REG - PCI-PAL PLC - Final Results <Origin Href="QuoteRef">PCIPP.L</Origin> - Part 3
23/11/2016 07:05
- Part 3: For the preceding part double click ID:nRSW8564Pb
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 2016Number 2016£ 2015Number 2015£
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 (2015: 167,229) shares and these are held as Treasury
Shares.
During the year, the share price fluctuated between 16 pence and 12.5 pence
and closed at 12.50 pence on 30 June 2016.
Contingent rights to the allotment of shares
No share options are currently exercisable.
Contingent rights to the allotment of shares (continued)
2016ShareOptions 2015ShareOptions
Amounts in issue at beginning of year 600,000 1,725,000
Granted in period -
Expirations in period (600,000) (1,125,000)
──────── ────────
Amounts in issue at year end - 600,000
════════ ════════
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.
Capital Management
The capital structure of the Group consists of debt, cash, loans and equity.
The Group's objective when managing capital is to maintain the cash position
to protect the future on-going profitable growth which will reflect in
shareholder value.
At 30 June 2016 the Group had a closing cash balance of £895,422 (2015:
£1,040,822) and an outstanding mortgage of £1,109,256 (2015: £1,137,484).
21. FINANCIAL INSTRUMENTS (continued)
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 2016 is £1,109,256 (2015: £1,137,484).
Interest is payable at 2.4% above the base rate (2015: at 2.4% above the 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.
A 1% increase in interest the interest rate payable would have a negative
impact the profit and loss account of £11,052. A 1% decrease in interest the
interest rate payable would have a positive impact the profit and loss account
of £11,052.
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£
2016
Trade payables 289,284 - - - 289,284
Other payables 303,957 - - - 303,957
Lease capital and interest 28,863 28,863 41,870 - 99,596
Loans 67,989 65,400 261,597 1,155,893 1,550,879
──────── ──────── ──────── ──────── ────────
At 30 June 2016 690,093 94,263 303,467 1,155,893 2,243,716
════════ ════════ ════════ ════════ ════════
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
════════ ════════ ════════ ════════ ═ (286,028)
──────── ────────
Gross (loss)/profit (275) 76,775
Administrative expenses 17,531 (113,162)
──────── ────────
Trading profit/(loss) 17,256 (36,387)
Reorganisation costs - (100,166)
Provision for onerous leases 19,204 (121,000)
──────── ────────
Operating loss 36,460 (257,553)
Profit on disposal - 203,697
──────── ────────
Loss for period from discontinued activities 36,460 (53,856)
════════ ════════
The prior year provision for onerous leases relates to the estimated cost of
warehouse leases that the Group would continue to bear once the archiving
relocated to the Restore units.
As Restore occupied the premises for longer than anticipated, part of the
provision for onerous leases was released in the year. Restore have now fully
vacated all of the premises used by Ancora.
28. DISPOSAL OF ANCORA SOLUTIONS DIVISION (continued)
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
════════
29. SUBSEQUENT EVENTS
On 30 September 2016 the group disposed of the investment in IPPlus (UK)
Limited and CallScripter Limited to Direct Response Contact Centres Group
Limited for £6,700,000. This generated a profit on disposal of £6,275,762,
subject to agreement with the purchaser on final completion accounts.
COMPANY BALANCE SHEET
AS AT 30 JUNE 2016
Note 2016£ 2015£
Fixed assets
Investments 5 201,609 201,609
──────── ────────
201,609 201,609
Current assets
Debtors 6 605,037 709,334
Cash at bank and in hand 31,987 8,347
──────── ────────
637,024 717,681
Creditors: amounts falling due within oneyear 7 (58,887) (22,162)
──────── ────────
Net current assets 578,137 695,519
──────── ────────
Total assets less current liabilities 779,746 897,128
Creditors: amounts falling due after more than one year - -
──────── ────────
Net Assets 779,746 897,128
════════ ════════
Capital and reserves
Called up share capital 8 317,212 317,212
Share premium account 89,396 89,396
Profit and loss account 373,138 490,520
──────── ────────
Shareholders' Funds 779,746 897,128
════════ ════════
The financial statements were approved by the directors and were authorised
for issue on 22 November 2016.
W A Catchpole Director
A K Francombe Director
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2016
Share capital Sharepremium Profit and loss account TotalEquity
£ £ £ £
Balance at 1 July 2014 317,212 89,396 531,787 938,395
Dividend paid - - (47,332) (47,332)
─────── ─────── ─────── ───────
Transactions with owners - - (47,332) (47,332)
Profit and total recognised income and expense for the year - - 6,065 6,065
─────── ─────── ─────── ───────
Balance at 30 June 2015 317,212 89,396 490,520 897,128
Dividend paid - - (47,332) (47,332)
─────── ─────── ─────── ───────
Transactions with owners - - (47,332) (47,332)
Loss and total recognised income and expense for the year - - (70,050) (70,050)
─────── ─────── ─────── ───────
Balance at 30 June 2016 317,212 89,396 373,138 779,746
═══════ ═══════ ═══════ ═══════
The accompanying accounting policies and notes form an integral part of these
financial statements.
