- Part 3: For the preceding part double click ID:nRSA4561Qb
────────
Depreciation (Included within administrative expenses):
At 1 July 2013 56,426 36,003 298,425 261,098 651,952
Charge for the year 28,774 11,199 63,568 121,256 224,797
Disposals - (4,625) (3,823) (1,200) (9,648)
──────── ──────── ──────── ──────── ────────
At 30 June 2014 85,200 42,577 358,170 381,154 867,101
──────── ──────── ──────── ──────── ────────
Net book amount at 30 June 2014 87,302 19,531 89,048 225,375 421,256
════════ ════════ ════════ ════════ ════════
2013 Plant£ Motor Vehicles£ Fixtures and Fittings£ Computer Equipment£ Total£
Cost:
At 1 July 2012 121,756 56,113 394,874 474,700 1,047,443
Additions 21,865 10,000 9,945 115,181 156,991
Disposals (8,000) (8,000) (4,581) (141,843) (162,424)
──────── ──────── ──────── ──────── ────────
At 30 June 2013 135,621 58,113 400,238 448,038 1,042,010
──────── ──────── ──────── ──────── ────────
Depreciation (Included within administrative expenses):
At 1 July 2012 35,716 31,690 232,844 301,909 602,159
Charge for the year 28,710 12,313 70,162 101,032 212,217
Disposals (8,000) (8,000) (4,581) (141,843) (162,424)
──────── ──────── ──────── ──────── ────────
At 30 June 2013 56,426 36,003 298,425 261,098 651,952
──────── ──────── ──────── ──────── ────────
Net book amount at 30 June 2013 79,195 22,110 101,813 186,940 390,058
════════ ════════ ════════ ════════ ════════
Included within the net book amount of £421,256 (2013: £390,058) is £109,315 (2013: £108,100) relating to assets held under
finance leases. The depreciation charged to the financial statements in the year in respect of such assets amounted to
£61,903 (2013: £47,999).
14. LAND AND BUILDINGS
2014 Land£ Buildings£ Total £
Cost:
At 1 July 2013 54,182 8,300 62,482
Additions 374,165 1,305,387 1,679,552
──────── ──────── ────────
At 30 June 2014 428,347 1,313,687 1,742,034
──────── ──────── ────────
Depreciation (Included within administrative expenses):
At 1 July 2013 - - -
Charge for the year - 49,265 49,265
──────── ──────── ────────
At 30 June 2014 - 49,265 49,265
──────── ──────── ────────
Net book amount at 30 June 2014 428,347 1,264,422 1,692,769
════════ ════════ ════════
2013 Land£ Buildings£ Total£
Cost:
At 1 July 2012 52,832 - 52,832
Additions 1,350 8,300 9,650
──────── ──────── ────────
At 30 June 2013 54,182 8,300 62,482
──────── ──────── ────────
Depreciation (Included within administrative expenses):
At 1 July 2012 - - -
Charge for the year - - -
──────── ──────── ────────
At 30 June 2013 - - -
──────── ──────── ────────
Net book amount at 30 June 2013 54,182 8,300 62,482
════════ ════════ ════════
15. TRADE AND OTHER RECEIVABLES
2014 2013
£ £
Trade receivables
1,372,920 1,364,065
Other receivables
16,595 61,845
Prepayments and accrued income 288,651
178,673
──────── ────────
Trade and other receivables 1,678,166
1,604,583
════════ ════════
All amounts fall due within one year and therefore the fair value is considered to be approximately equal to the carrying
value. All of the Group's trade and other receivables are denominated in pounds sterling. The maximum exposure to credit
risk at the reporting date is the carrying value of each class of receivables mentioned above. The Group holds £27,575
(2013: £13,981) of deposits as security against certain accounts.
Trade receivables have been reviewed for indicators of impairment and a provision has been recorded as follows:
2014 2013
£ £
Opening provision at 30 June 2013 12,697 4,899
Charged to income 4,303 7,798
────── ──────
Closing provision at 30 June 2014 17,000 12,697
══════ ══════
In addition some of the non-impaired trade receivables are past due at the reporting date:
2014 2013
£ £
0-30 days past due 43,687 15,223
30-60 days past due 15,135 13,381
Over 60 days past due 5,311 496
──────── ────────
64,133 29,100
════════ ════════
Amounts which are not impaired, whether past due or not, are considered to be recoverable at their carrying value.
16. CURRENT LIABILITIES
2014 2013
£ £
Trade payables
286,235 162,259
Social security and other taxes 403,656
390,868
Other payables
304,381 352,416
──────── ────────
Trade and other payables
994,272 905,543
──────── ────────
Bank loans (note 17)
33,284 29,167
Amounts due under finance leases 51,990
62,996
──────── ────────
Current portion of long-term borrowings 85,274
92,163
──────── ────────
Current liabilities
1,079,546 997,706
════════ ════════
Amounts due under finance leases are secured on the related assets.
