Final Results

Final Results

Coms PLC

Coms plc (“Coms”, the “Company” or the “Group”)
Final Results for the year to 31 January 2009 Final Results for the year to 31 January 2009

Coms plc, a provider of internet telephony services to business customers, has today posted its Annual Report and Financial Statements for the year to 31 January 2009 to all shareholders.

A copy of the report and accounts is also available from the Company's registered office and from the Company's web site, www.coms.com.

Contact:

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Coms plc

Richard Bennett

Tel: [phone]

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Dowgate Capital Advisers Limited

Liam Murray/ Jo Turner

Tel: [phone]

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Alexander David Securities Limited

David Scott/ Jon Levinson

Tel: [phone]

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Chairman’s Statement

Coms plc has seen 87 per cent. top-line revenue growth during the last financial year. This does buck the trend from our contemporaries in this difficult recessionary period. We attribute this to the fact that internet telephony services and solutions provided by Coms plc group companies genuinely save businesses money both in terms of initial outlay and ongoing service costs.

During the recent bull markets, potential customers in our target market have been focussed on growth and their choice of telephone service provider has often not been top priority; as companies focus on reducing costs, they are overcoming their inertia and are now switching to Coms, not least because we save on call and operating costs, but also because of the flexibility they can scale up and down their businesses as well as facilitate remote working.

However, investor sentiment does not currently favour early stage loss making technology companies, and as such we are in the process of revising our corporate strategy from focussing on top-line growth and increasing market share to one of sustainable growth and short-term profitability.

The management team, post the end of the period, have now completed a restructure of the business to create operational efficiencies between the telecom services subsidiary, Coms.com (UK) Limited, and the telecoms distribution subsidiary VCOMM (UK) Limited. This has resulted in many cost savings in senior management, support and accounting. The results of these cost savings will become apparent at the end of H1 and I expect to be reflected in the H2 results.

Our core business remains focused on selling hosted telephony to small and medium sized businesses and integrated solutions to corporate customers. This creates long-term recurring income, which is more comparable to a post-pay mobile operator than other VoIP competitors. We continue to make progress signing up SME customers and new reference customers include Glastonbury festival and Help the Aged.

These are no doubt difficult times for small companies, but the directors remain both committed to Coms plc and to the AIM market. It is difficult to raise equity at the moment as the share price is consistently trading below the nominal value, so the directors have offered up to £500,000 in the form of a drawdown convertible loan facility to ensure the Company has sufficient working capital. In addition, we are recommending that the company change the nominal value of the AIM listed shares from 10p to 1p to enable future equity placings should they be necessary.

Providing market conditions don’t significantly worsen, I am confident that Coms plc will survive this downturn and be amongst the first to thrive.

Jason Drummond
Executive Chairman

Consolidated Income Statement
For the year ended 31 January 2009For the year ended 31 January 2009

	Â	Â	Year ended	Â	Â	Year ended
			31 January 2009			31 January 2008
			£			£
Revenue			2,429,334			1,297,728
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Cost of Sales			(1,793,787)			(854,378)
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Gross Profit			635,547			443,350
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Administrative expenses			(1,632,189)			(1,300,345)
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Operating loss			(996,642)			(856,995)
Finance expense			(10,518)			(7,065)
Finance income			817			3,618
Loss before taxation for the year			(1,006,343)			(860,442)
Taxation			11,783			(30,232)
Loss for the year attributable to equity shareholders			(1,018,126)			(830,210)
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Basic and diluted loss per share			(8.5)p			(8.7)p
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Consolidated Balance Sheet
As at 31 January 2009As at 31 January 2009

	Â	Â	31 January 2009	Â	Â	31 January 2008
			£			£
ASSETS
Non-current assets
Goodwill			2,317,863			2,307,613
Other intangible assets			79,682			45,590
Property, plant and equipment			59,049			37,349
			2,456,594			2,390,552
Current assets
Inventories			252,455			187,311
Trade and other receivables			524,374			757,891
Cash and cash equivalents			57,359			21,859
			834,188			967,061
Total assets			3,290,782			3,357,613
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EQUITY and LIABILITIES
Capital and reserves attributable to equity shareholders
Share capital			1,412,712			1,056,378
Share premium			7,576,534			7,347,958
Reverse acquisition reserve			(4,236,239)			(4,236,239)
Accumulated deficit			(2,562,297)			(1,544,171)
Total equity			2,190,710			2,623,926
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Current liabilities
Bank overdrafts			-			1,889
Bank loans			36,667			36,667
Trade and other payables			1,019,794			652,353
			1,056,461			690,909
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Non-current liabilities
Bank loans			6,111			42,778
Convertible loan notes			37,500			42,778
			43,611			42,778
Total equity and liabilities			3,290,782			3,357,613
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Consolidated Cash Flow Statement
For the year ended 31 January 2009For the year ended 31 January 2009

