Interim Results
Glen Group PLC
26 June 2007
Glen Group plc
Interim Results for the six months ended 31 March 2007
Glen Group plc, the Edinburgh based provider of integrated IT and communication
services, today announces interim results for the six months ended 31 March 2007
Key points:
• Turnover for the half year of £2,924,819 compares to £976,937 in the
equivalent period last year - an increase of approximately 200%
• Eclectic contributes £2,508,898 (2006 first half £588,856) and Glen
Communications and Explore IT contribute £415,921 (2006 first half: £388,081)
• Restructuring and development costs of £312,615 include £236,878 related to
head count reduction, contractual termination costs and benefits paid to
senior managers in Glen Communications/Explore IT and £75,737 of Microsoft and
Oracle development costs in Eclectic
• Before the restructuring and development costs, operating losses reduce to
£252,735 from £323,756
• Post the restructuring and development costs, the operating loss increases to
£565,350
• Eclectic becomes an Oracle Advanced Certified Partner, taking it into the
elite group of Oracle partners
• Successful acquisition of Pinnacle Group since the end of the half-year
• Proposed Group name change to 'ICT Acquisitions PLC' to reflect the nature of
the Group's business of acquiring and developing companies in the information,
communications and technology sectors
Eric Hagman CBE, Chairman of Glen Group, commented:
'The half year has been one of significant change and I believe that these
changes, our renewed focus on profitable acquisitions and a determination to
build a business of size and quality are all positive developments'
Enquiries:
Glen Group plc
Graham J Duncan, Chief Executive Officer Tel: 0845 119 2100
Pelham PR
Alex Walters Tel: 0203 17 0 7435
26 June 2007
Chairman's Statement
The first half has been one of significant change.
Our strategy is based on:
• acquiring suitable IT and communications services businesses
• integrating them fully and swiftly
• developing them organically, supplemented by further acquisitions which
are capable of adding long term value.
This process itself involves change. During much of 2006 our strategy was
frustrated when our share price fell below the nominal value of our shares,
preventing us from issuing shares as purchase consideration or to raise
expansion capital. This problem was resolved in February 2007 when we
reorganised our share capital and since then we have been actively seeking
acquisition opportunities. We recently announced the purchase of Pinnacle Group
Limited, a provider of telecommunications services to the SME market, and we
continue to have an active acquisition deal flow in prospect. In order to better
position Glen Group plc in the eyes of customers, shareholders and the public
generally, we intend changing its name, subject to shareholder approval which we
will seek later this year, to 'ICT Acquisitions PLC'. This will emphasise that
our business is firmly rooted in the Information, Communications and Technology
space and our strategy is acquisition led. I can also announce today that we
have applied to the PLUS market to have our shares traded on this platform, as
well as retaining our listing on AIM, which we hope will provide additional
liquidity in the shares.
A key objective of the business is to trade profitably. Following the
acquisition of Explore IT Limited ('Explore') by Glen Communications Ltd ('Glen
Communications') last September, we have fundamentally restructured the SME side
of our business. Historically, Glen Communications has relied on project, rather
than recurring, business particularly using a direct sales force for the sale of
mobile solutions to customers. Building the business required us to continue to
increase the size of the direct sales team, which involved material costs in
management time, training and recruitment. Following a review of this strategy
after the Explore acquisition, and a recognition that we needed to develop more
recurring income streams, we decided to modify this approach and limit the size
of the direct sales team. We also decided that the majority of this team should
be IT centric rather than mobile centric. This restructuring also involved a
rationalisation of the middle management team, office moves in both Edinburgh
and Rotherham, and the introduction of new IT support systems, all of which have
been completed in the first half. Following the acquisition of Pinnacle and the
appointment of Alan Bonner as Managing Director of the SME focussed group of
companies, I can also announce that we are in the process of changing the name
of Glen Communications to 'Pinnacle ICT Limited' and we have also acquired the
50% shareholding in Pinnacle Mobile Limited and the 20% minority interests in
Sports Club Telecom Limited which we did not own in exchange for a total of
4,863,636 shares in Glen Group plc issued at 0.55 pence per share. Application
has been made for the admission of these shares to trading on AIM which is
expected to occur on 29 June 2007.
