Interim Results
23 Septembre 2008 - 8:00AM
UK Regulatory
RNS Number : 0289E
Atlantic Global PLC
23 September 2008
Press Release 23 September 2008
Atlantic Global Plc
("Atlantic Global" or "the Group")
Interim Results
Atlantic Global Plc (AIM: ATL), the specialist provider of integrated business and resource management software applications, today
announces its Interim Results for the six months ended 30 June 2008.
Financial and Operational Summary
* Turnover of �1.120m (2007: �1.158m)
* Profit before tax increased 179% to �201,000 (2007: �72,000)
* Strong financial position, with increased cash balance of �2.046m (2007:
�1.709m)
* Earnings per share increased to 0.66p (2007: 0.22p)
* Proposed interim dividend of 0.25 pence per share
* New customers contracted including GETECH, Symsourse, 4 Delivery Ltd,
Alliance Boots and Netstore
* Launch of OnDemand software as an internet service, scheduled for the end
of September 2008
Adrian Bradshaw, Chairman of Atlantic Global commented:
"This has been a period of greatly improved profitability; however it is the future which excites us because, with the imminent launch
of our OnDemand software as a service deployed across the internet, we are transforming the way in which we deliver our products. By
offering this service, we will be able to remove a number of the obstacles associated with the purchase of software by large businesses. We
see OnDemand as being a means of greatly improving the visibility of our future earnings as well as increasing the scalability of our
offering. With this and other improvements, we look forward to reporting increased success during 2008 and beyond."
- Ends -
For further information please contact:
Atlantic Global Plc
Eugene Blaine, Managing Director Tel: +44 (0) 1274 863 300
Rupert Hutton, Finance Director
eugene.blaine@atlantic-global.com
rupert.hutton@atlantic-global.com www.atlantic-global.co.uk
Daniel Stewart & Company plc
Lindsay Mair / Chloe Ponsonby Tel: +44 (0) 207 776 6550
chloe.ponsonby@danielstewart.co.uk www.danielstewart.co.uk
Media enquiries:
Abchurch Communications
Sarah Hollins / Gareth Mead / Mark Dixon Tel: +44 (0) 20 7398 7729
mark.dixon@abchurch-group.com www.abchurch-group.com
Chairman's Statement
Introduction
I am delighted to report further progress for Atlantic Global during the half year to June 2008 in which profitability has shown a
significant improvement over the same period in 2007. This gives the Board confidence for the second half of the year and provides the Group
with a good platform on which to build in the future.
New customers during the first half of the year include GETECH, Symsourse, 4 Delivery Ltd, Alliance Boots and Netstore. The Group also
experienced a steady stream of repeat business from Quanticate, TRL Technology, KCOM, GroupM (part of WPP Group) and Norwich Union IT
Services.
Financial Review
Atlantic Global's profit before taxation for the six months to June 2008 was �201,000, compared to a profit before taxation of �72,000
in the first six months of 2007. Turnover was marginally down by 3% to �1,120,000, compared to �1,158,000 in the same period of 2007.
The profit has been stated after sales and marketing expenditure of �443,000 for the period, (2007: �601,000). The savings in sales and
marketing expenditure in the period result from our restructuring of these areas in preparation for the launch of the OnDemand business
model. Demand for our consultancy services remains strong with a significant order book of services to be delivered during the second half
of 2008.
The Group increased its investment in research and development to �210,000 (2007: �184,000) during the period to ensure the successful
delivery of the new OnDemand suite of products. The Group expects this product to begin to contribute to revenues during 2009.
Earnings per share were 0.66p for the six-month period, (2007: 0.22p).
As at 30 June 2008, the Group had cash balances of �2,046,000, (2007: �1,709,000). The cash balances have increased by �500,000 since
the Group's financial year-end of December 2007.
The Group is proposing to pay an interim dividend of 0.25 pence per share (interim 2007: nil).
Since the period end, the Company has bought in 90,000 ordinary shares for cancellation, further to the authority granted to it by
shareholders at the AGM on 9 May 2008. The Directors intend to continue to buy in shares as the opportunity arises.
Operating Review
Our goal for 2008 was to increase the profitability of the company and also to reposition the cost base for the launch of the new
OnDemand service.
The launch of the OnDemand software as a service is scheduled for the end of September 2008. This project, which commenced in March
2006, represents a major technical achievement. More importantly, it will fundamentally transform our commercial sales and marketing model
going forward.
Like many software vendors operating a similar business model based on an upfront licence sale, we have previously experienced delays
from customers in two areas of the sales process:-
* An increased level of internal governance issues relating to product
selection in an effort to standardise product usage across their
organisations. The consultation process to reach a consensus can be
subject to delays and scope creep where the selection teams sometimes try
to resolve too many issues in one solution.
* The selected product must then compete for capital expenditure and
internal resource to implement the solution.
Our new OnDemand product is capable of being deployed across the internet using the traditional licence model but can also be adopted by
a customer as an OnDemand service. The OnDemand service offers many advantages:-
* The OnDemand model means that potential customer will be purchasing a
"service" which negates much of the bureaucracy associated with the
product selection process. It also eliminates the cost and time it takes
to put the required infrastructure in place required to evaluate or deploy
the system.
* The OnDemand service will offer a variety of contract and cost options.
* The sale of the OnDemand service will be process driven. Atlantic Global
will load the customer's data who will then have a fixed period of time to
evaluate the solution.
The OnDemand sales process is designed to target the SME sector and also the departments of large organisations that are empowered to
adopt such a service. We believe that it will offer many advantages to the customer and also to Atlantic Global:-
* It will de-risk the purchasing process for the customer since they will
have had an opportunity to conduct a thorough evaluation of the product.
* We believe that it will reduce our sales lead times and thus our cost of
sales.
