Interim Results

RNS Number : 1616C
Rotala PLC
28 August 2008
 

 

Rotala plc

('Rotala' or 'the Company')

 

Unaudited Interim Results for the six months to 31 May 2008

 

Chairman's Statement

 

I am pleased to be able to present this interim report to shareholders in respect of the six month period ended 31 May 2008. 

 

Financial analysis

As I outlined in the annual report for 2007 published in May of this year, the Company has continued to make pleasing progress. Compared to the first half of 2007 the progression is particularly marked. Turnover was up 65% and gross profits in the first half of 2008 were nearly three times the level which the group produced in the same period of 2007. Operating expenses showed some increase as a result of the acquisitions made in the first half of the current financial year, to which I shall return below. 

 

The programme of acquisitions and organic growth, in accordance with the strategic plan, has transformed the group's financial performance. An operating profit was recorded of £1.4m for the first half of 2008, compared to an operating loss of £443,000 for the same period in the previous year. These results show further encouraging improvement on the operating profits of £633,000 which the group produced in the second half of 2007. 

 

Interest payable rose considerably in the first half of 2008, reflecting the impact of investment in new vehicles this year and last on hire purchase terms and the additional interest cost of £90,000 occasioned by the convertible loan stock issue made to fund the acquisitions in the period.

 

Overall the group recorded a maiden profit before tax for the period of £579,000 (compared to a loss in the first half of 2007 of £691,000), which is a very encouraging result indeed. Earnings per share were therefore 2.83p per share, where before there were losses. 

 

Acquisitions

The principal impact on these accounts has come from acquisitions. The most important transaction in the period since the last year end was the acquisition of the Diamond Bus operation from Go Ahead Group plc. 

 

We were able to purchase Diamond Bus at the end of February 2008, including a freehold property, for the sum of £2m. Diamond Bus operates with a fleet of over 100 vehicles primarily in the Black Country area of the Midlands to the north west of Birmingham. I am pleased to be able to say that the integration of this business within our existing network has progressed well. We have been, as expected, able to streamline the overhead costs of the business by making effective use of our existing infrastructure in the region and we have made considerable changes to the bus services being run in order to focus on efficiency and contribution to overheads. In the first three months of our ownership of this business we have managed to reduce operating losses to £61,000 for the quarter (compared to a monthly loss in six figures prior to our acquisition) on a turnover of some £2.5m. This progress is a testament to the expertise and hard work of our operational management. Including the £90,000 of interest cost referred to above and initial restructuring costs for Diamond Bus of £194,000, the total impact on the group results in the first half of the year was £345,000. However this was almost exactly offset by the credit to the profit and loss account of £343,000 arising from the negative goodwill recognised at the inception of this acquisition.

 

At the beginning of April 2008, we also completed the acquisition of another local bus company, Ludlows of Halesowen Limited ('Ludlows') for £850,000. Ludlows is a well established small operator with about 20 vehicles in the Halesowen area in south west Birmingham. Once again we have been able to relieve the business of unnecessary overhead by consolidating management and administration functionto our Aston depot. Ludlows has made good progress under our control and is already contributing well to group profitability.

 

These two acquisitions have increased our operational fleet to over 400 vehicles. Besides our two depots in the south at Heathrow and Gatwick airports and our depot at Bristol, we now control a broad sweep of operations around Birmingham, from Redditch to the south, through Halesowen in the south west, Oldbury in the west and Aston in the north of Birmingham. These depot locations give us an excellent infrastructure base from which we can further develop the bus business of the group. We feel sure that more opportunities in the West Midlands will spring out of the need to improve public transport there, relieve congestion and reduce pollution. 

 

New contracts

I am also pleased to be able to report continuing success in our objective to achieve organic growth in the revenues of the group through the addition of new contracts. In the first half of 2008 we were able to secure new contracts in both the public and private sectors with an annualised value of £3.3m. The success in obtaining new contracts underlines our commitment to increase the group's turnover and to become a significant force in transport operations in our chosen locations. Further contract discussions are in the planning stage and I hope to be able to make announcements about these developments in the very near future.

 

Fundraising

In order, as outlined above, to make the acquisitions and working capital investment in the new contracts we raised £5.1m in the first quarter of 2008. This took the form of approximately £4.7m in convertible loan notes, as sanctioned at the Extraordinary General Meeting held in February 2008, and £400,000 in fresh equity. 

