TIDMBGBL

RNS Number : 9205L

Bglobal PLC

10 July 2014

BGLOBAL PLC

("Bglobal" or the "Company" or the "Group")

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2014

Bglobal plc (AIM: BGBL) announces its preliminary results for the year ended 31 March 2014.

Commenting on the results John Grant, Chairman said: "The current Board's focus has always been on enhancing shareholder value and the disposal of B Global Metering and of Utiligroup are the culmination of the hard work that has been carried out since I was appointed by shareholders in August last year.

It has clearly not been a quiet year for the Group and I would like to thank all the staff, who united to work with an excellent team of advisors, to deliver our year end results and these two significant transactions. I personally am extremely grateful for the support of shareholders and my colleagues on the Board during this period of change and uncertainty."

Highlights:

   --      Utiligroup sold on 20 June 2014 for a cash consideration of GBP16.1 million. 
   --      B Global Metering sold on 17 April 2014 for a cash consideration of GBP2.3 million. 

-- Revenues from discontinued operations increased to GBP12.83 million (2013: GBP11.58 million, excluding Utilisoft Pty).

-- Utiligroup performed well in the year with turnover increasing by over 50% to GBP6.70 million (2013: GBP4.41 million, excluding Utilisoft Pty)

-- Gross margin from discontinued operations up to 62.1% (2013: 56.4% excluding Utilisoft Pty).

-- Three new entrants brought into the UK energy market via "Supplier in a Box(TM)" in the year.

-- Operating loss from continuing operations of GBP1.16 million(1) (2013: GBP0.57 million loss).

   --      Loss before tax from continuing operations of GBP1.02 million (2013: GBP0.63 million loss). 
   --      Cash balances GBP1.77 million at year-end and borrowings of GBP0.94 million. 

Note 1 - After charging GBP0.20 million impairment against the Pure World Technology loan note.

Tim Jackson-Smith, Group Chief Executive Officer added: "Since the end of the financial year, B Global Metering has been sold to Energy Assets Group plc for a cash consideration of GBP2.3 million and Utiligroup has been sold to a new company backed by NorthEdge Capital LLP for a cash consideration of GBP16.1 million. The Board intends to return cash to shareholders as soon as possible and a circular will be sent to shareholders today setting out proposals and timing in this regard. I would like to thank the Board and staff for their support during a very challenging period for the Group. I am confident that both B Global Metering and Utiligroup will flourish under their new owners and that the people in those businesses will thrive and continue to make the most of the opportunities that present themselves."

- ends -

For further information, please visit www.bglobalplc.com or contact:

 
 John Grant Executive    Mark Taylor          Dwight Burden 
  Chairman 
 Tim Jackson-Smith CEO 
                         Charles Stanley 
                          Securities 
 Bglobal plc             Nominated Adviser    RedLeaf 
 Tel: 01254 914361       Tel: 020 7739 8200   Tel: 0207 382 4735 
 

CHAIRMAN'S STATEMENT

When I was appointed by the shareholders in August last summer it was clear to me that there was significant value in Bglobal that was not being reflected by its share price. With the support of the current Board and the commitment of all of the management teams throughout the group, as I write this today, I am pleased that the value we have realised from the sale of B Global Metering and of Utiligroup reflects more closely the impact of the substantial work that has been done over the past year.

I set out in my statement on 10 December 2013, as part of the interim results, the steps which had been undertaken to that point. Significant costs had been removed from Bglobal's head office, the business was re-focused on its customers and strict cash management procedures had been put in place. By the year end in March, the benefits of some of those changes were starting to be seen in the underlying performance of elements of the business. Staff channelled their energies into projects which had a short-to-medium prospect of financial return, such as sales of Utiligroup's software, and longer term projects were progressed at an appropriate pace to ensure that potential new business could be presented as an opportunity to the potential buyers of our businesses.

The current Board's focus has always been on enhancing shareholder value and, as recent announcements have demonstrated, our work on the Group's business divisions was part of a wider strategy to realise that value. Without the work we undertook as part of the strategic review and the costs that we removed from the Group, it would not have been possible to complete the sales at all, let alone at attractive valuations.

