TIDMECK
RNS Number : 9153N
Eckoh PLC
21 June 2010
21 June 2010
Eckoh plc
("Eckoh" or "the Group")
Preliminary Results
Eckoh plc, the UK's leading developer of speech recognition solutions for
customer contact centres, announces its results for the year ended 31 March
2010.
+----------------------------------------+---------+---------+
| | | Year |
| | Year | |
| | ended | ended |
| | 31 | |
| | March | 31 |
| | 2010 | March |
| | GBP'000 | 2009 |
| | | GBP'000 |
+----------------------------------------+---------+---------+
| Turnover | 7,923 | 6,674 |
+----------------------------------------+---------+---------+
| Gross profit | 5,697 | 4,279 |
+----------------------------------------+---------+---------+
| Operating loss | (534) | (1,755) |
+----------------------------------------+---------+---------+
| Loss for the period | (118) | (878) |
+----------------------------------------+---------+---------+
| Adjusted* EBITDA | 849 | (295) |
+----------------------------------------+---------+---------+
| Adjusted* profit/(loss) before | 657 | (387) |
| taxation | | |
+----------------------------------------+---------+---------+
[All figures reported are for continuing operations of the Speech Solutions
division following the merger of the Client IVR division (shown as discontinued
operations) with Telecom Express Ltd.]
Financial Highlights:
· 19% growth in revenue from continuing operations from GBP6.7m to GBP7.9m
· Increase in continuing gross margin to 72% (FY09: 64%) resulting in a 33%
growth in continuing gross profit to GBP5.7m (FY09: GBP4.3m)
· FY10 adjusted* profit before taxation of GBP0.7m (FY09: loss of GBP0.4m)
· Adjusted* EBITDA amounted to a profit of GBP0.8m (FY09: loss of GBP0.3m)
· Operating loss from continuing operations reduced to GBP0.5m (FY09: loss
of GBP1.8m)
· Strong debt free financial position with a cash and short term investment
balance of GBP3.9m (FY09: GBP5.2m)
Operational Highlights and Recent Contract Wins:
· Restructuring of Board composition during the year resulting in basic
Board cost reducing by 28%
· 3 year contract renewal with William Hill for the provision of customer
service options
· New contracts for the provision of automated card payments services to
Northumbrian Water and Dwr Cymru Welsh Water
· 3 year contract renewals with two existing water utility clients for the
provision of card payment solutions
· Major investment in technology refresh strengthening market leading
position
· Good progress towards becoming PCI ("Payment Card Industry") Compliant
· Closure of office in Montpellier to produce cost saving and operational
efficiencies. The closure will be completed on 30 June 2010, but all estimated
costs in relation to the closure have been provided for in 2009/10
Post period developments:
· Merger of Client Interactive Voice Response ("IVR") division with Telecom
Express Limited, with Eckoh taking a 27.5% share of the combined business
· 3 year contract with a government executive agency to provide service for
logging the movement of livestock
*on continuing operations excluding non-recurring administrative expenses,
amortisation of intangible assets and share option charges
Nik Philpot, Chief Executive Officer, commented today:
"Despite the backdrop of continuing economic uncertainty, Eckoh has been able to
build on the good progress we made last year and deliver an excellent set of
results. It is clear from the strong growth achieved that there is a tremendous
opportunity to drive significant profits and value for shareholders in the
speech sector going forward. The agreement to merge the Client IVR business is
the final step in making Eckoh a pure Speech Solutions company, and we can now
focus all our energies on continuing this growth and maximising our market
leading position."
For further enquiries, please contact:
Eckoh plc
Nik Philpot, Chief Executive Officer
Adam Moloney, Group Finance Director
www.eckoh.com Tel: 01442 458 300
Corfin Public Relations
Harry Chathli, Claire Norbury Tel: 020 7596 2860
Seymour Pierce
Jonathan Wright Tel: 020 7107
8000
Introduction
The Directors are pleased to report a year of significant financial improvement
on the continuing operations and the completion of the final steps required to
position Eckoh as a pure Speech Solutions business. During the year, strategic
decisions were taken to sell the Client Interactive Voice Response ("IVR")
division, close the technical office in France and reorganise the Board. This
has left a rapidly growing Speech Solutions business with an appropriate cost
base and an opportunity for significant shareholder value to be generated.
