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Ultima Networks PLC (UTN)

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Wednesday 26 May, 2010

Ultima Networks PLC

Final Results - Amendment

RNS Number : 5867M
Ultima Networks PLC
26 May 2010
 



The following amendments have been made to the "Final Results" announcement released on 24/05/2010 at 07:00 under RNS No 3838M

-       In the Financial Highlights section the earnings per share figure for 2009 was amended to 0.10p from 0.09p

 

-       The basic and diluted earnings per share figure in the Consolidated Statement of Comprehensive Income for the year ended 31 December 2009 was amended to 0.10p from 0.09p

All other details remain unchanged.

The full amended text is shown below.

 

ANNOUNCEMENT OF AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2009

ULTIMA NETWORKS PLC

('Ultima' or the 'Company')

26 May 2010

The Directors are pleased to announce the audited results of the company and its subsidiaries (the 'Group 'or the 'Ultima Group) for the year ended 31 December 2009.

 

The Ultima Group's operations consist of three divisions; IT Services, Green technology products and Green power. These divisions are involved respectively in the sale of software to the legal profession, the development and sale of specialist electrical goods and the development of clean power generation through solar parks in Spain and Italy.

 

 

Highlights of 2009

 

·      Developed  new legal software suite "Cognito FiLOS"

 

 

·      Developed a new range of electrically assisted bicycles for the European market.

 

 

·      £1.0 million capital raised (before expenses) to fund development of solar parks in Southern Italy.

 

·      Development of 100KW Solar Park in Spain.

 

·      Income 2009 £255,000 (2008:£260,000)...

 

Financial highlights

 

·     

 

·     

 

·     

 

·     

 

·     

 

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·     

 

 

 

 

Chairman's statement

 

I am very pleased to present the audited accounts for the Group in what has been a year of investment in new products by the Company. We have continued to make substantive progress in the Group's objective of developing a green technology business. Despite difficult operating circumstances, the year has seen significant developments in all three divisions, with the IT services and Green technology product divisions reaching significant milestones in the development of new products which we expect to capitalise on over the forthcoming years. The Green power division has now completed the development of a 100KW solar park in Spain and has seen progress in our project to develop a 3 MW solar park in southern Italy.

 

In the year ended 31st December 2009, the group achieved sales of £1,867,000 (2008:£1,977,000) with operating profit of £221,000 (2008:£246,000).

 

IT services division

The IT services division made an operating profit of £237,000 (2008:£126,000) on sales of £816,000 (2008:£708,000). Principally, this division provides computer application software and related support and other services to small and medium sized legal practices in England and Wales. The division operates under the name "Cognito Software Limited" and has benefited from the first full year contribution following the acquisition of JCS Computing Solutions Ltd, a supplier of legal software. This acquisition strengthened the division's management team substantially as well as widened its product range. The merged entity increased sales and profitability through its range of copyrighted products and plans to launch a new software suite during 2010 under the brand name Cognito FiLOS. This is expected to augment the competitive position and also widen the client base by attracting interest from larger legal practices.

 

The outlook for the division is for growing profitability and the division expects that it will continue to benefit from its focus on product development and the strength of its management team.

 

The enlarged division is the only supplier of legal software to have been included in every Law Society Software Solutions Guide ("SSG") continuously from 2000 and in 2009; Cognito came top in five of the most important client satisfaction categories. The SSG is the premier reference guide to assist Solicitors in reaching purchasing decisions.

 

The legal software market is fragmented and is expected to undergo further consolidation, providing opportunities for the division to accelerate growth through carefully targeted acquisition.  The division is actively seeking a number of potential targets.

 

I believe the IT services division has had a successful year helped by the integration of the management teams and product ranges of Cognito and JCS Computing Solutions. This improved performance has delivered an increase in sales and operational cost efficiencies and will be further enhanced by sales of the new legal software suite developed by division which will be released for sale during 2010.

 

Green technology products division

The green technology products division operated profitability prior to the application of central costs resulting in a breakeven position for the year (2008 operating profit: £124,000) on sales of £1,023,000 (2008:£1,269,000). This division has had continued success with its sales of Powacycle branded electric bicycles in the United Kingdom, although tougher trading conditions for luxury products resulted in a fall in market demand. The division's Infineum R&D team have designed a bicycle in conjunction with EQ Bikes of Holland, suitable for the Benelux market, incorporating the division's patented stackable battery system and the division is expected to launch this model during 2010. The potential for growth of the division's range of electric bicycles through continental Europe remains strong and it is and is expected that this will lead to an increase in both sales and profitability.

