Final Results
For immediate release 6 July 2010
ANITE PLC
Final results for the year ended 30 April 2010
Anite plc ("Anite" or "the Company"), the international software and solutions company, today announces its final results for the year ended 30 April 2010.
Financial highlights (adjusted) 1
· Revenue: £78.8m (2009: £90.1m)
· Operating profit: £11.9m (2009: £20.0m)
· Operating margin: 15.1% (2009: 22.2%)
- operating margins of 14% and 24% respectively for Wireless and Travel
· Profit before tax: £9.9m (2009: £18.1m)
· Basic earnings per share: 2.4p (2009: 4.4p)
· Net cash: £29.8m (30 April 2009: £27.3m)
· Swap liability capped at £21.6m
Statutory results
· Revenue from continuing operations £78.8m (2009: £90.1m)
· Operating (loss)/ profit from continuing operations £(1.8)m (2009: profit £9.4m)
· (Loss)/profit from continuing operations before tax: £(4.0)m (2009: profit £6.4m)
· (Loss)/profit for the period £(3.4)m (2009: profit £36.3m)
· Basic (loss)/ earnings per share (1.2)p (2009: 11.3p)
· Diluted (loss)/earnings per share (1.2)p (2009:10.8p)
· Proposed final dividend: 0.65p per share (2009: 0.65p) making a total of 0.95p (2009: 0.95p)
Operating highlights
· Wireless:
- successful launch of Anite 4G LTE product range
- Increased investment in R&D £13.2m (2009: £10.8m)
- trading improvement in second half in both Handset and Network Testing
- Good 4th quarter progress
· Travel:
- underlying trading in line with rebased expectations
- further progress with @comRes: TUI Germany go-live
- Initial orders from TUI UK and REWE Germany
· Orders:
- intake £82.3m (2009: £77.6m)
- closing order book £62.4m (2009: £59.3m)
- book-to-bill ratio 1.0 (2009: 0.9)
1Adjusted results are for continuing operations before share-based payments, impairment of goodwill, impairment and amortisation of acquired intangible assets, restructuring costs, other gains and losses and recycled hedge losses.
Christopher Humphrey, Chief Executive, said:
"The last financial year was a challenging one for the Group, but we saw an improvement in the second half with both the Wireless and Travel businesses making good progress. Our new LTE product has been well received by customers.
"We expect the continuing investments in our products to start to payback during this year. Anite began the year in good shape; we are trading well and in line with our expectations."
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For further information, please contact: |
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Anite plc |
www.anite.com |
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Christopher Humphrey, Chief Executive Richard Amos, Group Finance Director |
01252 775200 |
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Hogarth |
020 7357 9477 |
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Reg Hoare/Sarah Macleod |
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An analysts' meeting will be held today at 9.15 for 9.30am at the offices of
JP Morgan Cazenove, 20 Moorgate, EC2R 6DA
Print resolution images are available for the media to view and download from www.vismedia.co.uk
Note to editors
Anite is an international software and solutions company focused on the provision of test and operational systems in the wireless market, and reservation and e-commerce solutions to the leisure travel industry.
Anite's solutions, which have developed from its comprehensive sector knowledge, are based around the supply of Anite-owned software products. The full range of services we deliver to our customers - which include implementation systems, integration, maintenance, and managed services - enables us to maximise customer satisfaction. With its headquarters in the UK, Anite employs around 450 staff in 11 countries across Europe, America, Asia and the Middle East.
This preliminary statement contains forward-looking statements. These forward looking-statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results to differ from any future results or developments expressed or implied from the forward- looking statements. Each forward-looking statement speaks only as of the date of the particular statement and save to the extent required by the applicable law or regulation, we do not undertake any obligation to update or renew any forward-looking statement.
Final results for the year ended 30 April 2010
All references to adjusted profit relate to continuing operations for the period, before share-based payments, impairment of goodwill, impairment and amortisation of acquired intangible assets, restructuring costs, other gains and losses, and recycled hedge losses. See the attached income statement and notes for details. A reconciliation of adjusted results to reported statutory results is given in the Financial review.
Chairman's statement
Anite had a good finish to the financial year in both its divisions. We believe that the success and leadership of our products in their respective markets will result in future profitable growth.
Overview
The highlights of the year were the launch of our new wireless 4G LTE (LTE) product range (Anite 9000) and the continuing development of our successful @comRes travel reservation system. These products, the leaders in their respective markets, are the foundations for our future profitable growth.
The changes we made to our LTE product strategy have put us in a much stronger position to control the pace of the commercialisation of our offer. They have resulted in early success for our product with Tier One global handset and chipset customers. This success is being underpinned by focusing on LTE as the global 4G wireless technology of choice.
Although still in its early development phase, LTE is beginning to be widely adopted. The smartphone revolution, and the pressure that it is putting on operators' networks, means LTE is a much more vital technology upgrade than was the transition from 2G to 3G.
At the end of a particularly testing year, Travel was stronger and better positioned as a result of the progress it made with @comRes, and with its key customers in the UK and Germany.
Strategy
Our strategy is to position Anite as a global leader in Wireless test software, and to take advantage of the future opportunities that will emerge from the development and roll-out of LTE technology.
The Board believes that Wireless is a long-term growth market, which has high barriers to entry and limited competition in those areas in which Anite operates. This makes it possible to achieve good margins and returns on the investments needed to maintain our technological leadership.
In Travel, our strategy is to optimise the business's long-term value. To achieve this, we will continue to strengthen and improve its market position through the successful development of @comRes.
Results
The backdrop against which Anite's results were delivered in 2009/10 provided many challenges. In addition to the well-documented recessionary pressures around the world, our specific markets also faced a technology change, as customers reduced spending on legacy technologies in anticipation of their need to invest in the launch of the 4G market. In recognition of the pressures this placed on revenue and profitability, Anite's Wireless division rightly pressed ahead with development plans to ensure that it is well placed for the beginning of the 4G cycle. The resulting record investment made in the year also had an impact on profitability. At the same time, the Travel division was faced with a reduction in the scale of its business as a result of the customer consolidation and losses that occurred in the previous financial year.
As a consequence of these factors, results for 2009/10 are generally lower than those of the previous year, although they still demonstrate the strength of our divisions: adjusted operating margins of 14% were reported by the Wireless division and 24% by the Travel division. Encouragingly, the Group closed the financial year well: performance in Q4 meant that full-year orders were up 6% on the previous year and the book-to-bill ratio was just over 1 times.
Adjusted profit before tax for the Group was £9.9m (2009: £18.1m) on revenues down 13% at £78.8m (2009: £90.1m).
Adjusted basic earnings per share were down 45% to 2.4p (2009: 4.4p). We are, however, proposing to maintain the final dividend at 0.65p per share (2009: 0.65p), giving an unchanged total dividend of 0.95p (2009: 0.95p). The dividend will be paid on 26 October to shareholders on the register at 17 September 2010.
Balance sheet and cash
The Group has a strong balance sheet, with net cash resources and significant undrawn bank facilities. Net cash as at 30 April 2010 was £29.8m (30 April 2009: net cash of £27.3m).
As previously announced, the Board took action towards the end of the year to cap the currency swap liability that had built up since we acquired the Network Testing business in 2006. Full details are given in the Financial review. The important point is that the maximum liability is now certain, at £21.6m, with some potential for this to decrease if the euro weakens significantly against sterling over the next 18 months. The reported level of net cash above is before taking account of this liability on the Group's currency swap.
The Board
On 2 November 2009, Richard Amos was appointed as Group Finance Director. Richard, who is a chartered accountant, was previously Group Finance Director at a number of private and public companies. He took on the additional role of Company Secretary in February 2010, following John Sadler's resignation. The Board thanks John for the contribution he made over the past four years.
On 5 October 2009, Paul Taylor was appointed as a Non-Executive Director and, subsequently, as Chairman of the Audit Committee. Paul has been Group Finance Director of AVEVA Group plc since March 2001 and is a Fellow of the Chartered Association of Certified Accountants.
On 8 December 2009, David Hurst-Brown, a Non-Executive Director since 2004, was appointed the Company's Senior Independent Director. On the same date, Peter Bertram, a Non-Executive Director since 2004, stepped down from the Board. The Board thanks Peter for the valuable contribution he made, both as a Board member and as Chairman of the Audit Committee.
People
On behalf of the Board, I thank all employees for their contribution, hard work and support during the year.
Group summary
Although we had a difficult start to last year there were signs of recovery in the second half. During the year we continued to invest in our products and are now well positioned to move forward.
Trading in the opening part of this year has started well, in line with our expectations, and we look forward to making progress through the year.
Clay Brendish
Chairman
5 July 2010
Chief Executive's review
I am happy to report to you that, despite a very demanding year, the business is in good shape. We have continued to invest in our new products and, as a result, are well positioned to supply our markets as they start to improve.
Overview
The restricted financial environment had a significant effect on our Wireless customers' spending in the first half of last year, but in the second half, the slight easing of economic conditions, combined with the availability of an early stage 4G (LTE) hardware systems towards the end of the year, has seen performance start to improve.
We continued to invest in new products throughout the financial year. In the Travel division, we continued to develop our @comRes software, and in the Wireless division we continued to invest in developing new products for Handset Testing. Our change in LTE hardware strategy enabled the Handset Testing business to begin selling products for testing LTE - the technology for the next-generation of mobile phones - and during the second six months of the year that, combined with some recovery in customers' budgets, resulted in improved second-half revenue for both Handset Testing and Network Testing.
Over the years we have worked in partnership with a number of hardware suppliers, most recently Agilent, for 2G technology. Three years ago, we decided to collaborate with Agilent on the LTE hardware platform they were developing. Following delays in its development however, we decided to end this partnership and to provide our own hardware, which we had been developing to test and demonstrate our LTE software, while the main hardware platform was being finalised. This proprietary Anite hardware solution has now been developed into a final production model. It is being sold to, and is being well received by, key handset and chipset customers throughout the world.
In the Travel division, as indicated in last year's report, Norwich Union's decision not to renew its contract for us to manage some of its IT services, together with the loss of customers as a result of them being acquired or going into liquidation, meant that revenue and profit were lower than in the previous year. In recognition of this, we reduced the cost base to align with the lower revenue. Revenue and profit were further affected when, in December 2009, the Globespan group went into administration. Despite the impact of these events on the business, we continued to develop our relationship with Europe's largest travel operator, TUI, and expect to realise the benefit of that relationship over the next few years.
Our markets
Anite is structured into two market-facing divisions: Wireless and Travel. The Wireless division consists of two businesses. Handset Testing provides specialist systems, hardware and software to enable chipset and mobile phone manufacturers to design new mobile phone and data card devices efficiently, and to bring them to the market quickly. Network Testing provides technology to enable Mobile Network Operators (MNOs), which build and operate mobile phone networks, to test the efficiency and effectiveness of their systems, and to carry out live testing with different makes of handsets to ensure a consistently high-quality service for mobile phone users.
The Travel division provides industry-leading reservation and e-business systems to help leisure travel companies run their businesses profitably. This includes tour operators, specialist holiday companies, leisure park operators, accommodation providers and cruise and ferry operators
Wireless
Handset Testing
New handsets and chipsets have to go through a series of compliance tests while they are being developed and before they can be launched onto the market. The Handset Testing business provides customers with the technology to test handsets' viability by simulating the network, their conformance with industry standards, and their ability to interoperate with other devices across a wide range of networks.
Our automated solutions for development testing and conformance testing, which have a long lifespan and are easy to use, help manufacturers to reduce costs and show a clear return on investment, by enabling them to identify and resolve problems early in the development process. We are unique in allowing licences to be shared across R&D sites, and our common hardware platform enables solutions also to be used across departments. Our software reduces costs, and improves quality and time-to-market, by simulating true network conditions in the lab. In addition, because the large network operators are concerned about the way devices perform on their networks, a number of them specify that manufacturers must validate their devices on an Anite tester.
At the start of the design process, customers expect us to be technically innovative and responsive to their needs; while a large proportion buys our standard products, for major customers we are also able to offer a degree of customisation.
The principal drivers of the business are the evolution of new phone technology, the number of new handset models, data cards and "dongles" which are brought onto the market each year, and the constant changes in mobile phone technology which, in turn, are driven by the continued growth in subscribers. In the 37 years since Motorola invented the first portable cellular phone, mobile phones have progressed from being the proverbial brick with an aerial, which could simply make and receive calls, to today's tiny multi-function devices, while the number of subscribers has grown to approximately 4.6 billion - more than 60% of the world's population.
