TIDMDML
RNS Number : 2208U
YCO Deuxmil PLC
22 June 2009
YCO Deuxmil plc
("YCO Deuxmil" or the "Company")
Final results for the twelve months ended 31 December 2008
YCO Deuxmil, the super yacht services company, today announces its audited
results for the twelve month period ended 31 December 2008.
Operational and Financial Highlights
* Turnover increased 71 percent to GBP28,501,012 (2007: GBP16,633,307)
* Gross profit increased 249% percent to GBP5,274,346 (2007: GBP1,511,582);
* Loss for the period of GBP-684,079 (2007: profit GBP409,849);
* Acquisition of YCO S.A.M. in May 2008 completed;
* Transition in period to a full provider of services to the Super Yacht
community;
* Group restructuring substantially completed;
* Trading free of debt.
Commenting, Peter Jay, Non-executive Chairman, said:
"Despite the difficult economic climate, I am pleased with the progress and
development the Group has made during the year, particularly following the
acquisition of YCO S.A.M. in May. The Group has undergone substantial
restructuring and we look forward to seeing these benefits come through as we
move forward."
For further information contact:
+--------------------------------------+--------------------------------------+
| YCO Deuxmil plc | |
+--------------------------------------+--------------------------------------+
| | |
+--------------------------------------+--------------------------------------+
| Neil Miller, CEO | +44 (0) 870 608 2124 |
+--------------------------------------+--------------------------------------+
| | |
+--------------------------------------+--------------------------------------+
| WH Ireland Limited (Nominated | |
| Adviser) | |
+--------------------------------------+--------------------------------------+
| | |
+--------------------------------------+--------------------------------------+
| Adrian Kirk | +44 (0)161 832 2174 |
+--------------------------------------+--------------------------------------+
| | |
+--------------------------------------+--------------------------------------+
| Religare Hichens, Harrison Plc | |
| (Broker) | |
+--------------------------------------+--------------------------------------+
| | |
+--------------------------------------+--------------------------------------+
| Daniel Briggs | +44 (0)20 7382 7776 |
+--------------------------------------+--------------------------------------+
| Alan Rooke | +44 (0)20 7382 7781 |
+--------------------------------------+--------------------------------------+
| | |
+--------------------------------------+--------------------------------------+
| GTH Communications | |
+--------------------------------------+--------------------------------------+
| | |
+--------------------------------------+--------------------------------------+
| Toby Hall | +44 (0) 207 153 8039 |
+--------------------------------------+--------------------------------------+
| Christian Pickel | +44 (0) 207 153 8036 |
+--------------------------------------+--------------------------------------+
Chairman's Statement
It gives me great pleasure to present the figures for the year ended 31 December
2008.
Financial Highlights
+--------------------------+--------------------------+--------------------------+
| Revenue | GBP28,501,012 | (2007: GBP16,633,307) |
+--------------------------+--------------------------+--------------------------+
| Gross Profit | GBP5,274,346 | (2007: GBP1,511,582) |
+--------------------------+--------------------------+--------------------------+
| Loss for the year | GBP684,079 | (2007: Profit |
| | | GBP409,849) |
+--------------------------+--------------------------+--------------------------+
| Fuel tonnage sold | 29,870MT | (2007: 30,860MT) |
+--------------------------+--------------------------+--------------------------+
| Number of yachts fuelled | 288 | (2007: 303) |
+--------------------------+--------------------------+--------------------------+
Review of the Business
On 1 May 2009, the Group released a trading update for the year ended 31
December, 2008, regarding the performance of the individual operating companies
within the YCO Deuxmil group (the "Group"). Highlighted in this statement were:
* the increased number of yachts under YCO Management and Project Management (New
Construction);
* the expanded operations of Yacht Help Group; and
* strong Yacht Fuel Services performance.
As well as the costs of restructuring following the acquisition of YCO S.A.M. in
May 2008, the Group has been faced with a major downturn in the global economy
and the additional cost incurred following further reorganisation. The combined
result of this together with the slowing in yacht sales and charter activity
over the last quarter of the year is that the Group made an overall loss for the
period of GBP684,079.