Financial Review
Revenue and Margin
The 2010 financial year built on the momentum of the prior year, with revenue
from continuing operations increasing by 19% to GBP7.9m (FY09: GBP6.7m). The
margin achieved on these revenues has grown to 72% (FY09: 64%), with gross
profit increasing by 33% from GBP4.3m to GBP5.7m.
No single client represents more than 16% of the margin generated. Consequently,
there is no great dependency on any individual client for the financial
sustainability of the business.
The cost base of the Group is largely represented by the employees, who are
predominantly in the areas of service development, delivery and support. This
headcount is deployed on a mix of delivering new client business, maintaining
and improving existing clients' services, developing Eckoh products and special
projects such as the PCI accreditation process. When new business is won, this
does not typically require an increase in headcount and associated overhead
costs unless it is likely to consume very specialist resources for extended
periods. As a result, growth in revenue usually contributes directly to the
profitability of the business.
Administrative Expenses
+----------------------------------------+----------+----------+
| | 2010 | 2009 |
| | GBP000's | GBP000's |
+----------------------------------------+----------+----------+
| Administrative expenses before | 5,578 | 5,223 |
| non-recurring items | | |
+----------------------------------------+----------+----------+
| French office closure costs | 286 | - |
+----------------------------------------+----------+----------+
| Employee restructuring | 306 | 16 |
+----------------------------------------+----------+----------+
| EGM costs | 61 | - |
+----------------------------------------+----------+----------+
| Legal settlement | - | 627 |
+----------------------------------------+----------+----------+
| Aborted transaction costs | - | 168 |
+----------------------------------------+----------+----------+
| Total administrative expenses | 6,231 | 6,034 |
+----------------------------------------+----------+----------+
As detailed in the table above, administrative expenses arising from the 33%
increase in margin increased by only 3% from GBP6.0m to GBP6.2m. Adjusting the
administrative expenses for nonrecurring items of expenditure, administrative
expenses still grew by only 7% from GBP5.2m to GBP5.6m.
Aside from the EGM costs, the non-recurring items of expenditure arising in
2009/10 will produce significant operational and financial benefits in future
financial years. The employee restructuring expense largely consists of the
severance costs arising from a restructuring of the Board, which has reduced the
basic cost of the Board by 28%.
Eckoh has had a technical support office in Montpellier, France, for over 10
years and has benefitted from the expertise of some excellent employees. Over
this period, the number of French staff has gradually declined whilst the
adverse exchange fluctuation of the Pound against the Euro has significantly
increased the cost of the operation, leading to the difficult decision being
made to close the office. Whilst the severance costs of French employees are
high, it was felt that the long term financial benefit of closing the office,
along with the operational efficiency arising from having all Eckoh employees in
one location, was worthwhile. The Group is committed to this closure, which will
be completed by 30 June 2010. The estimated costs in relation to this closure
have been provided for at the year end.
Profitability measures
+----------------------------------------+---------+---------+
| Adjusted profit | 2010 | 2009 |
| | GBP'000 | GBP'000 |
+----------------------------------------+---------+---------+
| Loss before tax from continuing | (197) | (1,373) |
| operations | | |
+----------------------------------------+---------+---------+
| Amortisation of intangible assets | 157 | 121 |
+----------------------------------------+---------+---------+
| Share option charges | 44 | 54 |
+----------------------------------------+---------+---------+
| Non recurring items of expenditure | 653 | 811 |
+----------------------------------------+---------+---------+
| Adjusted profit / (loss) before | 657 | (387) |
| taxation | | |
+----------------------------------------+---------+---------+
| | | |
+----------------------------------------+---------+---------+
| Net interest receivable | (99) | (382) |
+----------------------------------------+---------+---------+
| Depreciation | 529 | 474 |
+----------------------------------------+---------+---------+
| Arrangement fees on loans | (238) | - |
+----------------------------------------+---------+---------+
| Adjusted EBITDA | 849 | (295) |
+----------------------------------------+---------+---------+
The table above illustrates the progress in the profitability made by the Group
with an adjusted loss of GBP0.4m for FY09 converted into a profit of GBP0.7m for
this year. Adjusted EBITDA has improved from a loss on continuing operations of
GBP0.3m to a profit of GBP0.8m. Excluding the adjustments, the loss before tax
from continuing operations reduced from GBP1.4m to GBP0.2m. The Speech Solutions
business has reached a level of maturity where it can be self-sustaining, and is
well-positioned to take advantage of the market opportunity and further improve
profitability in the coming years.
