TIDMCDOG
RNS Number : 5975R
CDialogues PLC
15 September 2014
15 September 2014
CDialogues plc
("CDialogues" or the "Company")
Interim Results for the six months ended 30 June 2014
CDialogues plc (AIM: CDOG), the provider of mobile marketing
solutions to Mobile Network Operators ("MNOs"), is pleased to
announce its unaudited interim results for the six months ended 30
June 2014.
Financial highlights
-- Revenues up 106% to EUR4.05m (1H 2013: EUR1.96m)
o Subscription revenues accounted for 79% of total revenues (1H
2013: 80%)
-- EBITDA up 104% to EUR1.44m (1H 2013: EUR0.70m)
-- Profit before tax up 111% to EUR1.29m (1H 2013: EUR0.61m)
-- Earnings per share up 114% to EUR0.227(1H 2013: EUR0.106)
-- Free cash flow (excluding one-off items relating to AIM
listing) at EUR 0.47m (1H 2013: EUR0.51m)
-- Net cash as of 30 June 2014 of EUR1.75m (FY 2013: EUR0.64m)
Operational highlights
-- Successful admission to trading on AIM on 27 June 2014
-- Four new campaigns launched during May, July and August,
significantly diversifying revenues
-- As a result, the Company currently operates large scale
mobile marketing campaigns for six MNOs across three countries in
the Middle East
-- The total mobile subscriber base is now 31 million customers (31 March 2014: 15 million)
George Karakovounis, Vice Chairman and CFO, commented: "The
first half of the current year, has been a very busy period for
CDialogues. The Company completed its AIM listing, delivered strong
financial results with significant growth in both revenue and
profitability, while with the recent campaign launches continued to
diversify its revenue sources. We look forward to building on the
profitable performance achieved in the first half of the year"
Enquiries:
CDialogues Plc Tel: +30 (210) 630 0930
George Karakovounis
Pale Spanos
---------------------- ---------------------------
Strand Hanson Limited Tel: 020 7409 3494
Andrew Emmott
Rory Murphy
---------------------- ---------------------------
Mirabaud LLP Tel: 020 7321 2508
Peter Krens
---------------------- ---------------------------
Walbrook PR Ltd Tel: 020 7933 8780,
Paul Cornelius cdialogues@walbrookpr.com
Nick Rome
---------------------- ---------------------------
CHIEF EXECUTIVE OFFICER REVIEW
We are pleased to report our financial results for the six
months ended 30 June 2014. This was an extremely busy period for
the Company during which we raised GBP1.25m and listed on AIM on 27
June 2014 in addition to achieving strong and profitable
growth.
Since the Company's foundation in 2011, the focus has been on
developing our proprietary algorithms and data analytics
techniques, which enable MNOs to provide targeted loyalty and value
added services to existing and new subscribers with the aim of
reducing subscriber churn and increasing both customer numbers and
Average Revenues per User ("ARPU"). The Middle East and North
Africa provide huge scope for the Company to grow its
subscriber-based model with MNOs relying on the advanced data
analytics techniques and direct marketing linguistics approach
offered by the Company.
During the first six months of the year the Company completed
its transition from a private to a public entity while continuing
to develop its offering and client base both in terms of numbers
and geography.
Furthermore, during the period CDialogues continued to operate
profitably and to maintain its low overhead structure, ensuring at
the same time that it is well positioned to take advantage of the
strong pipeline of new projects.
The linguistic engineering technology and subscripton-based
revenue model, which differentiate the Company from its
competitors, underpinned the strong growth achieved during the
period and ensure that we are well placed to maintain that
momentum.
I would like to thank our staff and shareholders for their
continued support during this transformational period for the
Company.
Outlook
Having launched one new campaign during the period, we have
added another three campaigns since the period end, and the Company
now operates large scale mobile marketing campaigns for six MNOs,
addressing a total subscriber base of 31m customers, in three
countries across the Middle East.
I look forward to building on the profitable performance
achieved in the first half of the year as we develop our strong
pipeline of opportunities and grow our geographical footprint. We
see huge opportunity for growth in the Middle East and Africa where
mobile device penetration and mobile network usage are growing
rapidly.
We are confident that our solutions and subscription-based
revenue model will underpin further profitable growth, enabling us
to achieve full-year targets.
We are continuing to intensify our efforts to add more campaigns
and further strengthen our position in the market by entering new
territories with strong partnerships. Our existing campaigns
continue to operate sucessfully and are regularly renewed and/or
extended. In recent months, the launch of new campaigns has further
diversified our client base and geographical footprint and we look
forward to building on the momentum achieved to date.
