sales and service delivery resource tosupport the growth of the Group in its expanding markets. Whilst this hasincreased our average order value and maintained a strong gross margin, it hasextended the sales cycle and the proportion of revenue which has had to betreated as deferred. The new business wins announced this year with leading players: Rightmove andDatography in property; Endsleigh, Travelex and Genworth Financial in financialservices; Spirits Group in food & beverage; and Expotel in hotel reservationsare examples of market leaders in their fields adopting Intellego solutions. The E-learning market addressed by Intellego has two primary drivers: Regulatory Compliance and Workforce Performance Improvement. An ever increasingrequirement throughout all organisations in the public, private and not-for-profit sectors, is an ability to train and develop staff and, moreover, todemonstrate that each individual has been provided with the required trainingand has achieved a given level of competence. INTELLEGO HOLDINGS PLC The Group Update and Outlook Since the appointment of a full time Finance Director there has been realemphasis on improving the financial performance of the business. The firstsigns of this are the dedication of the salesforce in achieving the 32% increase in sales, whilst building a record prospect list to provide salesopportunities for the second half of the year. At the same time costs arebeing pro-actively controlled. The Board of Directors is confident that theresults in the second half will reflect these changes. As with many rapid growth markets, consolidation, mergers and acquisitionsfeature on the daily landscape and we are actively pursuing potential partners.In the meantime I am confident that we have the management team in place that will deliver continued organic growth." Mike CouzensChairman27 October 2006 For further information: Intellego: Andy Green 0870 428 1250 Ranjit Roy-Choudhuri ACA Beaumont Cornish Limited: Roland Cornish 020 7628 3396 INTELLEGO HOLDINGS PLC Summarised Unaudited consolidated profit & loss account for Intellego HoldingsPlc for the six months to 30th September 2006. +-------------------------------------------------------------------------------+| |+-------------------------------------------------------------------------------+ Six months Six months Year ended ended ended 30 September 30 September 31 March Notes 2006 2005 2006 £ £ £ TURNOVER 416,379 313,859 615,198 Cost of sales (156,647) (86,318) (205,143) _______________ _______________ _______________ GROSS PROFIT 259,732 227,541 410,055 Administrative expenses (439,676) (397,758) (933,105) Exceptional write offs 1 (123,903) - - _______________ _______________ _______________ Total administrative costs (563,579) (397,758) (933,105) OPERATING LOSS (303,847) (170,217) (523,050) Interest receivable 179 277 315 Interest payable (13,180) (9,975) (20,830) LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (316,848) (179,915) (543,565) _______________ _______________ _______________ Taxation - - - _______________ _______________ _______________ LOSS ON ORDINARY ACTIVITIESAFTER TAXATION (316,848) (179,915) (543,565) __ ___ ________ ___ ___________ ___ ___________ LOSS PER SHARE - basic 2 (0.60)p (0.47)p (1.34)p - fully diluted 2 (0.58)p (0.47)P (1.15)p All operations are continuing. There are no recognised gains and losses other than those passing through theprofit and loss account. INTELLEGO HOLDINGS PLC Unaudited consolidated balance sheet for Intellego Holdings Plc as at 30September 2006 +--------------------------------------------------------------------------------+| |+--------------------------------------------------------------------------------+ 30 September 30 September Audited 31 2006 2005 March 2006 £ £ £Fixed AssetsIntangible assets 77,949 298,400 241,452Tangible assets 103,290 81,022 118,379Investments - - _____________ _____________ _____________ 181,239 379,422 359,831 _____________ _____________ _____________Current AssetsStock 9,714 5,500 19,428Debtors: Amounts falling due 515,325 530,874 579,484within one yearCash at bank and in hand 2,215 5,471 - _____________ _____________ _____________ 527,254 541,845 598,912 Creditors: amounts falling duewithin one (560,734) (356,755) (566,430)Year _____________ _____________ _____________Net Current (Liabilities) /Assets (33,480) 185,090 32,482 _____________ _____________ _____________Total Assets Less Current 147,759 564,512 392,313Liabilities Creditors: amounts falling dueafter more than (24,058) (31,274) (27,665)one year _____________ _____________ _____________ 123,701 533,238 364,648 _____________ _____________ _____________Capital and ReservesCalled up share capital 292,800 196,000 235,500Share premium account 934,426 496,645 762,226Shares to be issued - 263,620 153,599Profit and loss account (1,103,525) (423,027) (786,677) _____________ _____________ _____________Shareholders' funds - equity 123,701 533,238 364,648interests _____________ _____________ _____________ INTELLEGO HOLDINGS PLC Unaudited consolidated cash flow statement