TIDMOTV
RNS Number : 6978O
Otium Ventures PLC
02 July 2010
OTIUM VENTURES PLC (formerly Hertford International Group Plc) (the "Company")
Final Results and Restoration of Trading
Results for the year ended 31 December 2009
Otium Ventures Plc (formerly Hertford International Group Plc (previous ticker:
HIG.L; ticker, from 2 July 2010: OTV ), an AIM listed financial services
company, is pleased to announce its results for the year ended 31 December 2009.
Highlights:
· Gross profit of GBP481,848 for the year
· Operating Loss of GBP3,468,926 after administrative expenses of
GBP2,738,869 and exceptional items of GBP1,211,905
· Loss before taxation of GBP3,625,220
Post Year End:
· Approval by shareholders and creditors of a Company Voluntary Arrangement
(CVA) paying creditors two pence in the pound.
· Liquidation of Crewcard Network subsidiary and disposal of majority
shareholding in Crewcall Network subsidiary.
Commenting on the results, Chairman Len Russell said: "Otium Ventures Plc is now
a clean vehicle, which intends to acquire or invest in assets in the leisure,
gaming and betting sectors, where its expertise in financial services and
payment systems may be of value."
Following approval by shareholders of change of name, the Company's ticker will
change to OTV and the new Company name, Otium Ventures Plc, will be effective on
AIM from 8.00 a.m. on 2 July 2010. In conjunction with this change, the
Company's website at which the information required by Rule 26 of the AIM Rules
for Companies will change to www.otiumventures.com, with effect from today.
Copies of the Report and Accounts are today being distributed to shareholders
and are available from: www.otiumventures.com
Restoration to trading on AIM
The restoration to trading on AIM of the Company's shares, following the
temporary suspension announced earlier today, is expected to occur at 08:00a.m.,
today, Friday 2nd July 2010.
Enquiries:
Alex Lubin / Paul Seakens tel: 020 3005 9924
Otium Ventures Plc
(formerly Hertford International Group Plc)
Nick Tulloch tel: 020 7012 2000
Arbuthnot Securities
CHAIRMAN'S STATEMENT
Introduction
During the year Hertford International Group Plc, now renamed Otium Ventures Plc
("The Company"), acquired Cheque Exchange Limited (CEL) a subsidiary of
Provident Financial Plc, a provider of cheque cashing and money remittance
services. This acquisition involved a cash payment in a number of tranches of
which the second was due by the end of July 2009. Due to market conditions and
the effect of the recession on demand for prepaid debit cards and cheque cashing
facilities the Company was unable to raise finance to complete the acquisition.
As a result of this CEL was returned to Provident ownership.
In view of the economic backdrop the Company decided to withdraw directly from
the direct provision of pre-paid debit cards and its subsidiary Crewcard Network
Limited was placed into liquidation. However the Company remains active in the
prepaid debit cards market via a joint venture with Prepaid Financial Solutions.
This will ensure a share of revenue should the pre-paid debit card market
develop in the way the Company expected them to.
In light of the above the board undertook a restructuring of the Company's
activities and with the support of its primary lender proposed a Company
Voluntary Arrangement ("CVA"), which was approved by shareholders and creditors
on the 12th May 2010 after the end of the year covered by these accounts.
Lewis Findlay and Adam Dougall resigned from the board during this year and Paul
Marks resigned in April 2010 all as part of the restructuring of the business.
The CVA leaves the company virtually debt free excepting for the remaining sums
due to its primary lender. This lender has indicated, subject to certain
conditions being met, it will swap the remaining debt into equity upon
completion of a transaction.
Summary of Financial Statements
Our turnover for the year was GBP840,275 and after direct expenses we report a
gross profit of GBP481,848. With administrative expenses and exceptional items
totalling GBP3,950,774, the reported operating loss for the year of GBP3,625,220
largely represents a discontinued activity. Our net finance costs after
investment income were GBP156,294 creating a total loss for the Year of
GBP3,625,220, equivalent to a 7.6 pence loss per share. No dividend is being
recommended.
Balance Sheet & Cash Flow
The net current liability position of the Group was GBP567,644 with total net
liabilities of GBP2,317,644. During the year the company raised a total of
GBP1,365,050 being GBP865,050 through the issuance of shares and GBP500,000
through the increase of Convertible Loan Note Facilities. The Directors have
secured an undertaking from Palmdale Investments Inc to provide the working
capital requirements the Company needs to secure the medium-term plans of the
Company.
Current Trading & Outlook
Otium Ventures Plc is now a clean vehicle, which intends to acquire or invest in
assets in the leisure, gaming and betting sectors where its expertise in
financial services and payment systems may be of value. In addition it may be
able to utilise its existing tax losses.
Len Russell
Chairman
1 July 2010
DIRECTORS' REPORT
The directors present their report and the audited financial statements for the
year ended 31 December 2009.
Principal activities
The company was previously a provider of alternative financial services,
however, following disposal of its subsidiaries and the approval of shareholders
at a meeting on 12 May 2010, the company is now adopting an investing policy
pursuant to AIM Rule 15.
Business review
A review of the business and future developments is contained in The Chairman's
Statement.
Principal risks and uncertainties
As the Group is currently inactive the principal financial risks are limited
only to liquidity risk at this time. Details of these are provided in note 2 to
the financial statement.
Results and dividends
The results for the year are set out in the consolidated income statements. The
directors do not recommend the payment of a dividend.
Post balance sheet events
1. On 17th February 2010 Crewcard Network Limited, a wholly owned subsidiary
of the company, was placed into creditors voluntary liquidation.
2. On 15th May 2010 a proposal by the Directors to place the company into a
Voluntary Arrangement was accepted by creditors and shareholders. The proposal
will result in a payment to creditors of two pence in the pound.
3. On 12th May 2010 shareholders voted in favour of a change of name for the
company from Hertford International Group Plc to Otium Ventures Plc. Companies
House effected the change of name on 22 June 2010.
4. On 10th March 2010 the company disposed of a 55% share in Crewcall Network
Limited, previously a wholly owned subsidiary, for GBP1. Also on the 19th March
2010 the company disposed of Crewcall Telecoms Limited, also a wholly owned
subsidiary, for the sum of GBP1.
5. On 20th May 2010 the company appointed Len Russell as a non-executive
director and chairman.
Capital structure
Details of the company's share capital, including shares issued in the year, are
shown in note 21 to the financial statements.
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF OTIUM VENTURES PLC
We have audited the financial statements of Otium Ventures plc for the year
ended 31 December 2009 which comprise the consolidated income statement, the
consolidated and parent company balance sheets, the consolidated cash flow
statement, the group and parent company statements of changes in equity and the
related notes. The financial reporting framework that has been applied in their
preparation is applicable law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union.
Respective responsibilities of directors and auditors
As explained more fully in the statement of directors' responsibilities set out
on page 7, the directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view. Our
responsibility is to audit the financial statements in accordance with
applicable law and International Standards on Auditing (UK and Ireland). Those
standards require us to comply with the Auditing Practices Board's (APB's)
Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the
financial statements sufficient to give reasonable assurance that the financial
statements are free from material misstatement, whether caused by fraud or
error. This includes an assessment of: whether the accounting policies are
appropriate to the group's and the parent company's circumstances and have been
consistently applied and adequately disclosed; the reasonableness of significant
accounting estimates made by the directors; and the overall presentation of the
financial statements.