We received a number of approaches for different combinations of business units from bidders, who had different strategic goals. Throughout, the Board's approach was to analyse those bids with a view to ascertaining their successful delivery, not just in terms of execution risk, but also in terms of the ultimate return of cash to shareholders. KPMG assisted the Board in conducting a very thorough marketing exercise for each of the Group's key business units. The Board maintained all of the business divisions for minimal additional cost during this period. However, it soon became clear that closing Nutech and Bsmart was the most effective way of delivering shareholder value and this was done swiftly with minimal disruption to the other ongoing businesses. The Board's decisions have been vindicated by the completion of the prompt sales of both B Global Metering and Utiligroup on sensible terms and at acceptable values.

It has clearly not been a quiet year for the Group and I would like to thank all the staff, who united to work with an excellent team of advisors, to deliver our year end results and these two significant transactions. I personally am extremely grateful for the support of shareholders and my colleagues on the Board during this period of change and uncertainty.

Our focus now is to return money back to shareholders as quickly and in the most tax efficient and cost effective manner as possible, details of which are contained in a Circular being sent to shareholders today.

John Grant

Chairman

CHIEF EXECUTIVE'S STATEMENT

The year ended 31 March 2014 saw the start of a number of significant changes for the Group with the focus being on enhancing shareholder value. A strategic review was carried out in the autumn of 2013 and as a consequence of that review, the Group has since the year-end disposed of its two main subsidiaries, B Global Metering and Utiligroup. The remaining businesses, Nutech Training and Bsmart Energy Services were closed down during the period. Accordingly, apart from Bglobal plc, all of the other businesses within the Group have been classified as discontinued for the purposes of these accounts.

Revenue for the year ended 31 March 2014 from discontinued operations was GBP12.83 million (2013: GBP11.58 million - excluding Utilisoft Pty). The EBITDA loss for discontinued operations was GBP0.78 million before the GBP1.02m impairment charge (2013: GBP0.18 million before separately identifiable items). At the year end the Group had cash balances of GBP1.77 million (including assets held for sale) (2013: GBP3.02 million) and borrowings of GBP0.94 million (including assets held for sale) (2013: GBP0.97 million). Following the two disposals referred to above and after having repaid the loan and borrowing facilities that the Group had with Synergy Capital and Barclays Bank plc, the Group currently has cash balances (net of GBP1.98 million of costs and expenses incurred in carrying out the strategic review, in the sale of Bglobal Metering and Utiligroup, in closing down Nutech and Bsmart, and in dealing with certain shareholder and restructuring costs) of, in aggregate, GBP16.4 million.

Group Performance

Software and related services

Utiligroup performed well in the year with turnover increasing by over 50% to GBP6.70 million (2013: GBP4.41 million excluding Utilisoft Pty) and EBITDA increasing by 79% to GBP1.38 million (2013: GBP0.77 million before separately identifiable items). The business continued to build up a strong recurring revenue stream, which now stands at GBP5.44 million per annum. The 'Supplier in a Box(TM)' proposition continued to prove popular and in the year ended 31 March 2014, Utiligroup brought three new entrants into the UK energy market through this model. Each of these transactions includes an up-front fee and the sale of software and services thereby adding to Utiligroup's recurring revenue stream.

Metering and data services

B Global Metering failed to meet the Board's expectations and saw its revenue fall by 22% to GBP5.76 million (2013: GBP7.42 million) with the EBITDA loss increasing by 49% to GBP1.41 million in the period. The Board did remove significant cost from the business and sales did start to improve in the last quarter of the financial year as a number of energy suppliers sought to comply with the mandate to install smart meters into the premises of their larger industrial and commercial customers, so that by the year end, the company was trading almost at breakeven on a monthly basis.

Energy management services

Bsmart showed promise at the start of the financial year but this proved a false dawn and the decision was therefore taken to close this business down. In the year ended 31 March 2014, Bsmart's revenue increased to GBP0.47 million (2013: GBP0.07 million). However, its loss before tax was largely unaltered at GBP0.31 million (2013: GBP0.30 million).

Training Services

The delay in the mass rollout of smart meters severely impacted Nutech Training and revenue increased only slightly to GBP0.12 million (2013: GBP0.09 million) with the loss before tax increasing to GBP0.46 million (2013: GBP0.31 million). It was clear to the Board that this business was no longer sustainable and accordingly the decision was taken to close it down with effect from 31 March 2014.

Outlook

Since the end of the financial year, B Global Metering has been sold to Energy Assets Group plc for a cash consideration of GBP2.3 million and Utiligroup has been sold to a new company backed by NorthEdge Capital LLP for a cash consideration of GBP16.1 million. The Board intends to return cash to shareholders as soon as possible and will be writing to shareholders today with proposals and timing in this regard.