 

IFRS

This reporting period is the one in which the company is required to adopt International Financial Reporting Standards ('IFRS'). As a result the figures for the current period have been presented in accordance with IFRS and the comparatives have been suitably restated. Reconciliations to figures previously reported under UK GAAP are enclosed in the notes.

 

Outlook

The acquisition of Diamond Bus and Ludlows has enabled us to construct an extensive network of operations in the Black Country. In the short term we continue to make considerable further investment in the Diamond Bus operations. This investment will improve and enlarge the Black Country network of Diamond Bus, but will take time to bear fruit. We hope to make further announcements about these initiatives in the very near future.  These steps illustrate clearly the company's plan to build a substantial and sustainable business in the region. We believe that the short term costs of this approach will be greatly outweighed by the improved prospects in both turnover and profits in the medium term. The board is extremely satisfied with the progress made so far and looks forward to further improvement next year. 

 

At the same time our quest for suitable new work will continue, as will our pursuit of more acquisition targets in our chosen areas of operation. The Board believes that its strategy will deliver a sizeable and profitable, integrated transport group. It should, however, be noted that, like all in the transport industry, the group's results are sensitive to fluctuations in the price of diesel. The price peak seen in the early summer had its impact on early part of the second half of the current year. Whilst we were able, by a careful mix of cost reduction and fare increase, to limit the effect on the group's results, there is no doubt that the fuel price is a constant factor in our business. Our fuel usage is too small at present for cost-effective hedging, but we continuously monitor the situation and will hedge, if we believe that this can be justified.

 

I am nevertheless pleased that the core business has maintained its profitability in 2008, whilst we bed in the acquisitions. This continues the trend established in the second half of 2007, in accordance with our expectations. When the final results for the year are announced I am confident that the group's performance will show continued progress.  

 

 

 

John Gunn

Chairman

 

28 August, 2008

 

Contacts:

John Gunn     Chairman                        020 7621 5770

Kim Taylor    CEO                              07825 808529

Romil Patel   Blue Oar Securities Plc    020 7448 4400

 

 

Financial Results:

 

 

Consolidated income statement

 

 

 

 

 

Notes

Unaudited 6 months ended 31 May 2008

Unaudited 6 months ended 31 May 2007

Audited and restated year ended 30 November 2007

 

 

£'000

£'000

£'000

Revenue

 

15,814

9,556

19,348

Cost of sales

 

(12,327)

(8,305)

(16,084)

 

 

________

______

______

Gross profit

 

3,487

1,251

3,264

 

 

 

 

 

Operating expenses

 

(2,083)

(1,694)

(3,074)

 

 

_____

______

_____

Operating profit/(loss)

3

1,404

(443)

190

 

 

 

 

 

Finance income

 

22

7

78

Finance expense

 

(847)

(256)

(957)

 

 

_____

_____

_____

Profit/(loss) before taxation

 

579

(692)

(689)

Taxation

 

-

-

-

 

 

_____

______

_____

Profit/(loss) after taxation

 

579

(692)

(689)

 

 

=====

=====

=====

Earnings/(loss) per share - basic

4

2.83p

(4.68p)

(4.08p)

Earnings per share - diluted

4

2.72p

(4.68p)

(4.08p)

 

 

Consolidated balance sheet

Unaudited as at 31 May 2008

Unaudited as at 31 May 2007

Audited and restated as at 30 November 2007

 

£'000

£'000

£'000

Assets

 

 

 

Non-current assets

 

 

 

Goodwill

9,472

8,053

8, 700

Other intangibles

391

214

341

Property, plant and equipment

20,710

9,812

15,214

Trade and other receivables

351

260

288

 

_____

_____

_____

 

30,924

18,339

24,543

Current assets

 

 

 

Inventories

335

157

145

Trade and other receivables

5,766

3,223

3,879

Cash and cash equivalents

41

-

11

 

_____

_____

_____

 

6,142

3,380

4,035

 

_____

_____

_____

Total assets

37,066

21,719

28,578

 

 

 

 

Liabilities

 

 

 

Non-current liabilities

 

 

 

Long term borrowings

(6,656)

(2,439)

(2,935)

