TIDMSKHG
RNS Number : 5530X
Sky High PLC
08 December 2010
Sky High Plc
Interim Report for the Six Months to 30 September 2010
Sky High Plc ('Sky High' or the 'Group'), the data collection and analysis group
today announces its results for the six months ended 30 September 2010.
Highlights
The group has had a difficult period driven by market uncertainty but recent
trading shows an improvement.
· Results show a loss for the period of GBP299k (2009: GBP113k profit).
· Group Turnover for the period is down 12% but for UK Traffic it is down
27.5% due to difficult market conditions, compared to the same period last year.
· The Directors believe that the output of the comprehensive spending
review should be broadly positive for the UK Traffic market in the medium term.
· Trading since the half year end has improved and results for these two
months have shown a profit.
· Directors are optimistic that results in the second half of the year will
show an improved performance compared to that from the first six months of the
financial year.
For further information, please contact:
+-------------------------------+-------------------------------+
| Sky High Plc | Northland Capital Partners |
| | Limited |
+-------------------------------+-------------------------------+
| Mark Mattison, Chief | Shane Gallwey |
| Executive Officer | |
+-------------------------------+-------------------------------+
| Tel: 01937 833 933 | Tel: 020 7492 4750 |
+-------------------------------+-------------------------------+
Chairman's Statement
I am pleased to present the Interim Report for Sky High Plc for the six month
period to 30 September 2010.
Results
As covered in the last annual report, trading in the first half of this
financial year has been difficult with results for the period showing a loss of
GBP299k (2009: GBP113k profit). Turnover for the Group was GBP2,278k in the
period compared with GBP2,586k in the same period the previous year.
This period was dominated by uncertainty in the UK economy which particularly
impacted public sector spending due to the comprehensive spending review
process. This uncertainty resulted in local authorities and other public sector
bodies dramatically decreasing their spending which directly impacted on the
turnover and profitability of our UK Traffic business. The performances in other
areas of the Group could not compensate for this downturn.
Results for the period for UK Traffic show a loss of GBP192k compared with a
profit of GBP209k in 2009. Revenue of GBP1,291k in the period was down by 27.5%
on the same period last year. The difficult market conditions also saw a drop in
gross margins from previous years and the combination of these two factors could
not be mitigated by cost saving initiatives implemented.
The performance of Australia Traffic continues to improve. Turnover in the
period was GBP735k compared with GBP534k in the same period the previous year
showing a growth of 38%. The results for the period show a loss of GBP19k
compared with a loss of GBP62k in the corresponding period last year. The
business had a very strong first quarter but sales fell in the second quarter
due to uncertainty caused by a general election and a hung parliament. These
issues have now been resolved.
Sky High Data Capture results show a profit for the period of GBP8k (2009:
GBP38k). Turnover in the period was down slightly at GBP252k (2009: GBP272k).
The reduced profit in this period is largely due to an investment in sales and
marketing resource in the business. The Directors believe that this business has
good long term growth potential and have been prepared to make these investments
for the longer term benefit.
The costs of maintaining the Plc have increased in the period largely due to a
one off cost of recruiting a full time Finance Director. This again shows the
Directors willingness to invest in the business for the longer term even during
a difficult economic period. The costs in the six months to 30 September 2010
were GBP96k compared with GBP72k in the same period the previous year. The
Directors are committed to reducing these costs over the next six months.
Prospects
Trading in the UK Traffic business has improved in the two months since the
period end. Sales levels have improved from the first half of the year and
whilst they are not at the levels of the corresponding period last year they
provide some evidence of a stabilisation of the market. The improved sales and
the full impact of the cost saving measures implemented over August and
September have resulted in a profitable start to the second half of the year.
It is still early days since the announcement of the comprehensive spending
review and the full impact on our market will take some time to take effect and
fully assess. Whilst the review has resulted in reductions in some areas of
spending, there was also a commitment to considerable road and other transport
infrastructure spending. The Directors current view is that the outcome of the
spending review on UK Transport was not as bad as they had feared and they
consider that it should have a positive impact on the UK Traffic market,
although the full effects may take some months to be realised.
The outcome of the spending review combined with trading in the first two months
since the half year end mean that the Directors remain optimistic that the
market will continue to stabilise providing the opportunity for improved
performance for the UK Traffic business in the second half of the year. The
Directors also remain committed to investment in Sales and Marketing to continue
to grow our market share.