Finally, I would like to thank the Board and staff for their support during a very challenging period for the Group. I am confident that both B Global Metering and Utiligroup will flourish under their new owners and that the people in those businesses will thrive and continue to make the most of the opportunities that present themselves.

Tim Jackson-Smith

Chief Executive Officer

Bglobal plc

Consolidated statement of comprehensive income for the period ended 31 March 2014

 
 
 
 
                                                                                             Total                                                                          Total 
                                                                                              2014                                                                           2013 
                   Note                                                                        GBP                                                                            GBP 
 
Share based 
 compensation                                                                             (34,951)                                                                       (18,984) 
Administrative 
 expenses                                                                                (460,737)                                                                      (555,517) 
Separately 
 identifiable 
 items                3                                                                  (462,204)                                                                              - 
 
 
Total 
 administrative 
 expenses                                                                                (957,892)                                                                      (574,501) 
                          ------------------------------------------------------------------------        ----------------------------------------------------------------------- 
OPERATING LOSS                                                                           (957,892)                                                                      (574,501) 
 
Finance costs                                                                             (74,907)                                                                       (76,000) 
Finance income                                                                              10,182                                                                         17,378 
                          ------------------------------------------------------------------------       ------------------------------------------------------------------------ 
LOSS BEFORE 
 TAXATION                                                                              (1,022,617)                                                                      (633,123) 
 
Taxation                                                                                         -                                                                              - 
                         -------------------------------------------------------------------------        ----------------------------------------------------------------------- 
 
  LOSS FOR THE 
  YEAR FROM 
  CONTINUING 
  OPERATIONS                                                                           (1,022,617)                                                                      (633,123) 
LOSS FOR THE YEAR 
 FROM 
 DISCONTINUED 
 OPERATIONS           4                                                                (3,144,703)                                                                    (2,674,638) 
                         -------------------------------------------------------------------------  ----------------------------------------------------------------------------- 
LOSS FOR THE YEAR 
 ATTRIBUTABLE TO 
 EQUITY 
 HOLDERS OF THE 
 PARENT                                                                                (4,167,320)                                                                    (3,307,761) 
 
Reclassification 
 to profit and 
 loss 
 on disposal of 
 foreign 
 operation                                                                                       -                                                                            371 
                           -----------------------------------------------------------------------        ----------------------------------------------------------------------- 
Other 
 comprehensive 
 income                                                                                          -                                                                            371 
                           -----------------------------------------------------------------------      ------------------------------------------------------------------------- 
TOTAL 
 COMPREHENSIVE 
 LOSS FOR THE 
 YEAR                                                                                  (4,167,320)                                                                    (3,307,390) 
                                                         =========================================                                     ========================================== 
Basic and diluted 
loss per share 
(pence) 
From continuing 
 operations           5                                                                     (0.96)                                                                         (0.60) 
From discontinued 
 operations           5                                                                     (2.96)                                                                         (2.52) 
                           -----------------------------------------------------------------------      ------------------------------------------------------------------------- 
Total                                                                                       (3.92)                                                                         (3.12) 
                                                         =========================================                                     ========================================== 
 

Bglobal plc

Consolidated statement of Financial Position at 31 March 2014

 
                                                                      2014                                        2013 
ASSETS                                                                 GBP                                         GBP 
Non-current assets 
Intangible assets                                                        -                                   6,539,276 
Property, plant and equipment                                        7,570                                     655,085 
Financial asset                                                          -                                     200,000 
                                ------------------------------------------  ------------------------------------------ 
                                                                     7,570                                   7,394,361 
                                ------------------------------------------  ------------------------------------------ 
Current assets 
Inventories                                                              -                                   1,081,532 
Energy supply companies held 
 for sale                                                                -                                     111,649 
Trade and other receivables                                        154,430                                   3,227,646 
Cash and cash equivalents                                           35,750                                   3,021,495 
                                ------------------------------------------  ------------------------------------------ 
                                                                   190,180                                   7,442,322 
 
Assets classified as held for 
 sale                                                           10,577,144                                           - 
                                ------------------------------------------  ------------------------------------------ 
Total assets                                                    10,774,894                                  14,836,683 
                                ==========================================  ========================================== 
 