While in the half year we have incurred restructuring one-off costs of £236,878
implementing the changes outlined above, we anticipate that these changes, all
now fully implemented, will drive annualised cost savings of over £400,000. With
the addition of the Pinnacle group of companies, which trade profitably on a
base of largely recurring income, we can now look forward to building this part
of the business from a much stronger platform while continuing to seek
profitable acquisitions in this space.
The greater part of our business is business intelligence ('BI') consultancy and
training, which we market under the Eclectic brand. Since we acquired the
Eclectic business in February 2006 it has performed ahead of even our highest
estimates and the half year is no exception. The business intelligence market
continues to grow at a significant pace and Eclectic is gaining clients in the
enterprise, corporate and public sector markets with its niche focus.
Historically, Eclectic has provided consultancy, implementation and training on
Business Objects software platforms. In the half year, it was decided to expand
the software platforms. Eclectic has self-started Microsoft and Oracle practices
as both these vendors are increasingly targeting the BI space. In the half year
we have incurred development costs of £75,737 (which have been expensed) in
establishing these new business units. Since the half year end, we have been
delighted to be awarded our first Oracle BI consultancy work and I can announce
today that we have achieved the very prestigious status of Oracle Advanced
Certified Partner, which takes us into the elite group of Oracle partners. On
the acquisition front, we continue to look at opportunities which can enhance
and expand our BI offering to clients, particularly those that can give us
presence in the London area and we remain active in seeking suitable
acquisitions.
One of the key performance indicators that your Board monitors is EBITDA. For
the group as a whole, EBITDA remains negative and in the half-year, after
restructuring and development costs, it was negative £503,768 (2006 half-year
£355,942 negative). Before restructuring and development costs it was negative
£191,153 (2006 half-year £306,075 negative). EBITDA generated by the operating
companies, excluding the costs of running the holding company has, historically,
been negative since we listed in December 2004. Although a modest figure, I am
pleased to note that the EBITDA generated by these companies, excluding the
restructuring and development costs both outlined above, was positive at £34,050
in the half year (2006 half-year £141,662 negative), which represents a
significant turnaround.
Full details of the financial performance for the half year are contained in the
Chief Executive's Review.
As I have already indicated, the half year has been one of significant change. I
believe that these changes, our renewed focus on profitable acquisitions and a
determination to build a business of size and quality are all positive
developments and your Board looks forward to implementing its plans.
Eric M Hagman CBE
CHAIRMAN
26 June 2007
Chief Executive's Review
The half year can be characterised by one of change, not just in the
re-organisation of people in the business, but also in the changing mix of
services sold to customers.
1) Turnover
Turnover for the half year was £2,924, 819 compared to £976,937 in the
equivalent period last year, a rise of nearly 200%, due largely to the
acquisition of Eclectic Group Limited in February 2006. The half-year turnover
also compares favourably with turnover in the second half of last year, a more
comparable period, which was £2,721,308, representing a growth of 7.5% over the
six-month period ended 31st March 2007.
In this half year Eclectic contributed £2,508,898 (2006 first half: £588,856)
and Glen Communications, along with its wholly owned subsidiary Explore IT,
contributed £415,921 (2006 first half: £388,081). Eclectic group turnover for
the first half also compares well against the second half turnover last year, a
more comparable period, when it reached £2,144,288, an increase of 17% over the
half-year period. Despite the disruption which is inevitably caused by any
restructuring, it is pleasing to see that the SME business unit, comprising Glen
Communications Limited and Explore IT Limited, has lifted its turnover in what
is, historically, a less robust period compared to the second half.