Statement of financial position
During the year, there has been a significant investment in the infrastructure
supporting the Speech Solutions business, from which it will benefit for several
years. This has resulted in GBP1.0m of equipment acquisitions. This led to a
reduction in cash balances from GBP5.2m to GBP3.9m in the year. No further
capital expenditure of this magnitude is planned in the medium term. In addition
to the GBP3.9m cash balance, a loan of GBP2.9m is due to be repaid by Redstone
plc in two instalments in October 2011 and October 2012, which will further
increase the strength of the Group's balance sheet. The renegotiation of the
terms of this loan resulted in arrangement fee income of GBP0.2m to be
recognised in the year with a further GBP0.3m being spread over the remaining
term of the loan. No significant impact on the statement of financial position
is anticipated to arise from the discontinued Client IVR division.
Operational Review
Speech Solutions
Eckoh is a leading developer of speech recognition solutions for customer
contact centres and is the largest provider of such hosted services in the UK.
Eckoh's sophisticated technology enables routine enquiries, transactions or
payments to be processed without the need for the consumer to speak with a
contact centre agent. This significantly reduces the client's operational costs,
whilst freeing up the agents to deal with more complex and high-value enquiries.
For large organisations seeking to maximise the efficiency of their contact
centre operations, Eckoh is the specialist of choice and the services it
provides are used by a wide range of mass market establishments to serve
millions of their customers each year.
The length of contracts with clients are generally for periods of at least 3
years, and typically with guaranteed minimum levels of revenue either from fixed
recurring fees or from specified volumes of call traffic or transactions, which
gives excellent visibility on future revenues.
Eckoh's technical infrastructure has the scalability to handle up to 8,000
inbound phone calls simultaneously, which means calls can always be answered on
a 24 hour-a-day basis no matter how unpredictable the circumstances and at a
fraction of the cost of a live agent. During the year Eckoh made a major
investment in a new VoiceXML call handling platform from Holly Connects and the
established industry leader in speech recognition software, Nuance Recognizer 9.
The first complex speech-enabled application to be launched on this new platform
was a journey planning service for Transport for London, which went live in
December 2009 (0843 222 1234). The worst winter weather for many years saw call
levels to the new service increase dramatically in January from their normal
levels, whilst comparable fluctuations occurred on National Rail Enquiries'
TrainTracker service. Similarly, during the travel chaos following the eruption
of the Eyjafjallajökull volcano in Iceland, the real-time flight information
services that Eckoh provides for Heathrow and Gatwick airports experienced
massive increases in demand during April. In all cases, the on-demand hosted
solutions that Eckoh provide were able to deal effectively with the sudden
dramatic call increases, clearly demonstrating the benefits offered by Eckoh's
hosted services.
As highlighted at the interim results (announced 9 December 2009), Eckoh is
undertaking a two-year process to become compliant with the Payment Card
Industry Data Security Standards ("PCI DSS"). GBP162,000 (FY09: GBP79,000) of
expenses have been capitalised on the PCI DSS project in the 2009/10 financial
year. This is a comprehensive set of requirements that all companies holding,
processing or transferring customer payment card details are required to adopt.
Eckoh is seeking to be accredited at the highest level and recent changes in the
regulations extended the timescale of the project, but the process is now
nearing completion with the conclusion expected by September 2010. The Group's
client base in this area continues to grow, along with the volume of card
payments being processed which is now at an annual run rate of GBP150 million,
validating the effort Eckoh has expended in this area. As an example, Eckoh has
recently announced contract wins with Northumbrian Water Limited and Dwr Cymru
Welsh Water, together with contract renewals for two other existing utility
clients.