Obligations under hire purchase agreements

(9,256)

(4,934)

(8,250)

Deferred income tax liabilities

(243)

(196)

(196)

Provisions

(101)

(571)

(145)

 

______

_____

______

 

(16,256)

(8,140)

(11,526)

Current liabilities

 

 

 

Trade and other payables

(5,533)

(4,270)

(4,483)

Short term borrowings

(2,127)

(1,558)

(1,103)

Obligations under hire purchase contracts

(2,302)

(985)

(1,934)

 

______

_____

_____

 

(9,962)

(6,813)

(7,520)

 

______

______

______

Total liabilities

(26,218)

(14,953)

(19,046)

 

_____

_____

_____

Net assets

10,848

6,766

9,532

 

======

=====

=====

Capital and reserves

 

 

 

Called up share capital

5,253

4,010

5,089

Share premium account

6,254

4,454

6,102

Merger reserve

2,567

2,567

2,567

Warrant reserve

82

-

-

Retained earnings

(3,308)

(4,265)

(4,226)

 

______

_____

_____

Total equity

10,848

6,766

9,532

 

=====

====

====

 

 

Consolidated cash flow statement
Unaudited 6 months ended 31 May 2008
Unaudited 6 months ended 31 May 2007
Audited and restated year ended 30 November 2007
 
£'000
£'000
£'000
Cash flows from operating activities 
 
 
 
Profit before tax
579
(691)
(689)
Finance expense (net)
825
249
879
Depreciation  
781
217
858
Amortisation
72
18
91
(Profit)/loss on disposal of assets
(111)
5
(69)
Negative goodwill arising on acquisition
(343)
-
-
Share based payments
43
21
58
Proceeds of hire purchase refinancing agreements 
454
-
758
(Increase)/decrease in trade and other receivables
(1,433)
55
(490)
(Decrease)/increase in trade and other payables
(572)
394
426
(Increase)/decrease in inventories
(74)
7
19
Decrease in provisions
(43)
(322)
(749)
 
____
____
____
Cash generated from/(used in) operations
178
(47)
1,092
Interest paid
(600)
(164)
(760)
 
____
____
____
Net cash (used in)/ generated from operating activities
(422)
(211)
332
 
 
 
 
Cash flow from investing activities
 
 
 
Interest received
22
7
78
Purchase of property, plant and equipment 
(587)
(274)
(429)
Sale of property, plant and equipment
1,052
685
1,169
Purchase of intangible assets
(122)
-
(200)
Purchase of undertakings and businesses
(3,199)
(72)
(1,707)
Net cash acquired with subsidiary undertaking
80
-
217
 
_____
_____
_____
Net cash (outflow)/inflow from investing activities
(2,754)
346
(872)
 
Cash flow from financing activities
 
 
 
Loan stock and bank loan interest paid
(81)
(57)
(168)
Issue of loan stock and notes
4,589
400
865
Proceeds from share issue
390
475
2,923
Loan note repaid
(150)
(100)
(100)
Bank loan repaid
(7)
(7)
(14)
Capital element of lease payments
(2,112)
(1,075)
(2,889)
 
_____
_____
____
Net cash inflow/(outflow) in financing activities
2,627
(364)
617
 
 
 
 
Net (decrease)/increase in cash and cash equivalents
(549)
(229)
77
Cash and cash equivalents at start of period
(827)
(904)
(904)
 
_____
_____
_____
Cash and cash equivalents at end of period
(1,376)
(1,133)
(827)
 
======
=====
====

 

  

Consolidated Statement of Changes in Equity 

Called up share capital

Share premium account

Merger reserve

Warrant reserve

Retained earnings

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

At 1 December 2006

3,676

4,316

2,567

-

(3,594)

6,965

 

 

 

 

 

 

 

Loss for the period ended 31 May 2007

-

-

-

-

(692)

(692)

Share based payment adjustment

-

-

-

-

21

21

 

___

___

___

___

___

___

Total recognized income and expense for the period

-  

-

-

-

(671)

(671)

Issue of share capital

334

166

-

-

-

500

Costs of issue of share capital

-

(28)

-

-

-

(28)

 

____

____

____

_

_____

____

At 31 May 2007

4,010

4,454

2,567

-

(4,265)