Pale Spanos
Chief Executive Officer
CHIEF FINANCIAL OFFICER REVIEW
In the six month of the period ended 30 June 2014, CDialogues
delivered a strong financial performance with substantial growth in
both revenue and profitability. Importantly, in addition to the
significant revenue growth, profit margins have been maintained.
Our focus on reducing working capital and improving cash conversion
resulted in strong positive cash flow generation, further
strengthening the Company's balance sheet.
Revenues for the six months to 30 June increased 106% to
EUR4.05m (1H 2013: EUR1.96m) as a result of the increasing number
of campaigns the Company is currently operating.
Gross profit was up by 84% to EUR1.65m (1H 2013: EUR0.90m)
representing a gross margin of 41% (1H 2013: 46%) due to increased
costs of sales for some of the new campaigns now coming on
stream.
EBITDA increased by 104% to EUR1.44m (1H 2013: EUR0.70m) due to
strong cost control across the Company despite further investment
in our sales and development functions to provide future
scalability in the business. Operating profit, after depreciation
and amortisation, increased by 105% during the period to EUR1.3m
(1H 2013: EUR0.63m) resulting in a similar operating margin of 32%
to last year (1H 2013: 32%).
Profit before tax increased by 111% to EUR1.29m (1H 2013:
EUR0.61m) with a margin of 32% (1H 2013: 32%) while basic earnings
per share grew by 114% to EUR0.23 (1H 2013: EUR0.11) despite the
dilutive effects of the placing at IPO.
Operating cash flow remained strong ; net cash flows before
changes in working capital increased by 104% to EUR1.44m (1H 2013:
EUR0.70m) representing 100% of EBITDA. After taking into account
working capital movements and cash flows used in investing
activities, which comprise primarily investment in software
development, Free Cash Flow (being net operating cash flows less
net cash flows used in investing activities) was EUR0.47m (1H 2013:
EUR0.51m and FY 2013:EUR0.59m), which illustrates the ability
within the business to manage working capital requirements as the
business expands.
Having raised GBP1.25m via a placing when we joined AIM in June,
we are now focused on maintaining our strong levels of cash
conversion as we expand into new territories and fund business
development. Net cash as of 30 June 2014 was EUR1.75m (31.12.2013:
EUR0.64m) and provides a firm foundation for further growth.
George Karakovounis
Vice Chairman & Chief Financial Officer
CDialogues Plc - Financial Statements in accordance with IFRS 30
June 2014
(Amounts in Euro, unless otherwise stated)
Unaudited consolidated statement of comprehensive income for the
period ended 30 June 2014
Year ended 31 December
Note Period ended 30 June 2014 Period ended 30 June 2013 2013
----- -------------------------- -------------------------- --------------------------
Revenue 4,048,286 1,963,814 4,584,375
Cost of sales 5 (2,403,225) (1,068,551) (2,537,641)
-------------------------- -------------------------- --------------------------
Gross profit 1,645,061 895,263 2,046,734
Administrative expenses 5 (116,650) (105,760) (232,211)
Selling and distribution
costs 5 (233,301) (159,127) (409,693)
-------------------------- -------------------------- --------------------------
Operating profit 1,295,110 630,376 1,404,830
Finance income 638 - 1,110
Finance costs (5,803) (17,923) (21,718)
-------------------------- -------------------------- --------------------------
Profit before tax 1,289,945 612,453 1,384,222
Income tax expense 7 (35,463) (28,983) (38,028)
-------------------------- -------------------------- --------------------------
PROFIT FOR THE PERIOD 1,254,482 583,470 1,346,194
========================== ========================== ==========================
Other comprehensive
income:
Other comprehensive income
to be reclassified to
profit or loss in
subsequent periods:
Exchange differences on
translation of foreign
operations 7,693 - (34,183)
-------------------------- -------------------------- --------------------------
7,693 - (34,183)
Net other comprehensive
income to be reclassified
to profit or loss in
subsequent periods 7,693 - (34,183)
Other comprehensive income
not to be reclassified to
profit or loss in
subsequent periods:
Unrecognized net Gain or
(Loss) - - 2,177
Income tax effect - 4 (562)
-------------------------- -------------------------- --------------------------
- 4 1,615
Net other comprehensive
income not to be
reclassified to profit or
loss in subsequent
periods - 4 1,615
Other comprehensive
income/ (loss) for the
period, net of tax 7,693 4 (32,568)
-------------------------- -------------------------- --------------------------
Total comprehensive
income/ for the period,
net of tax 1,262,175 583,474 1,313,626
========================== ========================== ==========================
Profit for the period
attributable to:
Equity holders of the
parent 1,254,482 583,470 1,346,194
1,254,482 583,470 1,346,194