Other significant contract renewals with large clients include William Hill,
which renewed its agreement for the provision of results, live commentary and
call centre services for 3 years.
New Products
EckohPAY, which offers customers the ability to make real-time, secure and
compliant phone and web card payments, is the first of the productised offerings
that Eckoh has developed - and is designed specifically for the expected demand
from PCI. The ability to sell such a product to a client and have the service
live within a matter of weeks significantly broadens the market that Eckoh can
target. Other products to be launched this year include EckohID, which helps
companies identify callers and capture name and address information;
EckohLOCATE, which enables calls to be routed efficiently and direct customers
to store or dealer locations; and EckohSECURE, which allows companies to
authenticate their customers with just their voices. Earlier in the year, Eckoh
announced a 2-year contract to provide services to Comic Relief, and EckohPAY
was successfully used on their behalf to collect over 38,000 donations totalling
over GBP1.1m during the Sport Relief weekend in March 2010.
Key Post-period Developments
Discontinued Operations
On 28 May 2010, Eckoh announced that the Group's Client IVR division ("the
Division") had merged with Telecom Express Limited ("TE") in return for 27.5% of
the issued share capital of the enlarged business. The Division had experienced
a continuing difficult period with revenues falling by 29% to GBP8.8m for the
year (FY09: GBP12.4m) and margin declining by 35% to GBP1.2m (FY09: GBP1.9m). As
a result, the profit contribution fell to GBP0.05m compared with GBP0.7m for the
previous year. The issues faced by the Client IVR division have been shared by
all premium rate service providers as print circulations fall. The need to focus
management efforts on the growing Speech Solutions business as well as to remove
the compliance risk around the provision of premium rate services resulted in an
exercise being undertaken to seek a means to remove the operation from the
continuing Eckoh group. An agreement was reached with the owners of TE that a
combination of the respective businesses would generate significant operational
efficiencies and give the combined operation a prospect of increased future
profitability. The results for the Client IVR division are shown within the
discontinued operation disclosures on the income statement. The disclosures
around the disposal will be presented in the interim results statement for the 6
months ending 30 September 2010.
Contract Win
Eckoh achieved a significant client win after the end of the period with the
signing of a 3-year contract with a government executive agency. This is for the
provision of a speech recognition solution, due to go live in June 2010, to
allow authenticated users to register the identity and movement of livestock.
This contract builds on Eckoh's long-standing relationship with the UK
government and its departments, including the Ministry of Justice and Transport
for London, with the latter entering into a 5-year contract with Eckoh and its
partner BT in July 2009.
Outlook
As a result of the strong progress made in growing the Speech division and the
final restructuring of the Group, the Board remains highly confident of Eckoh's
prospects. The strategic decisions, such as PCI compliance and the investment in
new technical infrastructure, are already demonstrating their value and will
ensure that the services provided by Eckoh remain ahead of those offered by its
competitors. Whilst the sales focus will continue to target the high-value
long-term contracts, the new range of Eckoh products, including the highly
successful EckohPAY, will enable smaller size contracts to be won and deployed
quickly.
The future value of the Group will be derived from the growth attained from the
Speech Solutions division, which is now the core focus of the Board following
the merger of the Client IVR division with TE.