There have been multiple phone technologies launched in that time and our range of testing products extends back to the first-generation digital technology (2G). New mobile devices do not operate on a single technology and, consequently, devices must be able to switch seamlessly between all available technologies to maintain a connection. The need for legacy and new-generation technology to be present in one phone makes it very difficult for new entrants to the market to be able provide a comprehensive product range.
In the past two to three years, the use of mobile phones and wireless-connected devices, including smartphones, data dongles, netbook and tablet computers - such as Apple's iPad - has accelerated. The applications on these devices are data-intensive, but the licensed spectra (network capacity) are fixed. These factors, combined with network operators' desire to reduce costs - because traffic is increasing faster than revenue - has driven the need for a new, more efficient technology.
LTE - which we have supported since its inception - is now accepted as being the most effective 4G technology to deliver the data capacity that is needed. It uses the spectrum extremely efficiently: more network users can be accommodated on the same cell space and it "pushes" data through the spectrum more quickly in efficient packets. Where 3G made it technically possible to access data, 4G will make it practically possible.
I wrote about the advent of 4G, essentially mobile broadband, in last year's report. This has taken time to develop and, in today's global market, the US and China have been particularly ambitious in its adoption. Within 4G there are two competing technologies, WiMAX and LTE. In 2007, we instigated our internal development process for LTE but, at the same time, recognised the need for us to be able to offer solutions for both technologies. With our own resources focused fully on LTE, we believed it was more appropriate to acquire a WiMAX capability, which we did in January 2007, to improve our offer in that area. As it became clearer, however, that LTE would be the winning standard, in April 2010 we decided to stop offering WiMAX and to close that part of our business.
To adopt 4G, which most of the world's largest operators have pledged to do over the next three years, network operators have to invest in upgrading their infrastructures and that, particularly in a period of economic recession, has put pressure on the speed of the network roll-out. Industry giants such as AT&T, China Mobile, Verizon and Vodafone are, however, now committed to being in the early wave of this investment and are requiring handset manufacturers - the majority of which are our customers - to prove the technology on their products; and that is where our handset testing solutions are increasingly used. Over the 12 months following the roll-out of networks, 4G data devices (initially cards and dongles) will be sold, and will be followed by 4G phones and other devices. These data cards and phones all need similar amounts of testing.
Handset Testing strategy
We continue in our objective to position the Handset Testing business as a world leader in its field. To achieve that, we aim to complete our LTE solution, and to secure market penetration of all three testing phases - development, conformance, and interoperability - to develop the range of products and tools we offer customers and to increase sales to network operators, worldwide.
LTE is no exception to the rule that demand for more and more powerful applications, drives advances in technology hardware; LTE is a complex standard and is particularly challenging. This is, of course, of benefit to us - new technology demands new handsets which need to be tested - but the evolution of the smartphone and other mobile devices is exerting severe pressure on the capacity of the world's major mobile phone networks. There is, therefore, a compelling need for this technology. This is in direct contrast to 3G technology, where no such powerful catalyst existed.
The lead of the US and China in LTE technology will also be of benefit to us since some of our biggest customers are in the US and, during the year, we developed solutions for China's own version of LTE, TD-LTE. This, we believe, will give us an advantage in the development of that testing market. Since the inception of LTE we have consistently lead the conformance testing market and we currently lead the market in the development of conformance test cases. The conformance test market is driven by certification schemes administered by the standard setters (e.g. GCF). The LTE certified scheme is expected to go live in early 2011 and around that time we expect the conformance testing market to start to gather momentum.
The industry has, so far, defined around 200 conformance tests for LTE, 100 of which we have already implemented and had validated by the standards setters - more than double that of our nearest competitor.
Network testing
Our Network Testing business provides products for mobile network operators ('MNOs') and network manufacturers to measure the coverage and quality of mobile phone networks. We provide a range of tools that can be used to check the performance of networks at different stages of their life cycles. Our tools can not only be used to measure the quality of radio frequency metrics, but also allow our customers to see how end users perceive the quality of the mobile phone networks using quality of service and end user metrics.
During the year, we continued to increase sales coverage and now operate in over 90 countries, usually with local partners who also offer technical support to customers, and support all major network standards, including LTE.
Our measurement tools are designed to meet the needs of all our end-customers, whatever their internal processes and however they choose to do their testing. They provide a wide range of information, from call quality, data download and upload speeds, to signal reliability. They also provide data on the interaction of neighbouring cells and the efficiency with which devices "hand-off" from one cell to another as the device moves in a car, along a road, on foot, or in a building.
The products range from an easy-to-use handheld device, Nemo Handy, which can be used for indoor and outdoor testing, to a powerful laptop-based solution, Nemo Outdoor, which is used for "drive-testing", where the engineer drives around an area to compare coverage and quality at all times of the day and night, and in all weather conditions. Nemo Autonomous can be installed in taxis or buses to provide a cost-effective, unmanned continuous stream of information.
We carry out quarterly product upgrades and introduce new products when we see a need. During the year we launched the Nemo Multi Handy and also the Nemo Handy-W device that uses the Windows Mobile operating system, whereas previous devices had been based around Nokia's proprietary operating systems. These new devices add to Network Testing's range and testing capabilities.
The software embedded in our products enables organisations to manage and analyse vast amounts of data, quickly and efficiently, either on our Nemo Analyze post-processing analyser, or on third-party post-processing analysis tools.
As the world's mobile network coverage increases, with the roll-out occurring in most developed and developing countries, we will continue to expand geographical sales coverage and to help MNOs establish, and then upgrade, their networks.
Network testing strategy
Our objective is to continue to be the first to offer new technology, to provide excellent after-sales service and technical support, and to maintain strong relationships with customers, either direct or through local partners.
There is potential for considerable growth in many of the 90 countries in which we operate. For example, India - which has a population of nearly 1.2 billion - has recently concluded the auction of its 3G licences and is an increasingly important market.
We are developing our LTE product but, since testing can begin only when the networks are in place, we do not expect any significant benefit to accrue from that until 2012/2013. Our strategy is to continue to benefit from the roll-out of new networks by the MNOs and to leverage the LTE technology roll-out as it occurs.
Travel
The Travel business is the UK's market-leading supplier of software to help leisure travel companies run their businesses efficiently. The technology offers customers the ability to sell an increasingly diverse set of holiday products through a range of sales channels (including call centres, travel agents, and the web), to price by currency and market, to dynamically manage their inventory, to effectively connect with other industry providers and to improve productivity and customer service. In addition, we offer managed services on a hosted or remotely-managed basis. These products have a long life-cycle: many existing users of our legacy ATOP product have been with us for more than 15 years.
In recent years, major leisure travel companies have become even larger as they have acquired smaller operators. Paradoxically, their IT systems - which have the potential to transform profitability by offering economies in buying and selling, and by centralising back-office, as well as some sales, functions - have tended to lag behind. In addition there has been added competition to traditional tour operators from internet travel companies, such as Expedia and lastminute.com.
Our @comRes solution - which is being implemented by Europe's largest leisure travel group, TUI - is currently the only proven, large scale reservations system on the market. It enables customers to significantly reduce operating costs by standardising key processes across all markets and holiday types, and to be confident that the system will scale up in a way to cope with an increasing work load as the business continues to grow.
As a stand-alone system, @comRes offers the four key functions of reservations, content, customer relationship management and operational finance. It is also the core around which our @com eBusiness Suite is built, a single integrated solution, which customers can buy and implement in modules.
In an economic environment where price and capacity are key to success, our flexible software enables leisure travel companies to reduce costs while, at the same time managing a wider range of products. Although demand for the traditional package holiday remains strong, the ability to manage flexible and dynamic packages from the same IT platform is a major competitive advantage.
Travel strategy
In the drive to become the dominant software supplier to the European leisure travel market, we will continue to capitalise on our existing strong customer relationships - in the past year we have begun to work with TUI UK - and to invest in @comRes's ability to handle fixed and flexible packaging and specialist operations from a single system.
We will also continue with the process of creating UK and central European versions of @comRes to make it more accessible to mainstream travel companies. We will create long-term plans for customers currently using our legacy systems to migrate to @comRes. In addition, we will seek new mid-sized customers and partners throughout Europe and North America, and investigate opportunities in emerging economies.
We are in the process of changing our revenue model to one in which we license our system to customers on an annual basis. While this is likely to be a long-term project, it will have benefits on both sides: it will reduce the initial capital cost for customers and will augment our recurring revenue.
While the recession is likely to accelerate consolidation by increasing pressure on smaller travel operators, we are confident that the scalability inherent in our @comRes software and @com eBusiness Suite, combined with our reputation for implementing software that works, place us in an ideal position to grow steadily in the UK and overseas.
The current year will continue to be challenging for the Travel business, particularly in the first half. The progress our @com product is making with established and new customers is, however, an indication of our present unique market position. Implementation for larger customers can take several years but, once completed, will benefit them for many years to come. We intend to show that we have re-established the trading position of this business and that it is set for further growth.
Outlook
The last financial year was a challenging one for the Group, but we saw an improvement in the second half with both the Wireless and Travel businesses making good progress. Our new LTE product has been well received by customers.
Predictions as to the growth of the LTE market are difficult to make at this early stage, but the signs are positive and we are better positioned to take advantage of LTE than we were with 3G.
We expect the continuing investments in our products to start to payback during this year. The effect of this and normal seasonality factors mean we expect trading to be biased to the second half, although not as markedly as in the year just gone. Anite began the year in good shape; we are trading well and in line with our expectations.
Christopher Humphrey
Chief Executive
5 July 2010
Review of operations*
*Throughout this review, reference to adjusted results means the results for the continuing operations before, where applicable, share-based payments, impairment and amortisation of acquired intangible assets and goodwill, restructuring costs, other gains and losses and recycled hedge losses
The overall results for the Group are a reflection of a number of factors: the challenging market conditions we faced during the year; continuing investment, particularly in our 4G LTE product range and the reduction in the underlying base of our Travel division. In the final quarter of the year, there were encouraging signs of an improvement in orders and profits, and the closing order book showed a year-on-year increase.
Anite's operations comprise two divisions, Wireless and Travel. The Wireless division is made up of two separately-managed businesses, Handset Testing and Network Testing.
Wireless performance
Handset Testing
The adjusted results for the Handset Testing business for the year show that orders were maintained at £32.2m (2009: £32.5m), revenue decreased by 5% to £35.8m (2009: £37.7m), and adjusted operating profit fell by 51% to £3.5m (2009: £7.1m).
In the first half of the year economic conditions caused a decline in demand for older technology. This, combined with the planned increase in development spending on 4G, resulted in revenue and profit falling compared with the first half of the previous year.
At the half year, we announced the termination of our contract with Agilent for the supply of an LTE hardware platform and, following this change in strategy, commercialised our own hardware platform - the Anite 9000 Mobile Test Accelerator. Even at this early stage in the market, this has been well received by our customers. By the year end we had sold initial LTE systems to a number of leading Tier One customers worldwide. As a result, trading in the second half of the year improved, with orders and revenue ahead of the same period in the previous year. LTE accounted for around 12% of Handset Testing's revenue for the year as a whole, and 21% of its Q4 revenue.
The impact of weaker sterling, compared with the previous year, and its effect on translating overseas subsidiaries' revenue on a constant-currency basis, resulted in a revenue benefit of £0.5m, with an immaterial impact on profit. The effect, however, of transactional currency movements - transacting for sales in currencies different from our base currency - and year-end currency balances, resulted in an overall exchange loss of £0.5m (2009: £1.6m gain) - a £2.1m negative impact on profits year-on-year.
While revenue in Europe increased by 21% to £11.1m, revenue elsewhere declined: in the Americas by 6%, to £16.1m, and in Asia by 25%, to £8.6m, again as a reflection of challenging market conditions. Net revenue margin (revenue less third-party hardware cost) held up well and improved to 82% of revenue (2009: 80%). This is because the phase of the 2G/3G cycle that we are in has a greater proportion of software. We expect this trend to reverse in the current year as LTE sales increase; as is typical in the development testing market, they will include a greater proportion of hardware.
At the end of the year, as a result of the actions we had taken to reduce costs to align with the lower level of business, headcount had reduced to 173 (2009: 189). During the year, however, we strengthened the management team when we appointed a new Global Sales director, and a Customer Services and Fulfilment director to manage the production of the Anite 9000.
