Preliminary Results

RNS Number : 5294Y
Microgen PLC
25 February 2013
 



25 February 2013

MICROGENplc ("Microgen")

Audited Preliminary Results for the Year ended

31 December 2012

 

Microgen, the software and services provider to the global financial services, digital media and commercial sectors reports its audited preliminary results for the year ended 31 December 2012.

SUMMARY

·        Resilient performance in difficult market conditions.

·        Revenue of £32.3 million (2011: £38.8 million) with growth in annual software licences and other recurring revenue offset by a decline, as anticipated, in consultancy and non-core activities.

·        MASD annual software licence and recurring revenue growth of 23% to £7.2 million (2011: £5.9 million) representing 44% of the Division's revenue (2011: 27%). 

·        Operating margins increased to 28% (2011: 24%). Operating profit of £9.0 million (2011: £9.5 million).

·        Diluted earnings per share of 8.3 pence (2011: 8.7 pence).

·        Strong balance sheet with net cash of £32.1 million (2011: £27.0 million).

·        Proposed final dividend of 2.2 pence per share (2011: 2.2 pence) representing a full year dividend of 3.3 pence (2011: 3.3 pence). 

·        Proposed special dividend of 5.2 pence per share.

·        Upon payment of the proposed final and special dividends, the Group will have returned 100% of its market capitalisation prior to the introduction of VERBS in October 2008, while maintaining a very strong balance sheet and creating a highly profitable business.

 

Contacts

 

Martyn Ratcliffe, Chairman

020-7496-8100

David Sherriff, Chief Executive Officer


Philip Wood, Group Finance Director




Clare Thomas, FTI Consulting

020-7831-3113

 

MICROGEN plc ("Microgen")

Audited Preliminary Results for the Year ended 31 December 2012

Chairman's Statement

Microgen reports a resilient performance for the year ended 31 December 2012 in difficult market conditions. Operating margins increased and strong cash flow was maintained demonstrating the benefit of the Group's conservative operational approach and annual licencing model.

The Microgen Aptitude Solutions Division ("MASD") reported a 23% growth in annual software licences and other recurring revenue, benefitting from the Group's annual licencing model and customers extending the use of Microgen Aptitude and Microgen Accounting Hub. (Recurring revenue includes annual licence fees, software maintenance and support). However, the Division's consulting revenue reflected the economic climate as customer budgetary pressures reduced deployment levels. While the market environment has made the transition more challenging, the increase in software as a proportion of Divisional revenue is consistent with the Board's strategy of value enhancement for this Division.

The Financial Systems Division ("FSD") which provides software products and services in more mature financial market sectors remains highly profitable producing operating margins of 52% in 2012 (2011: 46%) with strong cash flow and high recurring revenues. The FSD division continues to see growth opportunities in the wealth management sector endorsing the investment made in the Division's trust and fund software in recent years.

In summary, taking into account the challenging market environment throughout most of 2012, the Board is satisfied with the financial performance of the Group, particularly the resilient operating profit and cash flow. While sales cycles continue to be extended, the Board remains cautious in its outlook and prudent in its management of the business, but is also responding to the market by developing solutions compatible with more limited customer budgets.

The Group's balance sheet remains very robust with net cash of £32.1 million at 31 December 2012 (2011: £27.0 million). As a result of the strong financial position of Microgen, the Board has decided to propose a special dividend of 5.2 pence per share. The Board is also recommending a final dividend of 2.2 pence per share (2011: 2.2 pence), representing a full year dividend of 3.3 pence (2011: 3.3 pence). Subject to shareholder approval, the proposed final and special dividends will be payable on 28 May 2013 to shareholders on the register at the close of business on 26 April 2013.

As shareholders are aware, the Board introduced the Value Enhancement and Realisation Bonus Scheme ("VERBS") in October 2008 at which time the market capitalisation of Microgen was £37.0 million. Upon payment of the proposed final and special dividends, the Group will have returned 100% of its October 2008 market capitalisation to shareholders through ordinary dividends, special dividends, share buy-backs and tender offers. Furthermore, in addition to this substantial return of capital to shareholders, Microgen had a market capitalisation of £99.1 million at 31 December 2012.

