REG - IPPlus PLC - Final Results <Origin Href="QuoteRef">IPPL.L</Origin> - Part 3
27/08/2015 11:40
- Part 3: For the preceding part double click ID:nRSa2983Xb
1,042,010
Additions 36,881 9,995 51,053 159,691 257,620
Disposals - (6,000) (4,073) (1,200) (11,273)
──────── ──────── ──────── ──────── ────────
At 30 June 2014 172,502 62,108 447,218 606,529 1,288,357
──────── ──────── ──────── ──────── ────────
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
════════ ════════ ════════ ════════ ════════
Included within the net book amount of £224,333 (2014: £421,256) is £36,015 (2014: £109,315) relating to assets held under
finance leases. The depreciation charged to the financial statements in the year in respect of such assets amounted to
£42,863 (2014: £61,903).
14. LAND AND BUILDINGS
2015 Land£ Buildings£ Total £
Cost:
At 1 July 2014 428,347 1,313,687 1,742,034
Additions - 1,500 1,500
Disposals - (64,667) (64,667)
──────── ──────── ────────
At 30 June 2015 428,347 1,250,520 1,678,867
──────── ──────── ────────
Depreciation (Included within administrative expenses):
At 1 July 2014 - 49,265 49,265
Charge for the year - 49,743 49,743
Disposals - (73,445) (73,445)
──────── ──────── ────────
At 30 June 2015 - 25,563 25,563
──────── ──────── ────────
Net book amount at 30 June 2015 428,347 1,224,957 1,653,304
════════ ════════ ════════
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
════════ ════════ ════════
15. TRADE AND OTHER RECEIVABLES
2015 2014
£ £
Trade receivables 950,449 1,372,920
Other receivables 504 16,595
Prepayments and accrued income 248,675 288,651
──────── ────────
Trade and other receivables 1,199,628 1,678,166
════════ ════════
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 £14,618
(2014: £27,575) of deposits as security against certain accounts.
Trade receivables have been reviewed for indicators of impairment and a provision has been recorded as follows:
2015 2014
£ £
Opening provision at 30 June 2014 17,000 12,697
(Released)/charged to income (4,100) 4,303
──────── ────────
Closing provision at 30 June 2015 12,900 17,000
════ 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 2015Number 2015£ 2014Number 2014£
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 owns 167,229 (2014: 167,229) shares 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).
During the year, the share price fluctuated between 20 pence and 14 pence and closed at 15 pence on 30 June 2015.
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 2015.
Date of grant Number of shares Exerciseprice Period exercisable
4 November 2013 600,000 1.00p See below
These options were granted at an exercise price of 1 pence each on 4 November 2013. 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 LTIP granted during the period, determined using the Black-Scholes
valuation model, was 14.12 pence per option. The significant inputs into the model were mid-market share price of 28 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
2015 was 1p, with a weighted average life of 12 months and at 30 June 2014 was 3.6p, with a weighted average life of 17
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.
2015ShareOptions 2014ShareOptions
Amounts in issue at beginning of year 1,725,000 1,884,425
Granted in period - 650,000
Expirations in period (1,125,000) (809,425)
──────── ────────
Amounts in issue at year end 600,000 1,725,000
════════ ════════
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 2015 is £1,137,484 (2014: £1,160,455). Interest is payable at 2.4% above the base (2014:
at 2.55% above the three month LIBOR 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 £
2015
Trade payables 276,415 - - - 276,415
Other payables 445,973 - - - 445,973
Lease capital and interest 20,200 7,244 - - 27,444
Loans 65,399 65,399 196,197 1,261,802 1,588,797
──────── ──────── ──────── ──────── ────────
At 30 June 2015 807,987 72,643 196,197 1,261,802 2,338,629
════════ ════════ ════════ ════════ ════════
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
════════ ════════ ════════ ════════ ════════
Foreign currencies
During the year exchange gains of £829 (2014: charge of £22,403) have arisen and at the year-end £1,679 (2014: £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£
2015
Cash at bank 1,040,822 - 1,040,822
Trade receivables - current 950,449 - 950,449
Other receivables 504 - 504
Prepayments and accrued income - 248,675 248,675
──────── ──────── ────────
1,991,775 248,675 2,240,450
════════ ════════ ════════
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
════════ ════════ ════════
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 amortised cost £ Non financial liabilities £ Total £
2015
Trade payables 276,415 - 276,415
Accruals 434,839 - 434,839
Other payables 11,134 - 11,134
VAT and tax payable - 319,878 319,878
Loans 32,766 - 32,766
Leases - 18,996 18,996
──────── ──────── ────────
755,154 338,874 1,094,028
════════ ════════ ════════
Financial liabilities measured at amortised cost £ Non financial 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
════════ ════════ ════════
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 2015 or 30 June 2014.