* It should also de-risk the sales pipeline resulting in a larger number of
smaller value opportunities.
* It is capable of much larger scaling than the current product.
Current Trading and Acquisitions
The Group continues to experience satisfactory levels of activity and trading is currently in line with our expectations. The Board is
reviewing a number of acquisitions and believes that the current difficult economic environment presents an opportunity to develop the Group
by way of acquisition.
Dividend
As a measure of the Directors' continued confidence in the future and as a reflection of the Group's strong balance sheet and cash
resources, the Directors are proposing an interim dividend of 0.25 pence per share to be paid on 7 November 2008 to shareholders on the
register on 10 October 2008.
Outlook
The improvement to the core products, and the introduction of the OnDemand product with its flexible range of contract and cost options,
supported by a more process driven approach to product evaluation and sales, gives the Directors confidence that the Group can look forward
to increased levels of success during 2008 and beyond.
On behalf of the Board, I would like to thank our staff who have demonstrated a great level of skill and commitment in delivering the
Group's goals during 2008.
Adrian Bradshaw
Chairman
23 September 2008
Consolidated Interim Income Statement
for the six months ended 30 June 2008
Unaudited Unaudited Audited
Six Six Year
notes months to months to ended
30 June 30 June 31 December
2008 2007 2007
� 000 � 000 � 000
Continuing Operations
Revenue 1,120 1,158 2,303
Cost of sales (621) (756) (1,439)
Gross profit 499 402 864
Administration and other
operating expenses (336) (369) (659)
Operating profit 163 33 205
Finance income 38 39 81
Profit before tax 201 72 286
Income tax expense (50) (21) (53)
Profit for the period
attributable to equity
shareholders of the
company
151 51 233
Earnings per share
Basic & diluted (pence) 3 0.66p 0.22p 1.02p
Consolidated Interim Balance Sheet
as at 30 June 2008
Unaudited Unaudited Audited
As at As at As at
30 June 30 June 31 December
2008 2007 2007
� 000 � 000 � 000
Assets
Non-current assets
Intangible Assets 2,792 2,792 2,792
Plant and equipment 15 24 19
Deferred tax asset 62 70 62
Total non-current assets 2,869 2,886 2,873
Current assets
Trade and other receivables 918 799 1,367
Income tax receivable - 39 9
Cash and cash equivalents 2,046 1,709 1,546
2,964 2,547 2,922
Total assets 5,833 5,433 5,795
Liabilities
Current liabilities
Trade and other payables (650) (533) (768)
Income Tax payable (74) - -
Total liabilities (724) (533) (768)
Net assets 5,109 4,900 5,027
Equity
Share capital 1,145 1,145 1,145
Share premium account 1,578 1,578 1,578
Merger reserve 2,538 2,538 2,538
Retained earnings (152) (361) (234)
Total equity attributable to
equity 5,109 4,900 5,027
shareholders of the company
Summarised Consolidated Cash Flow Statement
for the 6 months ended 30 June 2008
Unaudited Unaudited Audited
Six Six months Year
months to 30 June ended
to 30 2007 31
June December
2008 2007
�000 �000 �000
Cash flows from operating
activities
Profit for the period 151 51 233
Adjustments for
Share based payment
charge - 12 (43)
Interest income (38) (39) (81)
Income tax expense 50 21 53
Depreciation 6 12 21
Operating profit before changes
in working capital and provisions 169 57 183
Change in trade and other
receivables 449 - (568)
Change in trade and other
payables (118) 18 259
Cash generated from the
operations 500 75 (126)
Income tax paid 33 - -
Net cash from operating activities 533 75 (126)
Cash flows from investing
activities
Net interest received 38 39 81
Acquisition of plant and
equipment (2) (5) (9)
Net cash from investing activities 36 34 72
Cash flows from financing
activities
Dividends paid (69) - -
Net cash used in financing
activities (69) - -
Net increase / (decrease) in cash
and cash equivalents 500 109 (54)
Cash and cash equivalents at the
beginning of the period 1,546 1,600 1,600
Cash and cash equivalents at the
end of the period 2,046 1,709 1,546
Notes to the interim report
Basis of preparation
1. The interim financial information has been prepared on the basis of the recognition and measurement requirements of adopted IFRSs
as at 30 June 2008 that are effective (or available for early adoption) at 31 December 2008. Based on these adopted IFRSs, the Directors
have applied the accounting policies, as set out below, which they expect to apply when the second annual IFRS financial statements are
prepared for the year ending 31 December 2008.
However, the adopted IFRSs that will be effective (or available for early adoption) in the annual financial statements for the year
ending 31 December 2008 are still subject to change and to additional interpretations and therefore cannot be determined with certainty.
Accordingly, the accounting policies for that annual period will be determined finally only when the annual financial statements are
prepared for the year ending 31 December 2008.
The comparative figures for the financial year ended 31 December 2007 are the company's statutory accounts for that financial year.
Those accounts, which were prepared under IFRS, have been reported on by the company's auditors and delivered to the registrar of companies.
The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way
of emphasis without qualifying their report, and (iii) did not contain a statement under section 237(2) or (3) of the Companies Act 1985.
The Group's accounting policies remain as stated in the Group's full annual accounts for the year ended 31 December 2007.
Tax and EPS
2. The tax charge for the period is based on the anticipated effective tax rate for the year to 31 December 2008.
3. Basic earnings per share are calculated on the profit for the period of �151,000 (2007: profit of �51,000) and on 22,899,350
ordinary shares, being the weighted average number of ordinary shares in issue in the period (2007: 22,899,350 ordinary shares). Share
options in issue in the period did not have a dilutive impact on the earnings per share calculation.
Availability of interim results
These results are available on the Group's website, www.atlantic-global.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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