Qualified opinion on financial statements arising from limitation in audit scope
During the year under review, the company acquired 100% of the issued shares of
Cheque Exchange Limited from Provident Financial plc. As explained in note 13 to
the financial statements, before the end of the financial year, control of
Cheque Exchange Limited was transferred from the company back to Provident
Financial plc with the result that during our audit we were unable to obtain
full access to the accounting records of Cheque Exchange Limited. Our audit was
limited because we were unable to audit a significant proportion of the
consolidated income statement deriving from the income, cost of sales and
administrative expenses of Cheque Exchange Limited. Given that Cheque Exchange
Limited was not a member of the group at the end of the financial year and its
assets and liabilities have not been included in the consolidated balance sheet,
our audit of the consolidated balance sheet was not limited in scope.
Except for the financial effects of such adjustments, if any, as might have been
determined to be necessary had we been able to satisfy ourselves as to the
amounts included in the consolidated income statement deriving from Cheque
Exchange Limited, in our opinion the financial statements:
- give a true and fair view of the state of the group's and of the parent
company's affairs as at 31 December 2009 and of the group's loss for the year
then ended;
- have been properly prepared in accordance with IFRSs as adopted by the
European Union; and
- have been prepared in accordance with the requirements of the Companies
Act 2006 and, as regards the group financial statements, Article 4 of the IAS
Regulation.
Emphasis of matter - Going concern
In forming our opinion on the financial statements, we have considered the
adequacy of the disclosure made in note 1 to the financial statements concerning
the company's ability to continue as a going concern. At 31 December 2009 the
group's current liabilities exceeded its total assets by GBP567,644. The company
entered a Company Voluntary Arrangement on 12 May 2010 reducing its liabilities
at that date by 98%. These conditions indicate the existence of a material
uncertainty that may cast significant doubt about the group's ability to
continue as a going concern. The financial statements do not include the
adjustments that would result if the group was unable to continue as a going
concern.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Directors' Report for the financial
year for which the financial statements are prepared is consistent with the
financial statements.
Matters on which we are required to report by exception
In respect solely of the limitation on our audit work relating to the accounting
records of Cheque Exchange Limited, described above:
- we have not obtained all the information and explanations that we
considered necessary for the purpose of our audit; and
- we were unable to determine whether adequate accounting records had been
kept.
We have nothing to report in respect of the following matters where the
Companies Act 2006 requires us to report to you if, in our opinion:
- returns adequate for our audit have not been received from branches not
visited by us; or
- the financial statements are not in agreement with the accounting records
and returns; or
- certain disclosures of directors' remuneration are not made.
Andrew Seton (Senior Statutory Auditor)
for and on behalf of Clarkson Hyde LLP,
Chartered Accountants and
Statutory Auditor
70 Conduit Street
London
W1S 2GF
Date 1st July 2010
CONSOLIDATED INCOME STATEMENT
+-----------------------+-------+------+-------------+-----+-------------+
| |Notes | | Year to | | 15 |
| | | | 31 | | months |
| | | | December | | to |
| | | | 2009 | | 31 |
| | | | | | December |
| | | | | | 2008 |
+-----------------------+-------+------+-------------+-----+-------------+
| | | | GBP | | GBP |
+-----------------------+-------+------+-------------+-----+-------------+
| Discontinued | | | | | |
| Operations | | | | | |
+-----------------------+-------+------+-------------+-----+-------------+
| Revenue | | | 840,275 | | 144,270 |
+-----------------------+-------+------+-------------+-----+-------------+
| Cost of sales | | | (358,427) | | (209,141) |
+-----------------------+-------+------+-------------+-----+-------------+
| Gross profit | | | 481,848 | | (64,871) |
+-----------------------+-------+------+-------------+-----+-------------+
| Administrative | | | (2,738,869) | | (1,712,014) |
| expenses | | | | | |
+-----------------------+-------+------+-------------+-----+-------------+
| Exceptional costs | 5 | | (1,211,905) | | (251,870) |
+-----------------------+-------+------+-------------+-----+-------------+
| Operating loss | 4 | | (3,468,926) | | (2,028,755) |
+-----------------------+-------+------+-------------+-----+-------------+
| Investment income | 6 | | - | | 28,195 |
+-----------------------+-------+------+-------------+-----+-------------+
| Finance costs | 7 | | (156,294) | | (52,814) |
+-----------------------+-------+------+-------------+-----+-------------+
| Loss before taxation | | | (3,625,220) | | (2,053,374) |
+-----------------------+-------+------+-------------+-----+-------------+
| Taxation | 10 | | - | | - |
+-----------------------+-------+------+-------------+-----+-------------+
| Loss for the | | | (3,625,220) | | (2,053,374) |
| financial year | | | | | |
+-----------------------+-------+------+-------------+-----+-------------+
| | | | | | |
+-----------------------+-------+------+-------------+-----+-------------+
| Loss per share - | 11 | | (7.6p) | | (5.5p) |
| basic and diluted | | | | | |
+-----------------------+-------+------+-------------+-----+-------------+
The company has elected to take the exemption under section 408 of the Companies
Act 2006 not to present the parent company profit and loss account.
The loss for the parent company for the year was GBP5,259,869 (2008:
GBP166,300).
