Final Results
Amino Technologies PLC
29 January 2007
FOR IMMEDIATE RELEASE 29 January 2007
AMINO TECHNOLOGIES PLC
RESULTS FOR THE YEAR ENDED 30 NOVEMBER 2006
Amino Technologies plc ('Amino'; stock code: AMO), the Cambridge based broadband
network software and systems company, announces its unaudited final results for
the year ended 30 November 2006.
Key points:
• Amino's leading position in the IPTV market was sustained during the
year with global distribution channels and low cost manufacturing source in
place, coupled with a strong brand.
• The financial results for the period were:
o Revenues: £25.4m (2005: £23.5m);
o Gross margins: 36.3% (2005: 34.8%);
o Gross profit: £9.2m (2005: £8.2m); and
o Loss before tax: £1.5m (2005: profit of £64,000) reflecting increased
operating costs and industry-wide issues which delayed shipments of new
MPEG-4 HD set-top boxes.
• Balance sheet remains strong with net cash of £14.0m (2005: £14.5m).
• Shipments of AmiNET products for the period increased 32% to 413,000
(2005: 314,000).
• Since the year end, board has been strengthened with the appointment of
Keith Todd as non-executive Chairman and Andrew Burke as a non-executive
director.
On outlook, Keith Todd, Chairman stated:
'The board believes that Amino is well placed to continue to grow and to
maintain a leadership position in IPTV. The board and executives are working to
improve the financial performance of the business, balancing investment with
profitable growth as we strive to establish sustained profitability.'
About Amino
Amino Technologies plc (www.aminocom.com) designs and supplies electronic
systems, software and consultancy for IPTV (telco triple-play applications),
on-demand video and in-home multimedia distribution.
Amino is partnered with world-leading companies in systems integration,
middleware, conditional access, silicon, head-end systems and browser
technologies.
CONTACTS
Amino Technologies: today: 020-7367-8888
Keith Todd, Chairman thereafter: 01954-234100
Bob Giddy, Chief Executive www.aminocom.com
Stuart Darling, Finance Director
Bankside: 020-7367-8888
Steve Liebmann or Simon Bloomfield
KBC Peel Hunt Ltd. 020-7418-8900
Julian Blunt
CHAIRMAN'S STATEMENT
Introduction
I am pleased to announce my first set of Amino Technologies plc results for the
year ended 30 November 2006, following my appointment on 2 January 2007. Whilst
all involved, with hindsight, would have done some things differently over the
past years, the board and executives have done a remarkable job in getting the
Company to this point of its development; it has established a very strong
position in the IPTV market, global distribution channels, a low cost
manufacturing source coupled with a very strong brand, in an industry which has
continued to be dynamic and challenging. The task for the board and executives
is to exploit this strong position in the next phase of the IPTV market
development.
Financial
By way of background to the results for FY2006, it will be recalled from past
statements that the introduction of MPEG-4 products was delayed by industry-wide
issues which meant that volume deliveries of Amino's AmiNET130 set-top box was
pushed back from the closing months of last year and should now start from the
second half of 2007. This had an impact last year on the product revenue mix and
average gross profit per unit.
Revenue for the year increased 8% to £25.4m (2005: £23.5m) and the revenue from
the top 20 accounts which account for over 80% of the revenues was up 27% to
£22.4m (2005: £17.6m). The Company increased its operating cost base during the
year to £11.3m (2005: £8.5m) in order to expand its distribution capability and
in support of the emerging MPEG-4 market. The Company recorded a loss before tax
of £1.5m (2005: profit of £0.06m). Net cash was £14.0m (2005: £14.5m).
Strategy and competitive market position
The core strategy remains unchanged; Amino will continue to exploit the emerging
IPTV market, initially focusing on the tier 2 and 3 telcos which are deploying
IPTV first and to progressively address the total market including tier 1
participants through direct selling and partnerships.
Today the Company has established a market leading position in terms of
worldwide set-top box shipments according to market analysts, ABI Research
(further details are provided in the Chief Executive's Statement). A recent
brand survey conducted on behalf of the Company has confirmed the strength of
Amino's brand recognition as evidenced by an extensive global distribution
network and middleware partnerships that have supported its growth.
