TIDMSKHG
RNS Number : 5564T
Sky High PLC
30 September 2010
SKY HIGH PLC
PRELIMINARY RESULTS FOR THE PERIOD ENDED 31 MARCH 2010
HIGHLIGHTS
Sky High Plc ("Sky High" or the "Group"), the data collection and analysis
group, today announces its results for the year ended 31 March 2010. The Group
had an excellent year in difficult trading conditions to achieve the following
results:
· Group turnover up 12% to GBP5.7 million (2009: GBP5.1 million).
· Group profit before tax up 22% to GBP267k (2009: GBP218k)
· Sky High Technology Limited contributed turnover of GBP4.2 million (2009:
GBP3.9 million) and profit before tax of GBP408k (2009: GBP283k)
· Sky High Australia Pty contributed turnover of GBP1.5 million (2009:
GBP1.1million) and GBP2k of profit before tax (2009: GBP19k) in a year were
profit was impacted by adverse foreign exchange variances
· Group had net borrowings at 31 March 2010 of GBP294k (2009: GBP259k)
Unfortunately since the year end there has been a down turn in trading primarily
caused by the uncertainty surrounding the outcome of the UK Governments
comprehensive spending review and the consequent significant reduction in public
sector spending since June. This has resulted in year to date trading losses for
the Group.
· The spending review has resulted in significant reductions in public
sector initiated transport survey spend with a consequent reduction in our UK
traffic turnover.
· The Directors have responded to this down turn by implementing
significant cost savings and continue to actively manage the cost base to match
forecast revenues. Despite these actions the year to date results for the UK
traffic business shows a loss.
· Sky High Australia and Sky High Data Capture are not impacted by these
market issues and continue to trade profitably and represent good growth
prospects.
· The poor market conditions have created uncertainty over the Group's
short term profitability and the Group is currently reliant on continued bank
support through the use of an overdraft facility. The Directors have no reason
to believe that this facility will be withdrawn and are confident that the Group
has sufficient working capital and cash headroom to continue to trade through
this difficult period.
· The Directors are confident that once the results of the spending review
are announced in late October the UK traffic market will begin to normalise with
increased levels activity resulting in improved financial performance for the
Group.
Mark Mattison, Sky High's Chief Executive, said:
"The Group had an excellent 2010 and it is disappointing that due to market
conditions outside our control that we have not been able to build on this
record year. Trading in the current year has been difficult but we believe that
we are well positioned to respond when the market normalises post spending
review".
For further information, please contact:
+-------------------------------+-------------------------------+
| Sky High Plc | |
+-------------------------------+-------------------------------+
| Mark Mattison, Chief | Tel: 01937 833 933 |
| Executive Officer | |
+-------------------------------+-------------------------------+
| | |
+-------------------------------+-------------------------------+
| Astaire Securities Plc | |
+-------------------------------+-------------------------------+
| Shane Gallwey | Tel: 020 7492 4750 |
+-------------------------------+-------------------------------+
CHAIRMAN'S STATEMENT
I am pleased to present the Chairman's Statement for Sky High Plc for the year
to 31 March 2010.
Results
The group experienced an excellent year that surpassed the directors'
expectations. In view of the difficult trading conditions during the financial
year, the directors were expecting a significant challenge in growing the
business. However, I'm pleased to report that the group managed to increase
turnover by 12% and turnover for the year to 31 March 2010 is GBP5,720k (2009:
GBP5,103k). Despite price pressure in a competitive market place the profit
margins have also held and the group profit before tax for the year is GBP267k
(2009: GBP218k).
The traffic data collection business in the UK performed extremely well during
the year. Record sales were achieved in October 2009 and overall the turnover
grew year on year to GBP3,710k (2009: GBP3,681k). Profit before tax from UK
traffic data collection amounted to GBP330k (2009: GBP263k).
The traffic data collection business in Australia experienced a difficult year.
Sales in the first six months of the year were very disappointing and resulted
in the Board investing significant management time and expense in supporting the
Australian management team. As a result, further investment was made in Sales
and Marketing to ensure that the group made the most of the undoubted potential
in the Australian market. I'm pleased to say that this resulted in record sales
orders in the final quarter of the year and that this allowed the business to
return an unexpected profit. Turnover for the year was GBP1,510k (2009:
GBP1,127k) and profit before tax was GBP2k (2009: GBP19k) although it should be
remembered that there has been a 25% fluctuation in the Australian Dollar to
Sterling exchange rate during the year, which contributed GBP235k to turnover
and GBP19k to profit before tax.