At this early stage in the LTE market, it is important for us to be able to bring our software swiftly to market to help our customers with the technically complex task of turning the new technology into viable products. R&D investment, which increased to £11.1m, up 28% on the previous year (2009: £8.7m), was a further significant factor in reducing profit. It included investment in TD-LTE, the variant that will be adopted in the market in China.
Following the increasing market acceptance of LTE as the industry standard for 4G, the Board reviewed the potential of WiMAX technology as the alternative competing standard and concluded that it will be a minor part of the market. It decided, therefore, to close Anite's business in this area and, as a result, a £7.1m exceptional cost - comprising £6.7m non-cash impairment and a £0.4m exceptional closure cost provision - has been made in the accounts for the year ended 30 April 2010. The WiMAX business made a loss of £0.1m on revenue of £1.1m during the year.
Network Testing
For the full year, adjusted results for the Network Testing business show that orders were steady at £21.1m (2009: £21.2m) while revenue declined by 6% to £20.0m (2009: £21.3m). Net revenue (revenue less cost of third-party hardware/software) fell 2% to 71% (2009: 73%), reflecting the tougher market conditions, and adjusted operating profit fell by 35% to £4.5m (2009 £6.9m).
The network testing market suffered in the early part of the year as a result of the market downturn. This caused customers to reduce their budgets, and resulted in revenue and profit in the first half of the year falling below those of the previous year.
There were signs of improvement in the second half of the year as customers began to release budgets, and the number and size of sales opportunities improved. Significant sales were made to a number of Tier One customers, including Nokia Siemens Networks, Vodafone, Orange and Alcatel-Lucent. The market continues, however, to be extremely competitive and order book visibility is generally very short.
The effect of currency movements in translating the overseas subsidiaries' results back to sterling was a translation benefit of £1.0m on revenue and £0.2m on profits. The impact of transactional currency movements from the dollar/euro as a result of the division's trade in America and the Far East, resulted in a £0.1m exchange loss (2009: £0.5m gain) giving an adverse £0.6m transactional impact on profits year-on-year.
While Network Testing's revenue in EMEA increased by 15%, to £9.2m, and in the Americas by 8%, to £2.8m, in Asia it declined by 25%, to £8.0m.
Investment in R&D was maintained at £2.1m (2009: £2.1m) as we continued to improve our products. In the period, we launched significant upgrades to our existing Nemo Outdoor and Analyze platforms, developed two new products - Multi-Handy and the Handy-W (a Windows Mobile-based product) - and new versions for LTE measurement.
Strict cost control was maintained during the year, although a £0.7m provision against outstanding receivables, contracted on extended credit terms, had an impact on the business. As a result of the business strengthening its sales and marketing department, headcount increased to 83 (2009: 80) by the end of the year.
Travel
Full-year adjusted results for the division show that orders increased by 21% to £29.0m (2009: £23.9m), but revenue fell by 26% to £23.0m (2009: £31.1m). Adjusted operating profit was 41% lower, at £5.6m (2009: £9.5m).
Travel's order intake tends to be focused on a few significant long-term orders and is characterised by a lengthy sales cycle. The improved order intake in the year is a reflection of the increase in business coming from the @comRes product: good progress was made with key UK and international customers, including with Europe's largest tour operator, TUI Group. By using @comRes, TUI is able to sell traditional package holidays more efficiently and cost effectively on a single system, through its multiple operations in Germany, Austria, Poland and Switzerland, and to eliminate unnecessary administrative costs. In the second half of the year we took an initial order from TUI UK for @ComRes, evidence of the strengthening of our relationship with the TUI Group.
During the year, Aurinkomatkat-Suntours, a subsidiary of the airline Finnair, completed the implementation of Anite's @com eBusiness Suite; a contract for @comRes was signed with REWE, Germany's second-largest tour operator; a number of legacy ATOP software customers were migrated to @comRes; and progress was made with turning @comRes into a standard product, a process which is expected to be completed during the current year.
As expected, the one-off customer events reported in last year's annual report had an effect on this year's results. These were the loss of the Norwich Union contract, a non-travel managed service customer; the one-off settlement of £2.3m received after MyTravel's acquisition by Thomas Cook; and other customer consolidation, including the administration of the XL Group, that occurred in the previous financial year. The lost revenue and effect on profit from these was approximately £10.0m and £5.2m respectively.
Translational currency effects in Travel are negligible as results from overseas subsidiaries are immaterial. The transactional effect of euro-denominated business and assets improved profits by £0.1m (2009:£ 0.2m), a net adverse effect of £0.1m year-on-year.
In the year, £10.8m (47%) of revenue came from the @comRes product compared with £8.1m (26%) in the previous year, and 98% (2009: 98%) of total revenue from Europe. Passenger bookings on @comRes systems are now running at more than four million a year, demonstrating the scalability of the product. Licence revenue for the year was £2.7m (2009: £1.5m); the increase is a reflection of the increased value of the @comRes product as it develops and matures. £2.0m of the licence revenue was generated in the second half of the year.
The fall in the division's revenue necessitated significant cost reductions to ensure that the cost base matched the revenue potential. Headcount at the end of the year had been reduced to 176 (2009: 194), principally as a result of the decline in the managed services business. In addition, Globespan going into administration at the beginning of December 2009 had a negative impact on the division of £0.4m.
These actions meant that operating margins fell from 31% in 2009 to 24% in 2010; if, however, the impact of the exceptional MyTravel settlement were excluded from last year's results, 2009's operating margins would be a more meaningful 25%. The underlying fall was, therefore, much smaller.
Other Group costs
The divisional performances, above, are stated before unallocated corporate costs, which include an element of head office staff costs, Directors' remuneration, professional fees and office costs, and other non-operational costs. During the period, unallocated Group costs reduced to £1.7m (2009: £3.5m). Corporate costs were cut following the sale of the Public Sector business and the consequential reduction in the size and complexity of the Group. Savings included reduced central headcount, lower net operational property costs, £0.1m (2009: £0.8m), reduced professional fees and lower annual bonuses.
Financial review
The Group's results for the year ended 30 April 2010 were characterised by solid performances from our two divisions, in a year of investment in which the economic environment was generally unhelpful.
The following analysis is for our continuing operations, which comprise the Handset Testing and Network Testing businesses in our Wireless division, and the Travel division. There were no acquisitions or disposals during the year although in the previous year we disposed of the Public Sector business. The results for Public Sector for the prior year are included in the comparative numbers as discontinued operations in the income statement for that year; further details are in note 5 to the accounts.
Principal accounting policies, assumptions, and key judgements
The principal accounting policies are unchanged. While there was no impact of changes in accounting standards on the results themselves, new requirements have had an impact on certain disclosures. These include fuller disclosure of operating segments, on adoption of IFRS 8, based on the way management operates the business. This has resulted in the separate disclosure of the Handset Testing and Network Testing businesses' results in note 2.2. We have also adopted the amendment to IAS 1, which requires a statement of comprehensive income to be reported separately from the income statement and statement of changes in equity. We have assessed other amendments to standards as being not applicable.
Financial results
Revenue from continuing operations was down 13% at £78.8m (2009: £90.1m) and adjusted profit before tax fell 45% to £9.9m (2009: £18.1m).
Reconciliations of adjusted EBITDA of £17.7m (2009: £25.8m), to the operating loss of £1.8m (2009: profit £9.4m), and adjusted operating profit of £11.9m (2009: £20.0m), to the reported loss before tax for the year of £4.0m (2009: profit £6.4m), are set out in the tables below. The reconciling items are those that, in the opinion of the Board, are either one-off in nature or are non-cash related and are not, therefore, indicative of the Group's underlying trading.
|
|
2010 |
2009 |
|
|
£m |
£m |
|
Adjusted EBITDA |
17.7 |
25.8 |
|
Depreciation |
(3.2) |
(3.2) |
|
Amortisation of intangible assets |
(2.6) |
(2.6) |
|
Adjusted operating profit |
11.9 |
20.0 |
|
Share-based payments |
(2.4) |
(1.8) |
|
Amortisation of acquired intangible assets |
(4.2) |
(4.0) |
|
Impairment of goodwill and acquired intangible assets |
(6.2) |
- |
|
Restructuring costs |
(0.9) |
(4.8) |
|
Operating (loss)/profit |
(1.8) |
9.4 |
|
|
2010 |
2009 |
|
|
£m |
£m |
|
Adjusted operating profit |
11.9 |
20.0 |
|
Net finance charges excluding recycled hedge losses |
(2.0) |
(1.9) |
|
Adjusted profit before tax |
9.9 |
18.1 |
|
Share-based payments |
(2.4) |
(1.8) |
|
Amortisation of acquired intangible assets |
(4.2) |
(4.0) |
|
Impairment of goodwill and acquired intangible assets |
(6.2) |
- |
|
Restructuring costs |
(0.9) |
(4.8) |
|
Other gains and losses |
0.4 |
(1.1) |
|
Net finance charges: Recycled hedge losses |
(0.6) |
- |
|
(Loss)/profit from continuing operations before tax |
(4.0) |
6.4 |
Currency effects
Movement in exchange rates in the year had an overall adverse effect on the results compared with the significant positive effect in the previous year. Year-on-year, the average exchange rate for the US dollar strengthened 5% against sterling, from £1= US$1.68 to £1 = US$1.60, and the average rate of the euro strengthened by 5%, from £1= €1.19 to £1 = €1.13. The effect of these changes on the translation of results from overseas subsidiaries was to improve revenue by £1.5m and adjusted operating profit by £0.2m.
The closing exchange rates at the year end, which affect the conversion of foreign-exchange denominated balance sheet items - such as cash, and trade debtors and creditors - saw some depreciation of the foreign currencies against sterling. The closing rate for the euro was £1= €1.153 (2009: £1 = €1.114), a depreciation of 3% on the previous year; the closing exchange rate for the US dollar was £1= US$1.526 (2009: £1= US$1.472), a depreciation of 4% on the previous year.
The transactional effect of business units trading in currencies other than their local currency and the revaluation of foreign currency balance sheet accounts into local currency also has an effect on the Group. Where possible, these exposures are hedged, or minimised, by converting foreign currency balances back into local functional currencies. In the year these transactions had an approximate net £0.5m adverse effect, compared with a net £2.1m positive effect in the previous year, resulting in £2.6m overall adverse impact on operating profit. The relative currency impact on divisional results is discussed in the Review of operations.
Revenue
Revenue from continuing operations decreased in the year by 13%, to £78.8m (2009: £90.1m), details of which are set out in the Review of operations. Geographically, revenues by destination were: UK 19% (2009: 28%); Europe 35% (2009: 25%); North America 24% (2009: 22%); and Asia 22% (2009: 25%). The shift from UK to Europe is mainly due to the increased proportion of business conducted by the Travel business in Germany in the year.
Revenue by type
|
|
2010 |
2009 |
|
|
£m |
£m |
|
Software licences |
30.7 |
31.0 |
|
Software maintenance |
21.2 |
21.4 |
|
Bespoke services and systems integration |
8.1 |
9.0 |
|
Software and related services |
60.0 |
61.4 |
|
Managed services |
5.3 |
10.1 |
|
Third-party |
13.5 |
16.3 |
|
Other - contract settlement |
- |
2.3 |
|
Total |
78.8 |
90.1 |
In revenue by type, the principal changes in the year are a result of the reduction of £4.8m in managed services, in the Travel division; the £2.3m settlement in 2009 of the MyTravel contract, also in the Travel division and a reduction of £2.8m in third-party hardware and software costs, which occurred both in Travel (£1.2m), where there was a reduction in the sale of third-party hardware aligned with the lower managed services business, and in Handset Testing (£1.6m), resulting from the reduction in sales of hardware as a result of the specific heavily software-dependent phase of the technology cycle that the business is currently addressing.
Within the reduction in overall revenue, revenue from software and related services, at £60.0m (2009: £61.4m), was only marginally down on the previous year. Recurring revenues (software maintenance and managed services) were 34% of the total revenue compared with 35% in 2009.
Gross profit
Gross profit in the year fell to £49.1m (2009: £55.3m), slightly less than the corresponding reduction in revenue, with gross margin improving marginally to 62% (2009: 61%). This is partly a reflection of the change in product mix, referred to above, with a lower proportion of low-margin revenue associated with the sale of third-party products, such as hardware.
Operating expenses
Operating expenses in the period increased to £50.9m (2009: £45.9m). A detailed breakdown is given in note 2.5.
Of total expenses, underlying operating expenses were £37.2m (2009: £35.3m), with one-off and non-cash items totalling £13.7m (2009: £10.6m).