6,766

Profit for the period ended 30 November 2007

-

-

-

-

2

2

Share based payment adjustment

-

-

-

-

37

37

 

___

___

___

___

__

__

Total recognized income and expense for the period

-

-

-

-

39

39

Issue of share capital

1,079

1,827

-

-

-

2,906

Costs of issue of share capital

 

(179)

-

-

-

(179)

 

____

____

____

___

_____

____

At 30 November 2007

5,089

6,102

2,567

-

(4,226)

9,532

Profit for the period ended 31 May 2008

-

-

-

-

579

579

Share based payment adjustment

-

-

-

-

43

43

Convertible loan stock equity component

-

-

-

-

296

296

 

___

___

___

___

___

___

Total recognized income and expense for the period

-

-

-

-

918

918

Issue of share capital

164

226

-

-

-

390

Costs of issue of share capital and loan stock

-

(74)

-

-

-

(74)

Warrant reserve arising on issue of loan stock

-

-

-

82

-

82

 

____

____

____

__

_____

_____

At 31 May 2008

5,253

6,254

2,567

82

(3,308)

10,848

 

====

====

====

==

=====

=====

 

 

 

  

 

Notes to the unaudited Interim Accounts for the six months ended 31 May 2008

 

1.  Basis of preparation:

 

Prior to this current accounting period iwas the practice of the group to prepare its accounts in accordance with UK Generally Accepted Accounting Principles ('UK  GAAP').  In respect of the period to 31 May 2008 the group is required to prepare its consolidated accounts under International Accounting and  International Financial Reporting Standards (collectively 'IFRS'), which have been adopted by the European Union. In accordance with IFRS 1 the date of transition to adopted  IFRS is 1 December 2006. The comparatives to the period which is the subject of this report have therefore been restated from UK GAAP to comply with adopted IFRS.  The adjustments that have been made are explained further below.

The accounting policies used in the preparation of these accounts are those that are expected to be used in the preparation of the annual financial accounts of the company for the year ending 30 November 2008. These policies have been selected to comply with IFRS current at the time of this report and the IFRS expected to have relevance to the accounts of the company for the year ending 30 November 2008. Future changes to IFRS may have an effect on the current year.

 

2.  Transitional arrangements:

 

In making the transition to IFRS and implementing its provisions, the requirements of IFRS 1 - First Time adoption of International Financial Reporting Standards have been followed. Where IFRS 1 offers exemptions, those that have been taken are set out below. The adoption of IFRS concerns accounting changes only and does not affect the cash flows of the group. The group has elected to apply the following first time exemption permitted by IFRS 1 in making the transition from UK GAAP to IFRS:

  • Business combinations: the group has elected to take advantage of the exemption not to apply IFRS 3 - Business Combinations to the business combinations which occurred prior to the date of transition to adopted IFRS (i.e. 1 December 2006). The group has therefore elected to treat the net book value of goodwill as measured under UK GAAP as at 30 November 2006 as the deemed cost of goodwill under IFRS 3 as at 1 December 2006. In accordance with IFRS 3 this goodwill is not amortised but subjected to regular impairment reviews. Negative goodwill existing at the date of transition has been credited to reserves (see further note 6 below). 

Reconciliations between UK GAAP and IFRS for the comparative periods and at the date of transition are included in note 6 of this statement.  

 

3.  Operating profit:

The underlying operating profits may be derived as follows:

 

 

Unaudited 6 months ended 31 May 2008

Unaudited 6 months ended 31 May 2007

Audited and restated year ended 30 November 2007

 

 

£'000

£'000

£'000

Operating profit/(loss)

 

1,404

(443)

190

Share-based payment

 

43

21

58

Amortisation

 

72

18

91

Restructuring costs

 

194

-

-

Negative goodwill arising on acquisition

 

(343)

-

-

 

 

_____

____

____

Underlying operating profit/(loss)

 

1,370

(404)

339

 

 

 

 

 










4. Earnings per share: 

Basic earnings per share have been calculated on the basis of profit after taxation and the weighted average number of shares in issue for the period of 20,474,897 (May 2007: 14,775,221; November 2007: 16,900,906). Diluted earnings per share have been calculated on the basis of profit after taxation (adjusted where necessary for the effect of convertible loan stock interest) and the weighted average number of shares in issue (including such potential issues as are dilutative) for the period of 21,717,526. The effect of potential ordinary shares on prior periods is not dilutive, because the loss per share would be reduced.  