Revenue in Australia Traffic has also improved now the political situation has
stabilised and the Directors expect the business to show continued growth in
sales and profits in the next six months. The trading in the first two months
since the half year has been profitable. The Directors believe that Australia
Traffic remains an important member of the Group, with excellent long term
prospects.
Trading in Data Capture has been steady in the two months since the half year.
The Directors believe in the long term growth potential of the Data Capture
business. They expect the investment in sales and marketing to produce results
in the next six months trading.
Taking account of current trading and current market conditions the Directors
are optimistic that results for the Group in the second half of the year will be
significantly better than those for first six months of this financial year.
The Directors continue to support the strategy of pursuing acquisitions that
expand the service offerings and have good synergy benefits. Whilst most of
these initiatives have been put on hold for the last six months due to the
market uncertainly and focus being required on the core business, the Directors
believe that once the market stabilises the Group will be in a good position to
restart these initiatives.
The recruitment of a full time Finance Director has helped the business manage
through this difficult period and the Directors believe that this appointment
will also contribute to the Groups plans to achieve longer term growth whether
by acquisition or organic growth.
The poor performance in the first six months of the year has inevitably impacted
the cash reserves of the business but cash has been effectively managed through
this period. Whilst the business continues to be reliant on continued bank
support though the use of an overdraft facility, the bank have been kept fully
informed of the performance of the Group and are supportive. The Directors have
no reason to believe that the overdraft facility will be withdrawn and are
confident that the Group has sufficient working capital and cash headroom as it
trades out of this difficult period.
Dividends
Whilst the trading performance in the first two months since the half year has
improved the Directors consider that it is too early to return to paying
dividends and that the business needs to retain cash to provide a suitable level
of working capital. Accordingly, the Directors do not recommend the payment of
an interim dividend.
The Directors remain hopeful that in the future if the market continues to
stabilise that 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 also 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 W W Jackson LLB
Chairman
7 December 2010
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six month period to 30 September 2010
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | 6 | | 6 | | 12 |
| | | months | | months | | months |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | ended | | ended | | ended |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | 30 | | 30 | | 31 |
| | | September | | September | | March |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | 2010 | | 2009 | | 2010 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| |Note | Unaudited | | Unaudited | | Audited |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Continuing operations | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Revenue | 6 | 2,278 | | 2,586 | | 5,720 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Cost of sales | | (1,527) | | (1,615) | | (3,495) |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Gross profit | | 751 | | 971 | | 2,225 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Other administrative | | (1,034) | | (833) | | (1,914) |
| expenses | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Results from operating | 6 | (283) | | 138 | | 311 |
| activities | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Finance income | | - | | 1 | | 2 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Finance expenses | | (16) | | (26) | | (46) |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Profit before taxation | | (299) | | 113 | | 267 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Income tax expense | | - | | - | | (95) |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Profit from continuing | 6 | (299) | | 113 | | 172 |
| operations | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Other comprehensive costs | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Exchange differences on | | 11 | | 33 | | 47 |
| translating foreign | | | | | | |
| operations | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Total comprehensive | | (288) | | 146 | | 219 |
| income | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Basic profit per ordinary | 4 | (2.3)p | | 0.9p | | 1.3p |
| share | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Diluted profit per | 4 | (2.3)p | | 0.9p | | 1.3p |
| ordinary share | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
There were no recognised gains or losses other than the profit for the financial
period.