Despite the challenging economic climate in recent years, Microgen has delivered significant value to shareholders and the Board considers the return of 100% of its market capitalisation to be a significant milestone achievement. At the same time, Microgen has maintained a very strong balance sheet throughout this process while reporting excellent profit margins and investing in its products, solutions and operating businesses. The Board continues to explore opportunities to extend this successful value creation and realisation strategy as appropriate. 

Martyn Ratcliffe

Chairman

 

Chief Executive Officer's Report

Microgen has reported a resilient financial performance in 2012 despite the difficult market environment which caused new business sales cycles to be extended and reduced consultancy deployment on existing projects. The resilient financial performance has benefitted from the Group's long term promotion of software sales on multi-year annual licence contracts, conservative revenue recognition policies and the Group's disciplined approach to overhead and operating costs.

·      Microgen Aptitude Solutions Division ("MASD")

MASD provides enterprise level application products and solutions to some of the world's largest financial and digital media organisations, typically where customers require very high volume (often referred to as "Big Data") processing of complex, business event-driven transactions.

Revenue from annual software licences and other recurring revenue grew by 23% to £7.2 million (2011: £5.9 million) and now represents 44% of the Division's revenue. However, customer budgetary constraints, particularly in the financial services sector, have led to reductions in the number of consultants deployed and services revenue declined to £8.8 million (2011: £15.3 million). While the market environment has made the transition more challenging, the growth in higher margin annual software licences and other recurring revenue, and its increase as a proportion of Divisional revenue, is consistent with the Board's strategy of value enhancement for this Division. 

As a result, MASD reported revenue of £16.3 million (2011: £21.8 million) with 57% of the Division's revenue being generated by its top 5 clients (2011: 64%). Strong operating margins of 18% (2011: 19%) delivered an operating profit of £2.9 million (2011: £4.2 million) while increasing investment in research and development to £3.5 million (2011: £3.2 million) and continuing to expense all research and development costs.

MASD has continued to invest in the Microgen Aptitude and Microgen Accounting Hub software and technology. The results of Microgen Aptitude performance tests at a third party test facility in 2012 demonstrated that this high performance Enterprise Application Platform achieved 7 billion transactions per hour performing in-memory processing and further tests, involving database to database processing, resulted in Microgen Aptitude achieving over 800 million transactions per hour. This exceptional performance, combined with the rich functionality provided in both Microgen Aptitude and Microgen Accounting Hub, confirms Microgen's leadership in delivering the high transaction-processing performance required in addressing the challenges associated with "Big Data" in high volume complex systems.

The Division also launched Version 4 of Microgen Aptitude and a new 3D Navigator module. This new module, together with the additional functionality within Version 4, further strengthens the product's market leading combination of functionality, business/IT collaboration and transaction-processing performance. To protect the Group's intellectual property Microgen continues to file patents related to the innovative enterprise technology associated with Microgen Aptitude. Patent applications have now been filed internationally for 13 separate inventions within Microgen Aptitude, the first of which was granted by the US Patent Office during 2012 with a further two being allowed for grant by the US patent office subsequent to the year end.

In response to the caution and budget constraints being demonstrated by organisations to large-scale investments in enterprise projects, MASD is modularising the Microgen Accounting Hub to provide targeted solutions to specific industry requirements within organisations. These highly functional software modules are capable of being extended to a full finance transformation solution while providing a lower entry-level commitment appropriate to the current economic climate. For example, as part of this strategy, a "Profitability" module has been developed providing a solution to address the increasing market need to improve cost allocations and profitability modelling, an area of demand MASD is seeing across a number of vertical sectors.

·      Financial Systems Division ("FSD")

The Financial Systems Division has a well-established customer base with 74% (2011: 69%) of Divisional revenue being derived from its core financial systems software including software for the wealth management and banking sectors. Reflecting the market maturity of the Division, the recurring revenues account for 78% (2011: 78%) of the Divisional revenue, with 28% of the Division's revenue being generated by its top 5 clients (2011: 24%).