Sky High Data Capture ("SHDC") also experienced a pleasing year. This area of
the business achieved turnover of GBP500k (2009: GBP295k) and profit before tax
of GBP78k (2009: GBP35k) in its first full year of consolidation. The
comparative figures for 2009 reflect only 7 months contribution following the
acquisition of Halifax Computer Services Limited on 1 September 2008.
The running costs of the Plc were higher than anticipated during the year. The
Plc costs were GBP143k (2009: GBP99k). The main reason for the increase in costs
was management time, travel costs and professional costs associated with the
assistance provided to the Australian subsidiary company. In addition, the
accounts for the year ended 31 March 2010 include a full year's amortisation of
the intangible assets acquired as part of the acquisition of Halifax Computer
Services Limited on 1 September 2008.
Group Re-Organisation
On 31 March 2010, Sky High Plc undertook a re-organisation of the group
structure. The company transferred the trade, employees, assets and liabilities
of Sky High Technology Limited to Sky High Plc resulting in the group having
only one trading company in the UK.
The re-organisation was undertaken to deliver improved tax efficiency in the UK
and at the same time to promote the Sky High Plc brand in a more consistent
manner.
Prospects
It is widely acknowledged that the UK continues to face economic uncertainty as
the new government addresses the country's financial problems. The government
has initiated a full review on public sector spending which will be completed by
the end of October. This is expected to result in considerable cuts to public
sector spending. There is little detail available at the moment on the specific
areas to be impacted by the spending cuts but they are likely to have an impact
on the budgets of the transport departments and agencies that make up the
majority of Sky High Plc's customer base.
The uncertainty surrounding the outcome of the spending review has resulted in a
significant reduction in public sector spending since June which has reduced the
overall transport survey spend in the UK over this period.
Sky High Plc has assembled an excellent Sales and Marketing team that has
already proved its ability to deliver growth in a difficult market, and who have
consistently worked hard to maintain market share. Despite their efforts the
overall reduction in the market has impacted our UK traffic turnover in the
current financial year. The Board has implemented cost saving initiatives to
mitigate the impact of the sales reduction but have been unable to totally
compensate for the sales reduction with overhead cuts. This has resulted in year
to date losses in the current financial year for the UK traffic business. SHDC
and Sky High Australia have not been affected by the UK government's spending
review and these businesses continue to trade profitably in the current
financial year and have good growth prospects. The profitable trading of these
two businesses has been insufficient to offset the losses in the larger UK
traffic business and therefore the year to date performance of the group overall
shows a loss position.
The Board are optimistic that after the results of the spending review are
announced in late October the market will start to normalise with increased
levels of activity and that this will lead to improved financial performance in
the later part of the financial year. The Board remain committed to targeting
market share growth and will continue to focus on effective sales and marketing.
Diversity will be important to Sky High Plc in the coming years both in terms of
the services it offers and the geographic markets it operates in. As mentioned
above, Sky High Australia Pty Limited is now experiencing growth and having
successful business units operating outside of the UK help to balance the
group's risk. The Australian traffic survey market has not had been impacted by
the same issues as the UK market, such as the UK public spending review
discussed above.
The group has been actively pursuing acquisitions that expand the service
offerings and have good synergy benefits. The group views the data capture area
of the business as an area of great potential based on the progress of the SHDC
business and the more positive market for these services and we continue to
review acquisitions in this area.
Overall, the Board believe that the investment in Sales and Marketing and the
strategy of adding new services and/or geographical markets through acquisition
will ensure that the group continues to grow and progress.
Dividend
Despite the positive results in the financial year to March 2010, due to the
current uncertainty in the market, it is the Directors opinion that the business
needs to retain cash at this time to provide a suitable level of working capital
to manage the business through this uncertain period. Accordingly, the Directors
do not recommend the payment of a final dividend.
The directors are hopeful that when the market stabilises they will be able to
return to the historic dividend policy but this will be reviewed against the
company's working capital needs and against the plans for future growth.
Directors and Employees
I would like to say thank you to all the directors and employees of Sky High Plc
and its associated companies in what has been an excellent year for the group.
In addition, I would like to acknowledge the support of all the directors and
the employees in our UK traffic business during the difficult start to this
current financial year when it has been necessary to introduce reduced and
flexible working hours.