The market today is at the start of the transition from MPEG-2 to MPEG-4
technologies which offer greater data compression and require reduced internet
bandwidth. The core of the 2007 market will be underpinned by the continued
supply of MPEG-2 products supplemented by the emerging MPEG-4 market opportunity
for both standard definition (SD) and high definition (HD) products.
At the same time, Amino's business model is developing. For the more established
tier 2 and tier 3 telco markets, a conventional supplier-customer relationship
is appropriate. For large, populous, developing markets such as China and India,
significant partnership agreements signed by Amino within the last three months
demonstrate the strength of the Company's combined offering comprising hardware,
software and 'know how' to meet the requirements of set-top box supply,
licensing and local manufacture.
The Company has an established, effective, low cost manufacturing partnership
within China and continues to work with its suppliers and partners to ensure
that the product costs remain competitive.
Operational delivery
The Company operates in a highly dynamic market place that is still evolving.
The regions of the world are adopting different combinations of suppliers to
fulfil the whole service requirements and are adopting MPEG-4 and HD roll-out at
different paces and with different priorities. This leads to significant
complexity and 'supply side' cost in assessing the real market opportunity to be
addressed. Amino has an extensive customer base of over 1,400 customers,
including pilot projects, giving it a unique insight to the real market
dynamics.
All companies face specific execution risks in such rapidly developing markets.
These risks fall into three areas: sales, technology and supply. The board and
executive are continuing to undertake reviews of aspects of these to reduce or
mitigate the risks. The Amino board and executive are well placed to benefit
from its 2006 experience and to improve the Company's execution capability.
Board
The non-executive representation on Amino's board has been re-constituted over
the past month with a view to providing a structure and the skills to take Amino
through its next phase of growth.
In that context, I was pleased to announce recently the appointment of Andrew
Burke as a non-executive director. His extensive knowledge of the IPTV world and
of tier 1 telco participants will be a great asset to the board. We have a
strong board with an excellent breadth of experience to lead Amino forward.
Staff
The progress that the Company has made could not have been achieved without the
knowledge, skill and energy of the executive team and staff. The board and I
would like to thank them for their continued commitment to the development of
Amino.
Outlook
The board believes that Amino is well placed to continue to grow and to maintain
a leadership position in IPTV. The board and executives are working to improve
the financial performance of the business, balancing investment with profitable
growth as we strive to establish sustained profitability.
Keith Todd CBE
Non-Executive Chairman
CHIEF EXECUTIVE'S STATEMENT
The IPTV market environment
A review of the many IPTV market surveys now available confirms our
understanding that, whilst there are differences in view on the absolute size of
the IPTV market, all analysts agree that there is a sustained, upward trend that
continues to strengthen and develop.
In 2006, the driving force continued to be from the smaller, more dynamic tier 3
telcos which had already adopted the proven and robust MPEG-2 technologies or
from emerging territories that were not constrained by network legacy issues and
were willing to become MPEG-4 'early adopters'. As the new MPEG-4 technologies
become available and are proven to be robust, this will herald the entry of the
larger tier 2 and ultimately the tier 1 telco's.
The transition to MPEG-4 creates a great deal of churn; it provides the window
of opportunity for a second wave of technology providers. Some of these new
entrants provide Amino with an opportunity to develop new customers or
strengthen our already strong 'Partner Profiles'; others present new and
competitive challenges. Either way, this new activity serves to underscore our
long held view that IPTV remains an emerging but valuable market. The transition
to MPEG-4 has been a challenge for the entire industry, top to bottom, from the
semiconductors to encoders. As a provider of a key element within the 'IPTV
ecosystem', we recognise the benefits offered by MPEG-4 but will remain cautious
until the end-to-end solutions are thoroughly tested.
2006 also witnessed the entrance of Microsoft TV ('MSTV'). Much has been written
about MSTV, but it is significant that even Microsoft has acknowledged that it
is the television and not the PC that will be at the centre of the consumers'
home network - a view that has been championed constantly by Amino.