FSD reported revenue of £16.0 million (2011: £17.0 million which as previously reported benefitted from unusually strong consultancy demand and some one-off benefits). Core financial systems reported growth in revenue to £11.9 million (2011: £11.8 million) of which £9.5 million is recurring (2011: £9.6 million). As anticipated, non-core activities declined to £4.1 million (2011: £5.2 million) of which £2.9 million is recurring in nature (2011: £3.6 million). The Division remains highly profitable producing operating margins of 52% in 2012 (2011: 46%).

The FSD division continues to see growth opportunities in the wealth management sector endorsing the investment made in the Division's trust and fund software in recent years. In parallel, the Division continues to review the viability of a number of its smaller product offerings and non-core activities with a view to optimising profit contribution as these offerings approach end-of-life. At the same time, the Group's strong balance sheet affords the Division the capability to evaluate add-on acquisitions in financial back office processing to complement its current market offerings if such opportunities arise.

Operations Summary

The Group has a strong and established portfolio of products and solutions, combining proven domain and industry expertise with leading technical and functional capability. The benefits of scale are achieved through the use of shared services centres for support functions. This foundation has enabled the Group to report a resilient financial performance in 2012 despite a challenging market environment.

David Sherriff

Chief Executive Officer

 

Group Financial Performance and Finance Director's Report

Revenue for the year ended 31 December 2012 was £32.3 million (2011: £38.8 million), with the higher margin annual software licences and other recurring revenue comprising 61% of overall revenue (2011 : 49%), producing an operating profit of £9.0 million (2011: £9.5 million). The Group reported a profit for the year attributable to equity shareholders of £6.9 million (2011: £7.3 million).

In accordance with IFRS, the Board has continued to determine that all internal research and development costs incurred in the year are expensed and therefore the Group has no capitalisation of development expenditure. The overall group expenditure on research, development and support activities in 2012 was £5.7 million (2011: £5.4 million) of which £3.5 million (2011: £3.2 million) was incurred by the Microgen Aptitude Solutions Division.

Despite the reduction in revenue, operating margins increased to 28% (2011: 24%) due to the Group's conservative operational approach. This has been achieved by the growth in the Group's higher margin annual software licences and other recurring revenues together with reductions in the use of contractors and associates, lower variable remuneration and reduced discretionary expenditure. Headcount at 31 December 2012 was 238 including contractors and associates (31 December 2011: 273). 

Diluted earnings per share for the year ended 31 December 2012 was 8.3 pence (2011: 8.7 pence). The total tax charge of £2.2 million (2011: £2.3 million) represents 24% of the Group's profit before tax (2011: 24%). The Group's tax charge benefitted from the recognition of £0.2 million (2011: £0.3 million) tax losses in the year. The deferred tax asset in relation to taxable trading losses represents only £0.2 million (2011: £0.2  million) of the overall deferred tax asset of £1.0 million (2011: £1.3 million) with short term timing differences representing the principle component at £0.4 million (2011: £0.5 million).

The Group continues to have a strong balance sheet with net assets at 31 December 2012 of £64.7 million (2011: £60.0 million) including net cash at 31 December 2012 of £32.1 million (2011: £27.0 million). 97% of cash at the year end was held in the United Kingdom. Benefitting once again from excellent customer debt collections in the final quarter, the cash generated from operations in the year was £10.3 million (2011: £12.5 million) with cash conversion, measured by cash generated from operations as a percentage of operating profit, of 115% (2011: 132%).

Philip Wood

Group Finance Director

 

Group Income Statement

for the year ended 31 December 2012

 



Year Ended

31 Dec 2012

 

Year Ended

31 Dec 2011

 


Notes

 

Before

intangible

amortisation

Intangible

amortisation

 

 

Total

 

Before

intangible

amortisation

Intangible

amortisation

 

 

 

Total



£000

£000

£000

£000

£000

£000

Revenue

1

32,318

-

32,318

38,776

-

38,776

Operating costs

1

(23,187)

(118)

(23,305)

(29,177)

(117)

(29,294)

Operating profit


9,131

(118)

9,013

9,599

(117)

9,482









Finance income


174

-

174

258

-

258

Finance cost


-

-

-

(142)

-

(142)



174

-

174

116

-

116

Profit before income tax


9,305

(118)

9,187

9,715

(117)

9,598









Income tax expense

2



(2,238)