The restructuring of the SME business unit has been successfully refocused on IT
services. In the year ended 30 September 2006 approximately 30% of turnover from
this unit came from the provision of IT services. In the half-year to 31 March
2007, IT services represented about 65% of the unit's turnover. As well as
undertaking project work, the SME business unit also delivers recurring revenues
from IT support contracts and from the provision of voice over broadband
services (more commonly known as VoIP). Although turnover from VoIP is
embryonic, it has been interesting to note that the level of interest in our
hosted VoIP service has lifted materially this year, compared to last, as
awareness of the technology has been increased by the amount of press coverage.
2) Gross Margins
The overall gross margin for the half year was £1,047,474 (2006 first half:
£412,720 and 2006 full year: £1,332,349). Our gross margins remain very stable.
For the half year we returned a gross margin across the three operating
businesses of 35.81%. This compares against the full year last year (a more
comparable period) of 36.03%. Eclectic's margin for the half year was 34.94%
(2006 full year: 33.58%) while the SME business unit returned 41.08% (2006 full
year: 42.96%).
3) Restructuring and Development Costs
The operating result for the half year has been very materially affected by
restructuring and development costs totalling £312,615.
As outlined in the Chairman's Statement, major changes have been made to the
Glen Communications business. This has resulted in one-off costs of £236,878,
the majority of which relates to the costs of a planned head count reduction,
including contractual termination costs and benefits paid to senior managers and
others who have left the business.
The development costs of £75,737 relate to the establishment of Microsoft and
Oracle practices in Eclectic, and mainly relate to the salary costs of key
individuals hired to develop consultancy services based on software
implementation provided by these vendors.
4) Operating Loss
In the half year we have incurred an operating loss before restructuring and
development costs of £252,735 (2006 first half: £323,756). Much of the
improvement over 2006 is due to the performance of Eclectic which contributed
profits, before development costs, of £267,309 in the half year. After the
restructuring and development costs, the group operating loss increases to
£565,350 (2006 half year: £373,623).
As acquisitions are concluded, certain duplicative costs can be removed from the
business, albeit usually at an initial cost to the business as these costs tend
to be people based. The Board is mindful of the need to keep costs to a minimum,
and not allow costs to build significantly ahead of revenue. However, any
organic growth requires investment and our acquisition plans seek to limit this
investment by concentrating on being able to cross sell our services into new
acquired customers. We will therefore continue to seek businesses with robust
customer bases as the cost of sale can be materially lower when a captive
customer is sold more, or different, services.
It is interesting to note that, taken together, the operating companies (that is
excluding Glen Group plc itself) have together produced a very modest loss of
just £9,111 over the half-year period. Before depreciation (the EBITDA figure)
this becomes a profit of £34,050. Although not yet producing sufficient EBITDA
to cover the costs of Glen Group, which amounted to £243,624 in the half-year
(2006 half-year: £159,413), it is nevertheless a step forward. The unaudited
result for the half-year can be further analysed as follows:
CONSOLIDATED INCOME 6 Months 6 Months 12 Months
STATEMENT - UNAUDITED 31 March 31 March 30 September
2007 2006 2006
Turnover:
Eclectic 2,508,898 588,856 2,733,144
Glen Communications/ExploreIT 415,921 388,081 965,101
Totals 2,924,819 976,937 3,698,245
Cost of Sales:
Eclectic 1,632,268 349,238 1,815,364
Glen Communications/ExploreIT 245,077 214,979 550,532
Totals 1,877,345 564,217 2,365,896
Gross Profit:
Eclectic 876,630 239,618 917,780
Glen Communications/ExploreIT 170,844 173,102 414,569
Totals 1,047,474 412,720 1,332,349
Overhead:
Eclectic 609,321 164,541 769,839
Glen Communications/ExploreIT 447,264 412,522 730,596
Glen Group 243,624 159,413 371,269
Totals 1,300,209 736,476 1,871,704
Operating Profit before other
costs:
Eclectic 267,309 75,077 147,941
Glen Communications/ExploreIT (276,420) (239,420) (316,027)
Glen Group (243,624) (159,413) (371,269)
Totals (252,735) (323,756) (539,355)
Restructuring & development costs:
Eclectic (75,737) 0 0
Glen Communications/ExploreIT (236,878) (49,867) (49,867)
Totals (312,615) (49,867) (49,867)
Operating Profit:
Eclectic 191,572 75,077 147,941
Glen Communications/ExploreIT (513,298) (289,287) (365,894)
Glen Group (243,624) (159,413) (371,269)
Totals (565,350) (373,623) (589,222)
Notes: Eclectic has been consolidated from 15 February 2006, the date of
acquisition.
