ULTIMA NETWORKS (UTN)

 

LSE:UTN: Half Yearly Report

ULTIMA NETWORKS

29 Sep 2014 09:37:18

Ultima Networks PLC

RNS Number : 8416S
Ultima Networks PLC
29 September 2014
 



                                                                                                                                                      

 

Ultima Networks Plc

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

 

 

Interim Results for the six months ended 30 June 2014

 

Ultima, the IT and Green Technology Company, is pleased to announce its unaudited interim results for the six months ended 30 June 2014.

 

 

Highlights for the period

·     Turnover of £674,000 (H1 2013: £689,000)

·     Operating loss of £77,000 (H1 2013: Loss  £136,000)

·     Cash at bank of £113,000 as at 30 June 2014 (30 June 2013: £82,000)

 

      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 2014, Ultima made a Group operating loss of £77,000 (H1 2013: Loss £136,000). The Group maintained its policy of investing in research and product development to ensure it retains the ability to be competitive and react to market opportunities."

 

 

 

Enquiries:

 

Ultima Networks plc

Prof. Humayun Mughal, Chairman and CEO

 

 

01279 821 200

 

Cairn Financial Advisers LLP (Nominated Adviser)

Sandy Jamieson

 

020 7148 7900

 

Peterhouse Corporate Finance Limited (Broker)

Eran Zucker, Charles Goodfellow

 

 

 

0207 469 0930

 

 

 

 

 

 

 

Chairman and Chief Executive's Statement

 

Operational Review

 

Ultima continued its investment in the IT Services product portfolio and the development 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. The division has a programme of continuous product development which has proved an essential tool in maintaining demand and competitiveness and providing a platform for organic growth.

 

The Green Technology division saw a substantial reduction in sales of its electronic bicycles into mainland Europe resulting in a first half loss.

 

The opportunity for growth in the global renewable energy market remains positive with opportunities to provide innovative solutions.

 

The short term economic outlook remains uncertain however the Group remains positive and considers itself well positioned 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 2014 the Group achieved sales of £674,000 (H1 2013: £689,000) with an operating loss of £77,000 (H1 2013 £136,000).

 

The IT Services division made a profit at the operating level of £163,000 (H1 2013: £100, 000) on sales of £375,000 (H1 2013: £414,000). 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 (£153,000) (H1 2013: operating loss of £157,000) on sales of £299,000 (H1 2013: £275,000). 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 2014 were £87,000 (H1 2013: cost of £79,000).

 

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

 

September 2014

 

 

 

 

Consolidated Statement of Comprehensive Income

Six Months ended 30June 2014

 

 



Unaudited

Half year

Unaudited Half Year

Audited

Full Year



2014

2013

2013



£000's

£000's

£000's

Continuing Operations










Revenue


674

689

2,261






Cost of Sales


256

             197

1,186






Gross Profit


418

492

1,075






Selling and administration expenses


496

628

       1,122






Other Operating Income


1

-

0






Operating Profit/(Loss)

 

Exceptional Items


(77)

 

(100)

(136)

(47)

 

(131)






Finance Cost


(4)

(4)

(6)






Profit/(Loss) before taxation


(181)

(140)

(184)











Taxation recovery


-

-

28






Exchange difference on translating foreign operations


-

-

3
















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


(181)

(140)

(153)






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


(0.05)

(0.05)

(0.06)

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statement of financial position

 


30/06/2014

Unaudited

Half year

30/06/2013

Unaudited Half Year

31/12/2013

Audited

Full Year


   2014

2013

2013


£000's

£000's

£000's

ASSETS








Non-Current assets




Property, plant, equipment

1,406

1,698

1,366

Intangible assets - development costs

1,249

1,175

1,244

Goodwill

118

118

118

Intangible assets - other

138

138

134









Total non-current assets

2,911

3,129

2,862





Current assets




Inventories

404

379

435

Trade and other receivables

694

1,048

872

Cash and other equivalents

113

82

185





Total current assets

1,211

1,509

1,492





Total assets

4,122

4,638

4,354





LIABILITIES

 

Non-Current liabilities




Deferred tax

53

53

53

Total noncurrent liabilities

53

53

53





Current Liabilities




Trade and other payables

612

825

382

Current tax liabilities

84

28

136

Accruals and deferred income

102

267

331





Total current liabilities

798

1,120

849





Total liabilities

851

      1,173

902





Net assets

3,271

3,465

3,452





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

(11,036)

(10,839)

(10,855)

Translations of foreign operations

(37)

(40)

(37)

Total equity

3,271

3,465

3,452

 

 

 

Consolidated statement of cash flows


Unaudited

Half year

Unaudited

Half Year

Audited

Full Year


2014

2013

2013


£000's

£000's

£000's

Cash Flows from operating activities




Profit/(Loss) for the financial period

         (181)