CONSOLIDATED BALANCE SHEET
+-----------------------+-----+------+-------------+-----+-------------+
| | | | As at | | As at |
| | | | 31 | | 31 |
| | | | December | | December |
| | | | 2009 | | 2008 |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | GBP | | GBP |
+-----------------------+-----+------+-------------+-----+-------------+
| Non current assets | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Property, plant and | | 12 | - | | 86,922 |
| equipment | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Intangible fixed | | 14 | - | | 1,386,872 |
| assets | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | - | | 1,473,794 |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Current assets | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Inventories | | 16 | - | | 59,339 |
+-----------------------+-----+------+-------------+-----+-------------+
| Trade and other | | 17 | 6,539 | | 553,167 |
| receivables | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Cash and cash | | 18 | 9,632 | | 192,096 |
| equivalents | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | 16,171 | | 804,602 |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Current liabilities | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Trade and other | | 19 | (583,815) | | (603,627) |
| payables | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Net current | | | (567,644) | | 200,975 |
| (liabilities)/assets | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Non-current | | | | | |
| liabilities | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Non-current | | 20 | (1,750,000) | | (1,232,243) |
| borrowings | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Net assets | | | (2,317,644) | | 442,526 |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Equity | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Share capital | | 21 | 484,420 | | 426,750 |
+-----------------------+-----+------+-------------+-----+-------------+
| Share premium | | | 2,710,230 | | 1,902,850 |
+-----------------------+-----+------+-------------+-----+-------------+
| Retained earnings | | | (5,512,294) | | (1,887,074) |
+-----------------------+-----+------+-------------+-----+-------------+
| Equity attributable | | | (2,317,644) | | 442,526 |
| to equity holders of | | | | | |
| the parent | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Approved by the Board | | | | | |
| on 1 July 2010 and | | | | | |
| signed on its behalf | | | | | |
| by | | | | | |
| Paul Seakens | | | | | |
| Director | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
COMPANY BALANCE SHEET
+-----------------------+-----+------+-------------+-----+-------------+
| | | | As at | | As at |
| | | | 31 | | 31 |
| | | | December | | December |
| | | | 2009 | | 2008 |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | GBP | | GBP |
+-----------------------+-----+------+-------------+-----+-------------+
| Non current assets | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Investment in | | 13 | - | | 326,600 |
| subsidiaries | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Current assets | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Trade and other | | 17 | 6,537 | | 3,235,243 |
| receivables | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Cash and cash | | 18 | 8,623 | | - |
| equivalents | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | 15,160 | | 3,235,243 |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Current Liabilities | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Trade and other | | | (330,380) | | - |
| payables | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Net current | | | (315,220) | | 3,235,243 |
| (liabilities)/assets | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | | | |
| | | | | | |
| | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Non-current | | | | | |
| liabilities | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Non-current | | 20 | (1,750,000) | | (1,232,243) |
| borrowings | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Net assets | | | (2,065,220) | | 2,329,600 |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Equity | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Share capital | | 21 | 484,420 | | 426,750 |
+-----------------------+-----+------+-------------+-----+-------------+
| Share premium | | | 2,710,230 | | 1,902,850 |
+-----------------------+-----+------+-------------+-----+-------------+
| Retained earnings | | | (5,259,870) | | - |
+-----------------------+-----+------+-------------+-----+-------------+
| Equity shareholders' | | | (2,065,220) | | 2,329,600 |
| funds | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Approved by the Board | | | | | |
| on 1 July 2010 and | | | | | |
| signed on its behalf | | | | | |
| by Paul Seakens | | | | | |
| Director | | | | | |
| | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
| Company Number: | | | | | |
| 05874310 | | | | | |
+-----------------------+-----+------+-------------+-----+-------------+
CONSOLIDATED CASH FLOW STATEMENT
+--+---------------------------+-+------+----+-------------+-----+-------------+
| | | | Year to | | 15 |
| | | | 31 | | months |
| | | | December | | to |
| | | | 2009 | | 31 |
| | | | | | December |
| | | | | | 2008 |
+------------------------------+--------+----+-------------+-----+-------------+
| | | | GBP | | GBP |
+------------------------------+--------+----+-------------+-----+-------------+
| Cash flows from operating | | | | | |
| activities | | | | | |
+------------------------------+--------+----+-------------+-----+-------------+
| Loss before taxation | | | (3,625,220) | | (2,053,374) |
+------------------------------+--------+----+-------------+-----+-------------+
| Adjustments for : | | | | | |
+------------------------------+--------+----+-------------+-----+-------------+
| | Depreciation | | | 215,312 | | 31,728 |
+--+---------------------------+--------+----+-------------+-----+-------------+
| | Amortisation | | | 1,566,189 | | - |
+--+---------------------------+--------+----+-------------+-----+-------------+
| | Profit on disposal of | | | (119,217) | | (25,410) |
| | investment | | | | | |
+--+---------------------------+--------+----+-------------+-----+-------------+
| | Investment income | | | - | | (28,195) |
+--+---------------------------+--------+----+-------------+-----+-------------+
| | Interest expense | | | 156,294 | | 52,814 |
+--+---------------------------+--------+----+-------------+-----+-------------+
| | Share based payment | | - | | 166,300 |
+--+------------------------------------+----+-------------+-----+-------------+
| | Decrease/(increase) in trade and | | 489,080 | | (414,019) |
| | other receivables | | | | |
+--+------------------------------------+----+-------------+-----+-------------+
| | Decrease in inventories | | | 59,339 | | 23,343 |
+--+---------------------------+--------+----+-------------+-----+-------------+
| | Increase in trade and other | | (19,812) | | 80,245 |
| | payables | | | | |
+--+------------------------------------+----+-------------+-----+-------------+
| Cash used in operations | | | (1,278,035) | | (2,166,568) |
+--------------------------------+------+----+-------------+-----+-------------+
| Interest paid | | | (156,294) | | (52,814) |
+--------------------------------+------+----+-------------+-----+-------------+
| Net cash used in operating | | | (1,434,329) | | (2,219,382) |
| activities | | | | | |
+--------------------------------+------+----+-------------+-----+-------------+
| | | | | | |
+--------------------------------+------+----+-------------+-----+-------------+
| Cash flows from investing | | | | | |
| activities | | | | | |
+--------------------------------+------+----+-------------+-----+-------------+
| Acquisition of subsidiaries, net of | | (642,000) | | 83,961 |
| cash acquired | | | | |
+---------------------------------------+----+-------------+-----+-------------+
| Interest received | | - | | 28,195 |
+---------------------------------------+----+-------------+-----+-------------+
| Purchase of intangible assets | | - | | (21,982) |
+---------------------------------------+----+-------------+-----+-------------+
| Purchase of property, plant and | | (96,942) | | (10,376) |
| equipment | | | | |
+---------------------------------------+----+-------------+-----+-------------+
| Proceeds from sale of property, plant | | - | | 25,410 |
| and equipment | | | | |
+---------------------------------------+----+-------------+-----+-------------+
| Net cash used in investing | | | (738,942) | | 105,208 |
| activities | | | | | |
+------------------------------+--------+----+-------------+-----+-------------+
| | | | | | |
+------------------------------+--------+----+-------------+-----+-------------+
| Cash flows from financing | | | | | |
| activities | | | | | |
+------------------------------+--------+----+-------------+-----+-------------+
| Net new long term loans | | | 1,125,757 | | 303,270 |
| received | | | | | |
+------------------------------+--------+----+-------------+-----+-------------+
| Issue of shares | | | 865,050 | | 2,003,000 |
+------------------------------+--------+----+-------------+-----+-------------+
| Net cash from financing | | | 1,990,807 | | 2,306,270 |
| activities | | | | | |
+------------------------------+--------+----+-------------+-----+-------------+
| | | | | | |
+------------------------------+--------+----+-------------+-----+-------------+
| Net (decrease)/increase in cash and | | (182,464) | | 192,096 |
| cash equivalents | | | | |
+---------------------------------------+----+-------------+-----+-------------+
| Cash and cash equivalents at | | 192,096 | | - |
| beginning of the year | | | | |
+---------------------------------------+----+-------------+-----+-------------+
| Cash and cash equivalents at end of | | 9,632 | | 192,096 |
| the year | | | | |
+---------------------------------------+----+-------------+-----+-------------+
| | | | | | | | |
+--+---------------------------+-+------+----+-------------+-----+-------------+
STATEMENTS OF CHANGES IN EQUITY
GROUP
+-----------------------+----------+-------------+---------+-----------+-------------+
| | | Retained | Share | Share | Total |
| | | earnings | capital | premium | |
+-----------------------+----------+-------------+---------+-----------+-------------+
| | | GBP | GBP | GBP | GBP |
+-----------------------+----------+-------------+---------+-----------+-------------+
| As at 31 December | | (1,887,074) | 426,750 | 1,902,850 | 442,526 |
| 2008 | | | | | |
+-----------------------+----------+-------------+---------+-----------+-------------+
| Ordinary shares | | - | 57,670 | 807,380 | 865,050 |
| issued in the year | | | | | |
+-----------------------+----------+-------------+---------+-----------+-------------+
| Loss for the year | | (3,625,220) | - | - | (3,625,220) |
+-----------------------+----------+-------------+---------+-----------+-------------+
| As at 31 December | | (5,512,294) | 484,420 | 2,710,230 | (2,317,644) |
| 2009 | | | | | |
+-----------------------+----------+-------------+---------+-----------+-------------+
| | | | | | |
+-----------------------+----------+-------------+---------+-----------+-------------+
COMPANY
+-----------------------+----------+-------------+---------+-----------+-------------+
| | | Retained | Share | Share | Total |
| | | earnings | capital | premium | |
+-----------------------+----------+-------------+---------+-----------+-------------+
| | | GBP | GBP | GBP | GBP |
+-----------------------+----------+-------------+---------+-----------+-------------+
| As at 31 December | | - | 426,750 | 1,902,850 | 2,329,600 |
| 2008 | | | | | |
+-----------------------+----------+-------------+---------+-----------+-------------+
| Loss for the year | | (5,259,870) | - | - | (5,259,870) |
+-----------------------+----------+-------------+---------+-----------+-------------+
| Ordinary shares | | - | 57,670 | 807,380 | 865,050 |
| issued in the year | | | | | |
+-----------------------+----------+-------------+---------+-----------+-------------+
| As at 31 December | | (5,259,870) | 484,420 | | (2,065,220) |
| 2009 | | | | 2,710,230 | |
| | | | | | |
+-----------------------+----------+-------------+---------+-----------+-------------+
| | | | | | |
+-----------------------+----------+-------------+---------+-----------+-------------+
NOTES TO THE FINANCIAL STATEMENTS
1. Accounting policies
Basis of preparation:
The consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRSs) as adopted by the European
Union, and with those parts of the Companies Act 2006 applicable to companies
reporting under IFRS. The financial statements have been prepared on the
historical cost basis.