Explore IT has been consolidated from 4 September 2006, the date of acquisition.
5) Financing
During the half-year, the earn-out provisions associated with the acquisition of
Eclectic in February 2006 crystallised. Eclectic delivered the maximum level of
profits under the terms of the earn-out conditions and, accordingly, the Company
issued 73,825,818 shares at 1.0667p per share to satisfy the deferred
consideration payable to the vendors, all in accordance with the earn-out
formula contained in the sale and purchase agreement.
On 26 February 2007, following shareholder approval, the company's share capital
was reorganised. Holders of ordinary shares of nominal 1 penny each received one
ordinary share of nominal one-tenth of a penny and one deferred share of nominal
nine-tenths of a penny. The conditions attaching to the deferred shares rendered
them worthless and the practical effect was to lower the nominal value of the
ordinary shares to one-tenth of a penny without changing the number of ordinary
shares in issue. This allows the company to issue shares in the future. This had
not been possible throughout most of 2006 as the market price of the shares had
fallen below the original nominal value of 1 penny per share, and the issue of
shares at a discount to the nominal value is prohibited under the Companies Act
1985.
At the same time as the reorganisation became effective, the company raised a
further £500,000 (before expenses) in new equity, applied to expanding working
capital, by the issue of 100,000,000 new ordinary shares at 0.50 pence per
share. Since the half-year end, the company has raised a further £350,000
(before expenses) by the issue of a further 100,000,000 new ordinary shares at
0.35 pence per share in order to assist acquisitions and provide further working
capital in an expanding business. On 6 June 2007 the company announced the
acquisition of Pinnacle Group Limited for a consideration of £700,000 satisfied
by the issue of 122,727,273 shares at 0.55 pence per share and £25,000 in cash.
Since then, we have also completed the acquisition of the 50% shareholding in
Pinnacle Mobile Limited which we did not own in exchange for 1,000,000 shares in
Glen Group plc, and the 20% minority interests in Sports Club Telecom Limited
(part of the Pinnacle Group) which we did not own in exchange for a total of
3,863,636 shares in Glen Group plc, all of which have been issued at 0.55 pence
per share.
We have made significant changes to the business in the first-half and we will
now build on the momentum that we have created. We fully expect to be able to
complete further acquisitions in the second half in accordance with our buy and
build strategy.