========================== ========================== ==========================
Total comprehensive income
for the period,
attributable to:
Equity holders of the
parent 1,262,175 583,474 1,313,626
1,262,175 583,474 1,313,626
========================== ========================== ==========================
Net profit attributable to
ordinary equity holders
of the parent 1,254,482 583,470 1,346,194
Weighted average number of
ordinary shares for basic
earnings per share 5,529,851 5,500,000 5,500,000
Earnings per share basic 8 0.2269 0.1061 0.2448
========================== ========================== ==========================
Unaudited consolidated statement of financial position as at 30
June 2014
Note 30 June 2014 30 June 2013 31 December 2013
----- ------------- ------------- -----------------
ASSETS
Non-current Assets
Property, plant and equipment 9 43,793 32,184 49,909
Intangible Assets 10 638,714 315,359 547,602
Deferred tax assets 18,695 2,841 11,664
Trade and other receivables 11 9,508 3,000 9,508
------------- ------------- -----------------
710,710 353,384 618,683
Current Assets
Trade and other receivables 11 2,069,183 357,515 975,435
Available for sale financial assets 102,443 102,443 102,443
Cash and cash equivalents 1,752,480 600,375 643,717
------------- ------------- -----------------
3,924,106 1,060,333 1,721,595
TOTAL ASSETS 4,634,816 1,413,717 2,340,278
============= ============= =================
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Issued share capital 12 24,213 15,000 15,000
Share premium 12 570,673 - -
Reserves 95,679 93,743 93,743
Retained earnings 2,919,800 929,409 1,659,561
------------- ------------- -----------------
Total Equity 3,610,365 1,038,152 1,768,304
------------- ------------- -----------------
Non-current liabilities
Employee benefit liability 13,514 12,498 11,808
------------- ------------- -----------------
13,514 12,498 11,808
Current liabilities
Trade and other payables 13 919,392 309,948 496,156
Income tax payable 91,545 53,119 64,010
------------- ------------- -----------------
1,010,937 363,067 560,166
Total liabilities 1,024,451 375,565 571,974
------------- ------------- -----------------
TOTAL EQUITY AND LIABILITIES 4,634,816 1,413,717 2,340,278
============= ============= =================
Unaudited consolidated statement of changes in equity for the
period ended 30 June 2014
Ordinary Share Capital Share premium Reserves Retained Earnings Total equity
----------------------- -------------- --------- ------------------ -------------
Balance at 1 January 2013 5,000 - 90,230 349,448 444,678
======================= ============== ========= ================== =============
Profit for the period
unaudited - 583,470 583,470
Other comprehensive
income/(loss) - 4 4
----------------------- -------------- --------- ------------------ -------------
Total comprehensive income - - - 583,474 583,474
Issue of share capital 10,000 10,000
Transfers to reserves 3,513 (3,513) -
Balance at 30 June 2013 15,000 - 93,743 929,409 1,038,152
======================= ============== ========= ================== =============
Profit for the period
unaudited - - - 762,724 762,724
Other comprehensive
income/(loss) - - - (32,572) (32,572)
----------------------- -------------- --------- ------------------ -------------
Total comprehensive income - - - 730,152 730,152
Balance at 31 December 2013 15,000 - 93,743 1,659,561 1,768,304
======================= ============== ========= ================== =============
Profit for the period
unaudited - - - 1,254,482 1,254,482
Other comprehensive
income/(loss) - - - 7,693 7,693
----------------------- -------------- --------- ------------------ -------------
Total comprehensive income - - - 1,262,175 1,262,175
Issue of share capital net of
issue cost 9,213 570,673 - - 579,886
Transfers to reserves - - 1,936 (1,936) -
Balance at 30 June 2014 24,213 570,673 95,679 2,919,800 3,610,365
======================= ============== ========= ================== =============
Unaudited consolidated statement of cash flows for the period
ended 30 June 2014
Year ended 31 December
Note Period ended 30 June 2014 Period ended 30 June 2013 2013
----- -------------------------- -------------------------- --------------------------
Cash flows from Operating
Activities
Profit before tax 1,289,945 612,453 1,384,222
Adjustment to reconcile
profit before tax to net
cash flows
Non-cash items:
Depreciation of property,
plant and equipment 5 8,207 5,458 13,216
Amortization of
intangible assets 5 134,477 67,683 152,880
Interest income (638) - (1,110)
Interest expense 5,803 17,923 21,718
Movements in provisions
and provisions for
employee benefits 1,706 1,022 2,509
Operating cash flows
before changes in working
capital 1,439,500 704,539 1,573,435
Working capital
adjustments:
(Increase) / Decrease in
trade and other accounts
receivable (938,194) 275,204 (349,224)
Increase/(Decrease) in
trade and other accounts
payable 209,169 (229,236) (43,028)
Income tax paid (14,976) (1,485) (9,081)
Net cash flows from