Consolidated statement of comprehensive income
for the year ended 31 March 2010
+-------------------------------------+-----+----------+----------+
| | | 2010 | 2009 |
| | | audited | audited |
+-------------------------------------+-----+----------+----------+
| | | GBP'000 | GBP'000 |
+-------------------------------------+-----+----------+----------+
| | | | |
+-------------------------------------+-----+----------+----------+
| Continuing operations | | | |
+-------------------------------------+-----+----------+----------+
| Revenue | | 7,923 | 6,674 |
+-------------------------------------+-----+----------+----------+
| Cost of sales | | (2,226) | (2,395) |
+-------------------------------------+-----+----------+----------+
| Gross profit | | 5,697 | 4,279 |
+-------------------------------------+-----+----------+----------+
| Administrative expenses before | | (5,578) | (5,223) |
| non-recurring items | | | |
+-------------------------------------+-----+----------+----------+
| French office closure costs | | (286) | - |
+-------------------------------------+-----+----------+----------+
| Employee restructuring | | (306) | (16) |
+-------------------------------------+-----+----------+----------+
| EGM costs | | (61) | - |
+-------------------------------------+-----+----------+----------+
| Legal settlement | | - | (627) |
+-------------------------------------+-----+----------+----------+
| Aborted transaction costs | | - | (168) |
+-------------------------------------+-----+----------+----------+
| Total Administrative expenses | | (6,231) | (6,034) |
+-------------------------------------+-----+----------+----------+
| Loss from operating activities | | (534) | (1,755) |
+-------------------------------------+-----+----------+----------+
| | | | |
+-------------------------------------+-----+----------+----------+
| Finance income | | 340 | 382 |
+-------------------------------------+-----+----------+----------+
| Finance expense | | (3) | - |
+-------------------------------------+-----+----------+----------+
| Loss before taxation | | (197) | (1,373) |
+-------------------------------------+-----+----------+----------+
| Taxation | | - | - |
+-------------------------------------+-----+----------+----------+
| Loss for the year from continuing | | (197) | (1,373) |
| operations | | | |
+-------------------------------------+-----+----------+----------+
| | | | |
+-------------------------------------+-----+----------+----------+
| Discontinued operations | | | |
+-------------------------------------+-----+----------+----------+
| Post tax profit for the year from | | 79 | 495 |
| discontinued operations | | | |
+-------------------------------------+-----+----------+----------+
| | | | |
+-------------------------------------+-----+----------+----------+
| Loss for the year attributable to | | (118) | (878) |
| the equity holders of the parent | | | |
| company | | | |
+-------------------------------------+-----+----------+----------+
| | | | |
+-------------------------------------+-----+----------+----------+
| Other comprehensive income | | | |
+-------------------------------------+-----+----------+----------+
| Exchange differences on translating | | (8) | (20) |
| foreign operations | | | |
+-------------------------------------+-----+----------+----------+
| | | | |
+-------------------------------------+-----+----------+----------+
| Total comprehensive expense for the | | (126) | (898) |
| year attributable to the equity | | | |
| holders of the parent company | | | |
+-------------------------------------+-----+----------+----------+
| | | | |
+-------------------------------------+-----+----------+----------+
| Loss per share (pence) | | | |
+-------------------------------------+-----+----------+----------+
| Basic and diluted | | (0.06) | (0.44) |
+-------------------------------------+-----+----------+----------+
| | | | |
+-------------------------------------+-----+----------+----------+
| Loss per share from continuing | | | |
| (pence) | | | |
+-------------------------------------+-----+----------+----------+
| Basic and diluted | | (0.10) | (0.36) |
+-------------------------------------+-----+----------+----------+
Consolidated statement of financial position
as at 31 March 2010
+----------------------------------+----+----------+----------+
| | | 2010 | 2009 |
+----------------------------------+----+----------+----------+
| | | GBP'000 | GBP'000 |
+----------------------------------+----+----------+----------+
| | | | |
+----------------------------------+----+----------+----------+
| Assets | | | |
+----------------------------------+----+----------+----------+
| Non-current assets | | | |
+----------------------------------+----+----------+----------+
| Intangible assets | | 599 | 376 |
+----------------------------------+----+----------+----------+
| Property, plant and equipment | | 1,160 | 714 |