(2,348)

Profit for the year




6,949



7,250









Earnings per share








Basic

3



8.5p



8.9p

Diluted

3



8.3p



8.7p

















Ordinary Dividends



Pence per share

£000


Pence per share

£000

Paid

4


3.3p

2,691


3.2p

2,575

Proposed

4


2.2p

1,795


2.2p

1,794









Special Dividends



Pence per share

£000


Pence per share

£000

Paid

4


-

-


5.0p

4,070

Proposed

4


5.2p

4,242


-

-

 

 

 

group statement of comprehensive income

For the year ended 31 December 2012

 

 

 

Year ended

31 Dec 2012

Year ended

31 Dec 2011

 

£000

£000

Profit for the year

6,949

7,250

Other comprehensive income

 

 

Cash flow hedges, net of tax

409

(367)

Currency translation difference

80

(142)

Other comprehensive income for the year, net of tax

489

(509)

Total comprehensive income for the year

7,438

6,741

 

 

 

Group Balance Sheet

For the year ended 31 December 2012

 

 

 

As at

31 Dec 2012

As at

31 Dec 2011

 

Notes

£000

£000

ASSETS

 

 

 

Non-current assets

 

 

 

Property, plant and equipment

 

5,391

5,521

Goodwill

 

41,774

41,774

Other intangible assets

 

-

118

Deferred income tax assets

 

1,041

1,324

 

 

48,206

48,737

Current assets

 

 

 

Trade and other receivables

5

3,163

5,611

Financial assets  - derivative financial instruments

 

69

-

Cash and cash equivalents

 

32,134

26,971

 

 

35,366

32,582

Total assets

 

83,572

81,319

LIABILITIES

 

 

 

Current liabilities

 

 

 

Financial liabilities

 

 

 

- derivative financial instruments

 

(15)

(353)

Trade and other payables

6

(17,845)

(19,981)

Current income tax liabilities

 

(742)

(768)

Provisions for other liabilities and charges

7

(42)

(107)

 

 

(18,644)

(21,209)

Net current assets

 

16,722

11,373

Non-current liabilities

 

 

 

Provisions for other liabilities and charges

7

(256)

(135)

NET ASSETS

 

64,672

59,975

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

Share capital

8

4,078

4,069

Share premium account

 

11,885

11,842

Capital redemption reserve

 

1,152

1,146

Other reserves

 

37,028

36,619

Retained earnings

 

10,529

6,299

TOTAL EQUITY

 

64,672

59,975

 

 

 

Group Statement of changes in shareholders' equity

for the Year Ended 31 December 2012

 

 
 
 
 
 
 
 
 
 
 
 
 
 
Share capital
 
£000
 
Share premium
 
£000
 
Retained earnings
 
£000
 
Capital redemption reserve
£000
 
 
Other reserves
 
£000
 
Total
equity
 
£000
At 1 January 2012
 
4,069
11,842
6,299
1,146
36,619
59,975
Profit for the year
 
-
-
6,949
-
-
6,949
Cash flow hedges – net fair value gains in the year
 
-
-
-
-
409
409
Exchange rate adjustments
 
-
-
80
-
-
80
Total comprehensive income for the year
 
-
-
7,029
-
409
7,438
Shares issued under share option schemes
 
15
43
-
-
-
58
Share options – value of employee service
 
-
-
61
-
-
61
Own shares purchased and cancelled
 
(6)
-
(146)
6
-
(146)
Deferred tax on financial instruments
 
 
-
-
(89)
-
-
(89)
Deferred tax on share options
 
-
-
25
-
-
25
Corporation tax on share options
 
-
-
41
-
-
41
Dividends to equity holders of the Company
 
-
-
(2,691)
-
-
(2,691)
Total Contributions by and distributions to owners of the company recognised directly in equity income
 
9
43
(2,799)
6
-
(2,741)
At 31 December 2012
 
4,078
11,885
10,529
1,152
37,028
64,672

 

 

 

 

 

 

 

 

Group Cash Flow Statement

for the Year Ended 31 December 2012

 

 

Year ended

Year ended

 

 

31 Dec 2012

31 Dec 2011

 