operating activities 695,499 749,022 1,172,102
-------------------------- -------------------------- --------------------------
Cash flows from investing
activities
Purchase of property,
plant and equipment (2,091) (10,561) (36,043)
Purchase of intangible
assets (225,589) (131,013) (448,454)
Interest received 638 - 1,110
Purchase of financial
instruments - (102,443) (102,443)
Net cash flows used in
investing activities (227,042) (244,017) (585,830)
-------------------------- -------------------------- --------------------------
Cash flows from financing
activities
Proceeds from the issuance
of share capital net of
issue costs 638,399 10,000 10,000
Interest paid (5,803) (17,923) (21,718)
-------------------------- -------------------------- --------------------------
Net cash flows from/(used
in) financing activities 632,596 (7,923) (11,718)
-------------------------- -------------------------- --------------------------
Net increase in cash and
cash equivalents 1,101,053 497,082 574,554
Cash and cash equivalents
at beginning of year 643,717 103,293 103,293
Effect of exchange rates'
changes on flows and cash 7,710 - (34,130)
-------------------------- -------------------------- --------------------------
Cash and cash equivalents
at end of the period 1,752,480 600,375 643,717
========================== ========================== ==========================
Notes to the unaudited interim consolidated financial
statements
1. Corporate information
The financial statements have been prepared in accordance with
International Financial Report Standards ("IFRS") as adopted by the
European Union. The principal accounting policies, used in
preparing the interim results are those the group expects to apply
in its financial statements for the year ending 31 December 2014
and are unchanged from those disclosed in the AIM Admission
Document.
The interim financial information has not been reviewed nor
audited by the Company's auditors. The comparatives for the period
ended 31 December 2013 are not the Company's full statutory
accounts but have been compiled using the consolidated financial
information of C Dialogues Plc. A copy of this consolidated
financial information, which was prepared under IFRS, is available
on the Company's website in the AIM Admission document.
The interim consolidated financial statements for the six months
ended 30 June 2014 have been prepared in accordance with IAS 34,
Interim Financial Reporting.
The operations of CDialogues Plc are not affected by seasonal
variations.
The directors do not propose a dividend for the period.
The interim report for the 6 months ended 30 June 2014 was
approved by the Directors on 12 September 2014.
2. Basis of preparation
Basis of preparation and statement of compliance
The accompanying interim consolidated financial statements have
been prepared under the historical cost convention except for
investment property that has been measured at fair value. The
Interim financial statements have been prepared in accordance with
IAS 34 Interim Financial Reporting. The Directors have assessed the
Group to continue operating as a going concern and believe that the
preparation of these financial statements on the going concern
basis is appropriate.
The interim consolidated financial statements do not include all
the information and disclosures required in the annual financial
statements, and should be read in conjunction with the Group's
consolidated financial information for the year ended 31 December
2013 contained within the AIM Admission Document.
3. Changes in accounting policies and disclosures
New and amended standards and interpretations
The accounting policies adopted in the preparation of the
interim financial statements are consistent with those followed in
the preparation of the Group's annual financial statements for the
year ended 31 December 2013, except for the adoption of new
standards and interpretations as of 1 January 2014, noted
below:
-- IAS 28Investments in Associates and Joint Ventures (Revised)
-- IAS 32 Financial Instruments: Presentation (Amended) -
Offsetting Financial Assets and Financial Liabilities
-- IFRS 10 Consolidated Financial Statements, IAS 27 Separate Financial Statements
-- IFRS 11 Joint Arrangements
-- IFRS 12 Disclosures of Interests in Other Entities
-- IAS 39 Financial Instruments (Amended): Recognition and
Measurement - Novation of Derivatives and Continuation of Hedge
Accounting
-- IAS 36 Impairment of Assets (Amended) - Recoverable Amount
Disclosures for Non-Financial Assets
-- IFRIC Interpretation 21: Levies
IAS 28 Investments in Associates and Joint Ventures
(Revised)
As a consequence of the new IFRS 11 Joint arrangements and IFRS
12 Disclosure of Interests in Other Entities, IAS 28 Investments in
Associates, has been renamed IAS 28 Investments in Associates and
Joint Ventures, and describes the application of the equity method
to investments in joint ventures in addition to associates. This
standard does not apply to the Group.