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2016
2016 2015
£ £
Cash flows from operating activities
(Loss)/Profit after taxation (70,050) 6,065
Adjustments for:
Depreciation - 25,923
Interest income (33,440) (2,115)
Decrease/(increase) in trade and other receivables 104,297 (409,474)
(Decrease)/Increase in trade and other payables 36,725 (46,639)
──────── ────────
Cash generated from and used in continuing operations 37,532 (426,240)
Dividend paid (47,332) (47,332)
──────── ────────
Net cash from operating activities (9,800) (473,572)
──────── ────────
Cash flows from investing activities
Sale of land, buildings, plant and equipment - 1,570,100
Interest received 33,440 2,115
──────── ────────
Net generated from investing activities 33,440 1,572,215
──────── ────────
Cash flows from financing activities
Repayment of borrowings - (1,128,671)
──────── ────────
Net cash used in financing activities - (1,128,671)
──────── ────────
Net increase/(decrease) in cash 23,640 (30,028)
════════ ════════
Cash and cash equivalents at beginning of year 8,347 38,375
Net (decrease)/increase in cash 23,640 (30,028)
──────── ────────
Cash and cash equivalents at end of year 31,987 8,347
════════ ════════
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
1. ACCOUNTING POLICIES
Basis of preparation
The financial statements of the Company have been prepared in accordance with
applicable United Kingdom law and accounting standards (United Kingdom
Generally Accepted Accounting Practice) including Financial Reporting Standard
102, "The Financial Reporting Standard applicable in the United Kingdom and
the Republic of Ireland" ("FRS102") and the Companies Act 2006.
The directors have continued to adopt the going concern basis in preparing the
financial statements.
Merger relief
The Company is entitled to merger relief offered by the Companies Act, and the
shares issued when the subsidiary undertaking, IPPlus (UK) Limited, was
acquired are shown at their nominal value.
Deferred taxation
Deferred tax is recognised on all timing differences where the transactions or
events that give the Company an obligation to pay more tax in the future, or a
right to pay less tax in future, have occurred by the year end. Deferred tax
assets are recognised when it is more likely than not that they will be
recovered. Deferred tax is measured on an undiscounted basis using rates of
tax that have been enacted or substantively enacted by the year end.
Investments
Shares in subsidiary undertakings are included at original cost less any
amounts written off for permanent diminution in value.
Land and buildings
Land and buildings are stated at cost, net of depreciation and any provision
for impairment.
Related Party Transactions
The Company maintains Group intercompany balances with 100% owned
subsidiaries, and therefore has taken advantage of Section 33 of FRS102 which
states that transactions between a parent and its 100% owned subsidiaries do
not need to be disclosed.
2. PROFIT FOR THE FINANCIAL YEAR
The Company has taken advantage of section 408 of the Companies Act 2006 and
has not included its own profit and loss account in these financial
statements. The loss for the Company for the year was £70,050 (2015: Profit
£6,065).
3. PERSONNEL REMUNERATION
The Company has no employees, therefore personnel remuneration was £nil (2015
£nil). All employee costs are borne by the Company's wholly-owned
subsidiaries.
4. INTEREST INCOME
The Company received interest from bank deposits and balances with Group
Companies of £33,440 (2015 £2,115).
5. FIXED ASSETS
INVESTMENTS
Subsidiary Total
undertakings
£ £
Cost at 1 July 2015 201,609 201,609
Additions - -
──────── ────────
Cost at 30 June 2015 201,609 201,609
Disposals - -
──────── ────────
Cost at 30 June 2016 201,609 201,609
════════ ════════
6. CURRENT ASSETS
2016 2015
£ £
Other debtors 16,115 4,213
Amount owed by Group undertaking 583,752 700,441
Prepayments and accrued income 5,170 4,680
──────── ────────
605,037 709,334
════════ ════════
7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2016 2015
£ £
Trade creditors 49,144 16,852
Accruals and deferred income 9,743 5,310
──────── ────────
58,887 22,162
════════ ════════
8. SHARE CAPITAL
2016 2016 2015 2015
Number £ Number £
Allotted called up and fully paid:
Ordinary shares of 1p each 31,721,178 317,212 31,721,178 317,212
════════ ════════ ════════ ════════
9. DIVIDENDS
The directors have proposed no final dividend of in respect of the year ended
30 June 2016 (2015: 0.15 pence per share).
A special interim dividend of 3.16 pence per share declared on 07 November
2016 (2015: nil pence per share), and is expected to be paid on 9 December
2016. As this was proposed post year end no liability has been recognised in
the accounts.
The following directors received dividend payments as follows:
Dividend2016£ Dividend2015£
W A Catchpole 3,878 3,878
R S M Gordon 1,452 1,452
G Forsyth 1,487 1,487
10. FINANCIAL ASSETS AND LIABILITIES
2016 2015
£ £
Financial Assets Measured at amortised cost 599,867 704,654
Financial Liabilities Measured at amortised cost 49,144 16,852
11. FIRST TIME ADOPTION OF FRS102
The company transitioned to FRS 102 on 1 July 2014 and these are the first
financial statements that comply with FRS 102. The policies applied under the
entity's previous accounting framework are not materially different to FRS 102
and have not impacted on equity or profit or loss.
This information is provided by RNS
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