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Ultima Networks PLC (ONZ)

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Wednesday 23 September, 2015

Ultima Networks PLC

Half Yearly Report

RNS Number : 0191A
Ultima Networks PLC
23 September 2015
 

                                                                                                                       23 September 2015

 

Ultima Networks Plc

("Ultima", "the Group" or "the Company")

 

 

Interim Results for the six months ended 30 June 2015

 

Ultima, the IT and Green Technology Company, is pleased to announce its unaudited interim results for the six months ended 30 June 2015.

 

 

Highlights for the period

·     Turnover of £615,000 (H1 2014: £674,000)

·     Operating loss of £67,000 (H1 2014: Loss  £77,000)

·     Cash at bank of £94,000 as at 30 June 2015 (30 June 2014: £113,000)

     

Ultima operates through two divisions: the IT Services division, and the Green technology division. 

      The IT Services division develops and supplies computer based application software and services to the legal profession.

      The Green technology division is responsible for the development and supply of electric powered bicycles and specialist electrical goods and provides renewable energy solutions for the development of clean power generation through solar and other renewable power sources with installations in the United Kingdom and in Spain.

 

Professor Humayun Mughal, Chairman and CEO, commented:

"During the six months ended 30 June 2015, Ultima made a group operating loss of £67,000 (H1 2014: Loss £77,000). The Group maintained its policy of investing into research and product development to ensure it retains the ability to be competitive and react to market opportunities.

The IT Services division reported a modest decrease in revenue as legal, practices continue to consolidate in a competitive market. Development of the division flagship "FiLos" legal software suite continued to make progress. The Green Technology division concentrated sales of its electronic bicycles and renewable energy solutions into the UK market.

 

"The Group having gone through a period of restructuring it intends to concentrate on growth in low risk recurring revenues, a continued effort to control central overheads and the expansion of the Company by a continued investment into the development of new products.

 

 

Enquiries:

 

Ultima Networks plc                                                                                             01279 821200

Prof. Humayun Mughal, Chairman and Chief Executive

 

Cairn Financial Advisers LLP (Nominated Adviser and Broker)                         0207 1487900

Sandy Jamieson, Liam Murray

 

 

 

 

Chairman and Chief Executive's Statement

 

Operational Review

 

Ultima continues to invest into the development of its IT Services product portfolio and the design of new products in the Green Technology division in order to generate future growth in revenues.

 

The IT Services division has continued the roll out of the FiLos legal software suite with a continuing reduction in sales of its legacy products as more firms switch to the new software platform. The legal market continues to contract through a combination of mergers and also as a small but significant number of client firms leave the industry. The division has a programme of continuous product development which is an essential tool in maintaining product competitiveness and providing a platform for future organic growth.

 

The Green Technology division has consolidated sales of its electric bicycles through outlets in the UK.

 

The division expects to benefit from its experience to increase activity in the UK market for RHI and EPC (Engineering, Procurement and Construction) projects.       

 

The short term economic outlook remains challenging however the Group remains positive and is working hard to ensure it is in a position to take advantage of any upturn.

 

The Board of Ultima remains committed to its programme of research, design and development and expect this will provide the platform for future growth opportunities.

 

 

Financial Summary

 

In the six months to 30 June 2015 the Group achieved sales of £615,000 (H1 2014: £674,000) with an operating loss of (£67,000) (H1 2014 £77,000).

 

The IT Services division made a profit at the operating level of £122,000 (H1 2014: £163, 000) on sales of £353,000 (H1 2014: £375,000). This division comprises Cognito Software, a provider of application software and services to the legal profession. 

 

The Green Technology division made an operating loss of (£91,000) (H1 2014: operating loss of £153,000) on sales of £262,000 (H1 2014: £299,000). This division comprises the green technology products and the green energy parts of Ultima's business.

 

The Group central overheads for the six months to 30 June 2015 were £98,000 (H1 2014: cost of £87,000).

 

As a result of the expected availability of brought forward losses there has been no adjustment for taxation in the period.

 

 

Prof. Humayun Akhter Mughal,

Chairman and Chief Executive Officer

23 September 2015


 

Consolidated Statement of Comprehensive Income

Six Months ended 30 June 2015

 

 

 

 

Unaudited

Half year

Unaudited Half Year

Audited

Full Year

 

 

2015

2014

2014

 

 

£000's

£000's

£000's

Continuing Operations

 

 

 

 

 

 

 

 

 

Revenue

 

615

674

1,364

 

 

 

 

 

Cost of Sales

 

203

             256

545

 

 

 

 

 

Gross Profit

 

412

418

819

 

 

 

 

 

Selling and administration expenses

 

479

496

       2,545

 

 

 

 

 

Other Operating Income

 

-

1

-

 

 

 

 

 

Operating Profit/(Loss)

 

(67)

(77)

(1,726)

 

Exceptional Items

 

 

 

 

(100)

 

(756)

 

 

 

 

 

Finance Cost

 

(3)

(4)

(5)

 

 

 

 

 

Profit/(Loss) before taxation

 