IAS 32 Financial Instruments: Presentation (Amended) -
Offsetting Financial Assets and Financial Liabilities
The amendment is effective for annual periods beginning on or
after 1 January 2014.These amendments clarify the meaning of
"currently has a legally enforceable right to set-off". The
amendments also clarify the application of the IAS 32 offsetting
criteria to settlement systems (such as central clearing house
systems) which apply gross settlement mechanisms that are not
simultaneous. This amendment has no impact in the accounting
policies and the financial position or performance of the
Group.
IFRS 10 Consolidated Financial Statements, IAS 27 Separate
Financial Statements
IFRS 10 replaces the portion of IAS 27 Consolidated and Separate
Financial Statements that addresses the accounting for consolidated
financial statements. It also addresses the issues raised in SIC-12
Consolidation - Special Purpose Entities. IFRS 10 establishes a
single control model that applies to all entities including special
purpose entities. The changes introduced by IFRS 10 will require
management to exercise significant judgment to determine which
entities are controlled and therefore are required to be
consolidated by a parent, compared with the requirements that were
in IAS 27. IFRS 10 has no impact in the accounting policies and the
financial position or performance of the Group.
IFRS 11 Joint Arrangements
IFRS 11 replaces IAS 31 Interests in Joint Ventures and SIC-13
Jointly-controlled Entities - Non-monetary Contributions by
Venturers. IFRS 11 removes the option to account for jointly
controlled entities (JCEs) using proportionate consolidation.
Instead, JCEs that meet the definition of a joint venture must be
accounted for using the equity method. IFRS 11 has no impact in the
accounting policies and the financial position or performance of
the Group.
IFRS 12 Disclosures of Interests in Other Entities
IFRS 12 includes all of the disclosures that were previously in
IAS 27 related to consolidated financial statements, as well as all
of the disclosures that were previously included in IAS 31 and IAS
28. These disclosures relate to an entity's interests in
subsidiaries, joint arrangements, associates and structured
entities. A number of new disclosures are also required. IFRS 12
has no impact in the accounting policies and the financial position
or performance of the Group.
IAS 39 Financial Instruments (Amended): Recognition and
Measurement - Novation of Derivatives and Continuation of Hedge
Accounting
Under the amendment there would be no need to discontinue hedge
accounting if a hedging derivative was novated, provided certain
criteria are met. The IASB made a narrow-scope amendment to IAS 39
to permit the continuation of hedge accounting in certain
circumstances in which the counterparty to a hedging instrument
changes in order to achieve clearing for that instrument. This
amendment has no impact in the accounting policies and the
financial position or performance of the Group.
IAS 36 Impairment of Assets (Amended) - Recoverable Amount
Disclosures for Non-Financial Assets
These amendments remove the unintended consequences of IFRS 13
on the disclosures required under IAS 36. In addition, these
amendments require disclosure of the recoverable amounts for the
assets or CGUs for which impairment loss has been recognised or
reversed during the period. This amendment has no impact in the
accounting policies and the financial position or performance of
the Group.
IFRIC Interpretation 21: Levies
The Interpretations Committee was asked to consider how an
entity should account for liabilities to pay levies imposed by
governments, other than income taxes, in its financial statements.
This Interpretation is an interpretation of IAS 37 Provisions,
Contingent Liabilities and Contingent Assets. IAS 37 sets out
criteria for the recognition of a liability, one of which is the
requirement for the entity to have a present obligation as a result
of a past event (known as an obligating event). The Interpretation
clarifies that the obligating event that gives rise to a liability
to pay a levy is the activity described in the relevant legislation
that triggers the payment of the levy. IFRIC 21 has no impact in
the accounting policies and the financial position or performance
of the Group.