The preparation of financial statements in conformity with generally accepted
accounting principles requires the use of estimates and assumptions that effect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting year. Although these estimates are based on managements' best
knowledge of the amount, events or actions, actual results ultimately may differ
from those of estimates.
Going concern:
The Group incurred a loss after tax of GBP3,625,220 during the year ended 31
December 2009. The directors have prepared trading and cash flow forecasts for
the Group for the year to 30 June 2011.
After the end of the year, the company and its creditors agreed a voluntary
arrangement to cap the company's liabilities at the rate of 2p in the Pound. At
the date of approval of these financial statements, the voluntary arrangement
had not yet been concluded. Also, the directors are confident that the principal
lender, Palmdale Investments Inc, will continue to provide financial support to
the company for the foreseeable future. As a result the directors believe that
the company will continue in operational existence and that it is therefore
appropriate to prepare these financial statements on the going concern basis.
Basis of consolidation:
The consolidated financial statements incorporate the results of the Company and
its subsidiary undertakings as at 31 December 2009 and exclude all intra-group
transactions and balances. The results of subsidiary undertakings are included
from the date of acquisition. The results of subsidiary undertakings disposed of
are included up to the date of disposal.
Goodwill:
Goodwill represents any excess of the cost of acquisition over the fair value of
the identifiable assets and liabilities acquired. Goodwill is tested annually
for impairment and is carried at cost less accumulated impairment losses.
Property, plant and equipment
Property, plant and equipment are stated at cost net of accumulated depreciation
and any provision for impairment. Depreciation is provided at rates calculated
to write off the cost, less an estimated residual value, of the assets over
their estimated useful lives at the following rates:
+-----------------------+------------------------------------------+
| Web site development | 25% straight line |
+-----------------------+------------------------------------------+
| Office equipment | 25% straight line |
+-----------------------+------------------------------------------+
| Motor vehicles | 25% straight line |
+-----------------------+------------------------------------------+
Patents
Patents are valued at cost less accumulated amortisation. Amortisation is
calculated to write off the cost in equal annual instalments over their
estimated useful lives.
Development costs
Development expenditure is written off in the year in which it is incurred
unless the directors are satisfied as to the technical, commercial and financial
viability of individual projects. In this situation, the expenditure is deferred
and amortised over the period during which the company is expected to benefit.
Inventories
Inventories are valued at the lower of cost and net realisable value.
Leased assets
Rentals under operating leases are charged to the income statement on a
straight-line basis over the lease term. All of the Group's current leases are
operating leases.
Foreign currency
Foreign currency transactions are recorded at the rate of exchange at the time
of the transaction. Monetary assets and liabilities denominated in foreign
currencies at the balance sheet date are reported at the rates of exchange
prevailing at that date. Exchange differences arising on the retranslation of
unsettled monetary assets and liabilities are recognised immediately in the
income statement.
Financial instruments
Financial assets and liabilities are recognised at fair value in the Group's
balance sheet when the Group becomes a party to the contractual provisions of
the instrument.
The Group classifies its financial instruments into loans and receivables
(comprising cash and trade receivables) and other liabilities (comprising loan
notes and trade payables).
Trade and other receivables
Trade and other receivables do not carry any interest and are stated at their
nominal value unadjusted to reflect discounting for the time value of cash flows
recoverable and are reduced by appropriate allowances for estimated
irrecoverable amounts.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and deposits which are readily
convertible to known amounts of cash and which are subject to insignificant risk
of changes in value and have an original maturity of three months or less at
acquisition. Bank overdrafts are included within current liabilities unless
there is a right of offset with cash balances.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. An equity instrument is
any contract that evidences a residual interest in the assets of the group after
deducting all of its liabilities.
Trade and other payables
Trade payables are not interest bearing and are stated at their nominal value.
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received,
net of direct issue costs.
Share based payments
Share options awarded to employees are measured at fair value at grant date
using the Black-Scholes model. Inputs to the model are based on management's
best estimates of appropriate volatility, discount rate and share price growth.
The fair value is expensed on a straight-line basis over the vesting period,
based on an estimate of the number of options that will eventually vest.
Cash-settled share based payment transactions result in the recognition of a
liability at its current fair value.
2. Financial risk management
The Group is exposed through its operations to one or more of the following
financial risks that arise from its use of financial instruments. A risk
management programme has been established to protect the Group against the
potential adverse effects of these financial risks.
Credit risk
Due to limited invoiced sales up to 31 December 2009, the Group is not exposed
to significant credit risk. Trade debtors at 31 December 2009 amounted to
GBP1,118.
Liquidity risk
Liquidity risk arises from the Group's management of working capital and finance
charges. It is the risk that the Group will encounter difficulty in meeting its
financial obligations as they fall due. The liquidity risk is managed centrally
by the finance function. Budgets are set and are agreed by the Board. As at 31
December 2009, the Group had cash and cash equivalents amounting to GBP9,632.
Interest rate risk
The Group's external borrowings at 31 December 2009 comprise a loan bearing
interest at a fixed rate of 10% p.a.
Foreign currency risk
The Group has no significant foreign currency risk.
3.Segment Reporting
The Group's turnover and operating loss for the year are derived wholly from the
company's principal activity, alternative financial services, and were generated
wholly within the United Kingdom. The directors do not consider that there are
any distinguishable geographical or business segments for reporting purposes.