23. CONTINGENT ASSETS
The Group has no contingent assets at 30 June 2015 or 30 June 2014.
24. CONTINGENT LIABILITIES
The Group has no contingent liabilities at 30 June 2015 or 30 June 2014.
25. OPERATING LEASE COMMITMENTS
2015£ 2014£
Total future lease payments:
Less than one year 140,095 113,296
After one and within two years 59,383 107,684
After two and within five years 65,742 97,060
════════ ════════
Operating lease commitments relate to the following buildings:
Tuddenham expires December 2015
Martlesham (Unit G) expires January 2016
London expires May 2016
Bentwaters expires January 2017
Martlesham (Anson Road) expires March 2017
26. TRANSACTIONS WITH DIRECTORS
There were no transactions with directors in the year to June 2015 or June 2014 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.
The following directors received dividend payments during the year to 30 June 2015 as follows:
DividendPaid2015£ Dividend Paid2014£
W A Catchpole 3,878 7,775
R S M Gordon 1,452 2,904
G Forsyth 1,487 2,974
P J Dayer 440 880
28. DISPOSAL OF ANCORA SOLUTIONS DIVISION
Ancora Solutions provided secure document removal, archiving, confidential data destruction and library move services to
the medical and scientific industries, as well as industrial and professional sectors.
Prior to the disposal, Ancora Solutions was reorganised and removals were ceased with a consequent reduction in staff,
including the divisional Managing Director. This gave rise to a total reorganisation cost of £100,166.
Subsequent to this reorganisation, on 31 December 2014 the Group disposed of the division to Restore PLC. Under the terms
of the Disposal, Restore PLC purchased the entire fixed assets, payroll and existing contracts of Ancora in return for a
cash consideration of £500,000.
Revenues and expenses, gains and losses relating to the discontinuance of this division have been eliminated from the loss
from the Group's continuing operations and are shown as a single line item on the face of the Consolidated Statement of
Comprehensive Income.
Operating losses until the date of disposal are summarised below:
2015£ 2014£
Revenue 362,803 731,494
Cost of sales (286,028) (538,705)
──────── ────────
Gross profit 76,775 192,789
Administrative expenses (113,162) (277,495)
──────── ────────
Trading loss (36,387) (84,706)
Reorganisation costs (100,166) -
Provision for onerous leases (121,000) -
──────── ────────
Operating loss (257,553) (84,706)
Profit on disposal 203,697 -
──────── ────────
Loss for period from discontinued activities (53,856) (84,706)
════════ ════════
The provision for onerous leases relates to the estimated cost of warehouse leases that the Group will continue to bear
once the archiving has relocated to the Restore units.
The calculation of the profit on disposal is shown below:
£
Goodwill and intangible assets (207,017)
Plant and equipment (79,296)
────────
Net Assets disposed (286,313)
Other Items:
Legal Fees (8,300)
Other costs (1,690)
────────
Total net assets and provisions (296,303)
Cash received 500,000
────────
Profit on disposal 203,697
════════
COMPANY BALANCE SHEET
AS AT 30 JUNE 2015
Note 2015£ 2014£
Fixed assets
Investments 3 201,609 201,609
Tangible fixed assets: land and buildings 3 - 1,594,523
──────── ────────
201,609 1,796,132
Current assets
Debtors 4 709,334 299,860
Cash at bank and in hand 8,347 38,375
──────── ────────
717,681 338,235
Creditors: amounts falling due within oneyear 5 (22,162) (68,801)
──────── ────────
Net current assets 695,519 269,434
──────── ────────
Total assets less current liabilities 897,128 2,065,566
Creditors: amounts falling due after more than one year 6 - (1,127,171)
──────── ────────
Net Assets 897,128 938,395
════════ ════════
Capital and reserves
Called up share capital 7 317,212 317,212
Share premium account 9 89,396 89,396
Profit and loss account 9 490,520 531,787
──────── ────────
Shareholders' Funds 10 897,128 938,395
════════ ════════
The Board of Directors approved the financial statements on 26 August 2015.
W A Catchpole Director
R S M Gordon Director
This information is provided by RNS
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