Standards issued but not yet effective and not early adopted
In addition to those standards and interpretations that have
been disclosed in the financial statements for the year ended 31
December 2013, the following new standards, amendments to standards
and interpretations have been issued but are not effective for the
financial year beginning 1 January 2014 and have not been early
adopted from the Group:
-- IAS 16 Property, Plant & Equipment and IAS 38 Intangible
assets (Amendment): Clarification of Acceptable Methods of
Depreciation and Amortization
-- IAS 16 Property, Plant & Equipment and IAS 41 Agriculture (Amendment): Bearer Plants
-- IAS 19 Defined Benefit Plans (Amended): Employee Contributions
-- IFRS 9 Financial Instruments: Classification and Measurement
and subsequent amendments to IFRS 9 and IFRS 7-Mandatory Effective
Date and Transition Disclosures; Hedge Accounting and amendments to
IFRS 9, IFRS 7 and IAS 39
-- IFRS 11 Joint arrangements (Amendment): Accounting for
Acquisitions of Interests in Joint Operations
-- IFRS 14 Regulatory Deferral Accounts
-- IFRS 15 Revenue from Contracts with Customers
-- The IASB has issued the Annual Improvements to IFRSs 2010 -
2012 Cycle, which is a collection of amendments to IFRSs. The
amendments are effective for annual periods beginning on or after 1
July 2014. These annual improvements have not yet been endorsed by
the EU. Management estimates that those amendments will not affect
the financial statements except from possible additional
disclosures.
Ø IFRS 2 Share-based Payment
Ø IFRS 3 Business combinations
Ø IFRS 8 Operating Segments
Ø IFRS 13 Fair Value Measurement
Ø IAS 16 Property Plant & Equipment
Ø IAS 24 Related Party Disclosures
Ø IAS 38 Intangible Assets
-- The IASB has issued the Annual Improvements to IFRSs 2011 -
2013 Cycle, which is a collection of amendments to IFRSs. The
amendments are effective for annual periods beginning on or after 1
July 2014. These annual improvements have not yet been endorsed by
the EU. Management estimates that those amendments will not affect
the financial statements except from possible additional
disclosures.
Ø IFRS 3 Business Combinations
Ø IFRS 13 Fair Value Measurement
Ø IAS 40 Investment Properties
4. Operating segment information
For the purpose of IFRS 8, the chief operating decision-maker
("CODM"), who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the
Board of Directors. The CDialogues Group is a provider of Mobile
Marketing services. The Group's revenue and profit before taxation
were all derived from its principal activity. Over 95% of revenues
from the period were derived from external customers based in the
Middle East which is considered as one geographical segment. Based
on the above considerations, there is considered to be one
reportable segment: mobile marketing services in the Middle East.
Internal and external reporting is on a consolidated basis, with
transactions between Group companies eliminated on consolidation.
Therefore the financial information of the single segment is the
same as that set out in the consolidated statement of comprehensive
income, the consolidated statement of financial position, the
consolidated statement of changes in equity and the consolidated
statement of cash flows.
5. Expenses by nature
Year ended 31 December
Note Period ended 30 June 2014 Period ended 30 June 2013 2013
-------------------------- -------------------------- --------------------------
Payroll and related costs 6 153,000 101,198 202,637
Depreciation of property,
plant and equipment 8,207 5,458 13,216
Amortization of intangible
assets 134,477 67,683 152,880
Operating lease payments 39,064 45,269 94,847
Cost of mobile marketing
projects 2,264,778 938,108 2,449,788
Connectivity & hosting
costs 64,024 52,177 111,995
Auditors' remuneration 9,750 9,200 22,700
Traveling expenses 24,053 33,479 54,507
Net foreign exchange
differences 8,783 24,697 6,260
Other 47,040 56,169 70,715
Total 2,753,176 1,333,438 3,179,545
-------------------------- -------------------------- --------------------------
6. Payroll and related costs
Period ended 30 June 2014 Period ended 30 June 2013 Year ended 31 December 2013
-------------------------- -------------------------- ----------------------------
Wages and salaries 160,975 120,375 252,574
Social security costs 44,288 32,994 62,268
Pension costs 1,706 1,022 2,509
Less: Amounts transferred to
development cost (53,969) (53,193) (114,714)
Total 153,000 101,198 202,637
-------------------------- -------------------------- ----------------------------
7. Income tax
The amounts of income taxes which are reflected in the
accompanying interim financial statements are analysed as
follows:
Period ended 30 June 2014 Period ended 30 June 2013 Year ended 31 December 2013
-------------------------- -------------------------- ----------------------------
Current income tax 42,511 29,025 47,512
Deferred income tax (7,048) (42) (9,484)
-------------------------- -------------------------- ----------------------------
Income tax in the income
statement 35,463 28,983 38,028
-------------------------- -------------------------- ----------------------------
The reconciliation of income taxes reflected in the statements
of comprehensive income and the amount of income taxes determined
by the application of the composite rate is as follows:
Period ended 30 June 2014 Period ended 30 June 2013 Year ended 31 December 2013
-------------------------- -------------------------- ----------------------------
Profit before tax 1,289,945 612,453 1,384,222
At United Kingdom statutory
income tax rate of 20% (2013:
20%) (257,989) (122,491) (276,844)
Income not subject to taxation (148,896) (55,905) (48,933)
Expenses non deductible for
taxation purposes 1,017 1,613 20,013
Tax losses for which no
deffered tax asset has been
recognised - 265 283
Differences in tax rates 441,331 205,501 342,280
10% additional charge - - 895
Defence contribution current
year - - 334
Total 35,463 28,983 38,028
-------------------------- -------------------------- ----------------------------
8. Earnings per share
Basic earnings per share amounts are calculated by dividing net
profit for the reporting period attributable to ordinary equity
holders of the parent by the weighted average number of ordinary
shares outstanding during the respective period.