4. Operating loss
+----------+--------------------------------+--+----------+----+----------+
| | | Year to | | 15 |
| | | | | months |
| | | 31 | | to |
| | | December | | 31 |
| | | 2009 | | December |
| | | | | 2008 |
+-------------------------------------------+--+----------+----+----------+
| | | GBP | | GBP |
+-------------------------------------------+--+----------+----+----------+
| The operating loss was stated after | | | | |
| charging: | | | | |
+-------------------------------------------+--+----------+----+----------+
| Depreciation | | 215,312 | | 31,728 |
+-------------------------------------------+--+----------+----+----------+
| Auditors remuneration: | | | | |
+-------------------------------------------+--+----------+----+----------+
| - | fees payable to the group's | | 8,500 | | 10,000 |
| | auditor for the audit of the | | | | |
| | group's annual accounts | | | | |
+----------+--------------------------------+--+----------+----+----------+
| - | non audit fees relating to tax | | 5,253 | | 7,597 |
| | services | | | | |
+----------+--------------------------------+--+----------+----+----------+
| - | non audit fees relating to due | | - | | 21,539 |
| | diligence services | | | | |
+----------+--------------------------------+--+----------+----+----------+
5. Exceptional costs
+----------------------------------+--+-----------+----+----------+
| | | Year to | | 15 |
| | | | | months |
| | | 31 | | to |
| | | December | | 31 |
| | | 2009 | | December |
| | | | | 2008 |
+----------------------------------+--+-----------+----+----------+
| | | GBP | | GBP |
+----------------------------------+--+-----------+----+----------+
| Amortisation of goodwill | | 1,364,890 | | - |
| relating to Crewcard Network Ltd | | | | |
+----------------------------------+--+-----------+----+----------+
| Profit on disposal of investment | | (119,217) | | - |
| in Cheque Exchange Ltd | | | | |
+----------------------------------+--+-----------+----+----------+
| Recovery of VAT previously | | (77,440) | | - |
| charged to administrative | | | | |
| expenses | | | | |
+----------------------------------+--+-----------+----+----------+
| Write down of stock held by | | 26,460 | | - |
| Crewcall Network Ltd | | | | |
+----------------------------------+--+-----------+----+----------+
| Loss on disposal of debt to | | 17,212 | | - |
| Cheque Exchange Ltd | | | | |
+----------------------------------+--+-----------+----+----------+
| Expenses incurred relating to | | - | | 251,870 |
| AIM admission and raising of | | | | |
| funds in December 2007 | | | | |
+----------------------------------+--+-----------+----+----------+
| | | 1,211,905 | | 251,870 |
+----------------------------------+--+-----------+----+----------+
6. Investment income
+----------------------------------+--+----------+----+----------+
| | | Year to | | 15 |
| | | | | months |
| | | 31 | | to |
| | | December | | 31 |
| | | 2009 | | December |
| | | | | 2008 |
+----------------------------------+--+----------+----+----------+
| | | GBP | | GBP |
+----------------------------------+--+----------+----+----------+
| Interest on short term bank | | - | | 28,195 |
| deposits | | | | |
+----------------------------------+--+----------+----+----------+
7. Finance costs
+----------------------------------+--+----------+----+----------+
| | | Year to | | 15 |
| | | | | months |
| | | 31 | | to |
| | | December | | 31 |
| | | 2009 | | December |
| | | | | 2008 |
+----------------------------------+--+----------+----+----------+
| | | GBP | | GBP |
+----------------------------------+--+----------+----+----------+
| Interest on borrowings | | 156,294 | | 52,814 |
+----------------------------------+--+----------+----+----------+
8. Information regarding directors and employees
+----------------------------------+--+-----------+----+----------+
| | | Year to | | 15 |
| | | | | months |
| | | 31 | | to |
| | | December | | 31 |
| | | 2009 | | December |
| | | | | 2008 |
+----------------------------------+--+-----------+----+----------+
| | | No. | | No. |
+----------------------------------+--+-----------+----+----------+
| The average number of persons | | | | |
| (including directors) employed | | | | |
| by the group during the year | | | | |
| was: | | | | |
+----------------------------------+--+-----------+----+----------+
| Management and administration | | 12 | | 14 |
+----------------------------------+--+-----------+----+----------+
| | | | | |
+----------------------------------+--+-----------+----+----------+
| | | GBP | | GBP |
+----------------------------------+--+-----------+----+----------+
| Aggregate employee costs | | | | |
| (including directors) were: | | | | |
+----------------------------------+--+-----------+----+----------+
| Wages and salaries | | 1,170,056 | | 682,371 |
+----------------------------------+--+-----------+----+----------+
| Social security costs | | 131,068 | | 72,938 |
+----------------------------------+--+-----------+----+----------+
| Share based payments | | - | | 166,300 |
+----------------------------------+--+-----------+----+----------+
| | | 1,301,124 | | 921,609 |
+----------------------------------+--+-----------+----+----------+
| | | | | |
+----------------------------------+--+-----------+----+----------+
9. Directors' remuneration
+----------------------------------+--+----------+----+----------+
| | | Year to | | 15 |
| | | | | months |
| | | 31 | | to |
| | | December | | 31 |
| | | 2009 | | December |
| | | | | 2008 |
+----------------------------------+--+----------+----+----------+
| | | GBP | | GBP |
+----------------------------------+--+----------+----+----------+
| Directors' remuneration during | | | | |
| the year was: | | | | |
+----------------------------------+--+----------+----+----------+
| Emoluments | | 328,950 | | 284,014 |
+----------------------------------+--+----------+----+----------+
| Compensation for loss of office | | 77,705 | | 30,000 |
+----------------------------------+--+----------+----+----------+
| | | 406,655 | | 314,014 |
+----------------------------------+--+----------+----+----------+
| Highest paid director's | | | | |
| remuneration; | | | | |
+----------------------------------+--+----------+----+----------+
| Emoluments | | 120,000 | | 81,731 |
+----------------------------------+--+----------+----+----------+
10. Taxation
+----------------------------------+--+-------------+----+-------------+
| | | Year to | | 15 |
| | | | | months |
| | | 31 | | to |
| | | December | | 31 |
| | | 2009 | | December |
| | | | | 2008 |
+----------------------------------+--+-------------+----+-------------+
| | | GBP | | GBP |
+----------------------------------+--+-------------+----+-------------+
| UK corporation tax in respect of | | - | | - |
| current year | | | | |
+----------------------------------+--+-------------+----+-------------+
| | | | | |
+----------------------------------+--+-------------+----+-------------+
| The tax charge for the year can | | | | |
| be reconciled to the loss for | | | | |
| the year as follows: | | | | |
+----------------------------------+--+-------------+----+-------------+
| Loss before taxation | | (3,625,220) | | (2,053,374) |
+----------------------------------+--+-------------+----+-------------+
| | | | | |
+----------------------------------+--+-------------+----+-------------+
| Tax on loss at standard rate of | | (1,015,061) | | (574,945) |
| 28% | | | | |
+----------------------------------+--+-------------+----+-------------+
| Effect of: | | | | |
+----------------------------------+--+-------------+----+-------------+
| Non-deductible expenses | | 36,994 | | 110,892 |
+----------------------------------+--+-------------+----+-------------+
| Depreciation in excess of | | 10,000 | | 8,618 |
| capital allowances | | | | |
+----------------------------------+--+-------------+----+-------------+
| Tax losses carried forward | | 968,067 | | 455,435 |
+----------------------------------+--+-------------+----+-------------+
| Current tax charge | | - | | - |
+----------------------------------+--+-------------+----+-------------+
11. Loss per share
+----------------------------------+--+-------------+----+-------------+
| The basic loss per share is calculated by dividing the loss |
| attributable to equity shareholders by the weighted average |
| number of shares in issue in the year. In calculating the |
| diluted earnings per share, outstanding share options |
| warrants and convertible loans are taken into account where |
| the impact is dilutive. |
+----------------------------------------------------------------------+
| | | | | |