for Intellego Holdings Plc as at 30September 2006. +--------------------------------------------------------------------------------+| |+--------------------------------------------------------------------------------+ Six months Six months Audited ended ended Year ended 30 September 30 September 31 March Notes 2006 2005 2006 £ £ £ Net cash outflow from operating 3 (263,090) (194,636) (439,098)activities Returns on investments andservicing of financeInterest Received 179 277 325Interest Paid (13,180) (9,975) (20,830) ____________ ____________ ____________ Net Cash outflow from investments (13,001) (9,698) (20,515)and servicing of finance. Capital expenditure and financialinvestmentPurchase of tangible assets (11,712) (23,460) (75,638)Research and development (57,021)expenditure Purchase of investments (15,585) (15,085) ____________ ____________ ____________ (11,712) (39,045) (147,744) ____________ ____________ ____________ Net cash outflow before managementof liquid resources and financing (287,803) (243,379) (607,357) FinancingIssue of shares 229,500 98,900 398,600Principal repayments of loans (3,607) (5,303) (8,910) ____________ ____________ ____________ Net cash inflow from financing 225,893 93,597 389,690 Decrease in cash in the period/year 4 (61,910) (149,782) (217,667) _____________ _____________ _____________ INTELLEGO HOLDINGS PLC NOTES ON THE UNAUDITED INTERIM FINANCIAL INFORMATION 1. Exceptional write offs Six months Six months Audited Ended ended Year ended 30 30 September 31 March September 2006 2005 2006 Long standing bad debts andprepayments written off 111,681 - -Fixed assets written off 12,221 - - _________ _________ _________ 123,902 - - __________ __________ ___________ 2. Loss per Share The calculation of loss per share is in accordance with FRS22 Six months Six months Audited Ended ended Year ended 30 30 September 31 March September 2006 2005 2006 Loss per ShareBasic (0.60)p (047)p (1.34)pDiluted (0.58)p (047)p (1.15)p Six months Six months Audited Ended ended Year ended 30 September 30 September 31 March 2006 2005 2006 £ £ £ Loss for the period / year (316,848) (179,915) (543,565) _____________ _____________ _____________ Six months Six months Audited Ended ended Year ended 30 30 September 31 March September 2006 2005 2006 For basis earnings per share 52,830,000 38,118,032 40,625,000For diluted earnings per share 54,242,000 38,118,032 47,307,588 INTELLEGO HOLDINGS PLC NOTES ON THE UNAUDITED INTERIM FINANCIAL INFORMATION 3. Net cash flow from operating activites Six months Six months Audited ended ended Year ended 30 September 30 31 March September 2006 2005 2006 £ £ £Operating loss (303,847) (170,217) (523,050)Depreciation of tangible assets 14,580 7,184 22,205Amortisation of intangible assets 9,675 3,130 11,758Loss on write off of assets 12,221 - -Decrease / (Increase) in stocks 9,714 (1,504) (15,432)Decrease / (Increase) in debtors 64,159 (105,174) (153,784)(Decrease) / Increase in creditors (69,592) 71,945 219,205 __________ __________ __________Net cash outflow from operating activities (263,090) (194,636) (439,098) ____________ ___________ ____________ 4. Reconciliation of net cash flow to movement in net debt Six months Six months Audited Ended ended Year ended 30 September 30 September 31 March 2006 2005 2006 £ £ £(Decrease) / increase in cash in the (61,910) (149,782) (217,667)periodCash outflow from decrease in debt and 3,607 5,303 8,910lease financing __________ __________ __________Movement in net debt in the period (58,303) (144,479) (208,757)Net debt / (funds) at start of period (97,293) 111,464 111,464 __________ __________ __________Net debt at end of period (155,596) (33,015) (97,293) ____________ ____________ ____________ INTELLEGO HOLDINGS PLC NOTES ON THE UNAUDITED INTERIM FINANCIAL INFORMATION 5. Basis of Preparation The accounting policies and presentation of figures in this preliminaryannouncement have been prepared on the same basis as set out in the consolidatedfinancial statements for the year ended 31 March 2006. In particular, thedirectors have considered the implications of FRS 20 " Share-based payment",which is effective for accounting periods beginning on or after 1 January 2006,and have concluded that the implementation of this accounting standard has nomaterial effect on the unaudited interim financial information. The financial information set out in the announcement does not constitute thecompany's statutory accounts within the meaning of section 240 of the CompaniesAct 1985. The financial information for the year ended 31 March 2006 is derived from thestatutory accounts which have been delivered to the Registrar of Companies andon which the auditors gave an unqualified opinion. 6. Date of approval The interim statement was approved by the directors of Intellego Holdings Plc on27 October 2006. 7. Availability of Information A copy of the statement is available from the Company's place of business: 1 Orlando House, High Street, Teddington, Middlesex, TW11 8LZ This information is provided by RNS The company news service from the London Stock Exchange