Diluted earnings per share amounts are calculated by dividing
the net profit attributable to ordinary equity holders of the
parent by the weighted average number of ordinary shares
outstanding during the period plus the weighted average number of
ordinary shares that would be issued on conversion of all the
dilutive potential ordinary shares into ordinary shares.
Period ended 30 June 2014 Period ended 30 June 2013 Year ended 31 December 2013
-------------------------- -------------------------- ----------------------------
Net profit attributable to
ordinary equity holders of the
parent 1,254,482 583,470 1,346,194
Weighted average number of
ordinary shares for basic
earnings per share 5,529,851 5,500,000 5,500,000
Earnings per share basic 0.2269 0.1061 0.2448
-------------------------- -------------------------- ----------------------------
Weighted average number of
ordinary shares for basic
earnings per share 5,529,851 5,500,000 5,500,000
Effect on dilution:
Warrants 9,608 - -
-------------------------- -------------------------- ----------------------------
9,608 - -
Weighted average number of
ordinary shares adjusted for
the effect of dilution 5,539,459 5,500,000 5,500,000
-------------------------- -------------------------- ----------------------------
Earnings per share diluted 0.2265 0.1061 0.2448
-------------------------- -------------------------- ----------------------------
9. Property plant and equipment
Property plant and equipment in the accompanying interim
financial statements of the Group are analysed as follows:
Transportation assets Furniture & other office equipment Total
---------------------- ----------------------------------- -------
Cost
Balance at 1 January 2013 - 37,888 37,888
Additions 22,500 13,543 36,043
Balance at 31 December 2013 22,500 51,431 73,931
---------------------- ----------------------------------- -------
Balance at 1 January 2014 22,500 51,431 73,931
Additions 2,091 2,091
Balance at 30 June 2014 22,500 53,522 76,022
---------------------- ----------------------------------- -------
Accumulated Depreciation
Balance at 1 January 2013 - 10,806 10,806
Depreciation expense 1,688 11,528 13,216
Balance at 31 December 2013 1,688 22,334 24,022
---------------------- ----------------------------------- -------
Balance at 1 January 2014 1,688 22,334 24,022
Depreciation expense 1,688 6,519 8,207
Balance at 30 June 2014 3,376 28,853 32,229
---------------------- ----------------------------------- -------
Net book value at 1 January 2013 - 27,082 27,082
---------------------- ----------------------------------- -------
Net book value at 31 December 2013 20,812 29,097 49,909
---------------------- ----------------------------------- -------
Net book value at 30 June 2014 19,124 24,669 43,793
---------------------- ----------------------------------- -------
10. Intangible assets
Intangible assets in the accompanying interim financial
statements of the Group are analysed as follows:
Purchased software Software development cost Total
------------------- -------------------------- --------
Cost
Balance at 1 January 2013 62,950 249,351 312,301
Additions 313,740 134,714 448,454
Balance at 31 December 2013 376,690 384,065 760,755
------------------- -------------------------- --------
Balance at 1 January 2014 376,690 384,065 760,755
Additions 163,120 62,469 225,589
Balance at 30 June 2014 539,810 446,534 986,344
------------------- -------------------------- --------
Accumulated amortization
Balance at 1 January 2013 6,505 53,768 60,273
Amortisation expense 56,638 96,242 152,880
Balance at 31 December 2013 63,143 150,010 213,153
------------------- -------------------------- --------
Balance at 1 January 2014 63,143 150,010 213,153
Amortisation expense 71,804 62,673 134,477
Balance at 30 June 2014 134,947 212,683 347,630
------------------- -------------------------- --------
Net book value at 1 January 2013 56,445 195,583 252,028
------------------- -------------------------- --------
Net book value at 31 December 2013 313,547 234,055 547,602
------------------- -------------------------- --------
Net book value at 30 June 2014 404,863 233,851 638,714
------------------- -------------------------- --------
11. Trade and other receivable
Trade and other receivable in the accompanying interim financial
statements of the Group are analysed as follows:
Period ended 30 June 2014 Period ended 30 June 2013 Year ended 31 December 2013
-------------------------- -------------------------- ----------------------------
Trade receivables - - 17,486