Notes

£000

£000

Cash flows from operating activities

 

 

 

Cash generated from operations

9

10,348

12,542

Interest paid

 

-

(156)

Income tax paid

 

(2,023)

(1,758)

Net cash flows generated from operating activities

 

8,325

10,628

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

(624)

(1,171)

Interest received

 

174

186

Net cash used in investing activities

 

(450)

(985)

 

 

 

 

Cash flows from financing activities

 

 

 

Net proceeds from issuance of ordinary share capital

 

59

395

Dividends paid to company's shareholders

4

(2,691)

(6,645)

Repayment of mortgage

 

-

(1,852)

Purchase of own shares

 

(146)

-

Net cash used in financing activities

 

(2,778)

(8,102)

 

 

 

 

Net increase in cash and cash equivalents

 

5,097

1,541

Cash, cash equivalents and bank overdrafts at beginning of year

 

26,971

25,412

Exchange rate gains on cash and cash equivalents

 

66

18

Cash and cash equivalents at end of year

 

32,134

26,971

 

 

Notes to the Audited preliminary results for the year ended 31 December 2012

 

1.     Segmental analysis

 

Business segments

 

       The Board, which is considered to be the chief operating decision maker, has determined the operating segments based on the reports it receives from management to make strategic decisions. 

 

       The segmental analysis is split into Microgen Aptitude Solutions Division ("MASD") and Financial Systems Division ("FSD").

 

The principal activity of the Group is the provision of IT services and solutions, including software based activity generating the majority of its revenue from software licences, maintenance, support, funded development and related consultancy. 

 

       The Divisions and business categories are allocated central function costs in arriving at operating profit.  Group overhead costs are not allocated into the Divisions or business categories as the Board believes that these relate to Group activities as opposed to the Division or business category.

 

 

 

1 (a) Revenue and operating profit by Division

 

 

Year ended 31 December 2012

 

 

 

MASD

FSD

 

 

Group

 

 

Total



£000

£000

£000

£000







Revenue


16,316

16,002

-

32,318

Operating costs


(13,388)

(7,588)

-

(20,976)

Operating profit before Group overheads 


2,928

8,414

-

11,342

Unallocated Group overheads




(2,211)

(2,211)

Operating profit before intangible amortisation





9,131

Intangible amortisation


-

(118)

-

(118)

Operating profit/(loss)


2,928

8,296

(2,211)

9,013

Net finance income





174

Profit before tax





9,187

Income tax expense





(2,238)

Profit for the year





6,949

 

 

 

 

Year ended 31 December 2011

 

 

 

MASD

FSD

 

 

Group

 

 

Total



£000

£000

£000

£000







Revenue


21,799

16,977

-

38,776

Operating costs


(17,590)

(8,983)

-

(26,573)

Operating profit before Group overheads 


4,209

7,994

-

12,203

Unallocated Group overheads




(2,604)

(2,604)

Operating profit before intangible amortisation 





9,599

Intangible amortisation


-

(117)

-

(117)

Operating profit/ (loss)


4,209

7,877

(2,604)

9,482

Net finance income





116

Profit before tax





9,598

Income tax expense





(2,348)

Profit for the year





7,250

 

 

 

1(b) Geographical analysis

 

The Group has two geographical segments for reporting purposes, the United Kingdom & Ireland and the Rest of the World.

 

The following table provides an analysis of the Group's sales by origin and by destination.

 

 

Sales revenue by origin

Sales revenue by destination

 

Year ended

Year ended

Year ended

Year ended

 

31 Dec 2012

31 Dec 2011

31 Dec 2012

31 Dec 2011

 

 

 

 

 

 

£000

£000

£000

£000

     United Kingdom and Ireland

23,696

30,876

16,157

22,434

     Rest of World

8,622

7,900

16,161

16,342

 

32,318

38,776

32,318

38,776

 

 

 

2.     Income tax expense

 

 

Year ended

Year ended

 

31 Dec 2012

31 Dec 2011

Analysis of charge in the year

£000

£000

Current tax:

 

 

- current year charge

(1,973)

(2,269)

- prior year (charge)/credit

(71)

75

 

(2,044)

(2,194)

Deferred tax:

 

 

- current year charge

(139)

(165)

- prior year (charge)/credit

(55)

11

 

(194)

(154)

Income tax expense

(2,238)

(2,348)

 

 

The total tax charge of £2,238,000 (2011: £2,348,000) on continuing operations represents 24.4% (2011: 24.5%) of the Group's profit before tax of £9,187,000 (2011: £9,598,000). 