+----------------------------------+--+-------------+----+-------------+
| | | Year to | | 15 |
| | | | | months |
| | | 31 | | to |
| | | December | | 31 |
| | | 2009 | | December |
| | | | | 2008 |
+----------------------------------+--+-------------+----+-------------+
| | | GBP | | GBP |
+----------------------------------+--+-------------+----+-------------+
| Basic: | | | | |
+----------------------------------+--+-------------+----+-------------+
| Loss for the financial year | | (3,625,220) | | (2,053,374) |
+----------------------------------+--+-------------+----+-------------+
| Weighted average number of share | | 48,015,400 | | 37,224,749 |
| in issue | | | | |
+----------------------------------+--+-------------+----+-------------+
| Basic loss per share | | (7.6p) | | (5.5p) |
+----------------------------------+--+-------------+----+-------------+
| | | | | |
+----------------------------------+--+-------------+----+-------------+
| Fully Diluted: | | | | |
+----------------------------------+--+-------------+----+-------------+
| Loss for the financial year | | (3,625,220) | | (2,053,374) |
+----------------------------------+--+-------------+----+-------------+
| Add back interest charge on | | 128,274 | | 38,026 |
| convertible loans, net of tax | | | | |
+----------------------------------+--+-------------+----+-------------+
| Fully diluted loss for the | | (3,496,946) | | (2,015,348) |
| financial year | | | | |
+----------------------------------+--+-------------+----+-------------+
| | | | | |
+----------------------------------+--+-------------+----+-------------+
| Weighted average number of share | | 48,015,400 | | 37,224,749 |
| in issue | | | | |
+----------------------------------+--+-------------+----+-------------+
| Dilutive effect of: | | | | |
+----------------------------------+--+-------------+----+-------------+
| - convertible loan agreements | | - | | 4,118,708 |
| and warrants | | | | |
+----------------------------------+--+-------------+----+-------------+
| - share options | | - | | 652,315 |
+----------------------------------+--+-------------+----+-------------+
| | | 48,015,400 | | 41,995,772 |
+----------------------------------+--+-------------+----+-------------+
| | | | | |
+----------------------------------+--+-------------+----+-------------+
| Fully diluted loss per share | | (7.6p) | | (5.5p) |
+----------------------------------+--+-------------+----+-------------+
| |
+----------------------------------------------------------------------+
| The fully diluted loss per share is the same as the basic |
| loss per share. It is not reduced as a result of dilution. |
+----------------------------------+--+-------------+----+-------------+
12. Property, plant and equipment
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
| Group | | Web | | Motor | | Office | | Total |
| | | site | | vehicles | | equipment | | |
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
| | | GBP | | GBP | | GBP | | GBP |
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
| Cost | | | | | | | | |
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
| At 1 January 2009 | | 105,328 | | - | | 26,947 | | 132,275 |
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
| On acquisition of | | - | | 116,402 | | 342,332 | | 458,734 |
| subsidiary | | | | | | | | |
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
| Addition | | 76,028 | | - | | 20,914 | | 96,942 |
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
| Disposals | | - | | (17,554) | | - | | (17,554) |
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
| On disposal of | | - | | (98,848) | | (363,246) | | (462,094) |
| subsidiary | | | | | | | | |
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
| At 31 December 2009 | | 181,356 | | - | | 26,947 | | 208,303 |
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
| Accumulated | | | | | | | | |
| depreciation | | | | | | | | |
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
| At 1 January 2009 | | 37,612 | | - | | 7,741 | | 45,353 |
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
| On acquisition of | | - | | 73,353 | | 267,778 | | 341,131 |
| subsidiary | | | | | | | | |
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
| Charge for the year | | 143,744 | | 10,362 | | 61,206 | | 215,312 |
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
| On disposal of | | - | | (83,715) | | (309,778) | | (393,493) |
| subsidiary | | | | | | | | |
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
| At 31 December 2009 | | 181,356 | | - | | 26,947 | | 208,303 |
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
| Net book value | | | | | | | | |
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
| At 31 December 2009 | | - | | - | | - | | - |
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
| At 31 December 2008 | | 67,716 | | - | | 19,206 | | 86,922 |
+-----------------------+----------+---------+----------+------------+----------+-----------+----------+-----------+
13. Investment in subsidiaries
+-----------------------+----------+------+----------+-------+----------+-------+----------+-------------+
| | | | | | | | | Company |
+-----------------------+----------+------+----------+-------+----------+-------+----------+-------------+
| Cost | | | | | | | | GBP |
+-----------------------+----------+------+----------+-------+----------+-------+----------+-------------+
| At 1 January 2009 | | | | | | | | 326,600 |
+-----------------------+----------+------+----------+-------+----------+-------+----------+-------------+
| Addition | | | | | | | | 2,294,000 |
+-----------------------+----------+------+----------+-------+----------+-------+----------+-------------+
| Disposal | | | | | | | | (2,294,000) |
+-----------------------+----------+------+----------+-------+----------+-------+----------+-------------+
| Provision for Write | | | | | | | | (326,600) |
| Down | | | | | | | | |
+-----------------------+----------+------+----------+-------+----------+-------+----------+-------------+
| At 31 December 2009 | | | | | | | | - |
+-----------------------+----------+------+----------+-------+----------+-------+----------+-------------+
| | | | | | |
+-----------------------+----------+------+------------------+------------------+------------------------+
| The following were | | | Country of | Proportion of | Principal |
| subsidiaries at the | | | incorporation | owned interest | activities |
| end of the year: | | | | | |
+-----------------------+----------+------+------------------+------------------+------------------------+
| Crewcard Network | | | UK | 100% | Prepaid Debit |
| Limited | | | | | Cards |
+-----------------------+----------+------+------------------+------------------+------------------------+
| Crewcall Network | | | UK | 100% | International |
| Limited | | | | | Telephony |
+-----------------------+----------+------+------------------+------------------+------------------------+
| Acquirestar Limited | | | UK | 100% | Dormant |
+-----------------------+----------+------+------------------+------------------+------------------------+
| |
| As the Company was unable to make the second instalment for the purchase of Cheque Exchange |
| Limited from Provident Financial Plc in July 2009, ownership of Cheque Exchange Limited reverted |
| back to Provident Financial Plc at 31 October 2009. |
+-----------------------+----------+------+----------+-------+----------+-------+----------+-------------+
+-----------------------+----------+------+-----------+---------+---------+
| During the year, the group acquired Cheque Exchange Limited. The fair |
| value of assets acquired and liabilities assumed were as follows: |
+-------------------------------------------------------------------------+
| | | | GBP | | |
+-----------------------+----------+------+-----------+---------+---------+
| Property, plant and | | | 110,377 | | |
| equipment | | | | | |
+-----------------------+----------+------+-----------+---------+---------+
| Trade and other | | | 653,928 | | |
| receivables | | | | | |
+-----------------------+----------+------+-----------+---------+---------+
| Inventories | | | - | | |
+-----------------------+----------+------+-----------+---------+---------+
| Cash | | | (35,451) | | |
+-----------------------+----------+------+-----------+---------+---------+
| Trade payables | | | (800,257) | | |
+-----------------------+----------+------+-----------+---------+---------+
| Long term debt | | | - | | |
+-----------------------+----------+------+-----------+---------+---------+
| Total net liabilities | | | (71,403) | | |
+-----------------------+----------+------+-----------+---------+---------+