The board anticipates that trading conditions will remain difficult over the
next 12 months but believe that actions taken between October 2008 and March
2009 will have a positive impact for the year ending December 2009.
The Group has continued to invest in group integration and CRM systems and will
soon see the benefits of this. YCO LIVE, the internet based management portal
project, is now fully operational and has been installed on around 90% of yachts
managed by the Group. The board believes the interest generated by YCO LIVE will
be reflected in an increase in the number of yachts under management. Yacht
management as an ongoing service (on annual contracts) benefits the Group in the
form of recurring monthly revenues.
Future Outlook
It is the view of the board that in 2009 yacht sales and charter income will be
lower than that achieved in 2008 and this has been considered during the
restructuring of the Group's operations. There has been some recent increased
charter activity and similar movement in the sales market. However, the board
retains a cautious view of prospects in this area during 2009.
The weaker pound will have a positive effect on results for 2009 as Group
turnover is contracted in Euro and US dollars. The Group anticipates a benefit
when this is converted into pounds sterling for accounting purposes.
Summary
The board extends its gratitude to all employees of the Group for their hard
work and dedication during difficult times. With the board's latest
recommendations implemented, the directors believe the Group will again be on
course to become one of the world's major providers of services to privately
owned Super Yachts worldwide.
Peter Jay
Non Executive Chairman
Chief Executive Officer's report
This report follows the trading update in May 2009, which highlighted the
individual companies' trading positions.
The global financial turmoil in the final quarter of 2008 and the first 3 months
of 2009 had a significant impact on the Group's business and resulted in the
Directors and Management being forced into reactive as opposed to proactive
management while we dealt with problems as they occurred.
This, coupled with the time consuming and costly task of reorganising each
operating company, contributed to the Group making a loss for the year. However,
I am confident that the necessary restructuring has now largely completed and we
are on course to see improved performance in 2009, even if global financial
markets do not improve.
We have worked towards making each of the operating businesses within the Group
more streamlined and efficient and are now creating strong brand cohesion for
the Group, connecting each company to one another to ensure greater market
appeal both within the industry and at a corporate level.
There has been a great deal of investment in IT infrastructure across the Group
and we will continue to invest in this important area, the benefits of which are
apparent on many different levels. Most notably, these benefits include the
efficiency of running the various businesses, the level of reporting that we are
able to produce internally, and the transparency of the reporting with which we
are able to provide our customers, all factors which contribute to our
operations and performance.
The challenges with which we were faced in 2008 were a distraction, which
certainly hindered the Group's progress. However, working together as a team the
board is focused on the Group's strategy to make YCO Deuxmil Plc a profitable
leader and innovator within the Super Yacht industry.
Neil Miller
Chief Executive Officer
Consolidated Income Statement
for the year ended 31 December 2008
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| | | 2008 | 2007 |
+------------------------------------+----------+----------------+----------------+
| | Notes | GBP | GBP |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| Revenue | | 28,501,012 | 16,633,307 |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| Cost of sales | | (23,226,666) | (15,121,725) |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| GROSS PROFIT | | 5,274,346 | 1,511,582 |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| Administrative expenses | | (5,997,982) | (1,098,249) |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| OPERATING PROFIT/(LOSS) | 5 | (723,636) | 413,333 |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| Finance costs | 4 | (14,602) | (3,658) |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| Finance income | 4 | 54,159 | 174 |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| PROFIT/(LOSS) BEFORE TAX | | (684,079) | 409,849 |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| Tax expense | 6 | - | (134,138) |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| PROFIT/(LOSS) FOR THE YEAR | | (684,079) | 275,711 |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| Attributable to: | | | |
+------------------------------------+----------+----------------+----------------+
| Equity holders of the company | | (684,079) | 275,711 |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| Earnings/(loss) per share | | | |
| expressed | | | |
+------------------------------------+----------+----------------+----------------+
| in pence per share: | 8 | | |
+------------------------------------+----------+----------------+----------------+