 

 


5.Purchase of Subsidiary Undertakings

 

On 29 February 2008 the company acquired Go West Midlands Limited (now called The Diamond Bus Company Limited) for a consideration (including a freehold property) of approximately £2 million. The provisional balance sheet at the date of acquisition, together with the provisional fair value adjustments required, are set out below:

 

 

Book value of assets acquired   

Fair value adjustments  

Fair value

 

£'000

£'000

£'000

Property, plant and equipment

3,923

(514)

3,409

Inventories

108

-

108

Trade and other receivables

416

-

416

Trade and other payables

(970)

(373)

(1,343)

Obligations under hire purchase agreements

(231)

-

(231)

 

_____

_____

_____

Net assets

3,246

(887)

2,359

 

 

 

 

Cash paid (including costs of acquisition)

 

 

(2,016)

 

 

 

____

Negative goodwill arising credited to the income statement

 

 

343

 

 

The fair value adjustments the revaluation of the vehicle fleet to market value, the writing off of certain items of plant and the recognition of existing liabilities, including onerous contracts.

  On 1 April 2008 the company acquired Ludlows of Halesowen Limited for a consideration of approximately £851,000. The provisional balance sheet at the date of acquisition is set out below. Provisionally, no fair value adjustments are required.  

 

 

Book and fair value of assets acquired

 

£'000

Property, plant and equipment

460

Inventories

8

Trade and other receivables

100

Cash

80

Trade and other payables

(190)

Deferred taxation

(46)

 

____

Net assets

412

 

 

Cash paid (including acquisition expenses)

(851)

 

____

Goodwill

439

 

Also during the period the group carried out the remaining stages of its acquisition of the bus business of South Gloucestershire Bus and Coach Company Limited. The initial stages of this acquisition took place in the year ended 30 November 2007.  In the current accounting period further consideration of some £636,000 was paid. This gave rise to an intangible asset of £122,000 in relation to customer contracts acquired and goodwill of approximately  £333,000, the balance of the consideration being for vehicles. 

6.  Reconciliations from UK GAAP to adopted  IFRS:

In accordance with IFRS 1 the impact of the transition to IFRS from UK GAAP is further explained below. In order to conform to IAS 1  Presentation of Financial Statements and IAS 7 - Cash Flow Statements, the form and presentation of previously published UK GAAP accounts has been changed. Other than the specific adjustments made in the following tables, use of adopted  IFRS has involved presentational changes only. Note in particular that the Cash Flow Statement under adopted  IFRS is not significantly different from that under UK GAAP and thus it is considered that reconciliations of cash flows from UK GAAP to adopted IFRS are unnecessary.

Set out below are reconciliations of the income statements under IFRS for the six months ended 31 May 2007 and the year ended 30 November 2007 to their UK GAAP counterparts. There then follow reconciliations of the respective balance sheets, including that of the transitional balance sheet as at 1 December 2006. Where appropriate attention is drawn to detailed explanatory notes which analyse further the adjustments made. 

 

Consolidated income statement

 

UK GAAP  

 

IFRS restated 

UK GAAP 

 

IFRS restated 

 

Notes 

 6 months ended 31 May 2007

IFRS    adj.

 6 months ended 31 May 2007

Year ended 30   November 2007

IFRS   adj.

Year ended 30 November 2007

 

 

£'000

£'000

£'000

£'000

£'000

£'000

Revenue

 

9,556

-

9,556

19,348

-

19,348

 

 

 

 

 

 

 

 

Cost of sales

6(a)

(8,087)

(218)

(8,305)

(15,413)

(671)

(16,084)

 

 

____

 

____

____

 

____

Gross profit

 

1,469

-

1,251

3,935

-

3,264

 

 

 

 

 

 

 

 

Operating expenses

6(b)

(2,098)

404

(1,694)

(4,153)

1,079

(3,074)

 

 

____

___

____

____

____

___

Operating profit/(loss)

 

(629)

186

(443)

(218)

408

190

 

 

 

 

 

 

 

 

Finance income

 

7

-

7

78

-

78

Finance expense

 

(256)

-

(256)

(957)

-

(957)

 

 