| Goodwill | | | 2,365,403 | | |
+-----------------------+----------+------+-----------+---------+---------+
| Fair value of cash | | | 2,294,000 | | |
| consideration | | | | | |
+-----------------------+----------+------+-----------+---------+---------+
14. Intangible fixed assets
+----------------------+------+-----------+----------+---------+----------+-------------+----------+-------------+
| | Development | Trademarks | | Goodwill | | Group |
| | costs | | | | | |
+----------------------+------------------+--------------------+----------+-------------+----------+-------------+
| | | | | | | | | GBP |
+----------------------+------+-----------+----------+---------+----------+-------------+----------+-------------+
| Cost | | | | | | | | |
+----------------------+------+-----------+----------+---------+----------+-------------+----------+-------------+
| At 1 January 2009 | | 16,500 | | 5,482 | | 1,364,890 | | 1,386,872 |
+----------------------+------+-----------+----------+---------+----------+-------------+----------+-------------+
| Additions | | - | | - | | 2,365,403 | | 2,365,403 |
+----------------------+------+-----------+----------+---------+----------+-------------+----------+-------------+
| Disposals | | - | | - | | (2,365,403) | | (2,365,403) |
+----------------------+------+-----------+----------+---------+----------+-------------+----------+-------------+
| Impairment | | (16,500) | | (5,482) | | (1,364,890) | | (1,386,872) |
+----------------------+------+-----------+----------+---------+----------+-------------+----------+-------------+
| At 31 December 2009 | | - | | - | | - | | - |
+----------------------+------+-----------+----------+---------+----------+-------------+----------+-------------+
15. Deferred taxation
+-------------------------------------------------------------------+
| The actual and potential liabilities to deferred taxation are |
| GBPnil (2008: GBPnil) as a result of both significant trading |
| losses having been incurred and uncertainty as to when the |
| company might make sufficient profits in the future. |
+-------------------------------------------------------------------+
16. Inventories
+-----------------------+----------+-------+----------+--------+----------+---------+----------+---------+
| | | Group | | Group | | Company | | Company |
+-----------------------+----------+-------+----------+--------+----------+---------+----------+---------+
| | | 2009 | | 2008 | | 2009 | | 2008 |
+-----------------------+----------+-------+----------+--------+----------+---------+----------+---------+
| | | GBP | | GBP | | GBP | | GBP |
+-----------------------+----------+-------+----------+--------+----------+---------+----------+---------+
| Finished goods | | - | | 59,339 | | - | | - |
+-----------------------+----------+-------+----------+--------+----------+---------+----------+---------+
| | | | | | | | | |
+-----------------------+----------+-------+----------+--------+----------+---------+----------+---------+
| |
+-----------------------+----------+-------+----------+--------+----------+---------+----------+---------+
17. Trade and other receivables
+-----------------------+----------+-------+----------+---------+----------+---------+----------+-----------+
| | | Group | | Group | | Company | | Company |
+-----------------------+----------+-------+----------+---------+----------+---------+----------+-----------+
| | | 2009 | | 2008 | | 2009 | | 2008 |
+-----------------------+----------+-------+----------+---------+----------+---------+----------+-----------+
| | | GBP | | GBP | | GBP | | GBP |
+-----------------------+----------+-------+----------+---------+----------+---------+----------+-----------+
| Trade debtors | | 1,118 | | 1,996 | | 1,118 | | - |
+-----------------------+----------+-------+----------+---------+----------+---------+----------+-----------+
| Loans to group | | - | | - | | - | | 3,235,243 |
| undertakings | | | | | | | | |
+-----------------------+----------+-------+----------+---------+----------+---------+----------+-----------+
| Other debtors | | - | | 150,000 | | - | | - |
+-----------------------+----------+-------+----------+---------+----------+---------+----------+-----------+
| Prepayments | | 5,421 | | 401,171 | | 5,420 | | - |
+-----------------------+----------+-------+----------+---------+----------+---------+----------+-----------+
| | | 6,539 | | 553,167 | | 6,538 | | 3,235,243 |
+-----------------------+----------+-------+----------+---------+----------+---------+----------+-----------+
18. Cash and cash equivalents
+-----------------------+----------+-------+----------+---------+----------+---------+----------+---------+
| | | Group | | Group | | Company | | Company |
+-----------------------+----------+-------+----------+---------+----------+---------+----------+---------+
| | | 2009 | | 2008 | | 2009 | | 2008 |
+-----------------------+----------+-------+----------+---------+----------+---------+----------+---------+
| | | GBP | | GBP | | GBP | | GBP |
+-----------------------+----------+-------+----------+---------+----------+---------+----------+---------+
| Cash at bank and in | | 9,632 | | 192,096 | | 8,623 | | - |
| hand | | | | | | | | |
+-----------------------+----------+-------+----------+---------+----------+---------+----------+---------+
19. Trade and other payables
+-----------------------+----------+---------+----------+---------+----------+---------+----------+---------+
| | | Group | | Group | | Company | | Company |
+-----------------------+----------+---------+----------+---------+----------+---------+----------+---------+
| | | 2009 | | 2008 | | 2009 | | 2008 |
+-----------------------+----------+---------+----------+---------+----------+---------+----------+---------+
| | | GBP | | GBP | | GBP | | GBP |
+-----------------------+----------+---------+----------+---------+----------+---------+----------+---------+
| Trade creditors | | 222,536 | | 133,894 | | 93,747 | | - |
+-----------------------+----------+---------+----------+---------+----------+---------+----------+---------+
| Other taxation and | | 313,673 | | 23,703 | | 190,098 | | - |
| social security costs | | | | | | | | |
+-----------------------+----------+---------+----------+---------+----------+---------+----------+---------+
| Accruals | | 47,606 | | 446,030 | | 46,535 | | - |
+-----------------------+----------+---------+----------+---------+----------+---------+----------+---------+
| | | 583,815 | | 603,627 | | 330,380 | | - |
+-----------------------+----------+---------+----------+---------+----------+---------+----------+---------+
20. Non current borrowings
+---------------------+----------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | | Group | | Group | | Company | | Company |
+---------------------+----------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | | 2009 | | 2008 | | 2009 | | 2008 |
+---------------------+----------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | | GBP | | GBP | | GBP | | GBP |
+---------------------+----------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Other Loans | | 1,750,000 | | - | | 1,750,000 | | - |
+---------------------+----------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Convertible Loans | | - | | 1,232,243 | | - | | 1,232,243 |
+---------------------+----------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Total Loans | | 1,750,000 | | 1,232,243 | | 1,750,000 | | 1,232,243 |
+---------------------+----------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | | | |
+---------------------+----------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Loans at 31 December 2009 are owed to Palmdale Investments Inc. The loan is secured by means of |
| floating charge over the assets of the company. The loan is repayable by 31 March 2011. If |
| the loan is not repaid at this date then the loan plus a premium equal to 100% of the loan |
| value must be paid by 30 September 2012. In addition, if the loan is not repaid at 30 September |
| 2012 a Penalty Charge of 5% per month thereafter will be charged. An Arrangement Fee of 10% of |
| the principal amount is also due on repayment of the loan. The loan bears interest at 10% per |
| annum however interest payments are off-set against the potential premium payable. |
+---------------------+----------+-----------+----------+-----------+----------+-----------+----------+-----------+
21. Share capital
+---------------------------------------+-------------+------+-------------+
| | 2009 | | 2008 |
+---------------------------------------+-------------+------+-------------+
| | GBP | | GBP |