| Basic -pence | | (1.85) | 0.19 |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| Diluted -pence | | (1.85) | 0.19 |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
| Proforma earnings/(loss) per share | | | |
| after share | | | |
+------------------------------------+----------+----------------+----------------+
| consolidation: | | | |
+------------------------------------+----------+----------------+----------------+
| Basic -pence | 8 | (1.85) | 1.32 |
+------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------+----------+----------------+----------------+
Included above are the profit or (loss) of the subsidiaries since the date of
acquisition:
+----------------------------------------------+----------------+----------------+
| | 2008 | 2007 |
+----------------------------------------------+----------------+----------------+
| | GBP | GBP |
+----------------------------------------------+----------------+----------------+
| Subsidiary | | |
+----------------------------------------------+----------------+----------------+
| | | |
+----------------------------------------------+----------------+----------------+
| Yacht Help Group (Mallorca) S.L. * | | 11,292 |
+----------------------------------------------+----------------+----------------+
| Yacht Help Group Gibraltar Limited * | | (4,201) |
+----------------------------------------------+----------------+----------------+
| BA Yachts Assistance S.L. ** | | 49,761 |
+----------------------------------------------+----------------+----------------+
| YCO SAM *** | 290,242 | |
+----------------------------------------------+----------------+----------------+
| YCO SARL *** | (12,813) | |
+----------------------------------------------+----------------+----------------+
| YCO Yacht Limited (formerly WBC Maritime | 79,065 | |
| Limited) *** | | |
+----------------------------------------------+----------------+----------------+
| YCO Support Limited *** | (11,363) | |
+----------------------------------------------+----------------+----------------+
* Acquired on 30 April 2007
** Acquired on 28 May 2007
*** Acquired on 27 May 2008
Below are the combined revenues and profit of the enlarged Group from 1 January
2008 to 31 December 2008:
+----------------------------------------------+----------------+----------------+
| | 2008 | 2007 |
+----------------------------------------------+----------------+----------------+
| | GBP | GBP |
+----------------------------------------------+----------------+----------------+
| | | |
+----------------------------------------------+----------------+----------------+
| Revenue | 31,845,695 | 18,264,133 |
+----------------------------------------------+----------------+----------------+
| Profit/(loss) for the year | (728,191) | 363,588 |
+----------------------------------------------+----------------+----------------+
Consolidated Statement of Changes in Equity
for the year ended 31 December 2008
+----------------+------------+------------+-----------+-----------+-------------+------------+
| | Share | Share | Retained | Other | Translation | |
| | | | | | | |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| | Capital | Premium | Earnings | Reserves | Reserve | Total |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| | GBP | GBP | GBP | GBP | GBP | GBP |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| | | | | | | |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| As at 1 | 66,667 | 1,072,813 | 146,157 | - | - | 1,285,637 |
| January 2007 | | | | | | |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| | | | | | | |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| Shares issued | 8,781 | 975,143 | - | - | - | 983,924 |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| Profit after | - | - | 275,711 | - | - | 275,711 |
| tax for the | | | | | | |
| year | | | | | | |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| Equity to be | - | - | - | 133,333 | - | 133,333 |
| issued | | | | | | |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| | | | | | | |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| As at 31 | 75,448 | 2,047,956 | 421,868 | 133,333 | - | 2,678,605 |
| December 2007 | | | | | | |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| | | | | | | |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| | | | | | | |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| Shares issued | 93,136 | 12,910,729 | - | - | - | 13,003,865 |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| Loss after tax | - | - | (684,079) | - | - | (684,079) |
| for the year | | | | | | |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| Equity to be | - | - | - | 61,373 | - | 61,373 |
| issued | | | | | | |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| Translation | - | - | - | - | 28,329 | 28,327 |
| reserve | | | | | | |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| | | | | | | |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| As at 31 | 168,584 | 14,958,685 | (262,211) | 194,706 | 28,329 | 15,088,093 |
| December 2008 | | | | | | |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| | | | | | | |
+----------------+------------+------------+-----------+-----------+-------------+------------+
| | | | | | | |
+----------------+------------+------------+-----------+-----------+-------------+------------+
Share capital is the amount subscribed for share at nominal value.
Retained profit represents the cumulative profit of the Group attributable to
equity shareholders.