Richard Jackson
Chairman
29 September 2010
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2010
+-------------------------------------+------+------------+--+-----------+
| | | Year ended | | Year |
| | | 31 March | | ended |
| | | 2010 | | 31 March |
| | | | | 2009 |
+-------------------------------------+------+------------+--+-----------+
| |Note | | | |
+-------------------------------------+------+------------+--+-----------+
| | | GBP'000 | | GBP'000 |
+-------------------------------------+------+------------+--+-----------+
| Continuing operations | | | | |
+-------------------------------------+------+------------+--+-----------+
| Revenue | 4 | 5,720 | | 5,103 |
+-------------------------------------+------+------------+--+-----------+
| | | | | |
+-------------------------------------+------+------------+--+-----------+
| Cost of sales | | (3,495) | | (3,235) |
+-------------------------------------+------+------------+--+-----------+
| | | | | |
+-------------------------------------+------+------------+--+-----------+
| Gross profit | | 2,225 | | 1,868 |
+-------------------------------------+------+------------+--+-----------+
| | | | | |
+-------------------------------------+------+------------+--+-----------+
| Other administrative expenses | | (1,914) | | (1,603) |
+-------------------------------------+------+------------+--+-----------+
| | | | | |
+-------------------------------------+------+------------+--+-----------+
| Profit from operating activities | 5 | 311 | | 265 |
+-------------------------------------+------+------------+--+-----------+
| | | | | |
+-------------------------------------+------+------------+--+-----------+
| Finance income | | 2 | | 3 |
+-------------------------------------+------+------------+--+-----------+
| Finance expense | | (46) | | (50) |
+-------------------------------------+------+------------+--+-----------+
| | | | | |
+-------------------------------------+------+------------+--+-----------+
| Profit before taxation | | 267 | | 218 |
+-------------------------------------+------+------------+--+-----------+
| | | | | |
+-------------------------------------+------+------------+--+-----------+
| Income tax expense | | (95) | | (85) |
+-------------------------------------+------+------------+--+-----------+
| | | | | |
+-------------------------------------+------+------------+--+-----------+
| Profit from continuing operations | | 172 | | 133 |
+-------------------------------------+------+------------+--+-----------+
| | | | | |
+-------------------------------------+------+------------+--+-----------+
| Other comprehensive income | | | | |
+-------------------------------------+------+------------+--+-----------+
| Gain on translation of foreign | | 47 | | 5 |
| operations | | | | |
+-------------------------------------+------+------------+--+-----------+
| | | | | |
+-------------------------------------+------+------------+--+-----------+
| | | | | |
+-------------------------------------+------+------------+--+-----------+
| Total comprehensive income | | 219 | | 138 |
+-------------------------------------+------+------------+--+-----------+
| | | | | |
+-------------------------------------+------+------------+--+-----------+
| | | | | |
+-------------------------------------+------+------------+--+-----------+
| Basic profit per ordinary share | 6 | 1.3p | | 1.0p |
+-------------------------------------+------+------------+--+-----------+
| | | | | |
+-------------------------------------+------+------------+--+-----------+
| Diluted profit per ordinary share | 6 | 1.3p | | 1.0p |
+-------------------------------------+------+------------+--+-----------+
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2010
+-------------------------------------+-----+-----------+---+-----------+
| | | 2010 | | 2009 |
+-------------------------------------+-----+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----+-----------+---+-----------+
| | | GBP'000 | | GBP'000 |
+-------------------------------------+-----+-----------+---+-----------+
| Non current assets | | | | |
+-------------------------------------+-----+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----+-----------+---+-----------+
| Property, plant and equipment | | 817 | | 816 |
+-------------------------------------+-----+-----------+---+-----------+
| Goodwill | | 730 | | 730 |
+-------------------------------------+-----+-----------+---+-----------+
| Other intangible assets | | 48 | | 61 |
+-------------------------------------+-----+-----------+---+-----------+
| Total non current assets | | 1,595 | | 1,607 |
+-------------------------------------+-----+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----+-----------+---+-----------+
| Current assets | | | | |
+-------------------------------------+-----+-----------+---+-----------+
| Trade and other receivables | | 1,491 | | 991 |
+-------------------------------------+-----+-----------+---+-----------+
| Cash and cash equivalents | | 101 | | 205 |
+-------------------------------------+-----+-----------+---+-----------+
| Total current assets | | 1,592 | | 1,196 |
+-------------------------------------+-----+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----+-----------+---+-----------+
| Total assets | | 3,187 | | 2,803 |
+-------------------------------------+-----+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----+-----------+---+-----------+
| Current liabilities | | | | |
+-------------------------------------+-----+-----------+---+-----------+