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 September 2009
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | At 30 | | At 30 | | At 31 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | September | | September | | March |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | 2010 | | 2009 | | 2010 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| |Note | Unaudited | | Unaudited | | Audited |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Non current assets | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Property, plant and | | 788 | | 839 | | 817 |
| equipment | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Goodwill | | 730 | | 730 | | 730 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Other intangible assets | | 41 | | 55 | | 48 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Total non current assets | | 1,559 | | 1,624 | | 1,595 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Current assets | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Trade and other | | 1,066 | | 1,402 | | 1,491 |
| receivables | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Cash and cash equivalents | | 6 | | 47 | | 101 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Total current assets | | 1,072 | | 1,449 | | 1,592 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Total assets | 6 | 2,631 | | 3,073 | | 3,187 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Current liabilities | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Bank borrowings | | (61) | | (172) | | (67) |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Hire purchase contracts | | (99) | | (114) | | (110) |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Trade and other payables | | (703) | | (659) | | (923) |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Current tax payable | | (79) | | (48) | | (89) |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Total current liabilities | | (942) | | (993) | | (1,189) |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Non current liabilities | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Hire purchase contracts | | (197) | | (245) | | (218) |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Deferred tax provision | | (61) | | (62) | | (61) |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Total non current | | (258) | | (307) | | (279) |
| liabilities | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Total liabilities | 6 | (1,200) | | (1,300) | | (1,468) |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Net assets | | 1,431 | | 1,773 | | 1,719 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Capital and reserves | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Called up share capital | | 1,275 | | 1,275 | | 1,275 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Share premium account | | 1,657 | | 1,657 | | 1,657 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Profit and loss account | | 196 | | 563 | | 495 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Foreign Exchange reserve | | 77 | | 52 | | 66 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Reverse acquisition | | (1,774) | | (1,774) | | (1,774) |
| reserve | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Shareholders' funds | | 1,431 | | 1,773 | | 1,719 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
The financial statements were approved by the Board of Directors and authorised
for issue on 7 December 2010. They were signed on its behalf by:
Mark Mattison
Director
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six month period to 30 September 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 |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| For the 6 months | | | | | | | |
| ended 30 September | | | | | | | |
| 2010 | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| Unaudited | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| At start of period | | 1,275 | 1,657 | (1,774) | 66 | 495 | 1,719 |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| Total comprehensive | | - | - | - | 11 | (299) | (288) |
| income for the | | | | | | | |
| period | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| Dividends paid | | - | - | - | - | - | - |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| At end of period | | | | | | | 1,431 |
| | | 1,275 | 1,657 | (1,774) | 77 | 196 | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| | | 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 |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| For the 6 months | | | | | | | |
| ended 30 September | | | | | | | |
| 2009 | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| Unaudited | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| At start of period | | 1,275 | 1,657 | (1,774) | 19 | 450 | 1,627 |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| Total comprehensive | | - | - | - | 33 | 113 | 146 |
| income for the | | | | | | | |
| period | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| Dividends paid | | - | - | - | - | - | - |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| At end of period | | | | | | | 1,773 |
| | | 1,275 | 1,657 | (1,774) | 52 | 563 | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| | | 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 |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| For the 12 months | | | | | | | |
| ended 31 March 2010 | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| Audited | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| At start of period | | 1,275 | 1,657 | (1,774) | 19 | 450 | 1,627 |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| Total comprehensive | | - | - | - | 47 | 172 | 219 |
| income for the year | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| Dividends paid | | - | - | - | - | (127) | (127) |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| At end of period | | | | | | | 1,719 |
| | | 1,275 | 1,657 | (1,774) | 66 | 495 | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
| | | | | | | | |
+----------------------+-+----------+---------+-------------+----------+----------+----------+
UNAUDITED CONSOLIDATED STATEMENT OF CASHFLOW
For the six month period to 30 September 2010
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | 6 | | 6 | | 12 |
| | | months | | months | | months |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | ended | | ended | | ended |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | 30 | | 30 | | 31 |
| | | September | | September | | March |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | 2010 | | 2009 | | 2010 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| |Note | Unaudited | | Unaudited | | Audited |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Cash used in operations | 5 | 16 | | (105) | | 366 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Income taxes paid | | - | | (21) | | (68) |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Cashflow from investing | | | | | | |
| activities | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Purchase of property, | | (51) | | (76) | | (158) |
| plant and equipment | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Proceeds from disposal of | | 4 | | - | | 16 |
| property, plant and | | | | | | |
| equipment | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Equity dividends paid | | - | | - | | (127) |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Interest paid | | (16) | | (26) | | (46) |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Interest received | | - | | 1 | | 3 |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Net cash outflow from | | (63) | | (101) | | (313) |
| investing activities | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Financing | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Repayment of bank loans | | (26) | | (26) | | (52) |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Hire purchase repayments | | (54) | | (56) | | (124) |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Net cash outflow from | | (80) | | (82) | | (176) |
| financing | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Net (decrease)/increase | | (127) | | (309) | | (191) |
| in cash and cash | | | | | | |
| equivalents | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Effect of exchange | | 11 | | 33 | | 47 |
| fluctuations | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Cash and cash equivalents | | 61 | | 205 | | 205 |
| at beginning of period | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| Cash and cash equivalents | | (55) | | (71) | | 61 |
| at end of period | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+---------------------------+------+-----------+----------+-----------+----------+---------+
NOTES TO THE ACCOUNTS
For the six month period to 30 September 2010
1 BASIS OF PREPARATION OF INTERIM REPORT
IFRS
The Interim financial report has been prepared using accounting policies
consistent with International Financial Reporting Standards (IFRS). The
accounting for this is explained more fully in note 2.