Graham J Duncan MA CA
CHIEF EXECUTIVE
26 June 2007
CONSOLIDATED INTERIM INCOME STATEMENT - UNAUDITED
for the six months ended 31st March 2007
6 months to 6 months to 12 months to
31st March 31st March 30th September
2007 2006 2006
Note £ £ £
--------------------- ----- --------- -------- ---------
Revenue
Continuing operations 2,924,819 388,081 942,582
Discontinued operations - - 22,519
Acquisitions - 588,856 2,733,144
--------------------- ----- --------- -------- ---------
2 2,924,819 976,937 3,698,245
Cost of sales (1,877,345) (564,217) (2,365,896)
--------------------- ----- --------- -------- ---------
Gross profit 1,047,474 412,720 1,332,349
Other operating charges (1,612,824) (786,343) (1,921,571)
--------------------- ----- --------- -------- ---------
Operating loss 3 (565,350) (373,623) (589,222)
Interest payable (32,893) (9,319) (23,620)
Interest receivable 500 2,551 3,054
--------------------- ----- --------- -------- ---------
Finance costs (32,393) (6,768) (20,566)
Loss before taxation (597,743) (380,391) (609,788)
Taxation - - (3,803)
--------------------- ----- --------- -------- ---------
Loss for the period (597,743) (380,391) (613,591)
--------------------- ----- --------- -------- ---------
Loss per share 4
- basic and fully diluted (1.64) (0.34) (0.28)
CONSOLIDATED INTERIM BALANCE SHEET - UNAUDITED
as at 31st March 2007
31st March 31st March 30th September
2007 2006 2006
Note £ £ £
--------------------- ----- --------- --------- ---------
Assets
Non-current assets
Goodwill 3,564,504 3,925,682 3,562,740
Intangible assets 90,000 - 100,000
Property, plant and equipment 139,072 103,408 112,667
--------------------- ----- --------- --------- ---------
Total non-current assets 3,793,576 4,029,090 3,775,407
--------------------- ----- --------- --------- ---------
Current assets
Inventories 46,475 16,603 26,752
Trade and other receivables 1,703,122 1,407,107 1,571,471
Cash and cash equivalents 111,022 311,966 1,075
--------------------- ----- --------- --------- ---------
Total current assets 1,860,619 1,735,676 1,599,298
--------------------- ----- --------- --------- ---------
Total assets 5,654,195 5,764,676 5,374,705
--------------------- ----- --------- --------- ---------
Liabilities
Current liabilities
Short term borrowings 658,925 103,680 578,731
Trade and other payables 543,912 939,632 939,817
Accruals and deferred income 948,064 465,258 238,247
Other creditors 187,606 143,097 164,139
--------------------- ----- --------- --------- ---------
Total current liabilities 2,338,507 1,651,667 1,920,934
--------------------- ----- --------- --------- ---------
Non-current liabilities
Long-term borrowings 85,235 93,828 87,557
--------------------- ----- --------- --------- ---------
Total non-current liabilities 85,235 93,828 87,557
--------------------- ----- --------- --------- ---------
Total liabilities 2,423,742 1,745,495 2,008,491
--------------------- ----- --------- --------- ---------
Net assets 3,230,453 4,019,181 3,366,214
--------------------- ----- --------- --------- ---------
Equity
Share capital 4,115,089 3,276,831 3,276,831
Share premium account 1,262,434 879,473 860,817
Shares to be issued - 787,500 787,500
Other reserve 29,635 8,500 20,028
Fair Value Adjustment (417,221) - (417,221)
Profit and loss reserve 5 (1,759,484) (933,123) (1,161,741)
--------------------- ----- --------- --------- ---------
Total equity 3,230,453 4,019,181 3,366,214
--------------------- ----- --------- --------- ---------
CONSOLIDATED INTERIM CASH FLOW STATEMENT - UNAUDITED
for the six months ended 31st March 2007
6 months 6 months 12 months to
to to 30th
31st March 31st March September
2007 2006 2006
£ £ £
------------------------ ---------- -------- ---------
Operating loss before restructuring
and development costs (252,735) (323,756) (539,355)
Restructuring costs (236,878) (49,867) (49,867)
Development costs (75,737) - -
------------------------ ---------- -------- ---------
Cash flows from operating
activities (565,350) (373,623) (589,222)
Adjustments for
Depreciation and amortisation 54,744 14,274 49,596
Other non-cash items 9,607 5,000 19,213
(Increase)/decrease in inventories (19,723) (6,490) (16,639)
Increase in trade and other
receivables (131,651) (1,198,391) (1,362,845)
Increase in trade payables,
accruals and other creditors 324,942 1,309,347 1,099,760
------------------------ ---------- -------- ---------
Net cash outflow from operating
activities (327,431) (249,883) (800,137)