The principal driver for the increase in underlying operating expenses was costs incurred in research and development (R&D), which amounted to £13.2m compared with £10.8m in the previous year. This expenditure was all incurred in the two Wireless businesses. In Handset Testing, investment in R&D went up from £8.7m in 2009, to £11.1m in 2010, largely as a result of developing our suite of LTE products, including specific expenditure on TD-LTE, the Chinese variant of LTE, new Interoperability Testing products for network operators, and evolution of the Anite 9000 platform. During the year we expensed £2.6m of the £4m of incremental LTE R&D investment that we had identified in the previous year. Of the balance, we expect to incur £0.8m in the current financial year. R&D costs in the year under review included amortisation of previously capitalised costs of £1.9m (2009: £1.9m). A further £1.3m of R&D expenditure (2009: £1.1m) was capitalised during the year and appears in the balance sheet under other intangible assets.
After the underlying operating expenses, adjusted operating profit was £11.9m (2009: £20.0m), a reduction of 40%. Adjusted EBITDA was down 31% at £17.7m (2009: £25.8m).
One-off and non-trading expenses excluded from adjusted profit calculations totalled £13.7m (2009: £10.6m). These included charges for share-based payments of £2.4m (2009: £1.8m), amortisation of acquired intangible assets of £4.2m (2009: £4.0m), and costs of £7.1m associated with the closure of Handset Testing's WiMAX operation in April 2010. These costs included £5.1m impairment of goodwill, £1.1m impairment of acquired intangible assets, and a £0.9m exceptional restructuring cost. Only £0.4m of this last element had a cash impact. Further details on this and the £4.8m of restructuring costs in the comparative period are included in note 3 to the accounts.
After these non-operational costs, the Group reported an overall operating loss of £1.8m (2009: operating profit of £9.4m).
Other gains and losses
A gain of £0.4m made in the year (2009: loss £1.1m) represents the net gain arising from revaluing to market prices those elements of the interest rate and cross-currency swaps that are deemed to be ineffective as hedges to market prices, together with the change in the fair value of derivative assets and liabilities outstanding at the year end. Further details are given in notes 4 and 13. Other gains and losses are excluded from the calculation of adjusted profit before tax.
Group finance costs
The Group had an excess of £29.8m of cash over borrowings at 30 April 2010 (30 April 2009: £27.3m), but incurred a net finance charge of £2.6m (2009: £1.9m). This was principally because the borrowings within the capital structure were fixed at the relatively high long-term rates available when the facilities were put in place in 2006, but surplus cash earns interest only at current low rates. This position will normalise in November 2011 when the current facilities and interest arrangements expire. The net finance charge includes £0.6m (2009: £nil) in respect of the recycling of a fair-value loss on a cash flow hedge, previously included directly in equity and now reclassified through the profit and loss back into equity (see note 6). This charge is excluded from adjusted profit before tax calculations.
Taxation
The tax charge for the year on continuing operations was £0.4m (2009: £1.4m). The tax rate on the statutory operating loss was a negative 10.9% (2009: 22.7%), primarily as a result of adjustments to the provisions made for deferred tax in previous years. The underlying adjusted tax rate on adjusted profit before tax is 27% (2009: 27%). Tax paid in the year was £1.7m (2009: £3.4m).
Shareholder returns
After taking account of the factors described above, adjusted basic earnings per share were 2.4p (2009: 4.4p), a reduction of 45%; adjusted diluted earnings per share were similarly down 45% to 2.3p (2009: 4.2p). The overall loss per share was 1.5p (2009: earnings per share for continuing operations of 1.5p).
The Board has proposed a final dividend of 0.65p per share (2009: 0.65p) making a total for the year of 0.95p (2009: 0.95p) which is covered 2.5 times by adjusted basic earnings.
Balance sheet:
Goodwill and other intangible assets
At 30 April 2010, goodwill was £57.3m (2009: £64.4m). In addition to a £2.0m reduction as a result of movements in foreign exchange rates, the carrying value of goodwill underwent annual impairment testing, using the assumptions described in note 9. During the year the WiMAX business was closed and, as a result, the Board fully impaired the £5.1m of previously-valued goodwill related to WiMAX. In addition, an amount of £1.1m held for WiMAX-related acquired intangible assets (note 10) was also fully impaired, which together with the normal amortisation of acquired intangible assets of £4.2m (2009: £4.0m) were the major factors in the decline in the value of other intangible assets, from £26.6m to £19.2m.
Cash flow
Net cash flow generated from operating activities was £11.0m (2009: £23.9m). This represented a conversion of 111% of adjusted profit before tax (2009: 132%). Within this, working capital was adversely affected by a £2.2m increase in inventories, mainly as a result of the initial provisioning of stocks and components for the new Anite 9000 LTE system for Handset Testing, first production batches of which were manufactured and sold in the final quarter of the year. The increase in inventories was partially offset by a net £0.6m release of other working capital in the period.
Capital expenditure in the period was £2.5m (2009: £3.7m). Significant purchases included £1.1m on the Testbed/Anite 9000 development equipment. £1.3m was incurred on capitalised development expenditure (2009: £1.1m), which represented the cost of writing conformance test cases for Handset Testing's LTE product.
As explained in the commentary below on derivative financial liabilities, the Group incurred a £1.0m cash outflow in the year as part of the capping of its swap position.
After these movements, and cash paid out to shareholders through dividends of £2.8m (2009: £12.9m including £9.9m special dividend), net cash increased by £2.5m (2009: net cash increase of £42.7m including net proceeds from the disposal of the Public Sector business). The net cash balance at 30 April 2010 was, as a result, £29.8m (30 April 2009: £27.3m).
Derivative financial liabilities
When Anite purchased Nemo (Network Testing) in November 2006, it entered into cross-currency swaps designed to hedge against movements in foreign exchange rates, and to protect the value of both the investment and the reserves of the Group. As a result of significant movements in interest rates and £/€ exchange rates since that date, the sterling value of the underlying euro-denominated assets had increased, but had been matched by a rise in the value of the derivative financial liabilities. The hedges are due to expire on 31 October 2011.
During the second half of the year the Board decided to close out the position on the swap in order to provide certainty of the size of the liability when the swap expires. During the year, the Group entered into a series of forward contracts to fix the amount payable on 31 October 2011 at a maximum cash cost of £21.6m (note 13). At the same time, the Group purchased a series of options at a total cost of £1.0m, paid during the year, to provide some potential reduction in the maximum amount payable should the euro decline significantly against sterling over the same period. The maximum liability of £21.6m compares with the net cash balance at 30 April 2010 of £29.8m.
The total liability on all derivative financial instruments at 30 April 2010, including the cross-currency swap, was £23.6m (2009: £24.5m). All derivative financial instruments will mature by 31 October 2011.
Borrowings and facilities
The outstanding balance on the Group's term loan facility at 30 April 2010 was £15.0m (2009: £20.0m). This is covered by £44.8m of cash at 30 April 2010 (30 April 2009: £47.3m). The facility expires on 30 November 2011.
The Group also has further borrowing facilities available, including a syndicated revolving facility of £20.0m (2009: £20.0m) and a net overdraft facility of £5.0m (2009: £5.0m). Both were undrawn at 30 April 2010.
In view of the current strong cash position, the availability of banking facilities, the maturity profile of debt obligations and forecast cash position over the next eighteen months, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, Anite continues to adopt the going concern basis in preparing the consolidated financial statements.
Richard Amos
Group Finance Director
5 July 2010
Consolidated income statement
|
|
|
2010 |
2009 |
|
|
Note |
£000 |
£000 |
|
Continuing operations |
|
|
|
|
Revenue |
2.1 |
78,770 |
90,098 |
|
Cost of sales |
|
(29,710) |
(34,835) |
|
Gross profit |
|
49,060 |
55,263 |
|
Distribution costs |
|
(10,708) |
(10,755) |
|
Research and development |
|
(15,666) |
(12,474) |
|
Administrative expenses |
|
(24,529) |
(22,673) |
|
Operating expenses |
2.5 |
(50,903) |
(45,902) |
|
Operating profit before share-based payments, amortisation of acquired intangible assets, impairment of goodwill and acquired intangible assets and restructuring costs |
2.2 |
11,866 |
20,045 |
|
Share-based payments |
|
(2,446) |
(1,874) |
|
Amortisation of acquired intangible assets |
10 |
(4,231) |
(4,040) |
|
Impairment of goodwill and acquired intangible assets |
|
(6,172) |
- |
|
Restructuring costs |
3 |
(860) |
(4,770) |
|
Operating (loss) / profit |
2.2 |
(1,843) |
9,361 |
|
Other gains and losses |
4 |
473 |
(1,057) |
|
Finance income |
6 |
222 |
1,199 |
|
Finance charges |
6 |
(2,843) |
(3,090) |
|
(Loss) / profit from continuing operations before tax |
|
(3,991) |
6,413 |
|
Tax expense |
7 |
(436) |
(1,454) |
|
(Loss) / profit from continuing operations |
|
(4,427) |
4,959 |
|
Profit from discontinued operations |
5(a) |
1,000 |
31,384 |
|
(Loss) / profit for the year |
|
(3,427) |
36,343 |
|
(Loss) / profit attributable to equity holders of the parent |
|
(3,427) |
36,343 |
|
Continuing and discontinued operations |
|
|
|
|
Earnings per share - basic |
8 |
(1.2)p |
11.3p |
|
- diluted |
|
(1.2)p |
10.8p |
|
Continuing operations |
|
|
|
|
Earnings per share - basic |
8 |
(1.5)p |
1.5p |
|
- diluted |
|
(1.5)p |
1.5p |
Consolidated statement of comprehensive income
|
|
|
2010 |
2009 |
|
|
Note |
£000 |
£000 |
|
|
|
|
|
|
Retained (loss) / profit for the period |
|
(3,427) |
36,343 |
|
Exchange differences arising on translation of foreign operations1 |
|
24 |
449 |
|
Cash flow hedges taken to equity |
|
189 |
(1,514) |
|
Recycling of fair value loss on cash flow hedges from equity to profit or loss2 |