Geographically, the market has been established by the emerging economies in the
Pacific Rim, Russia and Eastern Europe. It is important to note that some of the
key elements (middleware, browsers, etc.) that are needed to form a complete
IPTV solution have emerged from these regions. Together with the smaller
independent telco's in North America, the customers in these regions have
pioneered IPTV and Amino is well positioned with them as both supplier and/or
technology-partner. Joining the established businesses, powerful organisations
in both China and India have announced detailed plans to offer IPTV services in
conjunction with Amino.
Amino's market position
ABI Research, a leading US-based market analyst, accredited Amino with
maintaining its market leadership position during 2006. It is worth noting that
by the end of FY 2006, just 3 years after our first volume shipment, Amino has
shipped more than 900,000 IPTV set top boxes throughout the world. ABI estimated
that during 2006 the total shipment of IPTV set top boxes was 4.7m of which
Amino shipped 413,000.
Amino achievements
Amino has always emphasised that in a typical IPTV deployment, it is our suite
of set-top box technologies, (hardware, IntAct operating system and, where
appropriate, our soft-codec technologies) that provide the point of convergence
for many third party software solutions needed to form a typical 'IPTV
ecosystem'.
Our integrated business model (hardware, software and services) also recorded
some notable successes, most recently Time Broadband in India, during the year
under review:
• Nov 06 - Amino licenses IPTV solution to Acer's subsidiary WNC in Taiwan
WNC to bundle IntAct(TM) software stack soft codec technology with a range of
IPTV STBs as part of an offering to IPTV operators across the Asia-Pacific
region and to particular tier 1 Telco's in the European Union and North
America.
• Nov 06 - Partnership to Build IP STBs with Chengdu USEE
Entered into a Memorandum of Understanding with Chengdu USEE Digital
Technology Co. Ltd., a broadband multimedia company based in the People's
Republic of China.
• Nov 06 - Amino announces multi-year set-top box agreement with SES
AMERICOM
Largest satellite service provider in the US.
• Sep 06 - Amino launches AmiNET125
New multi-codec IPTV - Internet TV platform with a Microsoft Windows Media-9
(WM9) software configuration.
• Aug 06 - Amino selected for first ever Croatian IPTV deployment by
Vodatel
• July 06 - Amino selected for Northern Europe's first HD IPTV service -
selected by Lijbrandt Telecom BV to supply its STBs for the first ever High
Definition IPTV service in Northern Europe. The service was rolled out in
time for World Cup football matches offering viewers greater clarity and
detail.
• May 06 - Amino wins North American Broadcasters (NAB) Award for
Innovation in Media
Amino was the only set-top box vendor selected for this award in the Content
Delivery category.
• Dec 05 - Amino enables Portugal's first ever IPTV service
Selected by Novis, a major Portuguese Telco, for a residential service to be
branded as 'Clix Smartv'.
Business development, strategy and direction
During the year, Amino continued to grow its overall (direct and indirect)
customer base to over 1,400 as at 30 November 2006. However, the most important
metric is the number of customers in large volume roll-out (more than 10,000
units); at 19, this represents a 27% increase over the year. In FY2006, the
Amino's top 20 customers contributed over 80% of total revenues. On a wider
measure, we have successfully sold Amino technologies preconfigured within the
box to more than 800 customers during 2006, with more than 300 being repeat
business. The ability to service this number of customers is a testament to the
efficiency of our fulfilment and distribution channels.
The board has recently reviewed the progress of Modelo and IntAct as separate
business units and has concluded that Amino's core value for, in particular, its
tier 2/3 customers is the combination of its hardware design, software and codec
capabilities. This has been reinforced by the recent licence deal wins which
have been for the combination of these capabilities. We will therefore, present
Amino as a unified business, although the individual brands will be retained for
those instances where they add extra value. Going forward, we will focus on the
financial contribution from our customer base rather than units shipped; the
sources of contribution will include units supplied by Amino, licences and
royalties on units manufactured and shipped by our partners.
The Company is continuing to look at how best to address emerging adjacent
markets, for example 'Internet TV', for which it has the technology know-how. It
will, however, continue only to invest when it believes the market opportunity
is real in terms of potential financial returns and that it has a credible
approach to exportation of such opportunities.