------------------------ ---------- -------- ---------
Cash flows from investing
activities
Purchase of property, plant and
equipment (71,149) (67,365) (56,573)
Sale of property, plant and
equipment - - 414
Acquisition of subsidiary, net of
cash acquired (1,763) (2,204,764) (2,412,933)
------------------------ ---------- -------- ---------
Net cash used in investing
activities (72,911) (2,272,129) (2,469,092)
------------------------ ---------- -------- ---------
Cash flows from financing
activities
Interest paid (net) (32,393) (6,768) (20,566)
Issue of shares 500,000 3,012,500 3,012,500
Receipt of bank finance 15,000 50,000 84,215
Repayment of borrowing (22,019) (9,688) (32,612)
Receipt from/(repayment of)
shareholders loans - (40,000) (40,000)
Receipt from/(repayment of) former
director's loan (25,000) 25,000 50,000
Receipt from finance leases less
repayment 13,223 - 9,547
Expenses paid in connection with
share issue (47,625) (413,737) (432,393)
------------------------ ---------- -------- ---------
Net cash used in financing
activities 401,186 2,617,307 2,630,691
------------------------ ---------- -------- ---------
Net increase in cash 844 95,295 (638,538)
Cash and bank overdrafts at
beginning of period (475,547) 162,991 162,991
------------------------ ---------- -------- ---------
Cash and bank overdrafts at end of
period (474,703) 258,286 (475,547)
------------------------ ---------- -------- ---------
Cash and bank overdrafts comprise
Cash and cash equivalents 111,022 311,966 1,075
Bank overdrafts (585,725) (53,680) (476,622)
------------------------ ---------- -------- ---------
(474,703) 258,286 (475,547)
------------------------ ---------- -------- ---------
Analysis of changes in net debt
At 30th September At 31st March
2006 Cash Flows 2007
£ £ £
------------------------ -------- -------- ---------
Cash 1,075 109,947 111,022
Bank overdraft (476,622) (109,103) (585,725)
------------------------ -------- -------- ---------
(475,547) 844 (474,703)
------------------------ -------- -------- ---------
Debt (189,666) 18,797 (170,869)
------------------------ -------- -------- ---------
Net debt (665,213) 19,641 (645,572)
------------------------ -------- -------- ---------
CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
for the six months to 31st March 2007
Share Share Shares Other Fair Retained Total
Capital premium to be reserve Value earnings
issued
At 1 October
2005 600,000 957,541 - 3,500 - (552,732) 1,008,309
Recognised
directly in
equity
Share Issue 2,676,831 - - - - - 2,676,831
Shares to be
issued as
part - - 787,500 - - - 787,500
of
acquisition
Premium on
share issue - 335,669 - - - - 335,669
Expenses
incurred on
share issue - (413,737) - - - - (413,737)
Share based
payments - - - 5,000 - - 5,000
-------- ------- ------- ------- ------- ------- --------
Net change
directly in
equity 2,676,831 (78,068) 787,500 5,000 - - 3,391,263
Loss for the
year - - - - - (380,391) (380,391)
-------- ------- ------- ------- ------- ------- --------
Total
movements 2,676,831 (78,068) 787,500 5,000 - (380,391) 3,010,872
-------- ------- ------- ------- ------- ------- --------
Equity at 31
March 2006 3,276,831 879,473 787,500 8,500 - (933,123) 4,019,181
-------- ------- ------- ------- ------- ------- --------
At 1 October
2006 3,276,831 860,817 787,500 20,028 (417,221) (1,161,741) 3,366,214
Recognised
directly in
equity
Share Issue 838,258 - (738,258) - - - 100,000
Shares to be - - - - - -
issued as
part of
acquisition
Premium on
share issue - 449,242 (49,242) - - - 400,000
Expenses
incurred on
share issue - (47,625) - - - - (47,625)
Share based
payments - - - 9,607 - - 9,607
------- ------- ------- ------ ------- -------- -------
Net change
directly in
equity 838,258 401,617 - 9,607 - - 461,982
Loss for the
year - - - - - (597,743) (597,743)
------- ------- ------- ------ ------- -------- -------
Total
movements 4,115,089 401,617 (787,500) 9,607 (597,743) (135,761)
------- ------- ------- ------ ------- -------- -------
Equity at 31
March 2007 4,115,089 1,262,434 - 29,635 (417,221) (1,759,484) 3,230,453
------- ------- ------- ------ ------- -------- -------
Notes to the financial statements
1. Basis of preparation
This interim financial information has been prepared in accordance with the
Company's accounting policies as disclosed in the financial statements for the
year ended 30 September 2006. The Interim statements were approved by the Board
of Directors on 26 June 2007.