6 |
655 |
- |
|
Fair value losses on net investment hedges (net of foreign exchange)3 |
|
(2,735) |
(3,731) |
|
Gain on sale of shares from treasury |
|
3 |
- |
|
Share buy back and cancellation |
|
- |
(660) |
|
Recognition of share-based payments before tax |
|
2,446 |
2,783 |
|
Tax (charge) / credit taken directly to other comprehensive income |
7 |
(134) |
669 |
|
Total comprehensive (loss) / income |
|
(2,979) |
34,339 |
1 Includes £nil (2009: £363,000) recycled through the income statement on disposal of businesses.
2 The fair value losses recycled to the income statement in the year are disclosed within finance charges (note 6).
3 The net loss of £2,735,000 (2009: £3,731,000) comprises the fair value loss on the net investment hedge of £2,796,000 (2009: £14,124,000) relating to the effective portion of the cross currency swaps less the foreign exchange gain of £61,000 (2009: £10,393,000)
Consolidated statement of changes in equity
|
|
Issued share capital |
Share premium account |
Own shares |
Merger reserve |
Capital redemption reserve |
Other reserves |
Retained earnings |
Total |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
Balance at 1 May 2008 Changes in equity for the year to 30 April 2009 |
33,854 |
25,406 |
(5,132) |
6,538 |
2,485 |
(940) |
333 |
62,544 |
|
Movements in total comprehensive income |
|
|
|
|
|
|
|
|
|
Retained profit for the period |
- |
- |
- |
- |
- |
- |
36,343 |
36,343 |
|
Exchange differences arising on translation of foreign operations |
- |
- |
- |
- |
- |
449 |
- |
449 |
|
Cash flow hedges taken to equity |
- |
- |
- |
- |
- |
(1,514) |
- |
(1,514) |
|
Fair value losses on net investment hedges (net of foreign exchange) |
- |
- |
- |
- |
- |
(3,731) |
- |
(3,731) |
|
Sale of own shares from treasury |
- |
- |
1,670 |
- |
- |
- |
(1,670) |
- |
|
Share buy back and cancellation |
(256) |
- |
- |
- |
256 |
- |
(660) |
(660) |
|
Utilisation of merger reserve |
- |
- |
- |
(5,816) |
- |
- |
5,816 |
- |
|
Recognition of share-based payments before tax |
- |
- |
- |
- |
- |
- |
2,783 |
2,783 |
|
Tax credit taken directly to other comprehensive income |
- |
- |
- |
- |
- |
649 |
20 |
669 |
|
Total comprehensive income for the period |
(256) |
- |
1,670 |
(5,816) |
256 |
(4,147) |
42,632 |
34,339 |
|
Issue of share capital |
46 |
79 |
- |
- |
- |
- |
- |
125 |
|
Purchase of own shares into treasury |
- |
- |
(195) |
- |
- |
- |
- |
(195) |
|
Dividend paid |
- |
- |
- |
- |
- |
- |
(12,903) |
(12,903) |
|
Balance at 30 April 2009 |
33,644 |
25,485 |
(3,657) |
722 |
2,741 |
(5,087) |
30,062 |
83,910 |
|
Changes in equity for the year to 30 April 2010 |
|
|
|
|
|
|
|
|
|
Movements in total comprehensive loss |
|
|
|
|
|
|
|
|
|
Retained loss for the period |
- |
- |
- |
- |
- |
- |
(3,427) |
(3,427) |
|
Exchange differences arising on translation of foreign operations |
- |
- |
- |
- |
- |
24 |
- |
24 |
|
Cash flow hedges taken to equity |
- |
- |
- |
- |
- |
189 |
- |
189 |
|
Recycling of fair value loss on cash flow hedges from equity to profit or loss |
- |
- |
- |
- |
- |
655 |
- |
655 |
|
Fair value losses on net investment hedges (net of foreign exchange) |
- |
- |
- |
- |
- |
(2,735) |
- |
(2,735) |
|
Revaluation of own shares in treasury |
- |
- |
(429) |
- |
- |
- |
429 |
- |
|
Sale of own shares from treasury |
- |
- |
400 |
- |
- |
- |
(400) |
- |
|
Gain on sale of shares from treasury |
- |
- |
- |
- |
- |
- |
3 |
3 |
|
Recognition of share-based payments before tax |
- |
- |
- |
- |
- |
- |
2,446 |
2,446 |
|
Tax (charge) / credit taken directly to other comprehensive income |
- |
- |
- |
- |
- |
206 |
(340) |
(134) |
|
Total comprehensive loss for the period |
- |
- |
(29) |
- |
- |
(1,661) |
(1,289) |
(2,979) |
|
Issue of share capital |
8 |
15 |
- |
- |
- |
- |
- |
23 |
|
Purchase of own shares into treasury |
- |
- |
(209) |
- |
- |
- |
- |
(209) |
|
Dividend paid |
- |
- |
- |
- |
- |
- |
(2,795) |
(2,795) |
|
Balance at 30 April 2010 |
33,652 |
25,500 |
(3,895) |
722 |
2,741 |
(6,748) |
25,978 |
77,950 |
Consolidated balance sheet
|
|
|
2010 |
2009 |
|
|
Note |
£000 |
£000 |
|
Non-current assets |
|
|
|
|
Goodwill |
9 |
57,323 |
64,415 |
|
Other intangible assets |
10 |
19,171 |
26,553 |
|
Property, plant and equipment |
|
10,038 |
10,893 |
|
Deferred tax assets |
|
2,406 |
1,731 |
|
|
|
88,938 |
103,592 |
|
Current assets |
|
|
|
|
Inventories |
|
4,452 |
2,289 |
|
Trade and other receivables |
|
24,518 |
24,297 |
|
Derivative financial assets |
13 |
856 |
75 |
|
Current tax assets |
|
267 |
381 |
|
Cash and cash equivalents |
12 |
44,803 |
47,177 |
|
|
|
74,896 |
74,219 |
|
Total assets |
|
163,834 |
177,811 |
|
Current liabilities |
|
|
|
|
Trade and other payables |
|
(25,758) |
(24,699) |
|
Bank borrowings |
11 |
(4,988) |
(4,979) |
|
Current tax payable |
|
(7,439) |
(7,236) |
|
Derivative financial liabilities |
13 |
(49) |
- |
|
Provisions |
14 |
(4,611) |
(5,389) |
|
|
|
(42,845) |
(42,303) |
|
Non-current liabilities |
|
|
|
|
Bank borrowings |
11 |
(9,979) |
(14,936) |
|
Deferred tax liabilities |
|
(4,389) |
(6,181) |
|
Derivative financial liabilities |
13 |
(23,569) |
(24,487) |
|
Provisions |
14 |
(5,102) |
(5,994) |
|
|
|
(43,039) |
(51,598) |
|
Total liabilities |
|
(85,884) |
(93,901) |
|
Net assets |
|
77,950 |
83,910 |
|
Equity |
|
|
|
|
Issued share capital |
15 |
33,652 |
33,644 |
|
Share premium account |
|
25,500 |
25,485 |
|
Own shares |
15(d) |
(3,895) |
(3,657) |
|
Merger reserve |
|
722 |
722 |
|
Capital redemption reserve |
|
2,741 |
2,741 |
|
Other reserves |
|
(6,748) |
(5,087) |
|
Retained earnings |
|
25,978 |
30,062 |
|
Total equity |
|
77,950 |
83,910 |
Approved by the Board on 5 July 2010 and signed on its behalf by
C J Humphrey Chief Executive
R J AmosGroup Finance Director
Consolidated cash flow statement
|
|
|
2010 |
2009 |
|
|
Note |
£000 |
£000 |
|
|
|
|
|
|
(Loss) / profit for the year |
|
|
|
|
Continuing operations |
|
(4,427) |
4,959 |
|
Discontinued operations |
|
1,000 |
31,384 |
|
|
|
(3,427) |
36,343 |
|
Adjustments for: |
|
|
|
|
Tax credit - continuing and discontinued |
7 |
(564) |
(1,194) |
|
Profit before tax on disposal of discontinued operations |
5(a) |
- |
(28,182) |
|
Other (gains) and losses |
4 |
(473) |
1,057 |
|
Net finance charges - continuing and discontinued |
6 |
2,621 |
1,791 |
|
Depreciation and impairment of property, plant and equipment |
|
3,170 |
3,535 |
|
Amortisation of intangible assets |
10 |
2,623 |
3,605 |
|
Amortisation of acquired intangible assets |
10 |
4,231 |
4,040 |
|
Loss on disposal of property, plant and equipment |
|
31 |
- |
|
Impairment of goodwill |
9 |
5,092 |
- |
|
Impairment of acquired intangible assets |
10 |
1,080 |
- |
|
Impairment of intangible assets |
10 |
403 |
- |
|
Share-based payments |
|
2,446 |
2,783 |
|
Decrease in provisions |
|
(1,490) |
(1,931) |
|
Increase in provisions - restructuring costs |
|
- |
4,770 |
|
Operating cash flows before movements in working capital |
|
15,743 |
26,617 |
|
(Increase) / decrease in inventories |
|
(2,163) |
1,248 |
|
(Increase) / decrease in receivables |
|
(220) |
15,360 |
|
Increase / (decrease) in payables |
|
799 |
(14,548) |
|
Movements in working capital |
|
(1,584) |
2,060 |
|
Cash generated from operations before exceptional cash payments |
|
14,159 |
31,327 |
|
Cash payments for onerous property lease |
|
- |
(2,650) |
|
Cash generated from operations |
|
14,159 |
28,677 |
|
Interest received |
|
259 |
1,297 |
|
Interest paid |
|
(1,695) |
(2,664) |
|
Income taxes paid |
|
(1,720) |
(3,410) |
|
Net cash generated from operating activities |
|
11,003 |
23,900 |
|
Cash flow from investing activities |
|
|
|
|
Proceeds from disposal of subsidiary undertakings |
5(b) |
- |
53,835 |
|
Net bank balance disposed with subsidiary undertakings |
|
- |
(8,315) |
|
Net payments to previously closed businesses |
|
- |
(201) |
|
Deferred consideration paid |
|
(364) |
- |
|
Part settlement of cross currency swap |
|
- |
(8,884) |
|
Purchase of foreign exchange options |
|
(1,000) |
- |
|
Purchase of property, plant and equipment |
|
(2,159) |
(3,199) |
|
Proceeds from disposal of property, plant and equipment |
|
- |
34 |
|
Purchase of software licences |
|
(387) |
(544) |
|
Expenditure on capitalised product development |
|
(1,319) |
(1,142) |
|
Net cash (used in) / generated from investing activities |
|
(5,229) |
31,584 |
|
Cash flow from financing activities |
|
|
|
|
Issue of ordinary share capital |
|
23 |
125 |
|
Share buy back for cancellation |
|
- |
(660) |
|
Purchase of own shares into treasury |
|
(209) |
(195) |
|
Proceeds from sale of own shares from treasury |
|
3 |
- |
|
Dividend paid to Company's shareholders |
16 |
(2,795) |
(12,903) |
|
Decrease in bank loans |
|
(5,000) |
(25,000) |
|
Net cash used in financing activities |
|
(7,978) |
(38,633) |
|
Net (decrease) / increase in cash and cash equivalents |
12 |
(2,204) |
16,851 |
|
Effect of exchange rate changes |
|
(170) |
952 |
|
Cash and cash equivalents at 1 May |
|
47,177 |
29,374 |
|
Cash and cash equivalents at 30 April |
12 |
44,803 |
47,177 |
In 2009, discontinued operations included Anite Public Sector which generated net operating cash inflows of £3,406,000, paid £526,000 for capital expenditure and paid £nil in respect of net returns on investment and servicing of financing.
1 Statement of accounting policies
a) Basis of preparation
The preliminary results have been prepared under the historical cost convention and in accordance with current International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations. However, this announcement does not contain sufficient information to comply with all the disclosure requirements of IFRS.
The preparation of the consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions in certain areas that affect the reported amounts in the financial statements. Although these estimates and assumptions are based on management's best knowledge, the actual results ultimately may differ from those estimates.
The statutory accounts for 2010 have been prepared following accounting policies consistent with those for the year ended 30 April 2009. These can be found on our website www.anite.com. The financial statements are presented in Pounds Sterling because that is the currency of the primary economic environment in which the Group operates.
The financial information set out in this announcement does not constitute statutory accounts within the meaning of Sections 434 to 436 of the Companies Act 2006 and is an abridged version of the Group's financial statements for the year ended 30 April 2010 which were approved by the directors on 5 July 2010. Statutory accounts for the year ended 2009 have been delivered to the Registrar of Companies, the auditors have reported on those accounts, their report was unqualified and did not contain statements under Section 498 of the Companies Act 2006. Statutory accounts for the period ended 30 April 2010 will be delivered to Companies House following the Company's annual general meeting. The auditors have reported on those accounts, their reports were unqualified and did not contain statements under Section 498 of the Companies Act 2006.
The preliminary announcement for the year ended 30 April 2010 was approved by the Board of Directors on 5 July 2010.
2 Revenue and segmental information
2.1 Revenue from continuing and discontinued operations
|
|
|
2010 |
2009 |
|
|
Note |
£000 |
£000 |
|
|
|
|
|
|
Own product software licences |
|
30,716 |
31,037 |
|
Bespoke services, systems integration and implementation of software products |
|
8,154 |
8,983 |
|
Managed services |
|
5,284 |
10,089 |
|
Software maintenance and support |
|
21,158 |
21,405 |
|
Sale of third-party products and services |
|
13,458 |
16,284 |
|
Other - contract settlement |
|
- |
2,300 |
|
Revenue from continuing operations |
2.2 |
78,770 |
90,098 |
|
Finance income |
6 |
222 |
1,199 |
|
Total revenue from continuing operations |
|
78,992 |
91,297 |
|
Discontinued operations |
|
|
|
|
Revenue |
5 |
- |
28,810 |
|
Finance income |
6 |
- |
100 |
|
Total revenue |
|
78,992 |
120,207 |
2.2 Operating segments - primary basis
The Group is organised into four operating segments: Handset Testing, Network Testing, Travel and Group. With the exception of Group, which performs the head office function, each operating segment derives its revenue from the development, installation and support of software products relating to its relevant industry sector.
