Interim Results

RNS Number : 1997Z

Accuma Group PLC

17 September 2009

 



Accuma Group plc

('Accuma' or 'the Group')

Unaudited interim results for the six months to 30 June 2009

Chairman's statement

As reported to the market on 8 June 2009, Accuma's insolvency division, comprising Wilson Phillips Limited and Accuma Insolvency Practitioners Limited completed the disposal of their Individual Voluntary Arrangement ('IVA') books for an aggregate consideration of £5.6m. As a result of these disposals, and in accordance with IFRS, these businesses are shown as discontinued operations in the financial statements. Revenue for the year for these two subsidiaries on this basis was £7.1m with EBITDA of £3.4m. 

In accordance with IFRS, continuing operations in the Group's accounts comprise Byrom & Keeley Financial Services Limited, and Group overheads. Revenue and gross profit, on this basis, for the six months ended 30 June is £1.435m and £0.74m respectively.

The EBITDA loss for the period was £0.19m comprising £0.51m profit in Byrom & Keeley Financial Services Limited together with Group overheads of £0.7m. 

As a result of the IVA sale, the net cash inflow for the six months to 30 June 2009, was £4.79m. (12 months 31 December 2008: net outflow £1.79m). 

Following a review of the carrying value of intangible assets, the Board has further written down the carrying value of the goodwill relating to Byrom & Keeley Financial Services Limited in the Group's balance sheet to £2m and as a result of the IVA disposal has also written off in full the carrying value of the IVA division of £5.06m. As a result the Group has incurred a total impairment charge of £6.56m in its results for the six months ended 30 June 2009. This has resulted in a loss after tax for the six months of £4.69m. (12 months to 31 December 2008: £7.5m) 

Insolvency Division

We have previously commented in detail on the impact of significant changes to the IVA sector over the past eighteen months. Thomas Charles & Co Limited, as part of our IVA division was impacted by those changes as its primary income was received from marketing services and set-up costs of new IVAs. In line with Group strategy to withdraw from the IVA market and to reduce direct marketing expenditure, Thomas Charles & Co Limited ceased to trade in the first quarter of 2009, thus stemming any continuing losses in this division. The comparative figures in the accounts for 2008 have been restated to reflect this. 

Debt management division

Byrom & Keeley Financial Services Limited, the informal debt management solutions business, produced an EBITDA of £0.51m (12 months to 31 December 2008: £1.09m). 

Strategic changes that were made within the Insolvency business have impacted on this division, primarily as a result of the material reduction in direct marketing expenditure from which Byrom & Keeley Financial Services Limited had historically derived considerable benefit. In addition, following deterioration in the number of enquiries generated from a major lead supplier towards the end of 2008, alternative lead arrangements were made. 

Post Balance Sheet Event

Earlier in the year we stated that following a strategic review and the disposal of the assets of our IVA division, a restructuring in the lease commitments of the Group would be completed. The Group has now surrendered the lease of its central Manchester premises and has relocated to the outskirts of the City. As a result of this, and other closure costs the net cash balance has been reduced from £6.4m at 30 June to a current balance of £4.5m.  The Group remains debt free.  Whilst Byrom & Keeley Financial Services Limited  continues to be cash generative at the operating level, as stated in the circular of 14 May 2009, the Group still has certain liabilities outstanding arising from the sale of the IVA books in respect of the now vacant premises of Wilson Phillips and the corporation tax due on the sale of the IVA books.

Outlook 

As announced to the market on 14 August 2009, the Company is currently in an offer period, and will update the market as required.

Charles Taylor

For further information please contact: 

Accuma Group plc Charles Howson, Chief Executive		[phone]
FinnCap (Nominated Adviser and Broker) Marc Young / Geoff Nash		[phone]
Bankside Consultants Simon Rothschild/Oliver Winters		[phone]

Consolidated Income Statement
Period ended 30th June 2009
		6 Months ended		12 Months ended		6 Months ended
		30-Jun-09		31-Dec-08		30-Jun-08
		Unaudited		Restated		Restated
						Unaudited
		£		£		£
Revenue - Existing operations		1,435,824		3,294,353		1,744,538
Cost of sales		(696,634)		(1,592,054)		(884,773)
Gross profit		739,190		1,702,299		859,765
Administrative expenses		(934,794)		(1,849,224)		(914,675)
Earnings before interest, tax, depreciation, amortisation and impairment losses		(195,604)		(146,925)		(54,910)
Depreciation		(38,041)		(49,388)		(18,596)
Amortisation		(5,964)		(11,985)		(6,021)
Provision for impairment losses		(1,500,000)		(6,580,289)		-
Loss from operations		(1,739,609)		(6,788,587)		(79,527)
Finance income		155		57,454		52,301
Finance costs		(2,032)		(27,624)		(26,386)
Loss before tax		(1,741,486)		(6,758,757)		(53,612)
Taxation		-		169,350		-
Loss for the period from continuing operations		(1,741,486)		(6,589,407)		(53,612)
Discontinued operations and non-current assets held for sale		(2,953,845)		(904,811)		66,698
(Loss) / Profit for the period		(4,695,331)		(7,494,218)		13,086
(Loss) / Earnings per share basic and diluted
from continuing operations		(5.33)p		(20.15)p		(0.16)p
from discontinued operations		(9.03)p		(2.77)p		0.20p
from continuing and discontinued operations		(14.36)p		(22.92)p		0.04p