17. NON-CURRENT LIABILITES
2014 2013
£ £
Bank loans
1,127,171 -
Amounts due under finance leases 25,014
35,900
Other payables
- 2,000
──────── ────────
Long term borrowings
1,152,185 37,900
Deferred taxation
- 65,000
──────── ────────
1,152,185 102,900
════════ ════════
Borrowings
Bank loans are repayable as follows:
2014 2013
£ £
Within one year
33,284 29,167
After one year and within two years 69,695
-
After two years and within five years 74,084
-
Over five years
983,392 -
──────── ────────
1,160,455 29,167
════════ ════════
On 1 July 2013 the Group obtained a loan of £1,192,500, secured over Melford Court, The Havens, Ransomes Europark, Ipswich
IP3 9SJ repayable over 25 years with a 5 year fixed rate of 2.55% above the three month LIBOR rate from the NatWest Bank
PLC.
On 21 January 2012 the Group obtained an unsecured loan of £150,000 repayable over 36 months in equal monthly instalments
of £4,167. Interest on the loan is payable at 3.5% above the bank base rate.
Interest on the bank loan falls due as follows:
2014 2013
£ £
Within one year
35,106 338
After one year and within two years 67,084
-
After two and within five years 60,173
-
Over five years
318,631 -
──────── ────────
480,994 338
════════ ════════
Amounts due under finance leases are secured on the related assets.
Amounts due under finance leases fall due as follows:
2014 2013
£ £
Within one year
55,374 68,297
After one year and within two years 26,238
37,161
──────── ────────
81,612 105,458
════════ ════════
The above table includes interest of £3,384 (2013: £5,301) due within one year and £1,224 (2013: £1,261) due after one year
but within two years.
18. DEFERRED TAXATION
Deferred taxation is calculated at a rate of 22.5% (2013: 23%).
Tax losses£ Capitalised intangibles£ Total£
Opening balance at 1 July 2013 280,000 (76,410) 203,590
Charged through the statement of comprehensive income in the year 93,000 11,410 104,410
──────── ─────── ────────
At 30 June 2013 373,000 (65,000) 308,000
(Charged)/credited through the statement of comprehensive income in the year (93,000) 65,000 (28,000)
──────── ─────── ───────
At 30 June 2014 280,000 - 280,000
════════ ═══════ ═══════
2014 2013
£ £
Unprovided deferred tax assets
Accelerated capital allowances 4,000
14,000
Trading losses
64,000 39,000
──────── ────────
68,000 53,000
════════ ════════
The deferred tax asset of £280,000 in respect of carried forward tax losses has been recognised on the basis that the
directors believe that it is more likely than not to be realised against future taxable profits of the Group. This has been
increased to recognise the losses which will be utilised in relation to the early surrender of the tenant lease.
There are unprovided deferred tax losses of £320,000.
The unprovided deferred tax assets are calculated at a rate of 20% (2013: 23%). The unprovided deferred tax assets
attributable to losses should be recoverable against future profits.
19. GROUP UNDERTAKINGS
At 30 June 2014, the Group included the following subsidiary undertakings, which are included in the consolidated
accounts:
Name Country ofIncorporation Class of sharecapital held Proportionheld Nature ofbusiness
IPPlus (UK) Limited England Ordinary 100% Out of hours and overflow telephony services, document storage and destruction and software company
CallScripter Limited England Ordinary 100% Software reseller
Ancora Solutions Limited England Ordinary 100% Dormant
Ansaback Limited England Ordinary 100% Dormant
CallScripter (U.K.) Limited England Ordinary 100% Dormant
EasyScripter Limited England Ordinary 100% Dormant
Fault Solutions 365 Limited England Ordinary 100% Dormant
IP3 Telecom Limited England Ordinary 100% Dormant
PCI-PAL Limited England Ordinary 100% Dormant
The Number Experts Limited England Ordinary 100% Dormant
Vital Contact (UK) Limited England Ordinary 100% Dormant
20. SHARE CAPITAL
Group 2014Number 2014£ 2013Number 2013£
Authorised:
Ordinary shares of 1p each 100,000,000 1,000,000 100,000,000 1,000,000
════════ ════════ ════════ ════════
Allotted called up and fully paid:
Ordinary shares of 1p each 31,721,178 317,212 31,721,178 317,212
════════ ════════ ════════ ════════
The Group acquired 119,000 of its own shares on 18 September 2013 at a cost of £29,750 (2013: 48,229 shares at a cost of
£9,887) and these are held as Treasury Shares. This value is deducted in the Consolidated Statement of Changes in Equity
and is reflected in the weighted average number of shares in issue during the period (Note 10).