____

___

___

_____

___

___

Loss before taxation

 

(878)

186

(692)

(1,097)

408

(689)

Taxation

 

-

-

-

-

-

-

 

 

____

____

____

_____

____

____

Loss after taxation

 

(878)

186

(692)

(1,097)

408

(689)

  

Consolidated balance sheet

 

UK GAAP

 

IFRS GAAP

UK GAAP

 

IFRS GAAP

 

Notes  

As at 31 May 2007 

IFRS adj

As at 31 May 2007

As at 30 Nov 2007 

IFRS adj

As at 30 Nov 2007

 

 

£'000

£'000

£'000

£'000

£'000

£'000

Assets

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

Goodwill

6(c)

7,392

661

8,053

8,003

697

8, 700

Other intangibles

6(d)

214

 

214

155

186

341

Property, plant and equipment

 

9,812

 

9,812

15,214

 

15,214

Trade and other receivables

 

260

 

260

288

 

288

 

 

______

___

_____

______

___

_____

 

 

17,678

661

18,339

23,660

883

24,543

Current assets

 

 

 

 

 

 

 

Inventories

 

157

 

157

145

 

145

Trade and other receivables

 

3,223

 

3,223

3,879

 

3,879

Cash and cash equivalents

 

-

 

-

11

 

11

 

 

_____

 

____

____

 

____

 

 

3,380

 

3,380

4,035

 

4,035

 

 

_____

____

_____

_____

____

_____

Total assets

 

21,058

661

21,719

27,695

883

28,578

Liabilities

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

Long term borrowings

 

(2,439)

 

(2,439)

(2,935)

 

(2,935)

Obligations under hire purchase agreements

 

(4,934)

 

(4,934)

(8,251)

 

(8,251)

Deferred income tax liabilities

(6(e)

-

(196)

(196)

-

(196)

(196)

Provisions

 

(571)

 

(571)

(145)

 

(145)

 

 

_____

____

_____

_____

____

_____

 

 

(7,944)

(196)

(8,140)

(11,331)

(196)

(11,527)

Current liabilities

 

 

 

 

 

 

 

Trade and other payables

 

(4,270)

 

(4,270)

(4,483)

 

(4,483)

Short term borrowings

 

(1,558)

 

(1,558)

(1,103)

 

(1,103)

Obligations under hire purchase contracts

 

(985)

 

(985)

(1,934)

 

(1,934)

 

 

_____

 

_____

_____

 

_____

 

 

(6,813)

 

(6,813)

(7,520)

 

(7,520)

 

 

______

 

_____

_____

 

______

Total liabilities

 

(14,757)

 

(14,953)

(18,851)

 

(19,046)

 

 

______

___

_____

_____

____

____

Net assets

 

6,301

465

6,766

8,844

687

9,531

 

 

======

===

====

=====

===

====

Capital and reserves

 

 

 

 

 

 

 

Called up share capital

 

4,010

 

4,010

5,089

 

5,089

Share premium account

 

4,454

 

4,454

6,102

 

6,102

Merger reserve

 

2,567

 

2,567

2,567

 

2,567

Retained earnings

6(f)

(4,730)

465

(4,265)

(4,914)

687

(4,227)

 

 

____

___

____

____

___

____

Total equity

 

6,301

465

6,766

8,844

687

9,531

 

 

=====

===

====

====

===

====

 

 

  

 

 

Consolidated balance sheet (at date of transition)

Notes  

UK GAAP as at 1 Dec 2006     

IFRS adj    

IFRS GAAP As at 1 Dec 2006

 

 

£'000

£'000

£'000

Assets

 

 

 

 

Non-current assets

 

 

 

 

Goodwill

6(c)

7,505

475

7,980

Other intangibles

 

232

 

232

Property, plant and equipment

 

5,675

 

5,675

Trade and other receivables

 

180

 

180

 

 

_____

___

_____

 

 

13,592

475

14,067

Current assets

 

 

 

 

Inventories

 

165

 

165

Trade and other receivables

 

3,358

 

3,358

Cash and cash equivalents

 

-

 

-

 

 

____

 

____

 

 

3,523

 

3,523

 

 

_____

___

_____

Total assets

 

17,115

475

17,590

Liabilities

 

 

 

 

Non-current liabilities

 

 

 

 