Operating segment information under the primary reporting format is as disclosed in the tables below:
|
|
Handset Testing |
Network Testing |
Total Wireless |
Travel |
Group |
Total |
|
Year ended 30 April 2010 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
|
|
External revenue |
35,753 |
20,026 |
55,779 |
22,991 |
- |
78,770 |
|
Internal revenue |
- |
- |
- |
- |
1,387 |
1,387 |
|
Total revenue |
35,753 |
20,026 |
55,779 |
22,991 |
1,387 |
80,157 |
|
Segment adjusted1 profit / (loss) before tax |
3,460 |
4,569 |
8,029 |
5,575 |
(3,704) |
9,900 |
|
Net finance charges before recycled hedge loss |
- |
- |
- |
- |
1,966 |
1,966 |
|
Segment adjusted1 operating profit / (loss) |
3,460 |
4,569 |
8,029 |
5,575 |
(1,738) |
11,866 |
|
Share-based payments |
(1,019) |
(219) |
(1,238) |
(331) |
(877) |
(2,446) |
|
Amortisation of acquired intangible assets |
(625) |
(3,606) |
(4,231) |
- |
- |
(4,231) |
|
Impairment of goodwill and acquired intangible assets |
(6,172) |
- |
(6,172) |
- |
- |
(6,172) |
|
Restructuring costs |
(860) |
- |
(860) |
- |
- |
(860) |
|
Segment operating (loss) / profit |
(5,216) |
744 |
(4,472) |
5,244 |
(2,615) |
(1,843) |
|
Other gains and losses |
- |
- |
- |
- |
473 |
473 |
|
Finance income |
- |
- |
- |
- |
222 |
222 |
|
Finance charges |
- |
- |
- |
- |
(2,843) |
(2,843) |
|
(Loss) / profit from continuing operations before tax |
(5,216) |
744 |
(4,472) |
5,244 |
(4,763) |
(3,991) |
|
Tax expense |
- |
- |
- |
- |
(436) |
(436) |
|
(Loss) / profit from continuing operations |
(5,216) |
744 |
(4,472) |
5,244 |
(5,199) |
(4,427) |
|
Profit from discontinued operations |
- |
- |
- |
- |
1,000 |
1,000 |
|
(Loss) / profit for the period |
(5,216) |
744 |
(4,472) |
5,244 |
(4,199) |
(3,427) |
|
|
|
|
|
|
|
|
|
|
Handset Testing |
Network Testing |
Total Wireless |
Travel |
Group |
Total |
|
Year ended 30 April 2009 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
|
|
External revenue |
37,745 |
21,243 |
58,988 |
31,110 |
- |
90,098 |
|
Internal revenue |
- |
- |
- |
- |
2,221 |
2,221 |
|
Total revenue |
37,745 |
21,243 |
58,988 |
31,110 |
2,221 |
92,319 |
|
Segment adjusted1 profit / (loss) before tax |
7,130 |
6,862 |
13,992 |
9,542 |
(5,380) |
18,154 |
|
Net finance charges before recycled hedge loss |
- |
- |
- |
- |
1,891 |
1,891 |
|
Segment adjusted1 operating profit / (loss) |
7,130 |
6,862 |
13,992 |
9,542 |
(3,489) |
20,045 |
|
Share-based payments |
(103) |
(131) |
(234) |
(329) |
(1,311) |
(1,874) |
|
Amortisation of acquired intangible assets |
(606) |
(3,434) |
(4,040) |
- |
- |
(4,040) |
|
Restructuring costs |
139 |
- |
139 |
- |
(4,909) |
(4,770) |
|
Segment operating profit / (loss) |
6,560 |
3,297 |
9,857 |
9,213 |
(9,709) |
9,361 |
|
Other gains and losses |
- |
- |
- |
- |
(1,057) |
(1,057) |
|
Finance income |
- |
- |
- |
- |
1,199 |
1,199 |
|
Finance charges |
- |
- |
- |
- |
(3,090) |
(3,090) |
|
Profit / (loss) from continuing operations before tax |
6,560 |
3,297 |
9,857 |
9,213 |
(12,657) |
6,413 |
|
Tax expense |
- |
- |
- |
- |
(1,454) |
(1,454) |
|
Profit / (loss) from continuing operations |
6,560 |
3,297 |
9,857 |
9,213 |
(14,111) |
4,959 |
|
Profit from discontinued operations |
- |
- |
- |
- |
31,384 |
31,384 |
|
Profit for the period |
6,560 |
3,297 |
9,857 |
9,213 |
17,273 |
36,343 |
|
|
|
|
|
|
|
|
1 Segment adjusted operating profits are stated prior to the adjusting items of share-based payments, amortisation of acquired intangible assets, impairment of goodwill and acquired intangible assets and restructuring costs.
2.3 Other information
|
Year ended 30 April 2010 |
Handset Testing |
Network Testing |
Total Wireless |
Travel |
Group |
Total |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
|
|
Total Assets |
36,517 |
60,173 |
96,690 |
10,478 |
56,666 |
163,834 |
|
Including: |
|
|
|
|
|
|
|
Capital additions in the year |
3,300 |
374 |
3,674 |
326 |
58 |
4,058 |
|
|
|
|
|
|
|
|
|
EBITDA Calculation |
|
|
|
|
|
|
|
Segment adjusted operating profit / (loss) |
3,460 |
4,569 |
8,029 |
5,575 |
(1,738) |
11,866 |
|
Depreciation |
1,776 |
147 |
1,923 |
777 |
470 |
3,170 |
|
Amortisation of intangible assets |
2,047 |
213 |
2,260 |
328 |
35 |
2,623 |
|
EBITDA |
7,283 |
4,929 |
12,212 |
6,680 |
(1,233) |
17,659 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended 30 April 2009 |
Handset Testing |
Network Testing |
Total Wireless |
Travel |
Group |
Total |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
|
|
Total Assets |
35,339 |
62,640 |
97,979 |
11,518 |
68,314 |
177,811 |
|
Including: |
|
|
|
|
|
|
|
Capital additions in the year |
1,793 |
146 |
1,939 |
2,630 |
991 |
5,560 |
|
|
|
|
|
|
|
|
|
EBITDA Calculation |
|
|
|
|
|
|
|
Segment adjusted operating profit / (loss) |
7,130 |
6,862 |
13,992 |
9,542 |
(3,489) |
20,045 |
|
Depreciation |
2,083 |
121 |
2,204 |
516 |
469 |
3,189 |
|
Amortisation of intangible assets |
1,944 |
271 |
2,215 |
294 |
46 |
2,555 |
|
EBITDA |
11,157 |
7,254 |
18,411 |
10,352 |
(2,974) |
25,789 |
|
|
|
|
|
|
|
|
2.4 Geographical segment - secondary basis
The operating segments operate in four principal geographical areas, as set out below.
The following analysis of the Group's revenue is based on the geographical location of customers irrespective of the origin of the goods or services. The corresponding segment assets are based on the geographical location of the assets.
|
|
Revenue continuing operations |
Revenue discontinued operations |
Revenue total |
|||
|
|
2010 |
2009 |
2010 |
2009 |
2010 |
2009 |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
Europe - United Kingdom |
15,362 |
25,034 |
- |
28,293 |
15,362 |
53,327 |
|
Europe - Other |
27,363 |
22,729 |
- |
323 |
27,363 |
23,052 |
|
North America |
19,035 |
19,984 |
- |
70 |
19,035 |
20,054 |
|
Rest of the World |
17,010 |
22,351 |
- |
124 |
17,010 |
22,475 |
|
|
78,770 |
90,098 |
- |
28,810 |
78,770 |
118,908 |
|
|
Non-current assets |
|
|
|
2010 |
2009 |
|
|
£000 |
£000 |
|
Europe - United Kingdom |
12,194 |
13,268 |
|
Europe - Other |
68,572 |
74,617 |
|
North America |
8,031 |
15,439 |
|
Rest of the World |
141 |
268 |
|
|
88,938 |
103,592 |
2.5 Operating expenses
|
|
2010 |
2009 |
|
|
£000 |
£000 |
|
Distribution costs |
|
|
|
- amortisation of acquired intangible assets |
2,345 |
2,234 |
|
- other |
8,363 |
8,521 |
|
|
10,708 |
10,755 |
|
Research and development |
|
|
|
- amortisation of internally generated assets |
1,940 |
1,855 |
|
- other |
11,252 |
8,952 |
|
|
13,192 |
10,807 |
|
- amortisation of acquired intangible assets |
1,886 |
1,806 |
|
- restructuring costs |
588 |
(139) |
|
|
15,666 |
12,474 |
|
Administrative expenses |
|
|
|
- share-based payments |
2,446 |
1,874 |
|
- impairment of goodwill |
5,092 |
- |
|
- impairment of acquired intangible assets |
1,080 |
- |
|
- restructuring costs |
272 |
4,909 |
|
- other |
15,639 |
15,890 |
|
|
24,529 |
22,673 |
|
Total operating expenses |
50,903 |
45,902 |
|
Analysed as: |
|
|
|
- amortisation of acquired intangible assets (note 10) |
4,231 |
4,040 |
|
- amortisation of internally generated assets (note 10) |
1,940 |
1,855 |
|
- impairment of goodwill (note 9) |
5,092 |
- |
|
- impairment of acquired intangible assets (note 10) |
1,080 |
- |
|
- restructuring costs (note 3) |
860 |
4,770 |
|
- share-based payments |
2,446 |
1,874 |
|
- other |
35,254 |
33,363 |
|
|
50,903 |
45,902 |
3 RESTRUCTURING COSTS
The restructuring costs incurred in the current period relate to the closure of the WiMAX line of business within the Wireless division. These costs include the impact of asset write-downs of the development costs and equipment and other costs of restructuring and redundancy. The related costs of impairing the goodwill and acquired intangible assets are disclosed separately within administrative expenses (note 2.5).
The restructuring costs incurred in the prior period relate to the disposal of Anite Public Sector and the release of a previously held provision relating to the exit from the own-platform development. The property provision was made following the disposal of Anite Public Sector due to the head office property at 353 Buckingham Avenue, Slough being underutilised due to the relocation of Anite Public Sector staff and the uncertainty over the Group's ability to sublet the top floor which remains vacant at 30 April 2010.
|
|
2010 |
2009 |
|
|
£000 |
£000 |
|
Impairment of capitalised development costs |
403 |
- |
|
Impairment of property, plant and equipment |
110 |
- |
|
Redundancy costs |
75 |
- |
|
Other exit costs |
272 |
- |
|
Net property provision established |
- |
4,909 |
|
Cost of exiting own-platform development |
- |
(139) |
|
|
860 |
4,770 |
4 OTHER GAINS AND LOSSES
|
|
2010 |
2009 |
|
|
£000 |
£000 |
|
Hedge ineffectiveness on cash flow hedges |
187 |
- |
|
Hedge ineffectiveness on net investment hedge |
651 |
(1,057) |
|
Change in the fair value of derivative assets and liabilities outstanding at year end |
(342) |
- |
|
Costs arising on liquidation of previously disposed businesses |
(23) |
- |
|
|
473 |
(1,057) |
The gains (2009: losses) arising due to hedge ineffectiveness are derived from the differences in the movement in the fair values of both the interest rate and cross currency swaps and the hypothetical derivative that represented the market value of the swap on the date of designation.
The costs arising on liquidation of previously disposed businesses relate to the final closure and liquidation costs of Anite Holding Sarl.
5 Discontinued operations
a) Discontinued operations
There were no discontinued operations in the year to 30 April 2010. The comparatives to 30 April 2009 include the disposal of the Anite Public Sector division following the sale of the Group's 100% interest in the ordinary share capital of Anite Public Sector Holdings Ltd and its subsidiaries on 31 October 2008.
The profit after tax on sale of discontinued operations relates to the release of tax provisions made in prior years.
|
|
2010 |
2009 |
|
|
£000 |
£000 |
|
Profit after tax for the year from discontinued operations |
|
|
|
Revenue |
- |
28,810 |
|
Cost of sales |
- |
(16,323) |
|
Gross profit |
- |
12,487 |
|
Operating expenses |
- |
(12,033) |
|
Operating profit before interest |
- |
454 |
|
Finance income |
- |
100 |
|
Profit before tax |
- |
554 |
|
Tax credit / (charge) |
1,000 |
(488) |
|
Profit after tax |
1,000 |
66 |
|
|
|
|
|
Profit on sale of discontinued operations |
|
|
|
Net movement in provision in relation to previously discontinued operations |
- |
574 |
|
Profit on disposal of Anite Public Sector (note 5(b)) |
- |
27,608 |
|
Net profit before tax on sale of discontinued operations |
- |
28,182 |
|
Tax credit relating to activities discontinued in prior years |
- |
3,136 |
|
Profit after tax on sale of discontinued operations |
- |
31,318 |
|
|
|
|
|
Total profit after tax from discontinued operations |
1,000 |
31,384 |
b) Sale of discontinued operations
The net assets disposed and consideration received in respect of the disposal of Anite Public Sector are set out below:
|
|
2010 |
2009 |
|
|
£000 |
£000 |
|
Net assets |
- |
25,890 |
|
Recycled foreign exchange |
- |
(363) |
|
Profit on disposal |
- |
27,608 |
|
Net consideration |
- |
53,135 |
|
|
|
|
|
Net cash received |
- |
45,520 |
For a more detailed breakdown of the net assets and consideration in respect of the disposal of Anite Public Sector, please refer to note 4 of the 2009 Annual Report and Accounts.