| Bank borrowings | | (67) | | (52) |
+-------------------------------------+-----+-----------+---+-----------+
| Hire purchase contracts | | (110) | | (112) |
+-------------------------------------+-----+-----------+---+-----------+
| Trade and other payables | | (923) | | (537) |
+-------------------------------------+-----+-----------+---+-----------+
| Current tax payable | | (89) | | (68) |
+-------------------------------------+-----+-----------+---+-----------+
| Total current liabilities | | (1,189) | | (770) |
+-------------------------------------+-----+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----+-----------+---+-----------+
| Non current liabilities | | | | |
+-------------------------------------+-----+-----------+---+-----------+
| Bank borrowings | | - | | (27) |
+-------------------------------------+-----+-----------+---+-----------+
| Hire purchase contracts | | (218) | | (272) |
+-------------------------------------+-----+-----------+---+-----------+
| Other payables | | - | | (45) |
+-------------------------------------+-----+-----------+---+-----------+
| Deferred tax provision | | (61) | | (62) |
+-------------------------------------+-----+-----------+---+-----------+
| Total non current liabilities | | (279) | | (406) |
+-------------------------------------+-----+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----+-----------+---+-----------+
| Total liabilities | | (1,468) | | (1,176) |
+-------------------------------------+-----+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----+-----------+---+-----------+
| Net assets | | 1,719 | | 1,627 |
+-------------------------------------+-----+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----+-----------+---+-----------+
| Equity | | | | |
+-------------------------------------+-----+-----------+---+-----------+
| Called up share capital | | 1,275 | | 1,275 |
+-------------------------------------+-----+-----------+---+-----------+
| Share premium account | | 1,657 | | 1,657 |
+-------------------------------------+-----+-----------+---+-----------+
| Profit and loss account | | 495 | | 450 |
+-------------------------------------+-----+-----------+---+-----------+
| Exchange gain reserve | | 66 | | 19 |
+-------------------------------------+-----+-----------+---+-----------+
| Reverse acquisition reserve | | (1,774) | | (1,774) |
+-------------------------------------+-----+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----+-----------+---+-----------+
| Equity Attributable to Equity | | 1,719 | | 1,627 |
| Holders of the Parent | | | | |
+-------------------------------------+-----+-----------+---+-----------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2010
+------------------+-----+----------+---------+-------------+----------+----------+----------+
| | | Called | Share | Reverse | Exchange | Retained | |
| | | up | premium | acquisition | gain | earnings | Total |
| | | share | account | reserve | reserve | | equity |
| | | capital | | | | | |
+------------------+-----+----------+---------+-------------+----------+----------+----------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------------+-----+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+------------------+-----+----------+---------+-------------+----------+----------+----------+
| Balance 31 March | | 1,275 | 1,657 | (1,774) | 14 | 381 | 1,533 |
| 2008 | | | | | | | |
+------------------+-----+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+------------------+-----+----------+---------+-------------+----------+----------+----------+
| Total | | - | - | - | 5 | 133 | 138 |
| comprehensive | | | | | | | |
| income for the | | | | | | | |
| period | | | | | | | |
+------------------+-----+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+------------------+-----+----------+---------+-------------+----------+----------+----------+
| Dividends paid | | - | - | - | - | (64) | (64) |
+------------------+-----+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+------------------+-----+----------+---------+-------------+----------+----------+----------+
| Balance 31 March | | 1,275 | 1,657 | (1,774) | 19 | 450 | 1,627 |
| 2009 | | | | | | | |
+------------------+-----+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+------------------+-----+----------+---------+-------------+----------+----------+----------+
| Total | | - | - | - | 47 | 172 | 219 |
| comprehensive | | | | | | | |
| income for the | | | | | | | |
| period | | | | | | | |
+------------------+-----+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+------------------+-----+----------+---------+-------------+----------+----------+----------+
| Dividends paid | | - | - | - | - | (127) | (127) |
+------------------+-----+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+------------------+-----+----------+---------+-------------+----------+----------+----------+
| Balance 31 March | | | | | | | 1,719 |
| 2010 | | 1,275 | 1,657 | (1,774) | 66 | 495 | |
+------------------+-----+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+------------------+-----+----------+---------+-------------+----------+----------+----------+
CONSOLIDATED CASHFLOW STATEMENT
For the year ended 31 March 2010
+---------------------------------------+----------+----------+-+----------+
| | | Year | | Year |
| | | ended | | ended |
| | | 31 March | | 31 March |
| | | 2010 | | 2009 |
+---------------------------------------+----------+----------+-+----------+
| | | GBP'000 | | GBP'000 |