EQUITY AND LIABILITIES 
Equity attributable to equity 
holders of 
the parent company 
Share capital                                                    1,063,078                                   1,063,078 
Share premium                                                   20,708,897                                  20,708,897 
Share based compensation 
 reserve                                                           116,038                                     195,148 
Merger reserve                                                     792,128                                     792,128 
Retained losses                                               (17,138,809)                                (13,090,708) 
                                ------------------------------------------  ------------------------------------------ 
Total equity                                                     5,541,332                                   9,668,543 
                                ------------------------------------------   ----------------------------------------- 
 
Non-current liabilities 
Deferred tax liability                                                   -                                     745,536 
                                ------------------------------------------            -------------------------------- 
                                                                         -                                     745,536 
                                ------------------------------------------   ----------------------------------------- 
Current liabilities 
Trade and other payables                                           294,276                                   3,448,687 
Other financial liabilities                                        650,000                                     973,917 
                                ------------------------------------------      -------------------------------------- 
                                                                   944,276                                   4,422,604 
 
Liabilities classified as held 
 for sale                                                        4,289,286                                           - 
                                ------------------------------------------  ------------------------------------------ 
Total liabilities                                                5,233,562                                   5,168,140 
                                ------------------------------------------  ------------------------------------------ 
Total liabilities and equity                                    10,774,894                                  14,836,683 
                                ==========================================  ========================================== 
 

Bglobal plc

Consolidated statement of cash flows for the period to 31 March 2014

 
                                                                      2014                                        2013 
                                                                       GBP                                         GBP 
CASH FLOW FROM OPERATING 
ACTIVITIES 
Loss before taxation from 
 continuing 
 operations                                                    (1,022,617)                                   (633,126) 
Impairment of financial asset                                      200,000                                           - 
Share based compensation                                            34,951                                    (22,894) 
 
Finance costs                                                       74,907                                      76,000 
Finance income                                                    (10,182)                                    (17,378) 
 
 (Increase)/decrease in trade 
  and other 
  receivables                                                    (107,744)                                      29,739 
 (Decrease)/increase in trade 
  and other 
  payables                                                       (241,278)                                      17,856 
 
Cashflows from operating 
 activities from 
 discontinued operations                                           714,281                                   1,130,882 
                                      ------------------------------------  ------------------------------------------ 
NET CASH (USED IN)/ GENERATED 
 FROM OPERATIONS                                                 (357,682)                                     581,079 
 
INVESTING ACTIVITIES 
Finance income                                                      10,182                                      17,378 
Cashflows from investing 
 activities from 
 discontinued operations                                         (778,735)                                   (966,990) 
                                      ------------------------------------  ------------------------------------------ 
NET CASH USED IN INVESTING 
 ACTIVITIES                                                      (768,553)                                   (949,612) 
                                      ------------------------------------  ------------------------------------------ 
FINANCING ACTIVITIES 
Repayment of convertible loan                                    (300,000)                                           - 
Finance costs                                                     (74,907)                                    (76,000) 
Cashflows from financing 
 activities from 
 discontinued operations                                           249,521                                    (73,571) 
                                      ------------------------------------  ------------------------------------------ 
NET CASH USED IN FINANCING 
 ACTIVITIES                                                      (125,386)                                   (149,571) 
                                       -----------------------------------  ------------------------------------------ 
 
Net decrease in cash and cash 
 equivalents                                                   (1,251,621)                                   (518,104) 
Cash and cash equivalents at 
 the beginning 
 of the financial year                                           3,021,495                                   3,539,599 
                                      ------------------------------------  ------------------------------------------ 
Cash and cash equivalents at 
 the end 
 of the financial year                                           1,769,874                                   3,021,495 
                                ==========================================  ========================================== 
 
 
  Cash and cash equivalents at 
  the end 
  of the financial year, 
  continuing operations                                             35,750                                   1,494,895 
Cash and cash equivalents at 
 the end 
 of the financial year, 
 discontinued operations                                         1,734,124                                   1,526,600 
                                      ------------------------------------  ------------------------------------------ 
Cash and cash equivalents at 
 the end 
 of the financial year                                           1,769,874                                   3,021,495 
                                ==========================================  ========================================== 
 

Bglobal plc

Consolidated statement of changes in equity for the period ended 31 March 2014

 
                                     Share Premium     Share Based 
                         Share          Account          Payment           Merger         Translation         Retained 
                        Capital                          Reserve           Reserve          Reserve            Losses                 Total 
                         GBP              GBP              GBP              GBP              GBP                GBP                   GBP 
At 31 March 
 2012                    1,063,078       20,708,897          351,450          792,128             (371)        (9,919,894)               12,995,288 
Share based 
 compensation                    -                -         (18,984)                -                 -                  -                 (18,984) 
 