+----------------------------------+----+----------+----------+
| Loans and other receivables | | 2,925 | 1,700 |
+----------------------------------+----+----------+----------+
| | | 4,684 | 2,790 |
+----------------------------------+----+----------+----------+
| | | | |
+----------------------------------+----+----------+----------+
| Current assets | | | |
+----------------------------------+----+----------+----------+
| Inventories | | 5 | 4 |
+----------------------------------+----+----------+----------+
| Trade and other receivables | | 2,490 | 4,476 |
+----------------------------------+----+----------+----------+
| Short-term investments | | 1,821 | 2,821 |
+----------------------------------+----+----------+----------+
| Cash and cash equivalents | | 2,067 | 2,421 |
+----------------------------------+----+----------+----------+
| Assets held for sale | | 945 | - |
+----------------------------------+----+----------+----------+
| | | 7,328 | 9,722 |
+----------------------------------+----+----------+----------+
| | | | |
+----------------------------------+----+----------+----------+
| Total assets | | 12,012 | 12,512 |
+----------------------------------+----+----------+----------+
| | | | |
+----------------------------------+----+----------+----------+
| Liabilities | | | |
+----------------------------------+----+----------+----------+
| Current liabilities | | | |
+----------------------------------+----+----------+----------+
| Trade and other payables | | (1,651) | (3,812) |
+----------------------------------+----+----------+----------+
| Obligations under finance leases | | (1) | (3) |
+----------------------------------+----+----------+----------+
| Liabilities directly associated | | (1,504) | - |
| with assets held for sale | | | |
+----------------------------------+----+----------+----------+
| | | (3,156) | (3,815) |
+----------------------------------+----+----------+----------+
| | | | |
+----------------------------------+----+----------+----------+
| Non-current liabilities | | | |
+----------------------------------+----+----------+----------+
| Provisions | | (320) | (79) |
+----------------------------------+----+----------+----------+
| | | (320) | (79) |
+----------------------------------+----+----------+----------+
| | | | |
+----------------------------------+----+----------+----------+
| Net assets | | 8,536 | 8,618 |
+----------------------------------+----+----------+----------+
| | | | |
+----------------------------------+----+----------+----------+
| Shareholders' equity | | | |
+----------------------------------+----+----------+----------+
| Share capital | | 499 | 499 |
+----------------------------------+----+----------+----------+
| Capital redemption reserve | | 198 | 198 |
+----------------------------------+----+----------+----------+
| Share premium | | 695 | 695 |
+----------------------------------+----+----------+----------+
| Currency reserve | | (55) | (47) |
+----------------------------------+----+----------+----------+
| Retained earnings | | 7,199 | 7,273 |
+----------------------------------+----+----------+----------+
| Total shareholders' equity | | 8,536 | 8,618 |
+----------------------------------+----+----------+----------+
Consolidated statement of changes in equity
as at 31 March 2010
+---------------------+---------+------------+---------+----------+----------+--------------+
| | Share | Capital | Share | Retained | Currency | Total |
| | Capital | redemption | premium | earnings | reserve | shareholders |
| | | reserve | | | | equity |
+---------------------+---------+------------+---------+----------+----------+--------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------+---------+------------+---------+----------+----------+--------------+
| | | | | | | |
+---------------------+---------+------------+---------+----------+----------+--------------+
| Balance at 1 April | 499 | 198 | 695 | 8,097 | (27) | 9,462 |
| 2008 | | | | | | |
+---------------------+---------+------------+---------+----------+----------+--------------+
| Total comprehensive | - | - | - | (878) | (20) | (898) |
| expense for period | | | | | | |
+---------------------+---------+------------+---------+----------+----------+--------------+
| Share based payment | - | - | - | 54 | - | 54 |
| charge | | | | | | |
+---------------------+---------+------------+---------+----------+----------+--------------+
| Balance at 31 March | 499 | 198 | 695 | 7,273 | (47) | 8,618 |
| 2009 | | | | | | |
+---------------------+---------+------------+---------+----------+----------+--------------+
| | | | | | | |
+---------------------+---------+------------+---------+----------+----------+--------------+
| Balance at 1 April | 499 | 198 | 695 | 7,273 | (47) | 8,618 |
| 2009 | | | | | | |
+---------------------+---------+------------+---------+----------+----------+--------------+
| Total comprehensive | - | - | - | (118) | (8) | (126) |
| expense for period | | | | | | |