Contingent rights to the allotment of shares
The Group has granted the following share options, in respect of ordinary shares of 1p each, which were still valid and
unexercised at 30 June 2014.
Date of grant Number of shares Exerciseprice Period exercisable
1 July 2005 400,000 12.36p See below *
27 November 2012 675,000 1.00p See below **
4 November 2013 600,000 1.00p See below ***
11 March 2014 50,000 1.00p See below ***
During the year, the share price fluctuated between 19.625 pence and 30.75 pence and closed at 20.00 pence on 30 June
2014.
* These options can be realised on the following formula between three and ten years from their grant:
If the share priceis at or above Percentage of optionsRealisable
25p 25%
40p 50%
65p 75%
100p 100%
The fair value of the share options granted after 7 November 2002 and not vested at 1 July 2006 has been assessed in
accordance with IFRS 2. The directors do not consider that the amounts involved are material and therefore no charge has
been recognised.
** These options were granted at an exercise price of 1 pence each on 27 November 2012. The options are conditional on
certain vesting criteria including an annual Group Profit before tax target for the year ended 30 June 2015.
*** These options were granted at an exercise price of 1 pence each on 4 November 2013 and 11 March 2014. The options are
conditional on certain vesting criteria including an annual Group Profit before tax target for the year ended 30 June
2016.
The weighted average fair value of the November 2013 and March 2014 LTIP granted during the period, determined using the
Black-Scholes valuation model, was 27.25 pence per option. The significant inputs into the model were mid-market share
price of 28.25 pence at the grant date; exercise price shown above; an expected 10 year time to expiry; an annual risk-
free interest rate of 0.5%; dividend yield of nil; volatility of share price of nil.
The weighted average fair value of the November 2013 LTIP granted during the period, determined using the Black-Scholes
valuation model, was 15.375 pence per option. The significant inputs into the model were mid-market share price of 16.375
pence at the grant date; exercise price shown above; an expected 10 year time to expiry; an annual risk- free interest rate
of 0.5%; dividend yield of nil; volatility of share price of nil.
No share options are currently exercisable. The Weighted Average Exercise Price of share options outstanding at 30 June
2014 was 3.6p, with a weighted average life of 17 months and at 30 June 2013 was 4.2p, with a weighted average life of 15
months.
No share option charge has been recognised during the year because management are of the opinion that the performance
conditions will not be met.
2014 2013
Share Share
Options Options
Amounts in issue at beginning of year 1,884,425
5,560,425
Granted in period
650,000 700,000
Expirations in period
(809,425) (4,376,000)
─────── ───────
Amounts in issue at year end 1,725,000
1,884,425
─────── ───────
21. FINANCIAL INSTRUMENTS
The Group uses various financial instruments including cash, trade receivables, trade payables, other payables, loans and
leasing that arise directly from its operations. The main purpose of these financial instruments is to maintain adequate
finance for the Group's operations. The existence of these financial instruments exposes the Group to a number of financial
risks, which are described in detail below. The directors do not consider price risk to be a significant risk. The
directors review and agree policies for managing each of these risks, as summarised below, and these remain unchanged from
previous years.
Financial risk management and objectives
The Group seeks to manage financial risk to ensure sufficient liquidity is available to meet foreseeable needs and to
invest cash assets safely and profitably. The directors achieve this by regularly preparing and reviewing forecasts based
on the trends shown in the monthly management accounts.
Interest rate risk
The total loan balance at 30 June 2014 is £1,160,455 (2013: £29,167). Interest is payable at 2.55% above the three month
LIBOR rate (2013: 3.5% above the bank's base rate) (note 17).
The Group finances its operations through a mixture of cash and loans and has some risk to interest rate movements which
are not deemed significant in the short term.
Credit risk
The Group's principal financial assets are cash and trade receivables, with the principal credit risk arising from trade
receivables. In order to manage credit risks the Group conducts third party credit reviews on all new clients, takes
deposits where this is deemed necessary and collects payment by direct debit on all new Ansaback and Ancora accounts,
limiting the exposure to a build up of a large outstanding debt. The Group also conducts third party credit reviews on
CallScripter accounts, which also have an agreed payment plan tailored to the risk of the individual client.
Liquidity risk
The Group aims to mitigate liquidity risk by closely monitoring cash generation and expenditure. Cash is monitored daily
and forecasts are regularly prepared to ensure that the movements are in line with the directors' strategy.