As the market matures and becomes more predictable, Amino is able to leverage
its core strengths of dealing with fast moving innovative tier 2/3 customers,
strong market presence, powerful brand name, and low cost manufacturing base
coupled with efficient distribution channels. In addition, the benefits of the
significant investment made during 2006 to create our new range of higher value
MPEG-4 products are beginning to be seen. We are well positioned to focus upon
the creation of a sustainable and profitable business.
Productivity improvement and risk reduction
Amino has developed a huge customer base by leveraging the benefits that we
bring to our partners within the 'IPTV ecosystem'. However, our top 20 customers
are supported within a limited number of proven ecosystems. These ecosystems
have been prioritised and a new sales strategy implemented so that customers are
encouraged to select an option and procure from our preferred environment. A new
charging model is being introduced for bespoke software integrations and
associated maintenance. Amino's experience and influence is widely recognised
and we believe that our new policy will be welcomed by customers and key
partners alike.
We continue to review our supply base and we have a common software footprint
over four semiconductor platforms, creating a competitive bidding environment.
We also plan to take advantage of the additional discounts that are available as
a result of the 'volume purchasing agreements' afforded by the deals with WNC,
CETC and most recently with Time BB in India.
Bob Giddy
Chief Executive
FINANCE DIRECTOR'S STATEMENT
Revenue increased by 8.5% to £25.45m (2005: £23.46m) from the sale of 413,000
(2005: 314,000) set-top boxes and associated engineering consultancy, support
services revenue and licence income. Gross margins increased by 1.5% to 36.3%
(2005: 34.8%) contributing to an increase in gross profit of 13.2% to £9.25m
(2005: £8.17m).
In the interim results announced in late July 2006, Amino noted that, after the
planned investment in the market transition from MPEG-2 to MPEG-4 technologies
and the corresponding increase in operating expenses, future increases in
operating costs (largely fixed) would reflect the growth of the business.
Excluding the effects of a foreign exchange loss of £0.23m (2005: gain of
£0.43m) and a provision for bad and doubtful debts of £0.39m (2005: £Nil),
operating expenses increased by 19.4% as compared to an adjusted increase of
62.1% in FY2005. Sales, general and administrative expenses increased by 39.1%
to £7.93m (2005: £5.70m) including the foreign exchange loss and provision for
bad and doubtful debts or 19.4% excluding these. Research and development
expenses, which are written off as incurred, increased by 19.5% to £3.36m (2005:
£2.81m). At the year-end, headcount was 98 (2005: 99). The average number of
employees during the year was 102 (2005: 90).
Whilst Amino has continued to maintain credit insurance, a significant
proportion of its sales are in emerging economies where credit insurance is not
readily available.
The Group has been affected by the 13% reduction in the value of US dollar
against Sterling during the year because it has significant assets denominated
in US dollars, primarily trade debtors and stock. To hedge this exposure, the
Group took out an overdraft of $15.00m during the year at an exchange rate of
$1.86. This loan of £7.69m is shown in current liabilities; the corresponding
sterling deposit is included within short-term investments of £9.00m.
The Group recorded an operating loss of £2.04m (2005: loss of £0.34m). In order
to improve profitability, the Group is focusing on increasing gross profit
generated whilst reducing fixed operating costs. Investment in direct sales and
marketing in the Asia Pacific region and hospitality market in Europe, which did
not generate the expected financial return in FY2006, has been substantially
reduced. Direct sales and marketing activities are now focused on the Group's
core markets in Europe and North America. Recently announced partnership
agreements demonstrate that Amino is successfully addressing key emerging
markets such as China, Asia Pacific and India in a cost effective manner. The
board does not expect headcount to increase significantly during 2007 and
expects improvements in productivity as the number of customers deploying in
volume increases.
Net interest received during the year was £0.54m (2005: £0.40m).
A tax credit of £0.05m was received during the year. As at 30 November 2006, the
Group had approximately £13.5m of tax losses available to carry forward to set
against future taxable profits, of which losses of £5.73m are recognised by the
deferred tax asset of £1.72m at 30 November 2006.
On 20 January 2006, SJ Consulting Ltd. was acquired for a total consideration of
£1.01m, represented by net assets of £0.44m and goodwill of £0.57m. Of the
consideration, £0.84m was paid in cash and £0.17m in shares, deferred over the
period to 2009.