+---------------------------------------+----------+----------+-+----------+
| | | | | |
+---------------------------------------+----------+----------+-+----------+
| Net cash from operating activities | | 366 | | 765 |
+---------------------------------------+----------+----------+-+----------+
| | | | | |
+---------------------------------------+----------+----------+-+----------+
| Taxation | | | | |
+---------------------------------------+----------+----------+-+----------+
| Income taxes paid | | (68) | | (46) |
+---------------------------------------+----------+----------+-+----------+
| | | | | |
+---------------------------------------+----------+----------+-+----------+
| Cashflow from investing activities | | | | |
+---------------------------------------+----------+----------+-+----------+
| Acquisition of subsidiary | | - | | (155) |
| undertakings (net of cash) | | | | |
+---------------------------------------+----------+----------+-+----------+
| Purchases of property, plant and | | (158) | | (174) |
| equipment | | | | |
+---------------------------------------+----------+----------+-+----------+
| Proceeds from disposal of property, | | 16 | | 25 |
| plant and equipment | | | | |
+---------------------------------------+----------+----------+-+----------+
| Equity dividends paid | | (127) | | (64) |
+---------------------------------------+----------+----------+-+----------+
| Interest paid | | (46) | | (50) |
+---------------------------------------+----------+----------+-+----------+
| Interest received | | 2 | | 3 |
+---------------------------------------+----------+----------+-+----------+
| | | | | |
+---------------------------------------+----------+----------+-+----------+
| Net cash (outflow) from investing | | (313) | | (415) |
| activities | | | | |
+---------------------------------------+----------+----------+-+----------+
| | | | | |
+---------------------------------------+----------+----------+-+----------+
| Financing | | | | |
+---------------------------------------+----------+----------+-+----------+
| Proceeds of new bank loans | | - | | 100 |
+---------------------------------------+----------+----------+-+----------+
| Repayment of bank loans | | (52) | | (43) |
+---------------------------------------+----------+----------+-+----------+
| Hire purchase repayments | | (124) | | (96) |
+---------------------------------------+----------+----------+-+----------+
| | | | | |
+---------------------------------------+----------+----------+-+----------+
| Net cash from financing activities | | (176) | | (39) |
+---------------------------------------+----------+----------+-+----------+
| | | | | |
+---------------------------------------+----------+----------+-+----------+
| | | | | |
+---------------------------------------+----------+----------+-+----------+
| Net increase in cash and cash | | (191) | | 265 |
| equivalents | | | | |
+---------------------------------------+----------+----------+-+----------+
| | | | | |
+---------------------------------------+----------+----------+-+----------+
| Effect of exchange fluctuations | | 47 | | (6) |
+---------------------------------------+----------+----------+-+----------+
| Cash and cash equivalents at 1 April | | 205 | | (54) |
+---------------------------------------+----------+----------+-+----------+
| | | | | |
+---------------------------------------+----------+----------+-+----------+
| Cash and cash equivalents at 31 March | | 61 | | 205 |
+---------------------------------------+----------+----------+-+----------+
| | | | | |
+---------------------------------------+----------+----------+-+----------+
As described in the accounting policies, bank overdrafts repayable on demand
fluctuate from being positive to overdrawn and are considered an integral part
of the Group's cash management for cash flow statement purposes.
There is no material difference between the fair value and the book value of
cash and equivalents.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2010
1. General Information
Sky High Plc is a company incorporated in the United Kingdom under the Companies
Act 2006. The address of the registered office is 10 High Street, Tadcaster,
Leeds, LS24 9AT. The nature of the Group's operations and its principal
activities is that of data collection and analysis.
2. Adoption of new and revised International Financial Reporting Standards
Standards and Interpretations effective in the current period
The following new standards and amendments to standards have become effective
from 1 January 2009 and hence are reflected in these financial statements:
· IAS 1 (revised) Presentation of Financial Statements. The most
significant change within IAS 1 (revised) is the requirement to produce a
statement of comprehensive income setting out all items of income and expense
relating to non-owner changes in equity. There is a choice between presenting
comprehensive income in one statement or in two statements comprising an income
statement and a separate statement of comprehensive income. The Group has
elected to present the income statement and comprehensive income as a single
statement. In addition, IAS1 (revised) requires the statement of changes in
shareholders' equity to be presented as a primary statement; and
· IFRS 8 Operating Segments (effective for accounting periods beginning on
or after 1 January 2009). The adoption of this standard has not resulted in a
change of the groups reportable segments.
There have been no amendments to prior years comparatives as a result of the
adoption of the above standards.