Share premium represents the excess of the amount subscribed for share capital
over the nominal value of those shares net of share issue expenses. Share issue
expenses in the year comprise a proportion of the costs incurred in respect of
the initial issue of new shares on the London Stock Exchange's Alternative
Investment Market.
Other reserves represent the deferred share consideration in relation to the
acquisition of BA Yachts Assistance S.L. which will be issued in 2009.
Translation reserve occurs on consolidation where the exchange differences
arising from the translation of the net investment in foreign operations, and of
borrowings and other currency instruments designated as hedges of such
investments, are taken to shareholders' equity.
Consolidated Balance Sheet
31 December 2008
+----------------------------------------+-----------+-------------+-------------+
| | | 2008 | 2007 |
+----------------------------------------+-----------+-------------+-------------+
| | Notes | GBP | GBP |
+----------------------------------------+-----------+-------------+-------------+
| ASSETS | | | |
+----------------------------------------+-----------+-------------+-------------+
| NON-CURRENT ASSETS | | | |
+----------------------------------------+-----------+-------------+-------------+
| Goodwill | 9 | 15,332,787 | 2,784,822 |
+----------------------------------------+-----------+-------------+-------------+
| Intangibles | 10 | 279,606 | 20,952 |
+----------------------------------------+-----------+-------------+-------------+
| Property, plant and equipment | 11 | 827,305 | 201,634 |
+----------------------------------------+-----------+-------------+-------------+
| | | | |
+----------------------------------------+-----------+-------------+-------------+
| | | 16,439,698 | 3,007,408 |
+----------------------------------------+-----------+-------------+-------------+
| | | | |
+----------------------------------------+-----------+-------------+-------------+
| CURRENT ASSETS | | | |
+----------------------------------------+-----------+-------------+-------------+
| Inventories | 13 | 203,960 | 17,942 |
+----------------------------------------+-----------+-------------+-------------+
| Trade and other receivables | 14 | 5,968,157 | 1,080,863 |
+----------------------------------------+-----------+-------------+-------------+
| Cash and cash equivalents | 15 | 859,283 | 849,126 |
+----------------------------------------+-----------+-------------+-------------+
| | | | |
+----------------------------------------+-----------+-------------+-------------+
| | | 7,031,400 | 1,947,931 |
+----------------------------------------+-----------+-------------+-------------+
| | | | |
+----------------------------------------+-----------+-------------+-------------+
| LIABILITIES | | | |
+----------------------------------------+-----------+-------------+-------------+
| CURRENT LIABILITIES | | | |
+----------------------------------------+-----------+-------------+-------------+
| Trade and other payables | 16 | 8,318,120 | 2,054,747 |
+----------------------------------------+-----------+-------------+-------------+
| Financial liabilities - borrowings | 17 | 23,772 | 90,278 |
| Interest bearing loans and borrowings | | | |
+----------------------------------------+-----------+-------------+-------------+
| Tax payable | | - | 122,076 |
+----------------------------------------+-----------+-------------+-------------+
| | | | |
+----------------------------------------+-----------+-------------+-------------+
| | | 8,341,892 | 2,267,101 |
+----------------------------------------+-----------+-------------+-------------+
| | | | |
+----------------------------------------+-----------+-------------+-------------+
| | | | |
+----------------------------------------+-----------+-------------+-------------+
| NET CURRENT LIABILITIES | | (1,310,492) | (319,170) |
+----------------------------------------+-----------+-------------+-------------+
| | | | |
+----------------------------------------+-----------+-------------+-------------+
| NON-CURRENT LIABILTIES | | | |
+----------------------------------------+-----------+-------------+-------------+
| Financial liabilities - borrowings | | | |
+----------------------------------------+-----------+-------------+-------------+
| Interest bearing loans and borrowings | 17 | 41,113 | 9,633 |
+----------------------------------------+-----------+-------------+-------------+
| | | | |
+----------------------------------------+-----------+-------------+-------------+
| NET ASSETS | | 15,088,093 | 2,678,605 |
+----------------------------------------+-----------+-------------+-------------+
| | | | |
+----------------------------------------+-----------+-------------+-------------+
| | | | |
+----------------------------------------+-----------+-------------+-------------+
| EQUITY AND RESERVES | | | |
+----------------------------------------+-----------+-------------+-------------+
| Called up share capital | 19 | 168,584 | 75,448 |
+----------------------------------------+-----------+-------------+-------------+