2. Analysis of revenue
6 months to 6 months to 12 months to
31st March 31st March 30th September
2007 2006 2006
£ £ £
------------------------- -------- -------- --------
By business sector
Mobile services 149,011 244,372 631,003
Information technology 2,775,808 709,146 3,041,633
Phone cards 0 22,519 22,519
Other communication services 0 900 3,090
------------------------- -------- -------- --------
Total revenue 2,924,819 976,937 3,698,245
------------------------- -------- -------- --------
By destination
United Kingdom 2,924,819 976,937 3,698,245
------------------------- -------- -------- --------
Total revenue 2,924,819 976,937 3,698,245
------------------------- -------- -------- --------
By origin
Glen Communications - continuing
operations 149,011 365,562 942,582
Glen Communications - discontinued
operations 0 22,519 22,519
Explore IT 266,910 0 0
Eclectic 2,508,898 588,856 2733144
------------------------- -------- -------- --------
Total revenue 2,924,819 976,937 3,698,245
------------------------- -------- -------- --------
The interim results for 2006 include the initial contribution from Eclectic
acquired on 15th February 2006.
3. Analysis of operating loss
6 months to 6 months to 12 months to
31st March 31st March 30th September
2007 2006 2006
£ £ £
------------------------- -------- -------- --------
By business sector
Mobile services (505,104) (284,095) (368,510)
Information technology (60,246) (62,780) (199,272)
Phone cards 0 (25,719) (10,920)
Other communication services 0 (1,029) (10,520)
------------------------- -------- -------- --------
Operating loss (565,350) (373,623) (589,222)
------------------------- -------- -------- --------
By destination
United Kingdom (565,350) (373,623) (589,222)
------------------------- -------- -------- --------
Operating loss (565,350) (373,623) (589,222)
------------------------- -------- -------- --------
By origin
Glen Group (243,625) (159,413) (371,269)
Glen Communications (492,692) (289,287) (365,894)
Explore IT (20,606) - -
Eclectic 191,573 75,077 147,941
------------------------- -------- -------- --------
Operating loss (565,350) (373,623) (589,222)
------------------------- -------- -------- --------
4. Loss per share
6 months to 6 months to 12 months to
30th
31st March 31st March September
2007 2006 2006
£ £ £
------------------------- -------- -------- --------
Loss per share
Basic (0.16) (0.34) (0.28)
Fully diluted (0.15) (0.33) (0.28)
------------------------- -------- -------- --------
Loss for the period attributable to
shareholders:
Losses basic and fully diluted (597,743) (380,391) (613,591)
-------------------------- -------- -------- --------
Weighted average number of shares in
issue
Basic 364,595,986 111,280,513 219,481,795
Adjustment for share options 42,891,160 4,833,334 19,065,128
------------------------ --------- --------- ---------
Fully diluted 407,187,146 116,113,847 234,731,795
------------------------ --------- --------- ---------
5. Profit and loss reserve
6 months to 6 months to 12 months to
31st March 31st March 30th September
2007 2006 2006
£ £ £
------------------------- -------- -------- --------
Opening reserve / (deficit) (1,161,741) (552,732) (548,150)
Loss for the period (597,743) (380,391) (613,591)
------------------------- -------- -------- --------
Closing reserve / (deficit) (1,759,484) (933,123) (1,161,741)
------------------------- -------- -------- --------
6. Availability of Interim Report
Copies of these results are being sent to shareholders and will also be
available from the Company's registered office at 8-10 New Fetter Lane, London
EC4A 1RS.