 

I have confidence that the developments undertaken by the Green technology products division in designing new products and increasing sales channels through growth in UK based dealers and agreements to distribute the division's products in mainland Europe will result in a restoration of growth and improved profitability. Whilst the division suffered during 2009 from the difficult economic conditions it should benefit from a return to growth in its major markets with the expectation for a substantial increase in sales in continental Europe.

 

 

Green power division

The development of 100KW solar park in Spain has been completed and will generate fixed revenue based on a tariff of 32 euro cents for a period of 25 years. The completion of this project provides a platform to demonstrate the division's ability to deliver solar technology and is a basis for other projects and developments in Spain.

 

The Company raised £1.0 million (before expenses) through the placement of 71,428,574 new ordinary shares representing 25.86% of the Company's enlarged issued ordinary share capital. The net proceeds are being used by the Company for the development of its solar park operations in Italy.

 

 

A geological survey for the foundations has been completed on the 22 hectares of land acquired by the company in the Puglia region of Southern Italy and construction of a security fence protecting the development area has been commissioned.  The division continues to negotiate with ENEL Spa to agree terms for connecting the Italian solar parks to the Italian high voltage grid. Despite recent legislative changes in Italy, the Company does not consider there will be any impact on current projects as work has commenced. The division has appointed  Lombarda & Associata  Srl to raise the debt finance element of the funding  required to support the  construction of the three 1 MW Solar Parks planned for Puglia. Further update on the debt financing will be provided in the future.

 

We remain confident that the Groups move into the solar power arena will be a major part of the group's strategy for growth in the coming years. The divisions' first solar park located in Spain was under construction during the year and has now been completed. The funding raised during the year is being applied to the development of planned projects in Italy with work continuing to raise the debt finance required to begin construction.

 

Outlook

 

Whilst the economic outlook remains uncertain, we believe the 2009 results demonstrate the resilience of the group in delivering profit against a background of difficult financial circumstances and at the same time developing significant product improvements with the potential for substantial growth through supply of green energy.

 

With the planned launch of the IT Services new software suite we anticipate it will provide the division the opportunity to sell into large scale legal practices opening avenues for growth in market share. In addition, the launch of new products developed by the Green technology products division designed to attract consumers in new countries has the potential to accelerate growth in sales and profitability.

 

The expansion of the Green power division remains potentially the most exciting for the Group with the achievement of significant milestones in establishing the Groups first solar park development in Spain and the progressing of plans to build solar parks in Italy.

 

There remain challenges ahead in the economic conditions we face which will have an impact on all divisions of the business but we are confident that the milestones reached in 2009 will allow us to grow across all areas of the Group. The company will need to raise additional funding through borrowings in order to construct the solar parks planned for southern Italy and we are confident we will be able to find the extra funding necessary in order to continue to complete the projects and expand in this direction which we feel is an essential ingredient in the growth of the group and which we hope to deliver to the benefit of our shareholders over the coming years.

 

We look forward to a successful year despite the tough economic outlook and to achieving the targets set to ensure growth in 2010.

 

Enquiries:

 

Ultima Networks plc                                                                                                        +44 (0)1279 821 200

Prof. Humayun Mughal

 

Allenby Capital Limited (nominated adviser)                                                                 +44 (0)2033 285656

Nick Naylor/Alex Price

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEARENDED 31 DECEMBER 2009




2009

£000

 

 

 

2008

£000

 

Revenue

 



1,867


1,977

Cost of sales

 



(713)


(648)

Gross profit

 



1,154


1,329

Administration expenses

 



(936)


(1,097)

Other operating income

 



3


14

Operating profit

 



221


246

Finance income

 



(7)


35

Profit before taxation

 



214


281

Taxation expenses

 



-


(21)

Profit for the year



 

214


 

260

Other comprehensive income:

Exchange difference on translating foreign operations



        41


_

Total comprehensive income for the year attributable to equity holders of the parent



      255


     260

 

Basic and diluted earnings per share - pence

 


 

 

 

0.10


 

0.13

 

All amounts relate to continuing activities.