+---------------------+---------+------------+---------+----------+----------+--------------+
| Share based payment | - | - | - | 44 | - | 44 |
| charge | | | | | | |
+---------------------+---------+------------+---------+----------+----------+--------------+
| Balance at 31 March | 499 | 198 | 695 | 7,199 | (55) | 8,536 |
| 2010 | | | | | | |
+---------------------+---------+------------+---------+----------+----------+--------------+
Consolidated statement of cashflows
for the year ended 31 March 2010
+-----------------------------------+------+----------+---------+
| |Note | | 2009 |
| | | 2010 | |
+-----------------------------------+------+----------+---------+
| | | GBP'000 | GBP'000 |
+-----------------------------------+------+----------+---------+
| | | | |
+-----------------------------------+------+----------+---------+
| Cash flows from operating | | | |
| activities | | | |
+-----------------------------------+------+----------+---------+
| Cash utilised in operations | 3 | (979) | (2,836) |
+-----------------------------------+------+----------+---------+
| Interest paid | | (3) | - |
+-----------------------------------+------+----------+---------+
| Taxation | | - | (45) |
+-----------------------------------+------+----------+---------+
| Net cash utilised in operating | | (982) | (2,881) |
| activities | | | |
+-----------------------------------+------+----------+---------+
| | | | |
+-----------------------------------+------+----------+---------+
| Cash flows from investing | | | |
| activities | | | |
+-----------------------------------+------+----------+---------+
| Purchase of property, plant and | | (1,003) | (443) |
| equipment | | | |
+-----------------------------------+------+----------+---------+
| Purchases of intangible fixed | | (380) | (383) |
| assets | | | |
+-----------------------------------+------+----------+---------+
| Decrease / (Increase) in | | 1,000 | (1,291) |
| short-term investments | | | |
+-----------------------------------+------+----------+---------+
| Loans repaid by third parties | | - | 500 |
+-----------------------------------+------+----------+---------+
| Interest received | | 396 | 382 |
+-----------------------------------+------+----------+---------+
| Net proceeds on disposal of | | 617 | 1,234 |
| business operations | | | |
+-----------------------------------+------+----------+---------+
| Net cash generated in investing | | 630 | (1) |
| activities | | | |
+-----------------------------------+------+----------+---------+
| | | | |
+-----------------------------------+------+----------+---------+
| Cash flows from financing | | | |
| activities | | | |
+-----------------------------------+------+----------+---------+
| Continuing operations | | | |
+-----------------------------------+------+----------+---------+
| Capital element of finance lease | | (2) | (4) |
| rental payments | | | |
+-----------------------------------+------+----------+---------+
| Net cash generated utilised in | | (2) | (4) |
| financing investing activities | | | |
+-----------------------------------+------+----------+---------+
| | | | |
+-----------------------------------+------+----------+---------+
| Decrease in cash and cash | | (354) | (2,886) |
| equivalents | | | |
+-----------------------------------+------+----------+---------+
| Cash and cash equivalents at the | | 2,421 | 5,307 |
| start of the period | | | |
+-----------------------------------+------+----------+---------+
| Cash and cash equivalents at the | | 2,067 | 2,421 |
| end of the period | | | |
+-----------------------------------+------+----------+---------+
Eckoh plc Consolidated Financial Statements for the year ended 31 March 2010
1. Basis of preparation
The preliminary results of Eckoh plc have been prepared in accordance with the
recognition and measurement principles of International Financial Reporting
Standards ("IFRS") in issue as adopted by the European Union and effective at 31
March 2010. These statements do not constitute statutory accounts within the
meaning of section 435 of the Companies Act 2006, but have been derived from
those accounts. Statutory accounts for the years ended 31 March 2010 and 31
March 2009 have been reported on by the Independent Auditors. The Independent
Auditors' Report on the Annual Report and Financial Statements for 2009 was
unqualified, did not draw attention to any matters by way of emphasis, and did
not contain a statement under 237(2) or 237(3) of the Companies Act 1985. The
Independent Auditors' Report on the Annual Report and Financial Statements for
2010 was unqualified, did not draw attention to any matters by way of emphasis,
and did not contain a statement under 498(2) or 498(3) of the Companies Act
2006. Statutory accounts for the year ended 31 March 2009 have been delivered
to the Registrar of Companies but those for the year ended 31 March 2010 have
not yet been delivered.