(140)

(156)

Taxation expense

-

-

(28)

Interest receivable

-

-

6

Interest payable

4

4

0

Comprehensive Income



3

Depreciation charges

18

23

48

Amortisation of intangibles

47

73

116





Operating profit before changes in working capital

(112)

(40)

(11)





Decrease/(Increase) in inventories

31

15

(41)

Decrease/(Increase) in trade and other receivables

178

102

278

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

 

(51)

(70)

(341)

Cash (used in)/generated from operations

46

7

(115)





Taxation

-

-

28





Net cash (used in)/generated by operating activities

46

7

(87)





Cash flow from investing activities








Purchase of property, plant and equipment

(32)

(51)

257

Development expenditure

(82)

(107)

(216)

Other intangibles

-

-

-

Net proceeds of ordinary share issue

-

-

-

Disposal of Property, plant and equipment


-

-





Net cash used in investing activities

(114)

(158)

41





Cash flows from financing activities








Interest (received)/payable

(4)

(4)

(6)





Net cash(used in)/generated by financing activities

(4)

(4)

(6)





Net increase/(decrease) in cash and cash equivalents

(72)

(155)

(52)





Cash and cash equivalents at beginning of the period

185

237

237





Cash and cash equivalents at end of the period

113

82

185

 

 

 

Consolidated statement of changes in equity

 

(i)         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

 

 

 

(ii)        Six months ended 30 June 2013 - unaudited

 


Called up share capital

Share Premium

Other

reserves

Retained earnings

Translation of foreign operations

Total Equity

At 1 January 2013

8,299

5,843

202

(10,699)

(40)

3,605

Loss for the period




(140)


(140)















At 30 June 2013

8,299

5,843

202

(10,839)

(40)

3,465

 

 

(iii)       Year ended 31 December 2013 - Audited

 


Called up share capital

Share Premium

Other

reserves

Retained earnings

Translation of foreign operations

Total Equity

At 1 January 2013

8,299

5,843

202

(10,699)

(40)

3,605

Total comprehensive income for the year

-

-

-

-







(156)

3

(153)

At 31 December  2012

8,299

5,843

202

(10,855)

(37)

3,452

 

 

 

 

 

 

 

 

 

 

1.   Segmental reporting

 

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

 

As at 30 June 2014, 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 2014 are as follows:

 


Unaudited

Half year

Unaudited Half Year

Audited

Full Year


2014

2013

2013


£000's

£000's

£000's





Revenue




United Kingdom

674

689

2,261

Italy


-

-

Spain


-

-

Total

674

689

2,261

 

Revenue




IT Services Division

375

414

890

Green Technology  Division (EU)

299

275

757

Unallocated

-

-

614


.



Total

674

689

2,261





Operating profit before exceptional items




IT Services Division

163

100

389

Green Technology Division (EU)

(153)

(157)

(275)

Unallocated

 

(87)

(79)

(161)





Profit before Finance Charges

Exceptional items

(77)

(100)

(136)

(47)

(131)





Finance Income/(payable)

(4)

(4)

(6)





Operating profit

(181)

(140)

(184)

Taxation Recovered

-

-

28

Exchange difference on translating foreign operations

-

-

3

Profit before taxation

(181)

(140)

(153)

 

 

 

 

 

 

 








 

 

Unaudited

Half year

Unaudited Half Year

Audited

Full Year


2014

2013

2013


£000's

£000's

£000's

Depreciation




IT Services (UK)

1

1

2

Green technology division (EU)

17

2

50

Unallocated

0

20

0

Group Total

18

23

52





Amortisation




IT Services (UK)

0

27

72

Green technology division (EU)

47

46

83

Unallocated



0

Group Total

47

73

155





Segment Assets




IT Services (UK)

689

1,063

1,370

Green technology division (EU)

3,433

3,575

2,984

Unallocated

0

0

0





Group

4,122

4,638

4,354





Segmental liabilities




IT Services (UK)

(160)

(129)

(100)

Green technology division (EU)

(691)

(1,044)

(802)

Unallocated

(0)

(0)

0





Group

(851)

(1,173)

(902)





Net assets




IT Services (UK)

529

934

1,270

Green technology  division (EU)

2,742

2,531

2,182

Unallocated

0

0

0





Group

3,271

3,465

3,452





Capital Expenditure








IT Services (UK)

82

72

257

Green technology  division (EU)

32

86

(216)

Green Technology Division (disposals)

-

-

-

Unallocated

0

0

0





Group

114

158

41

 

 

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 2013.

 

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 2014 and 30 June 2013.

 

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 2013: 279,176,538 and December 2013: 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 26th September 2014 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 2014 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
The company news service from the London Stock Exchange
 
END
 
 
IR FMGZLRLDGDZG