Standards and Interpretations in issue not yet adopted
At the date of approval of these financial statements the following Standards
and Interpretations were in issue and endorsed by the EU but not
yet effective:
· Revised IFRS 3 'Business Combinations' (mandatory for the year commencing
on or after 1 July 2009)
· Amendment to IAS32 'Classification of Rights Issues' (effective 1
February 2010)
· IFRIC 17 'Distribution of Non Cash Assets to Owners' (effective 1 July
2009)
· IFRIC 18 'Transfer of Assets from Customers' (effective 1 July 2009)
· IFRIC 19 'Extinguishing Financial Liabilities with Equity' (effective 15
July 2010)
The adoption of these Standards and Interpretations is not expected to have a
material impact on the financial statements of the Group.
3. Significant accounting policies
Going Concern
As discussed in the Chairman's Statement on page 4, despite recording record
profits for the year to March 2010, the group has incurred losses following the
year end and this has created uncertainty over the company's short term future
profitability. The group is reliant on continued bank support, largely through
an overdraft facility. This facility has no termination date but there is a
requirement for an annual review. The next annual review is due in the new
calendar year and the directors have no reason to believe that this facility
will be withdrawn. The directors have prepared forecasts to 31 March 2012 using
assumptions which incorporate all known factors regarding existing turnover
sources, potential new sources of turnover based on past experience of business
wins and the ability of the company to generate new work. Based on these
forecasts the company is shown to be operating within its agreed borrowing
facility limit throughout the period of the forecasts, enabling the company to
meet its day to day commitments. In addition should the need arise the Directors
believe alternative sources of finance will be available. However, there is an
inherent risk within the forecasts prepared as there can be no guarantee that
forecasted levels will be achieved. This indicates the existence of uncertainty
which may cast some doubt upon the company's ability to continue as a going
concern.
Nevertheless, after considering the uncertainties described above, and on the
basis of current financial projections and facilities expected to be available,
the directors have a reasonable expectation that the company will have adequate
resources to continue in operational existence for the foreseeable future. For
these reasons, they continue to adopt the going concern basis in preparing the
financial statements. The financial statements do not include any adjustments
that would result from this basis of preparation being inappropriate.
4. Segment analysis
The primary reporting format is by geographical area on the same basis that
management reports are prepared for the chief operating decision maker.
The business comprises of one primary segment being that of the provision of
data collection and analysis.
Primary analysis by geographical area
The Group is organised into two major geographical areas.
· UK: - based primarily in Tadcaster, Leeds and Scotland but also includes
the data inputting facilities at Halifax that were acquired in September 2008.
This is shown as a separate cash generating unit for the purpose of the goodwill
impairment review.
· Australia: - Comprises the results of separate entity, Sky High Australia
PTY Limited.
Central head office costs are apportioned to England.
There were no discontinued operations in the year.
Segment results, assets and liabilities include items directly attributable to a
segment as well as those that can be allocated on a reasonable basis.
+----------------------------+--------+---------+-----------+---------+
| 31 March 2010 | | | | |
+----------------------------+--------+---------+-----------+---------+
| | | | | Total |
| | | | | for |
+----------------------------+--------+---------+-----------+---------+
| Continuing operations | | UK | Australia | Group |
+----------------------------+--------+---------+-----------+---------+
| | | GBP'000 | GBP'000 | GBP'000 |
+----------------------------+--------+---------+-----------+---------+
| Revenue from sales | | | | |
+----------------------------+--------+---------+-----------+---------+
| | | | | |
+----------------------------+--------+---------+-----------+---------+
| Total sales by area | | 4,215 | 1,510 | 5,725 |
+----------------------------+--------+---------+-----------+---------+
| Inter-area sales | | (5) | - | (5) |
+----------------------------+--------+---------+-----------+---------+
| Total external sales | | 4,210 | 1,510 | 5,720 |
+----------------------------+--------+---------+-----------+---------+
| | | | | |
+----------------------------+--------+---------+-----------+---------+
| | | | | |
+----------------------------+--------+---------+-----------+---------+
| | | | | |
+----------------------------+--------+---------+-----------+---------+
| Capital additions | | 99 | 59 | 158 |
+----------------------------+--------+---------+-----------+---------+
| Depreciation, amortisation | | 117 | 109 | 226 |
| and write downs | | | | |