The information for the period ended 30 September 2010 is not audited and does
not constitute statutory accounts as defined in section 435 of the Companies Act
2006. The interim accounts for the six month period to 30 September 2009 were
also unaudited.
The information for the year ended 31 March 2010 is audited, taken from the
unqualified statutory accounts for the year then ended.
2 ACCOUNTING POLICIES
Basis of Accounting
The interim results have been prepared in accordance with International
Financial Reporting Standards (IFRS) accounting rules. The accounting policies
used in the preparation of these results were the accounting policies used in
the preparation of the results for the year ended 31 March 2010 and detailed in
the notes to those results (see Accounts for the year ended 31 March 2010 issued
30 September 2010).
Going Concern
As shown in this Interim Report, the group has incurred losses in the first six
months of this financial year which has created uncertainty over the group's
short term future profitability. As discussed in the Chairman's Statement
trading for the two months since the half year end has improved and the results
for the two months show a profit. 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 group to generate new work.
Based on these forecasts the group is shown to be operating within its agreed
borrowing facility limit throughout the period of the forecasts, enabling the
group 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 group'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 group 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.
3 CRITICAL ACCOUNTING JUDGEMENTS
Impairment of goodwill
Determining whether goodwill is impaired requires an estimation of the value in
use of the cash-generating units to which goodwill has been allocated. The
value in use calculation requires the entity to estimate the future cash flows
expected to arise from the cash-generating unit and a suitable discount rate in
order to calculate present value.
In the last annual accounts the Directors had highlighted that there was
uncertainty regarding the market conditions that existed post year end and that
this may have impacted on the assumptions of future cash generation. The
Directors now have a clearer understanding of the market condition, as outlined
in the Chairman's statement and have performed a further impairment review as at
30 September 2010. This test did not result in recognition of any loss and the
goodwill carrying amount of all cash-generating units was considered lower than
their recoverable amount.
4 Dividends
The directors do not recommend the payment of an interim dividend.
5 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:
+-----------------------------+----------+-----------+----------+-----------+----------+---------+----+
| | | 6 | | 6 | | 12 | |
| | | months | | months | | months | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+----+
| | | ended | | ended | | ended | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+----+
| | | 30 | | 30 | | 31 | |
| | | September | | September | | March | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+----+
| | | 2010 | | 2009 | | 2010 | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+----+
| | | | | | | | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+----+
| | | Unaudited | | Unaudited | | Audited | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+----+
| | | GBP'000 | | GBP'000 | | GBP'000 | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+----+
| | | | | | | | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+----+
| Profit/(Loss) for the | | (299) | | 113 | | 172 | |
| period | | | | | | | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+----+
| | | | | | | | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+----+
| | | | | | | | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+----+
| | | No. | | No. | | No. | |
| | | '000 | | '000 | | '000 | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+ +
| | | | | | | | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+ +
| Weighted average number of | | 12,745 | | 12,745 | | 12,745 | |
| equity shares: Basic | | | | | | | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+ +
| | | | | | | | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+----+
| Weighted average number of | | 13,127 | | 12,919 | | 13,006 | |
| equity shares: Diluted | | | | | | | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+----+
6 PROPERTY, PLANT AND EQUIPMENT
During the period the Group made acquisitions amounting to GBP51k (2009:
GBP76k).