| Share premium | 20 | 14,958,685 | 2,047,956 |
+----------------------------------------+-----------+-------------+-------------+
| Retained earnings | 20 | (262,211) | 421,868 |
+----------------------------------------+-----------+-------------+-------------+
| Other reserves | 20 | 194,706 | 133,333 |
+----------------------------------------+-----------+-------------+-------------+
| Translation reserve | 20 | 28,329 | - |
+----------------------------------------+-----------+-------------+-------------+
| | | | |
+----------------------------------------+-----------+-------------+-------------+
| | | 15,088,093 | 2,678,605 |
+----------------------------------------+-----------+-------------+-------------+
| | | | |
+----------------------------------------+-----------+-------------+-------------+
Consolidated Cash Flow Statement
for the year ended 31 December 2008
+------------------------------------+----------+----------------+---------------+
| | | 2008 | 2007 |
+------------------------------------+----------+----------------+---------------+
| | Notes | GBP | GBP |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| Cash flows from operating | | | |
| activities | | | |
+------------------------------------+----------+----------------+---------------+
| Cash generated from operations | 1 | 238,244 | 553,875 |
+------------------------------------+----------+----------------+---------------+
| Finance costs | | (14,602) | (3,658) |
+------------------------------------+----------+----------------+---------------+
| Corporation tax paid | | (109,025) | (35,419) |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| Net cash from operating activities | | 114,617 | 514,798 |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| Cash flows from investing | | | |
| activities | | | |
+------------------------------------+----------+----------------+---------------+
| Purchase of intangibles | | (156,479) | (6,415) |
+------------------------------------+----------+----------------+---------------+
| Purchase of plant and equipment | | (424,646) | (117,781) |
+------------------------------------+----------+----------------+---------------+
| Proceeds from sale of tangible | | 15,855 | - |
| assets | | | |
+------------------------------------+----------+----------------+---------------+
| Acquisition of subsidiaries (Note | | (8,074,162) | (439,576) |
| 9) | | | |
+------------------------------------+----------+----------------+---------------+
| - net cash acquired | | 449,651 | 153,102 |
+------------------------------------+----------+----------------+---------------+
| Interest received | | 54,159 | 171 |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| Net cash from investing activities | | (8,135,622) | (410,499) |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| Cash flows from financing | | | |
| activities | | | |
+------------------------------------+----------+----------------+---------------+
| Repayment of loan to related | | (81,067) | (297,668) |
| parties | | | |
+------------------------------------+----------+----------------+---------------+
| Proceeds from issue of new shares | | 8,200,000 | 683,581 |
+------------------------------------+----------+----------------+---------------+
| Repayment of bank loan | | (51,689) | (5,063) |
+------------------------------------+----------+----------------+---------------+
| Repayment of finance lease | | (36,016) | - |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| Net cash from financing activities | | 8,031,228 | 380,850 |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| Increase in cash and cash | | 10,223 | 485,149 |
| equivalents | | | |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| Cash and cash equivalents at | | 849,060 | 363,911 |
| beginning of year | | | |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| Cash and cash equivalents at end | | 859,283 | 849,060 |
| of year | | | |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| Represented by: | | | |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| Cash at bank and in hand | | 859,283 | 849,126 |
+------------------------------------+----------+----------------+---------------+
| Bank overdraft | | - | (66) |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
| | | 859,283 | 849,060 |
+------------------------------------+----------+----------------+---------------+
| | | | |
+------------------------------------+----------+----------------+---------------+
Notes to the Group Cash Flow Statement
for the year ended 31 December 2008
1RECONCILIATION OF OPERATING PROFIT TO CASH GENERATED FROM OPERATIONS
+----------------------------------------------+----------------+---------------+
| | 2008 | 2007 |
+----------------------------------------------+----------------+---------------+
| | GBP | GBP |
+----------------------------------------------+----------------+---------------+
| | | |
+----------------------------------------------+----------------+---------------+
| Operating profit/(loss) for the year | (723,636) | 413,333 |
+----------------------------------------------+----------------+---------------+