Net assets of £26.84m (2005: £28.25m) provide the Group with a strong working
capital base. The primary components of net assets are net cash balances of
£13.97m (2005: £14.47m), trade debtors of £7.61m (2005: £10.36m) and stock of
£3.81m (2005: £1.46m). The decrease in net assets of £1.41m largely reflects the
loss incurred during the year (see note 9). Net cash balances of £13.97m
represent short-term investments of £9.00m (see above), cash at bank and in hand
of £12.66m less a bank overdraft of £7.69m (see above).
Amino is working towards obtaining the necessary legal and regulatory approvals
to undertake a reduction of capital in order to generate distributable reserves
from which dividends may be paid and to undertake a share buy-back programme.
Should the Group continue to believe that this is feasible, a proposal will be
put to shareholders at the forthcoming AGM.
The Group has a strong balance sheet with assets primarily made up of cash,
short-term investments and trade debtors. The investments made in FY2006 (fully
written off) in developing MPEG-4 set-top box technologies should generate
revenues in the second half of FY2007 and beyond. Looking ahead, future profits
will be sheltered by the considerable tax losses carried forward.
Stuart Darling
Finance Director
Consolidated profit and loss account
For the year ended 30 November 2006
Notes Year Year
to 30 to 30
November November
2006 2005
Unaudited Audited
£ £
Turnover 3 25,447,255 23,460,756
Cost of sales (16,197,987) (15,292,251)
__________ __________
Gross profit 9,249,268 8,168,505
Selling, general and administrative expenses (7,928,884) (5,699,309)
Research and development expenses (3,356,216) (2,808,771)
__________ __________
Group operating loss (2,035,832) (339,575)
Interest receivable and similar income 623,525 418,782
Interest payable and similar charges (83,506) (15,293)
__________ __________
Group (loss) / profit on ordinary activities (1,495,813) 63,914
before taxation
Tax on (loss) / profit on ordinary activities 48,171 -
__________ __________
Group (loss)/profit on ordinary activities
after taxation being (loss) / profit for the
financial period (1,447,642) 63,914
__________ __________
Basic (loss)/earnings per 1p ordinary share 4 (2.6p) 0.1p
Diluted (loss)/earnings per 1p ordinary share 4 (2.6p) 0.1p
Statement of group total recognised gains and losses for the year ended 30
November 2006
Year Year
to 30 to 30
November November
2006 2005
Unaudited Audited
£ £
(Loss) / profit for the financial period (1,447,642) 63,914
Exchange translation difference on (185,080) (22,383)
consolidation
__________ __________
Total recognised (losses) / gains for the (1,632,722) 41,531
period
__________ __________
All amounts above relate to continuing activities.
Consolidated balance sheet as at 30 November 2006
Notes 30 November 30 November
2006 2005
Unaudited Audited
£ £
Fixed assets
Intangible assets 818,408 295,297
Tangible assets 1,413,734 1,023,610
_________ _________
2,232,142 1,318,907
_________ _________
Current assets
Stocks 3,808,362 1,460,756
Debtors: amounts falling due after more than 6 1,914,406 190,898
one year
Debtors: amounts falling due within one year 6 8,586,781 12,846,599
10,501,187 13,037,497
Short-term investments 9,000,000 430,000
Cash at bank and in hand 12,658,769 14,038,271
_________ _________
35,968,318 28,966,524
Creditors: amounts falling due within one year 7 (11,323,294) (1,964,581)
_________ _________
Net current assets 24,645,024 27,001,943
Total assets less current liabilities 26,877,166 28,320,850
Creditors: amounts falling due after more than 7 (36,299) (71,285)
one year
_________ _________
Net assets 26,840,867 28,249,565
_________ _________
Capital and reserves
Called-up share capital 8 582,630 582,630
Shares to be issued 8 171,000 -
Share premium account 21,807,240 21,807,240
Merger reserve 16,388,755 16,388,755
Profit and loss account (12,108,758) (10,529,060)
_________ _________
Total shareholders' funds 9 26,840,867 28,249,565
_________ _________
Consolidated cash flow statement for the year ended 30 November 2006
Notes Year Year
to 30 to 30
November November
2006 2005
Unaudited Audited
£ £
Net cash inflow / (outflow) from operating 10 459,334 (7,154,539)
activities
Returns on investments and servicing of finance
Interest received 551,491 418,782