Lapsed options                   -                -        (137,318)                -                 -            137,318                        - 
                   ---------------  ---------------  ---------------  ---------------  ----------------  -----------------  ----------------------- 
Total 
 transactions 
 with owners 
 in their 
 capacity 
 as owners                       -                -        (156,302)                -                 -            137,318                 (18,984) 
 
Loss for the 
 year                            -                -                -                -                 -        (3,307,761)              (3,307,761) 
Reclassification 
 to profit 
 and loss on 
 disposal of 
 foreign 
 operation                       -                -                -                -               371              (371)                        - 
                   ---------------  ---------------  ---------------  ---------------  ----------------  -----------------  ----------------------- 
Total 
 comprehensive 
 loss for the 
 year                            -                -                -                -               371        (3,308,132)              (3,307,761) 
                   ---------------  ---------------  ---------------  ---------------  ----------------  -----------------  ----------------------- 
At 31 March 
 2013                    1,063,078       20,708,897          195,148          792,128                 -       (13,090,708)                9,668,543 
                   ---------------  ---------------  ---------------  ---------------  ----------------  -----------------  ----------------------- 
Share based 
 compensation                    -                -           40,109                -                 -                  -                   40,109 
 
Lapsed options                   -                -        (119,219)                -                 -            119,219                        - 
                   ---------------  ---------------  ---------------  ---------------  ----------------  -----------------  ----------------------- 
Total 
 transactions 
 with owners 
 in their 
 capacity 
 as owners                       -                -         (79,110)                -                 -            119,219                   40,109 
 
Loss for the 
 year                            -                -                -                -                 -        (4,167,320)              (4,167,320) 
 
                   ---------------  ---------------  ---------------  ---------------  ----------------   ----------------         ---------------- 
Total 
 comprehensive 
 loss for the 
 year                            -                -                -                -                 -        (4,167,320)              (4,167,320) 
                   ---------------  ---------------  ---------------  ---------------  ----------------   ----------------         ---------------- 
At 31 March 
 2014                    1,063,078       20,708,897          116,038          792,128                 -       (17,138,809)                5,541,332 
                          ========         ========         ========         ========         =========         ==========            ============= 
 
 

Notes to the preliminary results

   1       FINANCIAL INFORMATION 

The preliminary financial information does not constitute full accounts within the meaning of section 434 of the Companies Act 2006 but is derived from accounts for the years ended 31 March 2014 and 31 March 2013, both of which are audited. The preliminary announcement is prepared on the same basis as set out in the statutory accounts for the year ended 31 March 2013. While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS), as adopted by the European Union (EU), this announcement does not in itself contain sufficient information to comply with IFRSs.

Bglobal plc is incorporated and domiciled in the United Kingdom. The consolidated financial information of Bglobal plc set out in this announcement is presented in Pounds Sterling (GBP), which is also the functional currency of the parent. The consolidated financial information has been approved for issue by the Board of Directors on 10 July 2014.

The statutory accounts for the year ended 31 March 2014 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. Statutory accounts for the year ended 31 March 2014 have been filed with the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain any statement under section 498(2) or (3) of the Companies Act 2006.

   2        GOING CONCERN 

Notwithstanding the proposed return of capital to shareholders, the directors consider that the Group has sufficient financial resources and that, accordingly, the use of the going concern basis of accounting is appropriate. The directors believe that the Group is well placed to manage its business risks successfully such risks being potential claims under the warranties and indemnities given to the buyer of each of B Global Metering and Utiligroup. The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial information.

   3.         SEPARATELY IDENTIFIABLE ITEMS 
 
Continuing operations                                                   2014                                      2013 
                                                                         GBP                                       GBP 
 
Impairment of financial asset (i)                                    200,000                                         - 
Costs incurred in conducting the                                     130,654                                         - 
strategic 
review (ii) 
Costs incurred in relation to the 
 removal 
 of the previous Chairman (ii)                                       131,550                                         - 
                                      --------------------------------------    -------------------------------------- 
Charge in the consolidated 
 statement of 
 comprehensive income                                                462,204                                         - 
                                    ========================================  ======================================== 
 

(i) GBP200,000 relates to the impairment of the loan note issued to Pure World Technologies Limited in November 2011. Pure World Technologies Limited was subject to a winding up order issued on 11 October 2013 and is currently in administration.