2. Categories of financial assets and financial liabilities
+------------------------------------+---------------------------+---------------------------+
| | Loans and receivables |
+------------------------------------+-------------------------------------------------------+
| | 31 March 2010 | 31 March 2009 |
+------------------------------------+---------------------------+---------------------------+
| Current financial assets | GBP'000 | GBP'000 |
+------------------------------------+---------------------------+---------------------------+
| Trade receivables | 1,217 | 1,020 |
+------------------------------------+---------------------------+---------------------------+
| Other receivables | 45 | 27 |
+------------------------------------+---------------------------+---------------------------+
| Loans and receivables | 2 | 1,620 |
+------------------------------------+---------------------------+---------------------------+
| Short-term investments | 1,821 | 2,821 |
+------------------------------------+---------------------------+---------------------------+
| Cash and cash equivalents | 2,067 | 2,421 |
+------------------------------------+---------------------------+---------------------------+
| Total current financial assets | 5,152 | 7,909 |
+------------------------------------+---------------------------+---------------------------+
| | | |
+------------------------------------+---------------------------+---------------------------+
| Non-current financial assets | | |
+------------------------------------+---------------------------+---------------------------+
| Loans and receivables | 2,925 | 1,700 |
+------------------------------------+---------------------------+---------------------------+
| Total non-current financial assets | 2,925 | 1,700 |
+------------------------------------+---------------------------+---------------------------+
| | | |
+------------------------------------+---------------------------+---------------------------+
| Total financial assets | 8,077 | 9,609 |
+------------------------------------+---------------------------+---------------------------+
| | | |
+------------------------------------+---------------------------+---------------------------+
| Financial liabilities | | |
+------------------------------------+---------------------------+---------------------------+
| Trade payables | (501) | (1,980) |
+------------------------------------+---------------------------+---------------------------+
| Other payables | (302) | (27) |
+------------------------------------+---------------------------+---------------------------+
| Obligations under finance lease | (1) | (3) |
+------------------------------------+---------------------------+---------------------------+
| | | |
+------------------------------------+---------------------------+---------------------------+
| Total financial liabilities | (804) | (2,010) |
+------------------------------------+---------------------------+---------------------------+
3. Cash flow from operating activities
+---------------------------------------+----------+----------+
| | 2010 | 2009 |
+---------------------------------------+----------+----------+
| | GBP'000 | GBP'000 |
+---------------------------------------+----------+----------+
| Cash flows from operating activities | | |
+---------------------------------------+----------+----------+
| Loss after taxation | (118) | (878) |
+---------------------------------------+----------+----------+
| Loss on disposal of business | 30 | 129 |
| operations | | |
+---------------------------------------+----------+----------+
| Interest income | (398) | (433) |
+---------------------------------------+----------+----------+
| Interest paid | 3 | - |
+---------------------------------------+----------+----------+
| Taxation recognised in income | - | 45 |
| statement | | |
+---------------------------------------+----------+----------+
| Depreciation of property, plant and | 529 | 474 |
| equipment | | |
+---------------------------------------+----------+----------+
| Amortisation of intangible assets | 157 | 121 |
+---------------------------------------+----------+----------+
| Share based payments | 44 | 54 |
+---------------------------------------+----------+----------+
| Exchange differences | (8) | (20) |
+---------------------------------------+----------+----------+
| Operating profit / (loss) before | 239 | (508) |
| changes in working capital and | | |
| provisions | | |
+---------------------------------------+----------+----------+
| (Increase) / decrease in inventories | (1) | 9 |
+---------------------------------------+----------+----------+
| (Increase) / decrease in trade and | (801) | 1,687 |
| other receivables | | |
+---------------------------------------+----------+----------+
| Decrease in trade and other payables | (657) | (4,086) |
+---------------------------------------+----------+----------+
| Increase in provisions | 241 | 62 |
+---------------------------------------+----------+----------+
| Net cash utilised in operating | (979) | (2,836) |
| activities | | |
+---------------------------------------+----------+----------+
| | | |
+---------------------------------------+----------+----------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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