 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                                     2009                          2008

AS AT 31ST DECEMBER 2009                                                                            £000                          £000

 

ASSETS






Noncurrent assets






Property, plant and equipment



1,171


621

Intangible assets - development costs



464


78

Goodwill



118


118

Intangible assets - other



172


181

Deferred tax assets



-


6







Total noncurrent assets



1,925


1,004







Current assets






Inventories



339


452

Trade and other receivables



637


404

Cash and cash equivalents



886


122







Total current assets



1,862


978







Total assets



3,787


1,982







LIABILITIES






Noncurrent Liabilities






Deferred tax



45


50







Total noncurrent liabilities



45


50







Current liabilities






Trade and other payables



711


81

Current tax liabilities



111


132

Accruals and deferred income



293


291







Total current liabilities



1,115


504







Total liabilities



1,160


554







Net assets



2,627


1,428

EQUITY






Capital and reserves attributable to equity holders of the parent






Called up share capital



8,269


7,554

Share premium account



5,831


5,602

Other reserves



202


202

Retained Earnings



           (11,716)


(11,930)

Translation of foreign operations



41


-







 

 

 



2,627


1,428

 



 

 

 

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2009

 




2009

£000


2008

£000







Profit for the financial year



214


260

Taxation expense



-


21

Interest receivable



7


(35)

Depreciation charges



14


13

Amortisation of intangibles



33


19







Operating profit before changes in working capital



268


278







(Decrease)/Increase in inventories



113


(195)

Increase in trade and other receivables



(233)


(19)

(Decrease)/increase in trade payables and other capital liabilities



624


(248)







Cash (used in)/generated from operations



772


(184)







Taxation



(17)


-







Net cash (used in)/generated from operating activities



755


(184)







Cash flows from investing activities






Purchase of property, plant and equipment



(518)


(510)

Development expenditure



(410)


(82)

Other intangibles



-


(163)

Net proceeds of ordinary shares issue



944


-







Net cash used in investing activities



16


(755)







Cash flows from financing activities






Interest received



(7)


35







Net cash generated from financing activities



(7)


35







Net (decrease)/increase in cash and cash equivalents



764


(904)







Cash and cash equivalents at beginning of the period



122


1,026







Cash and cash equivalents at end of the period



886


122

 



 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2009

 









 

 

 

 


Called up share

capital

£000

Share premium

 

£000

Other reserves

 

£000

Retained earnings

 

£000)

Translation of foreign operations

 

£000

Total

Equity

 

£000

Year ended 31 December 2009








As 1 January 2009


7,554

5,602

202

(11,930)

-

1,428

Issue of share capital


715

229

-


-

944

Total comprehensive income for the year


 

-

 

-

 

-

 

214)

 

41

 

255









At 31 December 2009


8,269

5,831

202

(11,716)

41

2,627

 

 








Year ended 31 December 2008








As 1 January 2008


7,554

5,602

202

(12,190)

-

1,168

Total comprehensive income for the year


 

-

 

-

 

-

 

260)

 

-

 

260









At 31 December 2008


7,554

5,602

202

(11,930)

-

1,428

 

 

 

The Group operates in the United Kingdom, Italy and Spain.

At 31 December 2009, the Group is organised into two principal business segments:

 

IT and related services (comprising legal and publishing application software)

 

Green technology (comprising electric bicycles, energy saving lamps, educational electronic kits and development of solar power parks)

 

The segmental results for the year ended 31 December 2009 are as follows:

 



IT and related services

UK

£000

Green technology

UK

£000

Green technology

ITALY

£000

Unallocated

 

 

£000

Group

 

 

£000








Revenue


816

1,023

-

28

1,867








Depreciation


6

4

-

4

14

Amortisation


12

16

5

-

33

Interest payable


-

5

-

2

7

 

Operating profit/(loss)


237

11

(27)

-

 

221

 



 

 

The segmental results for the year ended 31 December 2008 are as follows:










IT and related services

UK

£000

Green technology

UK

£000

Green technology

ITALY

£000

Unallocated

 

 

£000

Group

 

 

£000








Revenue


708

1,269

-

-

1,977








Depreciation


5

4

-

4

13








Amortisation


9

6

4

-

19








Finance income


-

-

-

35

35








Operating profit/(loss)


126

133

(9)

(4)

246








 

 

 

 

 

 

 

 

 

 

 

 

 

 

The other information of the segments are as follows:




2009


IT and related services

UK

£000

Green technology

UK

£000

Green technology

Italy

£000

Unallocated

 

 

£000

Group

 

 

£000















Segment assets


563

726

1,251

1,247

3,787

Segment liabilities


(240)

(308)

(15)

(597)

(1,160)








Net assets


323

418

1,236

650

2,627








 

STATEMENT

 

This statement was approved by the directors on 21 May 2010. This statement does not constitute the Group's statutory accounts for the year ended 31 December 2009. Statutory accounts for the year ended 31 December 2008 have been delivered to the Registrar of companies. The auditor's report on those accounts was unqualified and did not contain any statement under section 495 of the Companies Act 2006.  The auditor's report for the accounts to 31 December 2009 is unqualified.

 

The Annual report for 2010 will be available to the shareholders and the public on the Company's web site (www.ultima-networks.co.uk) over the next few days and the Company will make a further announcement in this regard as appropriate.


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