(ii) On the 3 July 2013 Forest Nominees Limited requisitioned the Board of Directors of Bglobal plc to call a general meeting of shareholders for the purpose of:

- removing Peter Kennedy, Executive Chairman, as a director of the Company;

- removing any directors appointed between the 25 June 2013 and the date of the general meeting as a director of the Company;

- appointing John Heathcoat Grant as a director and Chairman of the Company; and

- as soon as practicable, following the passing of the resolutions, the directors conducting a comprehensive strategic review of the Company.

The costs above relate to professional advice taken in conducting this comprehensive strategic review and costs in relation to the removal of the previous Chairman and subsequent challenges by the former Chairman.

 
Discontinued operations                                                 2014                                      2013 
                                                                         GBP                                       GBP 
Included within administrative 
expenses:- 
Impairment of capitalised 
 development costs 
 (i)                                                             (1,023,123)                                         - 
Gain on bargain purchase (ii)                                              -                                   826,650 
Reversal of fair value adjustments 
 of supplier 
 companies (iii)                                                           -                                 (214,420) 
                                      --------------------------------------    -------------------------------------- 
Charge in the consolidated 
 statement of 
 comprehensive income                                            (1,023,123)                                   612,230 
                                    ========================================  ======================================== 
 

(i) The separately identifiable expense of GBP1,023,123 relates to the development of sub metering solutions and domestic electricity and gas meters. The Board have determined that these products are no longer commercially viable.

(ii) The exceptional credit of GBP826,650 in the year ended 31 March 2013 arose upon the bargain purchase of Draig Technologies Limited in September 2012.

(iii) During the year ended 31 March 2013, four "Supplier in a Box(TM)" energy companies were sold resulting in a gain of GBP226,839. The gain of GBP226,839 is after charging fair value adjustments previously applied totalling GBP214,420, those adjustments being made following the acquisition of Utiligroup by Bglobal plc in 2010 and are considered non-recurring in nature.

   4          DISCONTINUED OPERATIONS 

Bglobal plc announced on 22 April 2014 that it had reached an agreement on 17 April 2014 with Energy Assets Group plc to dispose of the entire issued ordinary share capital of its metering business, B Global Metering Limited ('BGM'), for a cash consideration of GBP2.3 million, which includes payment of GBP0.2 million for the cash balance of BGM on completion. The disposal was made on a debt free basis with a working capital adjustment mechanism in place post completion. The sale and purchase agreement contains warranties and indemnities that are customary for a transaction of this nature.

Bglobal plc announced on 27 May 2014 that it had reached an agreement with a new company backed by NorthEdge Capital LLP to dispose of the entire issued ordinary share capital of Utiligroup Limited for a cash consideration of GBP16.1 million. The sale and purchase agreement contains limited warranties and indemnities that are customary for a transaction of this nature.

Accordingly, all assets and liabilities allocated to B Global Metering and Utiligroup were classified as a disposal group. Revenue and expenses relating to the discontinuation of these subgroups have been eliminated from the profit and loss from the group's continuing operations and were shown as a single item on the face of the consolidated statement of comprehensive income.

In addition, prior to 31 March 2014 it was determined that each of Nutech Training Limited and Bsmart Energy Solutions Limited were no longer commercially viable and it was therefore agreed to try and sell each company and that if this was not possible to close each company. A sale of each company was not possible during the period and the decision was therefore taken to discontinue these operations with effect from 31 March 2014. As a result these are also included within discontinued operations in the consolidated statement of comprehensive income. Since 31 March 2014, certain of the assets of Nutech Training were sold to two third parties for value.

 
Year ended 31                                          Metering                                       Energy                                   Training                              Software                                     Adj and                                   Total 
March                                                  and Data                                   Management                                   services                                   and                                     central 
2014                                                   Services                                                                                                                       related 
                                                                                                                                                                                     services 
                                                            GBP                                          GBP                                        GBP                                   GBP                                         GBP                                     GBP 
 
Revenue                                               5,764,457                                      466,582                                    124,702                             6,698,394                                   (219,224)                              12,834,911 
Cost of sales                                       (4,236,474)                                    (268,205)                                   (18,671)                             (340,318)                                           -                             (4,863,668) 
                   --------------------------------------------     ----------------------------------------   ----------------------------------------   -----------------------------------    ----------------------------------------     ----------------------------------- 
Gross profit                                          1,527,983                                      198,377                                    106,031                             6,358,076                                   (219,224)                               7,971,243 
 