+----------------------------+--------+---------+-----------+---------+
| | | | | |
+----------------------------+--------+---------+-----------+---------+
| Balance sheet | | | | |
+----------------------------+--------+---------+-----------+---------+
| Total assets | | 2,393 | 794 | 3,187 |
+----------------------------+--------+---------+-----------+---------+
| | | | | |
+----------------------------+--------+---------+-----------+---------+
| Total liabilities | | 869 | 599 | 1,468 |
+----------------------------+--------+---------+-----------+---------+
+----------------------------+--------+---------+-----------+---------+
| 31 March 2009 | | | | |
+----------------------------+--------+---------+-----------+---------+
| | | | | Total |
| | | | | for |
+----------------------------+--------+---------+-----------+---------+
| Continuing operations | | UK | Australia | Group |
+----------------------------+--------+---------+-----------+---------+
| | | GBP'000 | GBP'000 | GBP'000 |
+----------------------------+--------+---------+-----------+---------+
| Revenue from sales | | | | |
+----------------------------+--------+---------+-----------+---------+
| | | | | |
+----------------------------+--------+---------+-----------+---------+
| Total sales by area | | 4,124 | 1,127 | 5,251 |
+----------------------------+--------+---------+-----------+---------+
| Inter-area sales | | (148) | - | (148) |
+----------------------------+--------+---------+-----------+---------+
| Total external sales | | 3,976 | 1,127 | 5,103 |
+----------------------------+--------+---------+-----------+---------+
| | | | | |
+----------------------------+--------+---------+-----------+---------+
| | | | | |
+----------------------------+--------+---------+-----------+---------+
| | | | | |
+----------------------------+--------+---------+-----------+---------+
| Capital additions | | 238 | 197 | 435 |
+----------------------------+--------+---------+-----------+---------+
| Depreciation, amortisation | | 104 | 87 | 191 |
| and write downs | | | | |
+----------------------------+--------+---------+-----------+---------+
| | | | | |
+----------------------------+--------+---------+-----------+---------+
| Balance sheet | | | | |
+----------------------------+--------+---------+-----------+---------+
| Total assets | | 2,234 | 569 | 2,803 |
+----------------------------+--------+---------+-----------+---------+
| | | | | |
+----------------------------+--------+---------+-----------+---------+
| Total liabilities | | 765 | 411 | 1,176 |
+----------------------------+--------+---------+-----------+---------+
5. Operating Profit
+------------------------------------------+-+-----------+-+-----------+
| Operating profit has been stated after | | | | |
| charging the following: | | | | |
+------------------------------------------+-+-----------+-+-----------+
| | | 2010 | | 2009 |
+------------------------------------------+-+-----------+-+-----------+
| | | GBP'000 | | GBP'000 |
+------------------------------------------+-+-----------+-+-----------+
| | | | | |
+------------------------------------------+-+-----------+-+-----------+
| (Profit)/loss on disposal of fixed | | 3 | | (6) |
| assets | | | | |
+------------------------------------------+-+-----------+-+-----------+
| Depreciation of property, plant and | | 213 | | 183 |
| equipment | | | | |
+------------------------------------------+-+-----------+-+-----------+
| Amortisation of intangible fixed assets | | 13 | | 8 |
+------------------------------------------+-+-----------+-+-----------+
| | | | | |
+------------------------------------------+-+-----------+-+-----------+
| Auditors' remuneration | | | | |
+------------------------------------------+-+-----------+-+-----------+
| | | 2010 | | 2009 |
+------------------------------------------+-+-----------+-+-----------+
| | | GBP'000 | | GBP'000 |
+------------------------------------------+-+-----------+-+-----------+
| | | | | |
+------------------------------------------+-+-----------+-+-----------+
| Auditors' remuneration - Audit services | | 17 | | 18 |
| to the parent company | | | | |
+------------------------------------------+-+-----------+-+-----------+
| Auditors' remuneration - Audit services | | 20 | | 7 |
| to the Group | | | | |
+------------------------------------------+-+-----------+-+-----------+
| | | | | |
+------------------------------------------+-+-----------+-+-----------+
| Total audit fees | | 37 | | 25 |
+------------------------------------------+-+-----------+-+-----------+
6. Earnings per share
The calculation is based on the earnings attributable to ordinary shareholders
divided by the weighted average number of Ordinary Shares in issue during the
period as follows:
+------------------------------------------+-+-----------+-+-----------+
| | | 2010 | | 2009 |
+------------------------------------------+-+-----------+-+-----------+
| | | GBP'000 | | GBP'000 |
+------------------------------------------+-+-----------+-+-----------+
| | | | | |
+------------------------------------------+-+-----------+-+-----------+
| Numerators: earnings attributable to | | 172 | | 133 |
| equity | | | | |
+------------------------------------------+-+-----------+-+-----------+
