REG - IPPlus PLC - Interim Results <Origin Href="QuoteRef">IPPL.L</Origin> - Part 2

PCI- PALAnnouncement

11/02/2015 07:01

- Part 2: For the preceding part double click  ID:nRSK5752Ea 

and diluted earnings/(loss) per share                                                        
 From continuing activities                     (0.27)p          2.06 p           0.99 p          
 From discontinued activities                   (0.25)p          (0.12)p          (0.30)p         
                                                ---------------  ---------------  --------------  
 Basic and diluted earnings/(loss) per share    (0.52)p          1.94 p           0.69 p          
                                                ---------------  ---------------  -------------   
                                                                                                        
 
 
6.       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 £98,319. 
 
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, paid on 2 January 2015. 
 
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 (see loss for period from discontinued
activities). 
 
Operating losses until the date of disposal are summarised below: 
 
 Disposal                                        6 monthsended31 December2014(unaudited)  6 monthsended31 December2013(unaudited)  12 months ended30 June2014(audited)  
                                                 £                                        £                                        £                                    
                                                                                                                                                                        
 Revenue                                         362,703                                  330,742                                  731,494                              
                                                                                                                                                                        
 Cost of sales                                   (285,418)                                (248,840)                                (538,705)                            
                                                 ---------------                          ---------------                          ---------------                      
 Gross profit                                    77,285                                   81,902                                   192,789                              
                                                                                                                                                                        
 Administrative expenses                         (154,433)                                (118,268)                                (286,568)                            
                                                 ---------------                          ---------------                          ---------------                      
 Operating loss                                  (77,148)                                 (36,366)                                 (93,779)                             
                                                                                                                                                                        
 Income tax charge                               -                                        -                                        -                                    
                                                 ---------------                          ---------------                          ---------------                      
 Loss for period from discontinued activities    (77,148)                                 (36,366)                                 (93,779)                             
                                                 ════════                                 ════════                                 ════════                             
                                                                                                                                                                        
                                                                                                                                                                        
                                                                                                                                                                        
 Loss in period                                  (61,526)                                 (36,366)                                 (93,779)                             
 Reorganisation cost                             (98,319)                                 -                                        -                                    
 Profit on disposal                              82,697                                   -                                        -                                    
                                                 ---------------                          ---------------                          ---------------                      
 Loss before taxation                            (77,148)                                 (36,366)                                 (93,779)                             
                                                 ════════                                 ════════                                 ════════                             
 
 
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:                                            
 Provision for onerous leases           (121,000)        
 Legal Fees                             (8,300)          
 Other costs                            (1,690)          
                                        ---------------  
 Total net assets and provisions        (417,303)        
                                                         
 Cash received on 2 January 2015        500,000          
                                        --------------   
 Profit on disposal                     82,697           
                                        ════════         
 
 
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. 
 
There was no disposal cash movement in the period as the balance owed was
shown as a debtor at 31 December 2014. 
 
This information is provided by RNS
The company news service from the London Stock Exchange