Overheads                                           (2,936,402)                                    (502,870)                                  (549,542)                           (4,984,083)                                     219,224                             (8,753,673) 
                   --------------------------------------------     ----------------------------------------   ----------------------------------------   -----------------------------------    ----------------------------------------     ----------------------------------- 
EBITDA before 
 separately 
 identifiable 
 items                                              (1,408,419)                                    (304,493)                                  (443,511)                             1,373,993                                           -                               (782,430) 
 
  Depreciation 
  and 
  amortisation                                        (178,286)                                      (7,116)                                   (21,251)                           (1,363,665)                                           -                             (1,570,318) 
                    -------------------------------------------     ----------------------------------------   ----------------------------------------   -----------------------------------    ----------------------------------------     ----------------------------------- 
Operating 
 profit/(loss) 
 before 
 separately 
 identifiable 
 items                                              (1,586,705)                                    (311,609)                                  (464,762)                                10,328                                           -                             (2,352,748) 
 
 
Separately 
 identifiable 
 items (note 
 3)                                                 (1,023,123)                                            -                                          -                                     -                                           -                             (1,023,123) 
                   --------------------------------------------     ----------------------------------------   ----------------------------------------   -----------------------------------    ----------------------------------------     ----------------------------------- 
Operating 
 profit/(loss)                                      (2,609,828)                                    (311,609)                                  (464,762)                                10,328                                           -                             (3,375,871) 
Finance income                                              119                                            -                                          -                                   603                                           -                                     722 
Finance costs                                                 -                                            -                                          -                              (14,661)                                           -                                (14,661) 
 
                   --------------------------------------------     ----------------------------------------   ----------------------------------------   -----------------------------------    ----------------------------------------     ----------------------------------- 
Loss before 
 tax                                                (2,609,709)                                    (311,609)                                  (464,762)                               (3,730)                                           -                             (3,389,810) 
Taxation                                                      -                                            -                                          -                               245,107                                           -                                 245,107 
                   --------------------------------------------     ----------------------------------------   ----------------------------------------   -----------------------------------    ----------------------------------------     ----------------------------------- 
(Loss) / 
 profit after 
 tax                                                (2,609,709)                                    (311,609)                                  (464,762)                               241,377                                           -                             (3,144,703) 
                ===============================================  ===========================================  =========================================  ====================================  ==========================================  ====================================== 
  Segment 
  result 
  before 
  separately 
  identifiable 
  items 
 
 
Year ended 31                                       Metering                                     Energy                                  Training                             Software                                  Adj and                                Total 
March                                               and Data                                 Management                                  services                          and related                                  central 
2013                                                Services                                                                                                                  services 
                                                         GBP                                        GBP                                       GBP                                  GBP                                      GBP                                  GBP 
 
Revenue                                            7,420,093                                     63,498                                    93,058                            7,060,362                                (409,998)                           14,227,013 
Cost of sales                                    (4,801,524)                                   (42,892)                                  (19,671)                            (376,152)                                        -                          (5,240,239) 
                 -------------------------------------------     --------------------------------------    --------------------------------------    ---------------------------------    -------------------------------------    --------------------------------- 
Gross profit                                       2,618,569                                     20,606                                    73,387                            6,684,210                                (409,998)                            8,986,774 
 
Overheads                                        (3,563,697)                                  (320,335)                                 (362,966)                          (5,328,024)                                  409,998                          (9,165,024) 
                  ------------------------------------------     --------------------------------------    --------------------------------------    ---------------------------------   --------------------------------------     -------------------------------- 
EBITDA before 
 separately 
 identifiable 
 items                                             (945,128)                                  (299,729)                                 (289,579)                            1,356,186                                        -                            (178,250) 
 
  Depreciation 
  and 
  amortisation                                     (200,407)                                    (3,750)                                  (16,738)                          (1,717,100)                                        -                          (1,937,995) 
                  ------------------------------------------     --------------------------------------    --------------------------------------    ---------------------------------   --------------------------------------    --------------------------------- 
Operating 
 profit/(loss) 
 before 
 separately 
 identifiable 
 items                                           (1,145,535)                                  (303,479)                                 (306,317)                            (360,914)                                        -                          (2,116,245) 
 