| | | |
+----------------------------------------------+----------------+---------------+
| Adjustments for: | | |
+----------------------------------------------+----------------+---------------+
| Depreciation of property, plant and | 118,861 | 31,691 |
| equipment | | |
+----------------------------------------------+----------------+---------------+
| Loss on sale of tangible assets | 24,413 | - |
+----------------------------------------------+----------------+---------------+
| Amortisation of intangibles | 110,115 | 2,066 |
+----------------------------------------------+----------------+---------------+
| Loss on unrealised foreign exchange | 53,943 | - |
+----------------------------------------------+----------------+---------------+
| | | |
+----------------------------------------------+----------------+---------------+
| | | |
+----------------------------------------------+----------------+---------------+
| Operating cash flows before movements in | (416,304) | 447,090 |
| working capital | | |
+----------------------------------------------+----------------+---------------+
| | | |
+----------------------------------------------+----------------+---------------+
| (Increase) in inventories | (49,075) | (17,944) |
+----------------------------------------------+----------------+---------------+
| (Increase)/decrease in receivables | 589,491 | (332,139) |
+----------------------------------------------+----------------+---------------+
| (Decrease)/increase in payables | 114,132 | 456,868 |
+----------------------------------------------+----------------+---------------+
| | | |
+----------------------------------------------+----------------+---------------+
| Cash generated from operations | 238,244 | 553,875 |
+----------------------------------------------+----------------+---------------+
| | | |
+----------------------------------------------+----------------+---------------+
| | | |
+----------------------------------------------+----------------+---------------+
Notes to the Financial Statements
for the year ended 31 December 2008
GENERAL INFORMATION
YCO Deuxmil Plc is a company incorporated in England and Wales and quoted on the
Alternative Investment Market of the London Stock Exchange. The address of the
registered office is disclosed on page 1 of the financial statements. The
principal activity of the Group is described on page 6. The Company changed to
its present name on 27 May 2008 upon the successful acquisition of YCO S.A.M.
1. ACCOUNTING POLICIES
Going concern
The financial statements have been prepared on the assumption that the Group is
a going concern. When assessing the foreseeable future, the directors have
looked at a period of twelve months from the date of approval of this report.
The Group's business activities , together with the factors likely to affect its
future development, performance and position are set out in the Business Review
on pages 5 and 6. In addition note 21 to the financial statements includes the
Group's objectives, policies and processes for managing its capital; its
financial risk management objectives; and its exposures to credit risk and
liquidity risk.
The directors have negotiated further bank funding with its current banker to
assist the Group with its future working capital requirements. On 3 March 2009,
the Company received written approval for the temporary increase in the
overdraft facility by GBP200,000, which the directors are confident is
sufficient to fund the Group's working capital.
The Group's forecasts and projections, taking account of reasonably possible
changes in trading performance , show that the group should be able to operate
within the level of its current facility. The Group will open negotiations with
the bank in due course and has at this stage not sought any written commitments
that the facility will be renewed.
After making enquiries, the directors have a reasonable expectation that the
Company and Group have adequate resources to continue in operational existence
for the foreseeable future. Accordingly, they continue to adopt the going
concern basis in preparing the annual report and financial statements.
Were the Group to be unable to continue as a going concern, adjustments would
have to be made to the balance sheet of the Group to reduce balance sheet values
of assets to their recoverable amounts, to provide for future liabilities that
might arise and to reclassify non-current assets and long-term liabilities as
current assets and liabilities which may cast significant doubt about the
Group's ability to continue as a going concern
Basis of preparation
These financial statements have been prepared in accordance with International
Financial Reporting Standards and IFRIC interpretations issued by the
International Accounting Standards Board (IASB) as adopted by the European Union
and with those parts of the Companies Act 1985 applicable to companies reporting
under IFRS. The financial statements have been prepared under the historical
cost convention. The principal accounting policies adopted are set out below.