7 CASH USED IN OPERATIONS
+-----------------------------+----------+-----------+----------+-----------+----------+---------+
| | | 6 | | 6 | | 12 |
| | | months | | months | | months |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+
| | | ended | | ended | | ended |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+
| | | 30 | | 30 | | 31 |
| | | September | | September | | March |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+
| | | 2010 | | 2009 | | 2010 |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+
| | | Unaudited | | Unaudited | | Audited |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+
| Results from operating | | (283) | | 138 | | 311 |
| activities | | | | | | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+
| Depreciation of property, | | 99 | | 99 | | 213 |
| plant and equipment | | | | | | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+
| Amortisation of intangible | | 7 | | 7 | | 13 |
| fixed assets | | | | | | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+
| Loss/(Profit) on disposal | | 1 | | 5 | | 3 |
| of property, plant and | | | | | | |
| equipment | | | | | | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+
| Decrease/(Increase) in | | 422 | | (433) | | (500) |
| receivables | | | | | | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+
| Increase/(Decrease) in | | (230) | | 79 | | 326 |
| payables | | | | | | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+
| Cash used in operations | | 16 | | (105) | | 366 |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | |
+-----------------------------+----------+-----------+----------+-----------+----------+---------+
8 SEGMENT ANALYSIS
Since the annual report, management have reviewed the relevant business segments
for their own internal reporting purposes and have amended the segmental
reporting in the interim statements to reflect these changes.
The relevant segments are presented below but previously Australia Traffic was
described as Australia and what was described as UK has now been split into UK
Traffic, Data Capture and Plc.
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | UK | Australia | Data | Plc | Total | |
| | Traffic | Traffic | Capture | | for | |
| | | | | | group | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| For the 6 months | | | | | | |
| ended 30 September | | | | | | |
| 2010 | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Unaudited | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Revenue | 1,291 | 735 | 252 | - | 2,278 | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Operating | (186) | (9) | 8 | (96) | (283) | |
| profit/(loss) | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Finance income | - | - | - | - | - | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Finance expenses | (6) | (10) | - | - | (16) | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Profit/(loss) before | (192) | (19) | 8 | (96) | (299) | |
| taxation | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Income tax expense | - | - | - | - | - | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Profit/(loss) from | (192) | (19) | 8 | (96) | (299) | |
| continuing operations | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Balance sheet | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+ +
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+ +
| Total assets | 1,037 | 660 | 160 | 774 | 2,631 | |
+-----------------------+---------+-----------+---------+---------+---------+ +
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+ +
| Total liabilities | (676) | (364) | (99) | (61) | (1,200) | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | UK | Australia | Data | Plc | Total | |
| | Traffic | Traffic | Capture | | for | |
| | | | | | group | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| For the 6 months | | | | | | |
| ended 30 September | | | | | | |
| 2009 | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Unaudited | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Revenue | 1,780 | 534 | 272 | - | 2,586 | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Operating | 219 | (47) | 38 | (72) | 138 | |
| profit/(loss) | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Finance income | 1 | - | - | - | 1 | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Finance expenses | (11) | (15) | - | - | (26) | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Profit/(loss) before | 209 | (62) | 38 | (72) | 113 | |
| taxation | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Income tax expense | - | - | - | - | - | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Profit/(loss) from | 209 | (62) | 38 | (72) | 113 | |
| continuing operations | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Balance sheet | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+ +
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+ +
| Total assets | 1,365 | 747 | 174 | 787 | 3,073 | |
+-----------------------+---------+-----------+---------+---------+---------+ +
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+ +
| Total liabilities | (664) | (450) | (81) | (105) | (1,300) | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | UK | Australia | Data | Plc | Total | |
| | Traffic | Traffic | Capture | | for | |
| | | | | | group | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| For the 12 months | | | | | | |
| ended 31 March 2010 | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Audited | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Revenue | 3710 | 1,510 | 500 | - | 5,720 | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Operating | 346 | 29 | 79 | (143) | 311 | |
| profit/(loss) | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Finance income | 2 | - | - | - | 2 | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Finance expenses | (18) | (27) | (1) | - | (46) | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Profit/(loss) before | 330 | 2 | 78 | (143) | 267 | |
| taxation | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Income tax expense | (63) | (24) | (8) | - | (95) | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Profit/(loss) from | 267 | (22) | 70 | (143) | 172 | |
| continuing operations | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
| Balance sheet | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+ +
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+ +
| Total assets | 1,244 | 939 | 223 | 781 | 3,187 | |
+-----------------------+---------+-----------+---------+---------+---------+ +
| | | | | | | |
+-----------------------+---------+-----------+---------+---------+---------+ +
| Total liabilities | (696) | (599) | (86) | (87) | (1,468) | |
+-----------------------+---------+-----------+---------+---------+---------+----------+
Copies of this report will be available from the Company's website at
www.skyhighplc.co.uk and the Company's registered office at 10 High Street,
Tadcaster, Leeds, LS24 9AT.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR TRBPTMBBMBLM
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