+---------------------------------------+-------------+------+-------------+
| Authorised: | | | |
+---------------------------------------+-------------+------+-------------+
| 10,000,000,000 Ordinary shares of 1p | 100,000,000 | | 100,000,000 |
| each | | | |
+---------------------------------------+-------------+------+-------------+
| | | | |
+---------------------------------------+-------------+------+-------------+
| Issued share capital: | | | GBP |
+---------------------------------------+-------------+------+-------------+
| 48,442,000 (2008: 42,675,000) | 484,420 | | 426,750 |
| Ordinary shares of 1p | | | |
+---------------------------------------+-------------+------+-------------+
| | | | |
+---------------------------------------+-------------+------+-------------+
| On 29 January 2009, 5,767,000 ordinary shares were issued for |
| a total consideration of GBP865,050 in order to assist with |
| the funding of the acquisition of Cheque Exchange Limited. |
+--------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------+
| As at 31 December 2009,unexercised warrants, options and loan |
| conversion rights totalling 8,193,200 had been granted over |
| Ordinary shares. |
+---------------------------------------+-------------+------+-------------+
22. Share based payments
+------------------------+-----------+----------+--+-----------+----------+
| |
| The Group operates two share option schemes for directors |
| and other employees, an EMI Share Option Scheme and an |
| Unapproved Share Option Scheme. Under both schemes: |
| |
| (a) No payment is required for the grant of an option. |
| (b) Options are granted with an exercise price equal to |
| the market value of the shares on the date of grant. |
| (c) Options are exercisable in two halves on the first and |
| second anniversaries of the date of grant. |
| (d) Options lapse on ceasing to be an employee or |
| otherwise 10 years after the date of grant. |
| |
+-------------------------------------------------------------------------+
| | As at 31 | | As at 31 |
| | December 2009 | | December 2008 |
+------------------------+----------------------+--+----------------------+
| | | Weighted | | | Weighted |
| | | average | | | average |
| | | exercise | | | exercise |
| | | price | | | price |
+------------------------+-----------+----------+--+-----------+----------+
| | Number | GBP | | Number | GBP |
+------------------------+-----------+----------+--+-----------+----------+
| Outstanding at the | 7,050,000 | 0.20 | | - | - |
| beginning of the year | | | | | |
+------------------------+-----------+----------+--+-----------+----------+
| Lapsed during the year | 400,000 | 0.20 | | - | - |
+------------------------+-----------+----------+--+-----------+----------+
| Granted during the | 500,000 | 0.15 | | 7,050,000 | 0.20 |
| year | | | | | |
+------------------------+-----------+----------+--+-----------+----------+
| Outstanding at the end | 7,150,000 | 0.20 | | 7,050,000 | 0.20 |
| of the year | | | | | |
+------------------------+-----------+----------+--+-----------+----------+
+---------------------------------+----+-----+------+----+---------------+
| Of the total number of options outstanding at 31 December 2009, |
| 5,325,000 had vested and were exercisable at the end of the year. |
| |
| The weighted average fair value of each option granted during the |
| year to 31 December 2009 was GBP0.0396. |
| |
| The following information is relevant in determining the fair value |
| of the options granted during the year to 31 December 2009: |
+------------------------------------------------------------------------+
| Option pricing model used | | Black-Scholes |
+---------------------------------+----------+---------------------------+
| Weighted average share price at | | GBP0.20 |
| grant date | | |
+---------------------------------+----------+---------------------------+
| Weighted average exercise price | | GBP0.20 |
+---------------------------------+----------+---------------------------+
| Expected volatility | | 40% |
+---------------------------------+----------+---------------------------+
| Expected life (years) | | 2 |
+---------------------------------+----------+---------------------------+
| Risk free interest rate | | 0.7% |
+---------------------------------+----------+---------------------------+
| | | | | |
+---------------------------------+----+------------+----+---------------+
| | | Year to | | 15 months to |
| | | 31December | | 31 December |
| | | 2009 | | 2008 |
+---------------------------------+----+------------+----+---------------+
| | | GBP | | GBP |
+---------------------------------+----+------------+----+---------------+
| Total expense recognised from | | - | | 166,300 |
| share based payment | | | | |
| transactions | | | | |
+---------------------------------+----+------------+----+---------------+
| |
+------------------------------------------------------------------------+
| As a result of the cessation of trading activities by the group in |
| the year, the directors consider that share options outstanding at |
| the end of the year are unlikely to be exercised and therefore no |
| share based payments expense has been recognised for the year. |
+------------------------------------------------------------------------+
| | | | | | |
+---------------------------------+----+-----+------+----+---------------+
22. Related party transactions
+-------+----------------------+-------------+----------+----------+
| (i) | Share options granted to persons who served as director |
| | during the year are as follows: |
+-------+----------------------------------------------------------+
| | | | | |
+-------+----------------------+-------------+----------+----------+
| | | Grant date |Exercise | At 31 |
| | | | price | December |
| | | | | 2009 |
+-------+----------------------+-------------+----------+----------+
| | A Dougall | 11 May 2009 | 15p | 500,000 |
+-------+----------------------+-------------+----------+----------+
| | | | | 500,000 |
+-------+----------------------+-------------+----------+----------+
| | |
+-------+----------------------------------------------------------+
| (ii) | During the year to 31 December 2009, the company |
| | incurred costs of GBP77,050 from Aspirant Limited for |
| | consultancy services provided. Aspirant Limited is |
| | controlled by Paul Marks, a director. |
+-------+----------------------------------------------------------+
| | |
+-------+----------------------------------------------------------+
| (iii) | During the year loan interest amounting to GBP98,816 |
| | was paid to Dexapoint United Corporation, a shareholder |
+-------+----------------------------------------------------------+
| | |
+-------+----------------------------------------------------------+
| (iv) | During the year to 31 December 2009, the company |
| | incurred costs of GBP66,616 from Countermand Limited |
| | for consultancy services provided. Countermand Limited |
| | is controlled by Paul Seakens, a director. |
+-------+----------------------+-------------+----------+----------+
23. Post balance sheet events
+-------+-----------------------------------------------------------+
| (i) | On 17th February 2010 Crewcard Network Limited, a wholly |
| | owned subsidiary of the company, was placed into |
| | creditors voluntary liquidation. |
| | |
+-------+-----------------------------------------------------------+
| (ii) | On 15th May 2010 a proposal by the Directors to place the |
| | company into a Voluntary Arrangement was accepted by |
| | creditors and shareholders. The proposal will result in |
| | a payment to creditors of two pence in the pound. |
| | |
+-------+-----------------------------------------------------------+
| (iii) | On 12th May 2010 shareholders voted in favour of a change |
| | of name for the company from Hertford International Group |
| | Plc to Otium Ventures Plc. Companies House effected the |
| | change of name on 22nd June 2010. |
| | |
+-------+-----------------------------------------------------------+
| (iv) | On 10th March 2010 the company disposed of a 55% share in |
| | Crewcall Network Limited, previously a wholly owned |
| | subsidiary for GBP1. Also on the 19th March 2010 the |
| | company disposed of Crewcall Telecoms Limited also a |
| | wholly owned subsidiary for the sum of GBP1. |
| | |
+-------+-----------------------------------------------------------+
24. Ultimate controlling party
The directors of the Company do not consider any one party to exercise ultimate
control over the Group.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR BRGDRBGGBGGB
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