(70)

(181)

(2,487)

 

 

 

 

 

 

 

 

 

 

Taxation recovery

 

-

-

93

 

 

 

 

 

Exchange difference on translating foreign operations

 

-

-

(16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income/(Loss) for the period attributable to equity holders of the Company

 

(70)

(181)

(2,410)

 

 

 

 

 

Basic and diluted earnings/(loss) per share -pence

 

(0.025)

(0.05)

(0.86)

 

 

 

Consolidated Statement of financial position

 

 

30/06/2015

Unaudited

Half year

30/06/2014

Unaudited Half Year

31/12/2014

Audited

Full Year

 

2015

2014

2014

 

£000's

£000's

£000's

ASSETS

 

 

 

 

 

 

 

Non-Current assets

 

 

 

Property, plant, equipment

613

1,406

616

Intangible assets - development costs

-

1,249

-

Goodwill

-

118

-

Intangible assets - other

-

138

-

 

 

 

 

 

 

 

 

Total non-current assets

613

2,911

616

 

 

 

 

Current assets

 

 

 

Inventories

335

404

347

Trade and other receivables

483

694

539

Cash and other equivalents

94

113

347

 

 

 

 

Total current assets

912

1,211

1,233

 

 

 

 

Total assets

1,525

4,122

1,849

 

 

 

 

LIABILITIES

 

Non-Current liabilities

 

 

 

Deferred tax

-

53

-

Total noncurrent liabilities

-

53

-

 

 

 

 

Current Liabilities

 

 

 

Trade and other payables

254

612

503

Current tax liabilities

65

84

76

Accruals and deferred income

234

102

228

 

 

 

 

Total current liabilities

553

798

807

 

 

 

 

Total liabilities

553

             851

807

 

 

 

 

Net assets

972

3,271

1,042

 

 

 

 

EQUITY

 

 

 

Capital and reserves attributable to equity holders of the Company

 

 

 

Called up share capital

8,299

8,299

8,299

Share premium account

5,843

5,843

5,843

Other reserves

202

202

202

Retained earnings

(13,319)

(11,036)

(13,249)

Translations of foreign operations

(53)

(37)

(53)

Total equity

972

3,271

1,042

         

 

 

Consolidated statement of cash flows

 

Unaudited

Half year

Unaudited Half Year

Audited

Full Year

 

2015

2014

2014

 

£000's

£000's

£000's

Cash Flows from operating activities

 

 

 

Profit/(Loss) for the financial period

             (70)

(181)

(2,394)

Taxation expense

-

-

(93)

Interest receivable

-

-

5

Interest payable

3

4

-

Comprehensive Income

-

-

(16)

Depreciation charges

13

18

532

Amortisation of intangibles

-

47

1,207

 

 

 

 

Operating profit before changes in working capital

(54)

(112)

(759)

 

 

 

 

Decrease/(Increase) in inventories

12

31

88

Decrease/(Increase) in trade and other receivables

56

178

333

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

 

(254)

(51)

(42)

Cash (used in)/generated from operations

(240)

46

(380)

 

 

 

 

Taxation

-

-

40

 

 

 

 

Net cash (used in)/generated by operating activities

(240)

46

(340)

 

 

 

 

Cash flow from investing activities

 

 

 

 

 

 

 

Purchase of property, plant and equipment

(10)

(32)

218

Development expenditure

-

(82)

289

Other intangibles

-

-

-

Disposal of Property, plant and equipment

 

-

-

 

 

 

 

Net cash used in investing activities

(250)

(68)

167

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

Interest (received)/payable

(3)

(4)

(5)

 

 

 

 

Net cash(used in)/generated by financing activities

(3)

(4)

(5)

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

(253)

(72)

162

 

 

 

 

Cash and cash equivalents at beginning of the period

347

185

185

 

 

 

 

Cash and cash equivalents at end of the period

94

113

347

 

 

 

 

 

Consolidated statement of changes in equity

 

(i)         Six months ended 30 June 2015 - unaudited

 

 

Called up share capital

Share Premium

Other

reserves

Retained earnings

Translation of foreign operations

Total Equity

At 1 January 2015

8,299

5,843

202

(13,249)

(53)

1,042

Loss for the period

 

 

 

(70)

 

(70)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 30 June 2015

8,299

5,843

202

(13,319)

 (53)

972

 

 

 

(ii)        Six months ended 30 June 2014 - unaudited

 

 

Called up share capital

Share Premium

Other

reserves

Retained earnings

Translation of foreign operations

Total Equity

At 1 January 2014

8,299

5,843

202

(10,855)

(37)

3,452

Loss for the period

 

 

 

(181)

 

(181)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 30 June 2014

8,299

5,843

202

(11,036)

(37)

3,271

 

 

(iii)       Year ended 31 December 2014 - Audited

 

 

Called up share capital

Share Premium

Other

reserves

Retained earnings

Translation of foreign operations

Total Equity

At 1 January 2014

8,299

5,843

202

(10,855)

(37)

3,452

Total comprehensive income for the year

-

-

-

(2,394)