Separately 
 identifiable 
 items (note 
 3)                                                        -                                          -                                         -                              612,230                                        -                              612,230 
                   -----------------------------------------     --------------------------------------    --------------------------------------    ---------------------------------    -------------------------------------    --------------------------------- 
Operating 
 profit/(loss)                                   (1,145,535)                                  (303,479)                                 (306,317)                              251,316                                        -                          (1,504,015) 
Finance income                                         2,661                                          -                                         -                               21,401                                        -                               24,062 
Finance costs                                              -                                          -                                     (707)                              (1,070)                                        -                              (1,777) 
 
                  ------------------------------------------     --------------------------------------    --------------------------------------    ---------------------------------   --------------------------------------    --------------------------------- 
Loss before 
 tax                                             (1,142,874)                                  (303,479)                                 (307,024)                              271,647                                        -                          (1,481,730) 
Deferred 
 taxation                                        (1,207,978)                                          -                                         -                              567,119                                        -                            (640,859) 
Current 
 taxation                                                  -                                          -                                         -                            (128,134)                                        -                            (128,134) 
                 -------------------------------------------     --------------------------------------    --------------------------------------    ---------------------------------    -------------------------------------    --------------------------------- 
(Loss) / 
 profit after 
 tax                                             (2,350,852)                                  (303,479)                                 (307,024)                              710,632                                        -                          (2,250,723) 
 
Loss on 
 disposal of 
 Utilisoft Pty                                             -                                          -                                         -                            (423,915)                                        -                            (423,915) 
                 -------------------------------------------     --------------------------------------    --------------------------------------    ---------------------------------    -------------------------------------    --------------------------------- 
Loss for the 
 year from 
 discontinued 
 operations                                      (2,350,852)                                  (303,479)                                 (307,024)                              286,717                                        -                          (2,674,638) 
                ============================================  =========================================  ========================================  ===================================  =======================================  =================================== 
 
   5      LOSS PER SHARE 

Basic loss per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year.

Diluted loss per share are calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares that would be issued on conversion of all dilutive potential ordinary shares into ordinary shares.

The loss for the year after tax and the weighted average number of ordinary shares for calculating the diluted loss per share for the year ended 31 March 2014 are identical to those for the basic loss per share. This is because the outstanding share options and shares arising on conversion of the convertible financial liabilities would have the effect of reducing the loss per ordinary share and would therefore not be dilutive.

 
                                                               2014                                               2013 
                                                                GBP                                                GBP 
 
 Loss attributable 
  to equity 
  holders 
  including 
  discontinued 
  operations                                            (4,167,320)                                        (3,307,761) 
                           ========================================           ======================================== 
 
 Weighted average                                              2013                                               2013 
 number of shares                                         Number of                                          Number of 
                                                             shares                                             shares 
 
 For basic 
  earnings/loss 
  per ordinary 
  share                                                 106,307,871                                        106,307,871 
 Potential                                                        -                                                  - 
 exercise of share 
 options 
 and LTIPs 
                     ----------------------------------------------   ------------------------------------------------ 
 For diluted 
  earnings per 
  ordinary 
  share                                                 106,307,871                                        106,307,871 
                       ============================================      ============================================= 
 
                                                               2014                                               2013 
                                                                GBP                                                GBP 
 
 Loss attributable 
  to equity 
  holders 
  excluding 
  discontinued 
  operations                                            (1,022,617)                                          (633,123) 
                           ========================================           ======================================== 
 
 
 Basic and diluted                                          (0.96p)                                            (0.60p) 
                        ===========================================        =========================================== 
 
 
 Loss attributable 
  to discontinued 
  operations                                            (3,144,703)                                        (2,674,638) 
 Basic and diluted                                          (2.96p)                                            (2.52p) 
                        ===========================================        =========================================== 
 
 

The loss for the year and the weighted average number of ordinary shares for calculating the diluted loss per share for the years ended 31 March 2014 and 2013 are identical to those for the basic loss per share. This is because the outstanding share options and shares arising on conversion of the convertible financial liabilities would have the effect of reducing the loss per ordinary share and would therefore not be dilutive.

   6     ANNUAL REPORT AND ACCOUNTS 

A copy of the Annual Report and Financial Statements for the year ended 31 March 2014 will be sent to all shareholders shortly and will be available on request from the Company at Bglobal plc, Suites 46 and 47, Manor Court, Salesbury Hall Road, Ribchester, PR3 3XU or by visiting our web site at www.bglobalplc.com.

This information is provided by RNS

The company news service from the London Stock Exchange

END

FR LFFEFDSIAIIS

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