	Â	31 January 2009	Â	Â	31 January 2008
		£			£
Cash flows from operating activities
Loss before taxation		(1,006,343)			(860,442)
Depreciation and amortisation		33,965			34,054
Finance income		(817)			(3,618)
Finance expense		10,518			7,065
Increase in inventories		(65,144)			(130,016)
(Increase)/decrease in receivables		221,734			(475,325)
Increase/(decrease) in payables		367,441			11,364
Net cash outflow from operating activities		(438,646)			(1,416,918)
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Cash flows from investing activities
Acquisition of intangible assets		(49,495)			(39,390)
Acquisition of property, plant and equipment		(40,262)			(39,637)
Acquisition of subsidiaries		-			(45,582)
Cash in subsidiaries at acquisition		-			2,121
Net cash from investing activities		(89,757)			(122,488)
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Cash flows from financing activities
Proceeds from issues of share capital		574,660			1,411,800
Proceeds from issues of convertible loan notes		37,500			-
Repayment of bank loans		(36,667)			(27,499)
Finance income		817			3,618
Finance expense		(10,518)			(7,065)
Net cash from financing activities		565,792			1,380,854
Net decrease in cash and cash equivalents		37,389			(158,552)
Cash and cash equivalents at start of year		19,970			178,522
Cash and cash equivalents at end of year		57,359			19,970
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Consolidated Statement of Changes in Equity
For the year ended 31 January 2009 For the year ended 31 January 2009

	Â	Â	Attributable to equity shareholders of the Company
			Share capital	Â	Â	Share premium	Â	Â	Reverse acquisition reserve	Â	Â	Accumulated deficit	Â	Â	Total
			£			£			£			£			£
At 1 February 2007			793,878			6,098,658			(4,236,239)			(713,961)			1,942,336
Loss for the year			-			-			-			(830,210)			(830,210)
Total recognised in income and expense for the yearand expense for the year			-			-			-			(830,210)			(830,210)
Shares issued in the year			262,500			1,327,500			-			-			1,590,000
Share issue costs			-			(78,200)			-			-			(78,200)
At 31 January 2008			1,056,378			7,347,958			(4,236,239)			(1,544,171)			2,623,926
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At 1 February 2008			1,056,378			7,347,958			(4,236,239)			(1,544,171)			2,623,926
Loss for the year			-			-			-			(1,018,126)			(1,018,126)
Total recognised in income and expense for the yearand expense for the year			-			-			-			(1,018,126)			(1,018,126)
Shares issued in the year			262,500			1,327,500			-			-			1,590,000
Shares issued in the year			356,334			324,167									680,501
Share issue costs			-			(95,591)			-			-			(95,591)
At 31 January 2009			1,412,712			7,576,534			(4,236,239)			(2,562,297)			2,190,710
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General Information

Basis of preparation and significant accounting policies

These consolidated financial statements of Coms plc have been prepared in accordance with accepted International Financial Reporting Standards (IFRSs), International Accounting Standards (IAS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations (collectively “IFRSs”) as adopted for use in the European Union and as issued by the International Accounting Standards Board and with those parts of the Companies Act 1985 applicable to companies reporting under IFRS.

Going concern

The financial statements have been prepared on the assumption that the Group is a going concern.

When assessing the foreseeable future, the directors have looked at a period of twelve months from the date of approval of this report. The forecast cash-flow requirements of the business are contingent upon the ability of the group to generate future sales.

The Group is still at an early stage of its commercialisation and the success of the business depends on the realisation of projected sales together with existing customers extending the use of Coms products within their organisations.

The uncertainty as to the timing and volume of the future growth in sales, require the directors to consider the group's ability to continue as a going concern. Notwithstanding this uncertainty, the directors believe that the group has demonstrated progress in achieving its objective of positioning the Group as a major supplier of VOIP technology to the industries served by the group.

After making enquiries, the directors firmly believe that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

In June 2009, the Group agreed a facility of up-to £500,000, through the issue of secured convertible loan notes, of which £185,000 is still available to be utilized at the date of this report.

Were the Group to be unable to continue as a going concern, adjustments may have to be made to the balance sheet of the Group to reduce balance sheet values of assets to their recoverable amounts, to provide for future liabilities that might arise and to reclassify non-current assets and long-term liabilities as current assets and liabilities.

Loss per share

Loss per share data is based on the group loss for the year and the weighted average number of shares in issue. The comparative figures for the year ended 31 January 2008 have been restated to reflect the share consolidation on 22 August 2008.

	Â	Year ended	Â	Â	Year ended
		31 January 2009			31 January 2008
Basic and diluted loss per share		(8.5p)			(8.7p)
Loss for the purposes of basic and diluted loss per share		£(1,018,126)			£(830,210)
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Number of shares	Â	No.	Â	No.
Weighted average number of ordinary shares for the purposes of basic earnings per share		11,909,522		9,538,878
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In order to calculate diluted earnings per share, the weighted average number of ordinary shares in issue would be adjusted to assume conversion of all dilutive potential ordinary shares according to IAS 33. In each of the years ended 31 January 2009 and 2008 the Group has made a loss after taxation and the effect of the potential ordinary shares is anti-dilutive and therefore the diluted earnings per share is the same as basic earnings per share. The weighted average number of potentially dilutive shares for the year ended 31 January 2009 was 846,973 (2008: 144,740)