V.A.T. receivable 201,303 42,975 54,613
Accrued Income 1,730,779 312,142 893,420
Prepaid expenses 121,837 2,398 5,470
Other receivables 24,772 3,000 13,954
Total 2,078,691 360,515 984,943
-------------------------- -------------------------- ----------------------------
Non current assets 9,508 3,000 9,508
Current assets 2,069,183 357,515 975,435
2,078,691 360,515 984,943
-------------------------- -------------------------- ----------------------------
12. Share capital and share premium
The movement of the Company's share capital and share premium is
analysed as follows:
For the period ended 30 June 2014 No of shares Share capital Share premium Total increase
------------- -------------- -------------- ---------------
At 1 January 2014 15,000 15,000 - 15,000
Bonus shares issued 11/06/2014 51,000 - - -
Share split on 11/06/2014 5,500,000 - - -
Issued on 11/06/2014 152,550 1,950 - 1,950
Issued on 27/06/2014 588,000 7,263 1,532,780 1,540,043
Shares issue costs - - (962,107) (962,107)
At 30 June 2014 6,240,550 24,213 570,673 594,886
------------- -------------- -------------- ---------------
For the year ended 31 December 2013 No of shares Share capital Share premium Total increase
------------- -------------- -------------- ---------------
At 1 January 2013 5,000 5,000 - 5,000
Issued on 16/04/2013 10,000 10,000 - 10,000
At 31 December 2013 15,000 15,000 - 15,000
------------- -------------- -------------- ---------------
On 16 April 2013, pursuant to a written resolution of the
Founders the 5,000 issued ordinary shares of EUR1.00 each were
re-designated A Ordinary Shares of EUR1.00 each.
On 16 April 2013 10,000 A ordinary shares of EUR1.00 each were
issued to the Founders.
On 11 June 2014, pursuant to written resolutions of the
Founders:
-- each of the issued existing A ordinary shares of EUR1.00 in
the capital of the Company was redesignated as an ordinary share of
EUR1.00 each;
-- the sum of EUR51,000 (being part of the Company's
distributable reserves) was capitalised and appropriated as capital
to the Founders and the Directors were to authorised to apply such
sum in paying up in full 51,000 new ordinary shares in the Company
(the "Bonus Shares") and to allot and issue such Bonus Shares,
credited as fully paid up, to the Founders at the rate of 3.4 Bonus
Shares for every 1 existing ordinary share of EUR1.00 each held by
them;
-- the entire issued share capital of the Company was
redenominated from Euros (EUR) to Pounds Sterling (GBP) at a then
prevailing exchange rate of EUR 1.2 to GBP1
-- the issued existing ordinary shares of EUR1.00 in the capital
of the Company were consolidated on the basis of 1 new ordinary
share of GBP1.00 each in the capital of the Company for every 1.2
existing ordinary shares of EUR1.00 previously held; and each of
the issued existing ordinary shares of GBP1.00 in the capital of
the Company arising from the consolidation was subdivided into 100
new ordinary shares of GBP0.01 each in the capital of the Company
for every 1 existing ordinary share of GBP1.00 previously held.
On 11 June 2014 152,550 ordinary shares of GBP0.01 each were
allotted and fully paid in cash by certain employees and
consultants of the Group.
On 27 June 2014, 588,000 ordinary shares of GBP0.01 each were
allotted and fully paid in cash at a price of GBP2.12 resulting to
total net increase of EUR579,886 (after transactions costs of
EUR962,107).
13. Trade and other payables
Trade and other payable in the accompanying interim financial
statements of the Group are analysed as follows:
Period ended 30 June 2014 Period ended 30 June 2013 Year ended 31 December 2013
-------------------------- -------------------------- ----------------------------
Trade payables 138,662 13,622 172,045
Accrued expenses 762,094 280,756 294,829
Social security and other taxes 18,636 14,070 22,777
Other liabilities - 1,500 6,505
Total 919,392 309,948 496,156
-------------------------- -------------------------- ----------------------------
Short term 919,392 309,948 496,156
Long term - - -
Total 919,392 309,948 496,156
-------------------------- -------------------------- ----------------------------
14. Events after the reporting period
There were no events after the statement of financial position
date of June 30, 2014, that relate to the Group, which can
materially affect the understanding of those Financial Statements
and should be reported or differentiate the amounts of published
financial statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAKNAFAXLEFF
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