Interest paid (9,506) (15,293)
__________ __________
Net cash inflow from returns on investments and
servicing of finance
541,985 403,489
__________ __________
Taxation - -
__________ __________
Capital expenditure and financial investment
Purchase of tangible fixed assets (723,894) (479,085)
Purchase of intangible fixed assets (173,652) (216,689)
__________ __________
Net cash outflow for capital expenditure and (897,546) (695,774)
financial investment
__________ __________
Acquisitions net of cash acquired (617,702) -
Net cash outflow before use of liquid resources (513,929) (7,446,824)
and financing
__________ __________
Management of liquid resources
(Increase) / decrease in short-term deposits (8,570,000) -
with banks
__________ __________
Financing
Issue of ordinary share capital - 15,840,250
Expenses of share issue deducted from share - (534,637)
premium
Cash received from exercise of share options 53,024 224,329
(Decrease) in other borrowings (30,124) (38,455)
Increase / (decrease) in bank borrowings 8,064,516 (6,144)
__________ __________
Net cash inflow from financing 8,087,416 15,485,343
__________ __________
(Decrease) / increase in cash (996,513) 8,038,519
__________ __________
Reconciliation of net cash flow to movement in
net funds
Opening net funds 14,468,271 6,423,608
(Decrease) / increase in cash (996,513) 8,038,519
Increase in deposits 8,570,000 -
(Increase) / decrease in borrowings (8,064,516) 6,144
Exchange adjustments (8,888) -
__________ __________
Closing net funds 13,968,354 14,468,271
__________ __________
Notes
1 Basis of preparation
The figures for the year ended 30 November 2006 have not been audited. The
figures for the period ended 30 November 2005 have been extracted from, but do
not constitute, the consolidated financial statements of Amino Technologies plc
for that period. Those financial statements have been delivered to the Registrar
of Companies and included an auditors' report, which was unqualified and did not
contain a statement under Section 237 Companies Act 1985. The statutory accounts
for the financial year ended 30 November 2006 have not yet been signed by the
directors or the auditors of the Company.
2 Accounting policies
These preliminary results for the year ended 30 November 2006, which have been
prepared in accordance with the accounting policies set out in the consolidated
financial statements of Amino Technologies plc for the year ended 30 November
2005, do not constitute statutory accounts for the purpose of section 240 of the
Companies Act 1985.
3 Turnover segmental analysis
Turnover is wholly attributable to the Group's principal activity. In the
opinion of the directors, the Group currently has only one class of business.
The analysis of turnover by destination is set out below.
Year Year
to 30 to 30
November November
2006 2005
Unaudited Audited
£ £
Geographical analysis
United Kingdom, Europe and Africa 13,244,131 9,903,108
Americas 11,892,181 10,988,350
Asia Pacific 310,943 2,569,298
_________ _________
25,447,255 23,460,756
_________ _________
4 (Loss)/earnings per share
Year Year
to 30 to 30
November November
2006 2005
Unaudited Audited
£ £
Earnings attributable to shareholders (1,447,642) 63,914
_________ _________
Weighted average number of shares (Basic) 55,832,244 52,126,170
_________ _________
Weighted average number of shares (Diluted) n/a 54,482,187
_________ _________
The calculation of basic (loss)/earnings per share is based on (loss)/profit
after taxation and the weighted average number of ordinary shares of 1p each in
issue during the period.
For diluted (loss)/earnings per share, the weighted average number of ordinary
shares in issue is adjusted to assume conversion of all dilutive potential
ordinary shares. The group has only one category of dilutive potential ordinary
share options: those share options where the exercise price is less than the
average market price of the company's ordinary shares during the period. There
is no dilutive effect in respect of the year ended 30 November 2006 as the Group
was loss making.
5 Acquisition
On 20 January 2006, the Company purchased 100% of the issued share capital of SJ
Consulting Limited for a total consideration of approximately £1.0m. The Company
operates in the UK providing network software and systems solutions.