6 Net finance charge
|
|
2010 |
2009 |
|
|
£000 |
£000 |
|
|
|
|
|
Finance income |
|
|
|
Interest receivable and similar income |
25 |
92 |
|
Interest on short-term deposits |
197 |
1,107 |
|
Total finance income |
222 |
1,199 |
|
|
|
|
|
Finance charges |
|
|
|
Bank loans and overdrafts1 |
(325) |
(2,023) |
|
Other loans/commitment fees |
(118) |
(101) |
|
Losses on financial instruments in a hedging relationship: |
|
|
|
- Interest rate swaps and caps - cash flow hedges |
(928) |
(121) |
|
- Cross currency swaps - net investment hedge |
(617) |
(638) |
|
Unwinding of discount on provisions 2 |
(200) |
(207) |
|
|
(2,188) |
(3,090) |
|
Recycling of fair value loss on cash flow hedges |
(655) |
- |
|
Total finance charges |
(2,843) |
(3,090) |
|
|
|
|
|
Adjusted net finance charge before recycled hedge loss |
(1,966) |
(1,891) |
|
Recycling of fair value loss on cash flow hedges 3 |
(655) |
- |
|
Net finance charge - continuing operations |
(2,621) |
(1,891) |
|
|
|
|
|
Finance income - discontinued operations |
- |
100 |
|
|
|
|
|
Net finance charge |
(2,621) |
(1,791) |
1 Finance charges on bank loans and overdrafts include amortisation of issue costs of £52,000 (2009: £91,000).
2 The unwinding of discount on provisions (note 14) relates to property and deferred consideration provisions.
3 The recycling of fair value loss on cash flow hedges arises due to the repayments of the term loan reducing the interest payments, causing some of the interest cash flows to be classed as no longer probable. In accordance with IAS39, an equivalent proportion of the fair value losses under the interest rate swap arrangement, previously taken to equity, are released to profit or loss.
7 Income tax expense
|
|
Continuing operations |
Discontinued operations |
Total |
|||
|
|
2010 |
2009 |
2010 |
2009 |
2010 |
2009 |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
Current tax |
|
|
|
|
|
|
|
UK corporation tax |
614 |
1,110 |
- |
488 |
614 |
1,598 |
|
Foreign tax |
2,015 |
3,151 |
- |
- |
2,015 |
3,151 |
|
|
2,629 |
4,261 |
- |
488 |
2,629 |
4,749 |
|
Adjustments in respect of prior years |
|
|
|
|
|
|
|
UK corporation tax |
- |
- |
(1,000) |
(3,136) |
(1,000) |
(3,136) |
|
Foreign tax |
(42) |
70 |
- |
- |
(42) |
70 |
|
|
(42) |
70 |
(1,000) |
(3,136) |
(1,042) |
(3,066) |
|
Total current tax expense / (credit) |
2,587 |
4,331 |
(1,000) |
(2,648) |
1,587 |
1,683 |
|
Deferred tax |
|
|
|
|
|
|
|
UK |
(565) |
(1,754) |
- |
- |
(565) |
(1,754) |
|
Foreign |
(1,586) |
(1,123) |
- |
- |
(1,586) |
(1,123) |
|
Total deferred tax credit (note 25) |
(2,151) |
(2,877) |
- |
- |
(2,151) |
(2,877) |
|
Total income tax expense / (credit) |
436 |
1,454 |
(1,000) |
(2,648) |
(564) |
(1,194) |
The tax charge on the profit on sale of discontinued operations was £nil (2009: £nil).
Corporation tax is calculated at 28% (2009: 28%) of the estimated assessable profit for the year. Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.
|
|
2010 |
2009 |
|
|
£000 |
£000 |
|
Charged / (credited) to equity |
|
|
|
Deferred tax relating to share-based payments |
(110) |
(20) |
|
Deferred tax relating to amortisation of acquired intangibles |
(206) |
948 |
|
UK corporation tax relating to discontinued activities |
450 |
- |
|
UK corporation tax relating to foreign exchange |
- |
(1,597) |
|
|
134 |
(669) |
Factors affecting tax charge for the year
The tax assessed on the profit on ordinary activities for the year is different to the standard rate of corporation tax in the UK. The differences are explained below:
|
|
2010 |
2009 |
|
|
£000 |
£000 |
|
(Loss) / profit before tax |
|
|
|
Continuing operations |
(3,991) |
6,413 |
|
Tax on Group profit at standard UK corporation tax rate of 28% (2009: 28%) |
(1,117) |
1,796 |
|
Effects of: |
|
|
|
Impairments and sale/closure of discontinued operations |
1,160 |
(32) |
|
Disallowed expenses and non-taxable income (net) |
87 |
107 |
|
Ineligible depreciation |
24 |
3 |
|
Prior year adjustment in relation to deferred tax |
347 |
(968) |
|
Short-term timing differences |
112 |
616 |
|
Tax losses carried forward |
77 |
162 |
|
Utilisation of tax losses |
(54) |
(195) |
|
Lower tax rates on overseas earnings |
233 |
(120) |
|
Deferred tax not provided |
(391) |
- |
|
Adjustments to current tax charge in respect of previous periods |
(42) |
70 |
|
Other |
- |
15 |
|
Income tax expense for year |
436 |
1,454 |
|
Tax rate for continuing operations |
(10.9)% |
22.7% |
The Group earns its profits in the UK and overseas. The tax rate used for tax on profit on ordinary activities is 28%, being the standard rate for UK corporation tax, as the Group's head office is in the UK.
Some components of the Group's overseas profits are likely to be taxed at an effective rate that is higher than the UK rate. Other components, due to the availability of losses brought forward in certain countries, are likely to be taxed at a lower rate.
8 Earnings per share
The calculations of earnings per share are based on the Group profit for the year, adjusted profit1 and weighted average number of shares in issue:
|
|
Basic |
Diluted |
||
|
|
2010 |
2009 |
2010 |
2009 |
|
EPS summary |
|
|
|
|
|
Basic EPS |
(1.2)p |
11.3p |
(1.2)p |
10.8p |
|
Basic EPS for continuing operations |
(1.5)p |
1.5p |
(1.5)p |
1.5p |
|
Adjusted EPS2 |
2.4 p |
4.4p |
2.3 p |
4.2p |
|
|
2010 |
2009 |
2010 |
2009 |
|
|
Pence per share |
Pence per share |
£000 |
£000 |
|
(Loss) / profit for the year |
(1.2) |
11.3 |
(3,427) |
36,343 |
|
Profit from discontinued operations |
(0.3) |
(9.8) |
(1,000) |
(31,384) |
|
(Loss) / profit for the year on continuing operations |
(1.5) |
1.5 |
(4,427) |
4,959 |
|
Reconciliation to adjusted profit: |
|
|
|
|
|
Other gains and losses (net of tax) |
(0.1) |
0.2 |
(341) |
761 |
|
Recycled hedge losses3 (net of tax) |
0.2 |
- |
472 |
- |
|
Amortisation of acquired intangible assets (net of tax) |
1.0 |
0.9 |
2,947 |
2,917 |
|
Share-based payments (net of tax) |
0.6 |
0.7 |
1,822 |
2,097 |
|
Impairment of goodwill and acquired intangible assets (net of tax) |
2.0 |
- |
5,870 |
- |
|
Restructuring costs (net of tax) |
0.2 |
1.1 |
619 |
3,434 |
|
Adjusted profit1 |
2.4 |
4.4 |
6,962 |
14,168 |
1 Profit from continuing businesses before other gains and losses, recycled hedge losses, amortisation of acquired intangible assets, share-based payments, impairments and restructuring costs.
2 Earnings per share on adjusted profit1 have been included to give a clearer understanding of the results of the continuing businesses.
3 Recycled hedge losses relate to the recycling of fair value losses on cash flow hedges reclassified from equity to profit or loss in the year.
Diluted EPS for discontinued operations is 0.3p (2009: 9.4p).
|
Number of shares ('000) |
2010 |
2009 |
|
Weighted average number of shares in issue - used to calculate basic earnings per share |
292,166 |
321,714 |
|
Effect of dilutive ordinary shares |
|
|
|
- SAYE and share option schemes |
14,100 |
13,507 |
|
Number of shares used to calculate diluted earnings per share |
306,266 |
335,221 |
9 Goodwill
|
|
Total |
|
|
£000 |
|
Cost |
|
|
At 1 May 2008 |
87,919 |
|
Addition to deferred consideration |
140 |
|
Eliminated on disposal of subsidiaries |
(31,471) |
|
Exchange movement |
7,827 |
|
At 30 April 2009 |
64,415 |
|
Exchange movement |
(1,977) |
|
At 30 April 2010 |
62,438 |
|
Accumulated impairment losses |
|
|
At 1 May 2008 |
9,261 |
|
Disposal of subsidiaries |
(9,261) |
|
At 30 April 2009 |
- |
|
Impairment charge |
5,092 |
|
Exchange movement |
23 |
|
At 30 April 2010 |
5,115 |
|
Net book value at 30 April 2010 |
57,323 |
|
Net book value at 30 April 2009 |
64,415 |
Goodwill is subject to annual impairment testing or more frequently if there are indications that goodwill might be impaired. During the year, the closure of the WiMAX line of business within the Wireless division indicated that there were grounds for a permanent impairment in the value of goodwill held and as a result an amount of £5,092,000 was charged to impairment.
10 Other intangible assets
|
|
|
|
|
Separately |
|
|
|
|
|
|
|
|
identified |
|
|
|
|
|
Customer |
|
|
acquired |
Capitalised |
|
|
|
|
lists and |
|
|
intangible |
development |
Software |
|
|
|
relationships |
Technology |
R&D |
assets |
costs |
licences |
Total |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
Cost |
|
|
|
|
|
|
|
|
At 1 May 2008 |
20,685 |
6,447 |
1,639 |
28,771 |
16,200 |
3,369 |
48,340 |
|
Additions |
- |
- |
- |
- |
1,142 |
544 |
1,686 |
|
Disposals |
- |
- |
- |
- |
- |
(4) |
(4) |
|
Disposal of subsidiaries |
- |
- |
- |
- |
(5,289) |
(687) |
(5,976) |
|
Exchange movement |
2,932 |
1,195 |
413 |
4,540 |
3 |
65 |
4,608 |
|
At 30 April 2009 |
23,617 |
7,642 |
2,052 |
33,311 |
12,056 |
3,287 |
48,654 |
|
Additions |
- |
- |
- |
- |
1,319 |
387 |
1,706 |
|
Exchange movement |
(798) |
(262) |
(72) |
(1,132) |
- |
(18) |
(1,150) |
|
At 30 April 2010 |
22,819 |
7,380 |
1,980 |
32,179 |
13,375 |
3,656 |
49,210 |
|
Amortisation |
|
|
|
|
|
|
|
|
At 1 May 2008 |
3,060 |
1,694 |
424 |
5,178 |
10,454 |
1,953 |
17,585 |
|
Amortisation |
2,234 |
1,423 |
383 |
4,040 |
2,815 |
790 |
7,645 |
|
Disposal |
- |
- |
- |
- |
- |
(3) |
(3) |
|
Disposal of subsidiaries |
- |
- |
- |
- |
(3,814) |
(487) |
(4,301) |
|
Exchange movement |
573 |
438 |
145 |
1,156 |
- |
19 |
1,175 |
|
At 30 April 2009 |
5,867 |
3,555 |
952 |
10,374 |
9,455 |
2,272 |
22,101 |
|
Amortisation |
2,345 |
1,488 |
398 |
4,231 |
1,940 |
683 |
6,854 |
|
Impairment losses (note 2.5) |
81 |
617 |
382 |
1,080 |
403 |
- |
1,483 |
|
Exchange movement |
(235) |
(125) |
(24) |
(384) |
- |
(15) |
(399) |
|
At 30 April 2010 |
8,058 |
5,535 |
1,708 |
15,301 |
11,798 |
2,940 |
30,039 |
|
Net book value at 30 April 2010 |
14,761 |
1,845 |
272 |
16,878 |
1,577 |
716 |
19,171 |
|
Net book value at 30 April 2009 |
17,750 |
4,087 |
1,100 |
22,937 |
2,601 |
1,015 |
26,553 |
11 Bank borrowings
|
|
2010 |
2009 |
|
|
£000 |
£000 |
|
Current |
|
|
|
Bank loans |
4,988 |
4,979 |
|
Non-current |
|
|
|
Bank loans |
9,979 |
14,936 |
|
|
14,967 |
19,915 |
|
The borrowings are repayable as follows: |
|
|
|
On demand or within one year |
4,988 |
4,979 |
|
In the second year |
9,979 |
4,979 |
|
In the third to fifth years inclusive |
- |
9,957 |
|
|
14,967 |
19,915 |
|
Less: amounts due for settlement within 12 months (shown under current liabilities) |
(4,988) |
(4,979) |
|
Amount due for settlement after 12 months |
9,979 |
14,936 |
The current and non-current bank loans comprise a £15m (2009: £20m) fixed term loan less £0.033m (2009: £0.085m) of unamortised issue costs being amortised over the period of the loan.