 

After adjusting for the impact of amortisation, change in tax rates, share based payment charge and prior year tax charges, the tax charge for the year of £2,319,000 (2011: £2,687,000) represents 25.2% of the profit before intangible amortisation (2011: 28.0%) which is the tax rate used for calculating the adjusted earnings per share.

 

At the balance sheet date, the Group has unused tax losses of £7,606,000 (2011: £8,518,000) available to offset against future profits.  A deferred tax asset has been recognised in respect of £790,000 (2011: £822,000) of such losses which is the maximum the Group anticipates being able to utilise in the year ending 31 December 2012.  No deferred tax asset has been recognised in respect of the remaining £6,816,000 (2011: £7,696,000) due to the unpredictability of future profit streams.

 

The difference between the total tax charge and the amount calculated by applying the effective United Kingdom corporation tax rate of 24.5% (2011: 26.5%) to the profit on ordinary activities before tax is as follows: 

 

 

Year ended

Year ended

 

31 Dec 2012

31 Dec 2011

 

 

 

 

£000

£000

Profit on ordinary activities before tax

9,187

9,598

 

 

 

Tax at the UK corporation tax rate of 24.5% (2011: 26.5%)

(2,251)

(2,543)

 

 

 

Effects of:

 

 

Adjustment to tax in respect of prior period

(126)

86

Adjustment in respect of foreign tax rates

7

39

Foreign exchange gains on intercompany balances

(42)

(126)

Research and development tax credit

135

53

Expenses not deductible for tax purposes

 

 

- Share based payment expenses

(89)

(1)

- Other

(58)

(15)

Changes in UK Corporation Tax Rates

 

(20)

(97)

Recognition of tax losses

206

256

Total taxation

(2,238)

(2,348)

 

 

 

3.     Earnings per share

 

To provide an indication of the underlying operating performance per share, the adjusted profit after tax figure shown below excludes intangibles amortisation and has a tax charge using the effective rate of 25.2%

 (2011: 28.0%)

 

Year ended

Year ended

 

31 Dec 2012

31 Dec 2011

 

£000

£000

Profit on ordinary activities before tax and intangibles amortisation

9,305

9,715

Tax charge at a rate of 25.23% (2011: 28.0%)

(2,348)

(2,720)

Adjusted profit on ordinary activities after tax

6,957

6,995

Prior years' tax (charge)/ credit

(126)

86

Share options

-

(1)

Amortisation of intangibles net of tax

(88)

(86)

Recognition of tax losses

206

256

Profit on ordinary activities after tax

6,949

7,250

 

 

2012

Number

(thousands)

2011

Number

( thousands)

 

Weighted average number of shares

81,572

81,144

Effect of dilutive share options

1,873

2,205

 

83,445

83,349

 

 

2012

Basic

EPS

2012

Diluted

EPS

 

pence

pence

 

Earnings per share

8.5

8.3

Amortisation of intangibles net of tax

0.1

0.1

Prior years' tax charge

0.2

0.2

Tax losses recognised

(0.3)

(0.3)

Adjusted earnings per share

8.5

8.3

 

Adjusted earnings per share are calculated using adjusted profit after tax.

 

 

 

4.    Dividends

 

 

2012 pence per share

2011 pence per share

2012

£000

2011

£000

Dividends paid:

 

 

 

 

Interim dividend

1.1

1.1

897

874

Final dividend (prior year)

2.2

2.1

1,794

1,701

Special dividend

-

5.0

-

4,070

 

3.3

8.2

2,691

6,645

 

 

 

 

 

Proposed but not recognised as a liability:

 

 

 

 

Final dividend (current year)

2.2

2.2

1,795

1,794

Special dividend (current year)

5.2

-

4,242

-

 

7.4

2.2

6,037

1,794

 

The proposed final and special dividends were approved by the Board on 22 February 2013 but were not included as a liability as at 31 December 2012, in accordance with IAS 10 'Events after the Balance Sheet date'. If approved by shareholders at the Annual General Meeting the proposed final and special dividends will be payable on 28 May 2013 to shareholders on the register at the close of business on 26 April 2013.