| | | | | |
+------------------------------------------+-+-----------+-+-----------+
| | | No. '000 | | No.'000 |
+------------------------------------------+-+-----------+-+-----------+
| Denominators: weighted average number | | | | |
| of equity shares: | | | | |
+------------------------------------------+-+-----------+-+-----------+
| Basic | | 12,745 | | 12,745 |
+------------------------------------------+-+-----------+-+-----------+
| Effect of dilutive potential ordinary | | 261 | | 145 |
| shares: Share options | | | | |
+------------------------------------------+-+-----------+-+-----------+
| | | | | |
+------------------------------------------+-+-----------+-+-----------+
| Diluted | | 13,006 | | 12,859 |
+------------------------------------------+-+-----------+-+-----------+
7. Equity capital
+----------------------+----------+----------+----------+----------+---+------+----------+----------+--------+----------+
| | | | | | | | | |
| | Ordinary | | | | | | | |
| | shares | | Share | | Share | | | |
| | 10p | | capital | | Premium | | Total | |
+----------------------+----------+----------+----------+----------+----------+----------+-------------------+----------+
| | No. '000 | | GBP'000 | | GBP'000 | | GBP'000 | |
+----------------------+----------+----------+----------+----------+----------+----------+-------------------+----------+
| At 31 March 2009 & | 12,745 | | 1,275 | | 1,657 | | 2,932 | |
| 31 March 2010 | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-------------------+----------+
| | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-------------------+----------+
| | 2010 | | 2009 |
+----------------------------------------------------------------------+-----------------+----------+-------------------+
| | GBP'000 | | GBP'000 |
+----------------------------------------------------------------------+-----------------+----------+-------------------+
| Authorised | | | |
+----------------------------------------------------------------------+-----------------+----------+-------------------+
| 17,336,353 (2008: 17,336,353) Ordinary Shares of 10p each | 1,734 | | 1,734 |
+----------------------------------------------------------------------+-----------------+----------+-------------------+
| | | | |
| Allotted, called up and fully paid | | | |
| | | | |
+----------------------------------------------------------------------+-----------------+----------+-------------------+
| 12,744,737 (2008: 12,744,737) Ordinary Shares of 10p each | 1,275 | | 1,275 |
+----------------------------------------------------------------------+-----------------+----------+-------------------+
| | | | | | | | | | | |
+----------------------+----------+----------+----------+----------+---+------+----------+----------+--------+----------+
The company has granted the following share warrant instruments:
+------------+----------+--------------+--------------------+-------------+
| Grant date | | Subscription | Periods within | Number of |
| | | price per | which options are | shares for |
| | | share | exercisable | which |
| | | | | rights are |
| | | | | exercisable |
+------------+----------+--------------+--------------------+-------------+
| | | | | |
+------------+----------+--------------+--------------------+-------------+
| 2 November | | GBP0.205 | Prior to November | 107,317 |
| 2007 | | | 2010 | |
+------------+----------+--------------+--------------------+-------------+
| 2 November | | GBP0.205 | Prior to November | 134,146 |
| 2007 | | | 2010 | |
+------------+----------+--------------+--------------------+-------------+
| 12 October | | GBP0.125 | October 2010 to | 160,666 |
| 2009 | | | October 2012 | |
+------------+----------+--------------+--------------------+-------------+
| 12 October | | GBP0.125 | October 2011 to | 160,666 |
| 2009 | | | October 2012 | |
+------------+----------+--------------+--------------------+-------------+
| 12 October | | GBP0.125 | On 12 October 2012 | 160,668 |
| 2009 | | | | |
+------------+----------+--------------+--------------------+-------------+
| | | | | |
+------------+----------+--------------+--------------------+-------------+
| | | | | 723,463 |
+------------+----------+--------------+--------------------+-------------+
Share warrant instruments granted on 12 October 2009 have a vesting period of 1
year, 2 years and 3 years as shown in the tranches above. The options are
exercisable by the option holder at any point following the annual vesting date
and prior to October 2012.
8. Events since the balance sheet date
No significant events have occurred since the balance sheet date.
9. Annual General Meeting
The Annual General Meeting of Sky High Plc will be held at 32 Bedford Row,
London, WC1R 4HE on 30th November 2010 at 2.00pm.
The Annual Report and Accounts for the year ended 31 March 2010 have been sent
by post to all shareholders on 30th September 2010. The Annual Report and
Accounts may also be viewed on Sky High Plc's website at www.skyhighplc.co.uk .
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR QKLFLBKFEBBK
Sky High (LSE:SKHG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Sky High (LSE:SKHG)
Historical Stock Chart
From Jul 2023 to Jul 2024