7. Statutory Accounts
These financial statements do not constitute statutory accounts. Although the
information has been reviewed by the auditors, it is unaudited. The statutory
accounts for the year ended 30 September 2006, contained an unqualified audit
report and are filed with the Registrar of Companies.
INDEPENDENT REVIEW REPORT to GLEN GROUP plc
Introduction
We have been instructed by the Company to review the financial information for
the six months ended 31 March 2007 which comprises the consolidated interim
income statement, consolidated interim balance sheet, consolidated interim
cashflow statement, accounting policies and the related notes. We have read the
other information contained in the interim report which comprises only the
highlights, Chairman's statement and Chief Executive's review, and considered
whether it contains any apparent misstatements or material inconsistencies with
the financial information.
This report is made solely to the company in accordance with guidance contained
in APB Bulletin 1999/4 'Review of Interim Financial Information'. Our review
work has been undertaken so that we might state to the Company those matters we
are required to state to them in a review report and for no other purpose. To
the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company, for our review work, for this report, or for
the conclusion we have formed.
Directors' responsibilities
The interim report including the financial information contained therein is the
responsibility of, and has been approved by, the directors. The directors are
responsible for preparing the interim report in accordance with The Listing
Rules of the Financial Services Authority. They are responsible preparing the
interim report and ensuring that the accounting policies and presentation
applied to the interim figures should be consistent with those applied in
preparing the preceding annual accounts except where any changes, and the
reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
'Review of Interim Financial Information' issued by the Auditing Practices Board
for use in the United Kingdom. A review consists principally of making enquiries
of management and applying analytical procedures to the financial information
and underlying financial data and, based thereon, assessing whether the
accounting policies and presentation have been consistently applied unless
otherwise disclosed. A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance with
International Standards on Auditing (UK and Ireland) and therefore provides a
lower level of assurance than an audit. Accordingly, we do not express an audit
opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 March 2007.
GRANT THORNTON UK LLP
CHARTERED ACCOUNTANTS
EDINBURGH
26 June 2007
The maintenance and integrity of the Glen Group plc website is the
responsibility of the Directors: the interim review does not involve
consideration of these matters and, accordingly, the Company's reporting
accountants accept no responsibility for any changes that may have occurred to
the interim report since it was initially presented on the website. Legislation
in the United Kingdom governing the preparation and dissemination of the interim
report differ from legislation in other jurisdictions
DIRECTORS, SECRETARY AND ADVISERS
Directors
Eric M Hagman CBE, Non-Executive Chairman
Graham J Duncan, Chief Executive Officer
Peter J Ford, Non-Executive Director
Company Secretary
Peterkins
Solicitors
100 Union Street
Aberdeen AB10 1QR
Registered Office
8-10 New Fetter Lane
London EC4A 1RS
Nominated Advisor
Seymour Pierce Limited
20 Old Bailey
London
EC4M 7EN
Broker
Ellis Stockbrokers Limited
Talisman House
Jubilee Walk
Three Bridges
Crawley
West Sussex RH10 1LQ
Solicitors
Neil C Hunter
100 Union Street
Aberdeen AB10 1QR
Charles Russell LLP
8-10 New Fetter Lane
London EC4A 1RS
Auditors and Reporting Accountants
Grant Thornton UK LLP
1-4 Atholl Crescent
Edinburgh EH3 8LQ
Bankers
The Royal Bank of Scotland
Commercial Centre
100 West George Street
Glasgow G2 1PP
Bank of Scotland
47 High Street
Dalkeith
Midlothian EH22 1JA
Financial PR
Halogen Communications
4 Queen Street
Edinburgh EH2 1JE
Investor Relations
Pelham PR
No 1 Cornhill
London EC3V 3ND
Registrars
Computershare Investor Services PLC
PO Box 82
The Pavilions
Bridgwater Road
Bristol BS99 7NH
Company Number
5259846
This information is provided by RNS
The company news service from the London Stock Exchange
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