 

 

 

5.     Trade and other receivables

 

 

31 Dec 2012

31 Dec 2011

 

£000

£000

Trade receivables

2,411

5,146

Less: provision for impairment of receivables

(61)

(64)

Trade receivables - net

2,350

5,082

Other receivables

139

42

Prepayments and accrued income

674

487

 

3,163

5,611

 

 

 

6.     Trade and other payables

 

 

31 Dec 2012

31 Dec 2011

 

£000

£000

Trade payables

368

247

Other tax and social security payable

658

1,097

Other payables

657

253

Accruals

1,877

3,345

Deferred income

14,285

15,039

 

17,845

19,981

 

 

 

7.     Provisions for other liabilities and charges

 

 

Property provision

 

31 Dec 2012

31 Dec 2011

 

£000

£000

Group

 

 

At 1 January

242

289

(Credited) / charged to income statement

(45)

55

Charged to property, plant and equipment

100

-

Utilised

-

(93)

Foreign exchange

1

(9)

At 31 December

298

242

 

 

Provisions have been analysed between current and non-current as follows:

 

Property provision

 

31 Dec 2012

31 Dec 2011

 

£000

£000

Current

42

107

Non-current

256

135

 

298

242

 

 

 

8.     Share capital

        The movement in authorised and issued Ordinary Share Capital of 5 pence each during the year is detailed below.

 

 

Authorised

Issued and fully paid

 

Number

Amount

Number

Amount

 

 

£000

 

£000

At 1 January 2012

145,000,000

7,250

81,395,677

4,069

Issued under share option schemes

-

-

307,173

15

Share buyback

-

-

(121,000)

(6)

At 31 December 2012

145,000,000

7,250

81,581,850

4,078

 

 

 

9.     Notes to the Group Cash Flow Statement

 

Reconciliation of profit for the year to net cash inflow from operating activities

 

 

Year ended

31 Dec 2012

Year ended

31 Dec 2011

 

£000

£000

Profit before tax

9,187

9,598

Adjustments for:

 

 

   Depreciation

788

739

   Amortisation of intangible assets

118

117

   Share-based payment expense

61

115

   Finance income

(174)

(258)

   Finance costs

-

142

 

 

 

Changes in working capital:

 

 

   Decrease in receivables

2,448

360

   (Decrease)/ increase in payables

(2,136)

1,776

   Increase/ (decrease)  in provisions

56

(47)

 

 

 

Cash generated from operations

10,348

12,542

 

 

 

10.  Statement by the directors

 

The preliminary results for the year ended 31 December 2012 and the results for the year ended 31 December 2011 are prepared under International Financial Reporting Standards as adopted for use in the EU ("IFRS").  The accounting policies adopted in this preliminary announcement are consistent with the Annual Report for the year ended 31 December 2011.

 

The financial information set out in this preliminary announcement does not constitute the Company's statutory accounts for the years ended 31 December 2012 or 31 December 2011.  The financial information for the year ended 31 December 2011 is derived from the Annual Report delivered to the Registrar of Companies.  The Annual Report for 2012 will be delivered to the Registrar of Companies in due course. The auditors' report on those accounts was unqualified and neither drew attention to any matters by way of emphasis nor contained a statement under either section 498(2) of Companies Act 2006 (accounting records or returns inadequate or accounts not agreeing with records and returns), or section 498(3) of Companies Act 2006 (failure to obtain necessary information and explanations).

 

The Board of Microgen approved the release of this audited preliminary announcement on 22 February 2013.

 

The Annual Report for the year ended 31 December 2012 will be posted to shareholders in due course and will be delivered to the Registrar of Companies following the Annual General Meeting of the Company.  The report will also be available on the investor relations page of our web site (www.microgen.com).  Further copies will be available on request and free of charge from the Company Secretary at Old Change House, 128 Queen Victoria Street, London, EC4V 4BJ.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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