  Consolidated Balance Sheet

As at 30th June 2009
		30 June 2009			31 December 2008			30 June 2008
						Restated		Restated
		Unaudited						Unaudited
		£	£		£	£		£	£
Assets
Non-current assets
Intangible assets			2,060,632			8,627,251			15,822,980
Property, plant and equipment			200,369			443,956			636,146
Deferred tax asset			24,107			561,847			309,807
Total non-current assets			2,285,108			9,633,054			16,768,933
Current Assets
Trade and other receivables		1,045,138			788,164			3,330,582
Cash and cash equivalents		6,366,517			1,577,135			1,656,244
Current assets held for resale		-			1,387,550			-
Total current assets			7,411,655			3,752,849			4,986,826
Total assets			9,696,763			13,385,903			21,755,759
Equity and liabilities
Current liabilities
Trade and other payables		1,512,899			1,605,090			2,640,107
Financial liabilities		66,512			89,215			75,596
Provision for onerous lease commitment		1,500,000			750,000			530,486
Current tax liabilities		459,940			111,965			154,341
Total current liabilities			3,539,351			2,556,270			3,400,530
Non-current liabilities
Trade and other payables		-			-			-
Financial and other liabilities		15,947			26,725			53,717
Total non-current liabilities			15,947			26,725			53,717
Total liabilities			3,555,298			2,582,995			3,454,247
Capital and reserves - equity
Share capital		3,269,673			3,269,673			3,269,673
Share premium account		28,407,877			28,407,877			28,407,877
Share option reserve		451,782			417,894			409,194
Retained earnings		(24,725,272)			(20,029,941)			(12,522,637)
Other reserve		(1,262,595)			(1,262,595)			(1,262,595)
Total equity			6,141,465			10,802,908			18,301,512
Total equity and liabilities			9,696,763			13,385,903			21,755,759

  Consolidated Cash Flow Statement

Period ended 30th June 2009
						6 Months ended		12 Months ended		6 Months ended
						30-Jun-09		31-Dec-08		30-Jun-08
								Restated		Restated
						Unaudited				Unaudited
						£		£		£
Operating activities
Loss from continuing activities						(1,739,609)		(6,788,587)		(79,527)
(Loss) / Profit from discontinued activities						(2,953,845)		(904,811)		66,698
Impairment provision		Continuing				1,500,000		6,580,289		-
		Discontinued				5,060,655		-		-
Depreciation		Continuing				38,041		49,388		18,596
		Discontinued				210,783		535,794		173,633
Amortisation						5,964		11,985		6,021
Decrease / (Increase) in trade and other receivables						1,662,686		4,552,499		3,474,566
Increase / (Decrease) in trade and other payables						1,011,415		(1,281,103)		(3,312,270)
Provision for share options						33,888		21,666		12,966
Cash inflow from operations						4,829,978		2,777,120		360,683
Interest paid						-		(26,387)		(26,386)
Income taxes paid						-		-		-
Interest element of finance leases						(2,032)		(1,237)		-
Net cash inflow from operating activities						4,827,946		2,749,496		334,297
Payments to acquire property, plant and equipment						(5,238)		(201,946)		(38,742)
Deferred consideration in respect of acquisitions						-		(2,133,034)		(2,004,530)
Interest received						155		57,454		52,301
Net cash used in investing activities						(5,083)		(2,277,526)		(1,990,971)
Cash flow from financing activities
Capital element of finance lease agreements						(33,481)		(107,972)		(54,422)
Repayment of loan notes						-		(2,154,203)		-
Proceeds of issue of ordinary shares						-		-		0
Share issue costs						-		-		0
Net cash (used in) / received from financing activities						(33,481)		(2,262,175)		(54,422)
Net change in cash equivalents						4,789,382		(1,790,205)		(1,711,096)
Cash and cash equivalents at the beginning of the period						1,577,135		3,367,340		3,367,340
Cash and cash equivalents at the end of the period						6,366,517		1,577,135		1,656,244

Notes to the Interim Accounts

1.    Basis of Preparation of Interim Accounts

The unaudited interim accounts have been prepared in accordance with International Financial Reporting Standards and International Accounting Standards (collectively IFRS) as adopted by the EU and the accounting policies set out in Accuma Group PLC's Annual Report for the year ended 31 December 2008. These interim accounts have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' they do not include all the statements required for full annual accounts, and should be read in conjunction with the consolidated accounts of the Group as at 31 December 2008.

The interim accounts have been prepared on the going concern basis, which assumes that the Group will continue in operational existence for the foreseeable future.

The financial information contained in these interim accounts are unaudited and do not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The financial information for the year ended 31 December 2008 has been extracted from the Group's published accounts for that year. Those accounts, upon which the auditors issued an unqualified opinion, have been delivered to the Registrar of Companies.

2. Earnings Per Share

Earnings per share has been calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of shares in issue during the period. For diluted earnings per share, the weighted average number of ordinary shares is adjusted to take account of the dilutive effect of share options at that date.

3. Distribution of the Interim Report

Copies of the Interim Report will be  sent to shareholders shortly.  Further copies of the Interim Report and Accounts may be obtained from the Company's Registered Office, Trafford Plaza, 73 Seymour Grove, Old Trafford, Manchester, M16 0LD. In addition, an electronic version will be available on the Company's website, www.accumair.com

 

END

 

 

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