The loan was taken out on 30 November 2006 under a borrowing facility maturing on 30 November 2011. This loan is secured by a fixed and floating charge on the Group's assets.
12 Net CASH
|
|
|
2010 |
2009 |
|
|
Note |
£000 |
£000 |
|
Cash and cash equivalents |
|
44,803 |
47,177 |
|
Bank borrowings - current |
11 |
(4,988) |
(4,979) |
|
Bank borrowings - non-current |
11 |
(9,979) |
(14,936) |
|
Net cash |
|
29,836 |
27,262 |
|
A reconciliation of the movement in net cash / (debt) for the year is as detailed below: |
|
|
|
|
|
|
2010 |
2009 |
|
|
|
£000 |
£000 |
|
Net cash / (debt) at 1 May |
|
27,262 |
(15,450) |
|
Net (decrease)/increase in cash and cash equivalents |
|
(2,204) |
16,851 |
|
Unamortised issue costs of bank borrowings |
|
(52) |
(91) |
|
Decrease in bank borrowings |
|
5,000 |
25,000 |
|
Exchange movement |
|
(170) |
952 |
|
Net cash at 30 April |
|
29,836 |
27,262 |
13 Derivative financial instruments
Derivative financial instruments are carried at fair value. The fair values are derived from inputs that are observable for the asset or liability either directly or indirectly and relevant for the term, currency and instrument and are therefore Level 2 as described in the IFRS 7 update effective 1 January 2009. The fair values of the Group's derivative financial instruments are as follows:
|
|
2010 |
2010 |
2009 |
2009 |
|
|
Assets |
Liabilities |
Assets |
Liabilities |
|
|
£000 |
£000 |
£000 |
£000 |
|
Derivative financial assets |
|
|
|
|
|
Foreign currency contracts |
28 |
- |
75 |
- |
|
Foreign currency options |
828 |
- |
- |
- |
|
Derivative financial liabilities |
|
|
|
|
|
Foreign currency contracts |
- |
49 |
- |
- |
|
Interest rate swaps - in a cash flow hedge relationship |
- |
1,284 |
- |
1,660 |
|
Cross currency swaps - in a net investment hedge relationship |
- |
22,285 |
- |
22,827 |
|
|
856 |
23,618 |
75 |
24,487 |
|
Analysed as expiring: |
|
|
|
|
|
Within one year |
856 |
49 |
75 |
- |
|
More than one year and within five years |
- |
23,569 |
- |
24,487 |
|
|
856 |
23,618 |
75 |
24,487 |
Foreign currency options
The Group has purchased options to sell Euro at a rate of £1 = €1.30 on 27 October 2011. The total principal amount paid was £1.0m and the mark to market value at 30 April 2010 is £828,000. A charge of £172,000 has been recognised in the income statement and is disclosed as other gains and losses under the heading "Change in the fair value of derivative assets and liabilities outstanding at year end".
Cash flow hedges - interest rate swaps
The Group uses interest rate swaps to manage its exposure to interest rate movements on its bank borrowings.
At 30 April 2010, the interest rate swaps with notional principal amounts totalling £20m (2009: £20m) have fixed interest rate payments at an average rate of 5.535% and have floating interest receipts at LIBOR rate for periods up until 31 October 2011.
The fair value of the interest rate swaps as shown above are based on market values of equivalent instruments at the balance sheet date. Interest rate swaps to the value of £643,000 are designated and effective as cash flow hedges and the fair value thereof has been deferred in equity. Interest rate swaps to the value of £641,000 are designated but are no longer effective under IAS 39. During the period, losses of £655,000 previously held in reserves, have been recycled from reserves to the income statement and are disclosed as finance charges (note 6) under the heading "recycling of fair value loss on cash flow hedges". A gain of £187,000 (2009: £nil) arising due to ineffectiveness has been credited to the income statement and is disclosed as other gains and losses under the heading "hedge ineffectiveness on cash flow hedges".
Net investment hedges - cross currency swaps
The Group has overseas subsidiaries which operate mainly in North America, Northern Europe and Asia Pacific and whose revenues and expenses are denominated in their local currencies. The Group has historically hedged its net investment in overseas subsidiaries through natural hedges, forward exchange contracts and utilisation of cross currency swaps, however following the purchase of a forward exchange contract on 27 April 2010, the Group ceased to apply hedge accounting to its net investment in overseas subsidiaries using derivative financial instruments.
During the year, the Group entered into forward exchange contracts that, when combined with the cross currency swaps, reduced the principal amount under the combined instrument to €nil. At each purchase of a forward contract, the amount of the principal designated as the hedged item was reduced by an equal amount so that at the balance sheet date the principal value of the hedged item is also £nil. The combined hedging instruments of the cross-currency swap and forward exchange contracts were used to hedge the Euro-denominated net investment of Wireless Nemo and at the balance sheet date indicated a mark to market liability of £22,115,000 (2009: £22,827,000) of which, £524,000 relates to future quarterly interest payments and £21,591,000 relates to the net exchange of principals.
The fixed interest rates on the cross currency swap elements range from 4.64% to 5.19% (2009: 4.64% to 5.19%) and the floating interest rates are based on LIBOR (Sterling) and EURIBOR (Euro). During the year, the Group entered into forward exchange contracts to eliminate the impact of exchange rate movements on the net interest payable/receivable. At the balance sheet date, these forward contracts indicated a mark to market liability of £170,000.
The fair value change on the cross currency swap, which is approximately 99% effective against the hedged item, is recognised in the hedging and translation reserve. A gain of £651,000 (2009: loss £1,057,000) relating to ineffectiveness was recognised in the income statement during the year and is disclosed as other gains and losses under the heading "hedge ineffectiveness on net investment hedge".
14 Provisions
|
|
|
|
|
|
|
|
|
Deferred |
|
Property |
Other |
Group |
|
|
consideration |
Warranties |
provision |
provisions |
total |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
|
At 1 May 2009 |
380 |
3,210 |
7,293 |
500 |
11,383 |
|
Release of provision credited to income statement |
- |
- |
(59) |
(250) |
(309) |
|
Established during the year |
- |
- |
268 |
272 |
540 |
|
Utilised during the year (continuing operations) |
(364) |
- |
(1,471) |
(250) |
(2,085) |
|
Unwinding of discount |
- |
- |
200 |
- |
200 |
|
Exchange movement |
(16) |
- |
- |
- |
(16) |
|
At 30 April 2010 |
- |
3,210 |
6,231 |
272 |
9,713 |
|
|
2010 |
2010 |
|
|
£000 |
£000 |
|
Analysed as: |
|
|
|
Current liabilities |
4,611 |
5,389 |
|
Non-current liabilities |
5,102 |
5,994 |
|
|
9,713 |
11,383 |
The warranty provision has been made to cover any potential claims made by disposed businesses during the contractual warranty period. It is expected to be utilised in one to six years.
The property provision is in respect of all properties surplus to business requirements and dilapidation provisions for properties currently in use. It is expected to be utilised in one to 12 years.
Other provisions include provisions for contractual items expected to be utilised within one year.
15 Called up share capital
|
|
Ordinary shares of 11.25p each |
Deferred redeemable shares of £1 each |
||
|
|
||||
|
|
||||
|
|
Number |
£000 |
Number |
£000 |
|
Authorised: |
|
|
|
|
|
At 30 April 2009 & 2010 |
355,555,556 |
40,000 |
50,000 |
50 |
|
Allotted, issued and fully paid: |
|
|
|
|
|
At 30 April 2009 |
298,609,840 |
33,594 |
50,000 |
50 |
|
Issued during the year |
73,355 |
8 |
- |
- |
|
At 30 April 2010 |
298,683,195 |
33,602 |
50,000 |
50 |
a) Redeemable share capital
These deferred shares of £1 each may be redeemed at any time at the option of the Company at a price of 1p each. They are non-equity shares and have no voting rights.
b) Shares issued during the year
73,355 ordinary shares were issued at 30.5p each in respect of the exercise of options under the Approved Share Option Scheme.
c) Outstanding options
As at 30 April 2010, the following options over the Company's ordinary shares had been granted and were still outstanding:
|
|
Executive |
|
|
|
|
Share Option |
SAYE Option |
|
|
|
Grants/Awards |
Schemes |
Total |
|
Outstanding at 1 May |
17,824,123 |
33,766 |
17,857,889 |
|
Granted during the year |
4,265,350 |
2,837,946 |
7,103,296 |
|
Exercised during the year |
(2,092,905) |
(6,666) |
(2,099,571) |
|
Lapsed during the year |
(5,720,277) |
(155,523) |
(5,875,800) |
|
Outstanding at 30 April |
14,276,291 |
2,709,523 |
16,985,814 |
|
Subscription price |
0.0p - 207.0p |
22.5p |
|
|
Dates exercisable |
August 2010 - December 2019 |
September 2012 - August 2017 |
|
|
Weighted average exercise price |
14.0p |
22.5p |
|
d) Own shares reserve
The own shares reserve of £3,895,000 (2009: £3,657,000) represents the cost of shares in Anite plc purchased in the market for the following trusts of the Company:
i) At the start of the year, 4,733,453 shares at a cost of £2,704,000 were held in the Company's Employee Share Ownership Plan (ESOP) to satisfy some of the PSP and SMP awards, that part of the employers' NIC liability of the Group's share options schemes and all of the MIP awards. During the year, the Company reviewed the calculation for assessing the weighted average value of shares held within the ESOP and has subsequently revalued its holding by increasing the weighted average cost by £429,000. In addition, a further 366,336 shares were purchased at a cost of £104,000. All of these shares held will continue to be held until the performance conditions of the relevant share plan awards are fulfilled. During the year 628,342 shares were sold at a fair value of £400,000 to satisfy awards that were vested. At the balance sheet date, 4,471,447 shares were held at a weighted average cost of £2,733,000.
ii) At the start of the year, 1,712,524 shares at a cost of £953,000 were held in the Company's Share Incentive Plan (SIP) under the SIP scheme. These shares will be held until the conditions of the SIP are fulfilled. During the year, 309,757 shares were purchased at a cost of £105,000. At the balance sheet date, 2,022,281 shares were held at a cost of £1,058,000.
These amounts have been deducted from the shareholders' equity in accordance with IAS 32 and 39.
16 Dividends
Dividends paid during the year are set out below:
|
|
|
2010 |
2010 |
2009 |
2009 |
|
|
|
pence |
|
pence |
|
|
|
Payment date |
per share |
£000 |
per share |
£000 |
|
For the year ended 30 April 2008 |
|
|
|
|
|
|
Final dividend |
20 October 2008 |
|
|
0.6 |
1,993 |
|
For the year ended 30 April 2009 |
|
|
|
|
|
|
Interim dividend |
20 February 2009 |
|
|
0.3 |
992 |
|
Special dividend |
20 February 2009 |
|
|
3.0 |
9,918 |
|
Final dividend |
20 October 2009 |
0.65 |
1,912 |
|
|
|
For the year ended 30 April 2010 |
|
|
|
|
|
|
Interim dividend |
20 February 2010 |
0.30 |
883 |
|
|
|
|
|
|
2,795 |
|
12,903 |
At the AGM on 16 September 2010, a final dividend in respect of the year ended 30 April 2010 of 0.65p per share is to be proposed.
This information is provided by RNS
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