(16)

(2,410)

 

 

 

 

 

 

 

At 31 December  2014

8,299

5,843

202

(13,249)

(53)

1,042

 

 

 

1.   Segmental reporting

 

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

 

As at 30 June 2015, the Group is organised into two principal business segments:

 

·     IT services division (comprising legal and publishing application software)

·     Green technology  division (comprising electric bicycles, energy saving lamps and educational electronic kits and development and installation of renewable energy solutions)

 

The segmental results for the half year ended 30 June 2015 are as follows:

 

 

Unaudited

Half year

Unaudited Half Year

Audited

Full Year

 

2015

2014

2014

 

£000's

£000's

£000's

 

 

 

 

Revenue

 

 

 

United Kingdom

615

674

1,364

Total

615

674

1,364

 

Revenue

 

 

 

IT Services Division

353

375

828

Green Technology  Division

262

299

399

Unallocated

-.

-

137

Total

615

674

1,364

 

 

 

 

Operating profit before exceptional items

 

 

 

IT Services Division

122

163

(1,186)

Green Technology Division

(91)

(153)

(352)

Unallocated

(98)

(87)

(188)

 

 

 

 

Profit before Finance Charges

(67)

(77)

(1,726)

 

 

 

 

Exceptional items

 

(100)

(756)

Finance Income/(payable)

(3)

(4)

(5)

 

 

 

 

Operating profit

(70)

(181)

(2,487)

Taxation Recovered

-

-

93

Exchange difference on translating foreign operations

-

-

(16)

Profit before taxation

(70)

(181)

(2,410)

 

 

 

 

 



 

 

 

 

 

Unaudited

Half year

Unaudited Half Year

Audited

Full Year

 

2015

2014

2014

 

£000's

£000's

£000's

Depreciation

 

 

 

IT Services (UK)

1

1

38

Green technology division

-

17

2

Unallocated

12

-

492

Group Total

13

18

532

 

 

 

 

Amortisation

 

 

 

IT Services (UK)

-

-

804

Green technology division

-

47

393

Unallocated

-

-

10

Group Total

-

47

1,207

 

 

 

 

Segment Assets

 

 

 

IT Services (UK)

746

689

953

Green technology division

779

3,433

896

Unallocated

-

-

-

 

 

 

 

Group

1,525

4,122

1,849

 

 

 

 

Segmental liabilities

 

 

 

IT Services (UK)

(410)

(160)

(420)

Green technology division

(143)

(691)

(387)

Unallocated

(0)

-

-

 

 

 

 

Group

(553)

(851)

(807)

 

 

 

 

Net assets

 

 

 

IT Services (UK)

336

529

533

Green technology  division

636

2,742

509

Unallocated

-

-

-

 

 

 

 

Group

972

3,271

1,042

 

 

 

 

Capital Expenditure

 

 

 

 

 

 

 

IT Services (UK)

10

82

218

Green technology  division

-

32

289

Green Technology Division (disposals)

-

-

-

 

 

 

 

 

Group

10

114

507

 

2            Basis of preparation

The consolidated interim financial statements have been prepared in accordance with the AIM Rules for Companies and prepared on a basis consistent with International Financial Reporting Standards ("IFRS") as adopted by the EU and the accounting policies set out in the Group's financial statements for the year ended 31 December 2014.

 

The interim financial statements do not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006.

 

The consolidated interim financial statements are unaudited and include all adjustments which management considers necessary for a fair presentation of the Group's financial position, operating results and cash flows for the 6 month periods ended 30 June 2015 and 30 June 2014.

 

The Group has chosen not to adopt IAS 34 'Interim Financial Statements' in preparing these interim financial statements and therefore the interim financial information is not in full compliance with IFRS disclosure.

 

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.  Actual results may differ from these estimates.  

 

These interim financial statements have been prepared under the historical cost convention.

 

3           Taxation

Due to expected availability of brought forward losses, no provision has been made for application of tax for the period under review.

 

4           Dividends

The Company has not proposed or declared an interim dividend.

 

5           Earnings per share

Basic earnings per share has been calculated based on the profit/ (loss) on ordinary activities after taxation and the weighted average number of shares in issue for the period of 279,176,538 (June 2014: 279,176,538 and December 2014: 279,176,538). There are no options having a dilutive impact on earnings per share.

 

6           Other information

This interim statement was approved by the Board on 22nd September 2015 and has not been audited by the Company's auditors Hills Jarrett. The comparatives for the full year ended 31 December 2014 are not the Company's full statutory accounts for that year. A copy of the statutory accounts for that year, which were prepared under IFRS, has been delivered to the Registrar of Companies. The auditors' report on those 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 498 (2) or (3) of the Companies Act 2006.

No adjustments have been made for any changes in estimates made at the time of approval of the 2015 accounts.

 

A copy of this interim statement will be available shortly at the Company's registered office at Ultima Networks plc, Akhter House, Perry Road, Harlow, CM18 7PN and on the Company's website, www.ultima-networks.co.uk.


This information is provided by RNS
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