The goodwill arising on the acquisition of SJ Consulting Limited is being
amortised on a straight line basis over 10 years. The directors estimate that
the book values underlying the business acquired approximate to the fair value
of the underlying assets.
Book value
and fair value
£
SJ Consulting Limited acquisition
Tangible fixed assets 11,051
Debtors 227,713
Cash 216,449
Creditors (19,376)
_________
Net assets acquired 435,837
Goodwill 569,314
_________
Consideration 1,005,151
Consideration satisfied by:
Shares to be issued (300,000 ordinary shares of 1p 171,000
each)
Cash 834,151
_________
1,005,151
_________
The shares to be issued are dependent upon continued service of the key
employees and are valued at the year-end market price.
6 Debtors
As at As at
30 November 30 November
2006 2005
Unaudited Audited
£ £
Amounts falling due after more than one year:
Other debtors 195,406 190,898
Deferred tax 1,719,000 -
_________ _________
1,914,406 190,898
_________ _________
Amounts falling due within one year:
Trade debtors 7,610,249 10,356,334
VAT recoverable 103,044 36,871
Deferred tax - 1,719,000
Other debtors 6,471 6,958
Prepayments and accrued income 867,017 727,436
_________ _________
8,586,781 12,846,599
_________ _________
Other debtors comprise rent deposits.
7 Creditors
Amounts falling due within one year
As at As at
30 November 30 November
2006 2005
Unaudited Audited
£ £
Bank loans and overdrafts 7,690,415 -
Other loans 47,485 42,623
Trade creditors 2,558,223 1,100,453
Taxation and social security 202,740 166,029
Corporation tax 18,707 48,171
Accruals and deferred income 805,724 607,305
_________ _________
11,323,294 1,964,581
_________ _________
Bank loans and overdrafts are secured by a fixed and floating charge over the
assets of Amino Communications Limited. The interest rate on the loan is 0.85%
over the US Dollar Base Rate.
Amounts falling due after more than one year
As at As at
30 November 30 November
2006 2005
Unaudited Audited
£ £
Other loans 36,299 71,285
_________ _________
Other loans comprise unsecured borrowings from a third party at a fixed interest
rate of 4.56% (2005: 4.56%).
8 Called-up share capital
As at As at
30 November 30 November
2006 2005
Unaudited Audited
£ £
Authorised
100,000,000 (2005: 100,000,000) ordinary shares of 1p 1,000,000 1,000,000
each
_________ _________
Allotted, called up and fully paid
58,263,052 (2005: 58,263,052) ordinary shares of 1p 582,630 582,630
each
_________ _________
In respect of the acquisition of SJ Consulting Limited, the Company has the
contingent obligation to issue 300,000 ordinary shares of 1p each (see note 5).
9 Reconciliation of movements in shareholders' funds
Year Year
to 30 to 30
November November
2006 2005
Unaudited Audited
£ £
Opening shareholders' funds 28,249,565 12,678,092
(Loss) / profit for the period (1,447,642) 63,914
Exchange differences on consolidation (185,080) (22,383)
Issue of ordinary share capital - capital - 72,250
Issue of ordinary share capital - share premium - 15,768,000
Shares to be issued 171,000 -
Expenses of share issue - (534,637)
Exercise of employee share options 53,024 224,329
_________ _________
Closing shareholders' funds 26,840,867 28,249,565
_________ _________
10 Reconciliation of operating (loss)/profit to net cash inflow/ (outflow) from
operating activities
Year Year
to 30 to 30
November November
2006 2005
Unaudited Audited
£ £
Operating (loss) (2,035,832) (339,575)
Depreciation and amortisation charge 564,675 397,510
(Increase) in stocks (2,347,606) (99,417)
Decrease / (increase) in debtors 2,836,057 (6,748,373)
Increase / (decrease) in creditors 1,618,232 (342,301)
Exchange adjustments (176,192) (22,383)
_________ _________
Net cash inflow / (outflow) from continuing operating 459,334 (7,154,539)
activities
_________ _________
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The company news service from the London Stock Exchange
Monday, 20th May 2024
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