Long term borrowings

 

(2,276)

 

(2,276)

Obligations under hire purchase agreements

 

(1,252)

 

(1,252)

Deferred income tax liabilities

6(e)

-

(196)

(196)

Provisions 

 

(893)

 

(893)

 

 

_____

____

_____

 

 

(4,421)

(196)

(4,617)

Current liabilities

 

 

 

 

Trade and other payables

 

(3,832)

 

(3,832)

Short term borrowings

 

(1,352)

 

(1,352)

Obligations under hire purchase contracts

 

(825)

 

(825)

 

 

_____

 

______

 

 

(6,009)

 

(6,009)

 

 

______

____

______

Total liabilities

 

(10,430)

(196)

(10,626)

 

 

____

___

_____

Net assets

 

6,685

279

6,964

 

 

=====

===

====

Capital and reserves

 

 

 

 

Called up share capital

 

3,676

 

3,676

Share premium account

 

4,316

 

4,316

Merger reserve

 

2,567

 

2,567

Other reserve

 

 

 

 

Retained earnings

6(f)

(3,874)

279

(3,595)

 

 

_____

___

____

Total equity

 

6,685

279

6,964

 

 

====

===

====

  

 

 
1 Dec 2006
31 May 2007
30 November 2007
 
£’000
£’000
£’000
 
 
 
 
6 (a) Cost of sales
 
 
 
In accordance with IAS 1 depreciation on public service vehicles used as plant has been reclassified from Administrative Expenses to Cost of Sales
-
(218)
(671)
 
 
 
 
6(b) Operating expenses
 
 
 
Depreciation as above
-
218
671
Amortisation of goodwill arising from acquisitions and   capitalised has been reversed following the adoption of IFRS 3 - Business Combinations; goodwill is instead reviewed annually for impairment
-
186
422
Amortisation  arising after recognition of separately identifiable intangiible assets
-
-
(14)
 
 
___
____
 
-
404
1,079
 
 
 
 
6(c) Goodwill
 
 
 
Negative goodwill classified within goodwill as at 30 November 2006 under UK GAAP but credited directly to retained earnings under adopted  IFRS as at the transition date to adopted IFRS of 1 December 2006
475
475
475
Amortisation as described in note 6(b) above
-
186
422
Separately identifiable intangible asset arising on business combinations after 1 December 2006 previously classified within Goodwill under UK GAAP but transferred to Other Intangibles under adopted IFRS
-
-
(200)
 
___
____
___
 
475
661
697
 
 
 
 
6(d) Other intangibles
 
 
 
Separately identifiable intangible asset arising on business combinations after 1 December 2006 previously classified within Goodwill under UK GAAP but transferred to Other Intangibles under adopted IFRS
-
-
200
Amortisation as described in note 6(b) above
-
-
(14)
 
____
___
___
 
-
-
186
 
 
 
 
6 (e) Deferred income tax liabilities
 
 
 
Deferred taxation arising on negative goodwill in 6(c) above
(196)
(196)
(196)
 
 
 
 
6(f) Reserves
 
 
 
 
Negative goodwill (less related deferred taxation) classified within goodwill as at 30 November 2006 under UK GAAP but credited directly to retained earnings under adopted  IFRS as at the transition date of 1 December 2006
279
279
279
Amortisation of goodwill arising from acquisitions and   capitalised has been reversed following the adoption of IFRS 3 -Business Combinations; goodwill is instead reviewed annually for impairment
-
186
422
Amortisation arising after recognition of separately identifiable intangiible assets
-
-
(14)
 
____
____
___
 
279
465
687

 

7.  Additional information : 

 

This interim statement and the figures it contains have not been audited by the company's auditors, BDO Stoy Hayward LLP. The figures presented for the accounting periods ended 31 May 2008 and 2007 are unaudited and do not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The comparatives for the year ended 30 November 2007 are not the full statutory accounts of the company for that period. A copy of the full statutory accounts for that year, which were prepared under UK GAAP, have been delivered to the Registrar of Companies. The report of the auditors on these accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and did not contain a statement under section 237(2) - (3) of the Companies Act 1985.

 

8.  Copies of this statement are available from the registered office of the company at 80, Cannon StreetLondon, EC4N 6HL.

 


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The company news service from the London Stock Exchange
 
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