Trade payables and loans fall due as follows:
Less than one year£ One to two years£ Two to five years£ Over five years£ Total £
2014
Trade payables 286,235 - - - 286,235
Other payables 304,381 - - - 304,381
Lease capital and interest 55,374 26,238 - - 81,612
Loans 68,390 136,780 130,047 1,306,142 1,641,359
──────── ──────── ──────── ──────── ────────
At 30 June 2014 714,380 163,018 130,047 1,306,142 2,313,587
════════ ════════ ════════ ════════ ════════
Less than one year£ One to two years£ Two to five years£ Total £
2013
Trade payables 162,259 - - 162,259
Other payables 352,416 2,000 - 354,416
Lease capital and interest 68,297 37,099 - 105,396
Loans 29,505 - - 29,505
──────── ──────── ──────── ────────
At 30 June 2013 612,477 39,099 - 651,576
════════ ════════ ════════ ════════
Foreign currencies
During the year exchange differences of £22,403 (2013: £5,212) have arisen and at the year-end £nil (2013: £nil) was held
in foreign currency bank accounts. It is the Group's policy to hold limited amounts in foreign currency in order to reduce
exposure to currency risk. The Group does not sell or buy any currency forward or enter into any hedging contracts.
Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction and monetary
assets and liabilities in foreign currencies are translated at the rates ruling at the year end. At present foreign
exchange is minimal and hedging and risk management is not deemed necessary.
Financial assets by category
Loans andreceivables£ Non financial assets£ Total£
2014
Cash at bank 459,693 - 459,693
Trade receivables - current 1,372,920 - 1,372,920
Other receivables 16,595 - 16,595
Current tax asset - 30,131 30,131
Prepayments and accrued income - 288,651 288,651
──────── ──────── ────────
1,849,208 318,782 2,167,990
════════ ════════ ════════
Loans andreceivables£ Non financial assets£ Total£
2013
Cash at bank 559,574 - 559,574
Trade receivables - current 1,364,065 - 1,364,065
Other receivables 61,845 - 61,845
Current tax asset - 20,759 20,759
Prepayments and accrued income - 178,673 178,673
──────── ──────── ────────
1,985,484 199,432 2,184,916
════════ ════════ ════════
The fair values of loans and receivables are considered to be approximately equal to the carrying values.
Financial liabilities by category
Financial
liabilities
measured at Non
amortised financial
cost liabilities Total
£ £ £
2014
Trade payables 286,235
- 286,235
Accruals 290,247
- 290,247
Other payables 12,134
- 12,134
VAT and tax payable -
403,656 403,656
Deferred payments -
2,000 2,000
Loans 33,284
- 33,284
Leases -
51,990 51,990
──────── ──────── ────────
621,900 457,646 1,079,546
════════ ════════ ════════
Financial
liabilities
measured at Non
amortised financial
cost liabilities Total
£ £ £
2013
Trade payables 162,259
- 162,259
Accruals 314,026
- 314,026
Other payables 14,390
- 14,390
VAT and tax payable -
390,868 390,868
Deferred payments -
24,000 24,000
Loans 29,167
- 29,167
Leases -
62,996 62,996
──────── ──────── ────────
519,842 477,864 997,706
════════ ════════ ════════
The fair values of financial liabilities are considered to be approximately equal to the carrying values.
22. CAPITAL COMMITMENTS
The Group has no capital commitments at 30 June 2014 or 30 June 2013.
23. CONTINGENT ASSETS
The Group has no contingent assets at 30 June 2014 or 30 June 2013.
24. CONTINGENT LIABILITIES
The Group has no other contingent liabilities at 30 June 2014 or 30 June 2013.
25. OPERATING LEASE COMMITMENTS
2014£ 2013£
Total future lease payments:
Less than one year 67,156 125,077
After one and within two years 71,504 76,497
After two and within five years 196,910 3,466
════════ ════════
Operating lease commitments relate to the lease of buildings at Martlesham and Bentwaters which expire in March 2019 (with
a break clause in June 2015), January 2016, January 2019 respectively.
26. TRANSACTIONS WITH DIRECTORS
There were no transactions with directors in the year to June 2014 or June 2013 other than the dividends noted below.
27. DIVIDENDS
The directors have proposed a dividend of 0.15 pence per share post year end (subject to shareholder approval). As this was
proposed post year end no liability has been recognised in the accounts.
During the year dividends of 0.3 pence per share were paid.
The following directors received dividend payments as follows:
Dividend2014£ Dividend 2013£
W A Catchpole 7,775 -
R S M Gordon 2,904 -
G Forsyth 2,974 -
P J Dayer 880 -
This information is provided by RNS
The company news service from the London Stock Exchange