(a)Standards, amendment and interpretations effective in 2008
The following interpretation to published standards is mandatory for accounting
periods beginning on or after 1 January 2008 but is not relevant to the Group's
operations:
* IFRIC 12, 'Service concession arrangements';
* IFRIC 13, 'Customer loyalty programmes'; and
* IFRIC 14 IAS 19, 'The limit on a defined asset, minimum funding requirements and
their interaction' (effective from 1 January 2008).
(b) Standards, amendments and interpretations to existing standards that are not
yet effective and have not been adopted early by the Group.
* IAS 1 Revised - Presentation of Financial Statements (effective from 1 January
2009). Key changes include, the requirement to aggregate information in the
financial statements on the basis of shared characteristics, the introduction of
a Statement of Comprehensive Income & changes in titles of some of the financial
statements.
Preparers of financial statements will have the option of presenting income and
expense and components of other comprehensive income either in a single
statement or in two separate statements (a separate income statement followed by
a statement of comprehensive income).
The new titles for the financial statements (for example 'statement of financial
position' instead of balance sheet) will be used in the accounting standards but
are not mandatory for use in financial statements.
The expected impact is still being assessed in detail by management as the IASB
is involved in discussions to examine more fundamental questions about the
presentation of information in financial statements.
* IFRS 8 - Operating Segments (effective from 1 January 2009). IFRS 8 replaces IAS
14 and aligns segment reporting with the requirements of the US standard SFAS
131, "Disclosures about segments of an enterprise and related information". The
new standard requires a "management approach", under which segment information
is presented on the same basis as that used for internal reporting purposes. The
expected impact is still being assessed in detail by management, but it appears
likely that the number of reportable segments, as well as the manner in which
segments are reported, will change in a manner that is consistent with the
internal reporting provided to the chief operating decision-maker.
* IAS 27(2008) - Consolidated and Separate Financial Statements (effective from 1
July 2009).
* IFRS 1 (Amendment) 'First time adoption of IFRS', and IAS 27 'Consolidated and
separate financial statements' (effective from 1 January 2009).
* IFRS 2 (Amendment), 'Share-based payment' (effective from 1 January 2009). The
amended standard deals with vesting conditions and cancellations. It clarifies
that vesting conditions are service conditions and performance conditions only.
Other features of a share-based payment are not vesting conditions. These
features would need to be included in the grant date fair value for transactions
with employees and others providing similar services; they would not impact the
number of awards expected to vest or valuation thereof subsequent to grant date.
All cancellations, whether by the entity or by other parties, should receive the
same accounting treatment. The company will apply IFRS 2 (Amendment) from 1
January 2009. It may have a material impact on the Group's financial statements
depending on the specific circumstances of any share options granted in the
future.
* IFRS 3 (Revised), 'Business combinations' (effective from 1 July 2009). The
revised standard continues to apply the acquisition method to business
combinations, with some significant changes. For example, all payments to
purchase a business are to be recorded at fair value at the acquisition date,
with contingent payments classified as debt subsequently re-measured through the
income statement. There is a choice on an acquisition-by-acquisition basis to
measure the non-controlling interest in the acquiree either at fair value or at
the non-controlling interest's proportionate share of the acquiree's net assets.
All acquisition-related costs should be expensed. The Group will apply IFRS 3
(Revised) prospectively to all business combinations from 1 January 2010.
* IFRS 5 (Amendment), 'Non-current assets held-for-sale and discontinued
operations' (and consequential amendment to IFRS 1, 'First-time adoption')
(effective from 1 July 2009). The amendment is part of the IASB's annual
improvements project published in May 2008. The amendment clarifies that all of
a subsidiary's assets and liabilities are classified as held for sale if a
partial disposal sale plan results in loss of control. Relevant disclosure
should be made for this subsidiary if the definition of a discontinued operation
is met. A consequential amendment to IFRS 1 states that these amendments are
applied prospectively from the date of transition to IFRSs. The Group will apply
the IFRS 5 (Amendment) prospectively to all partial disposals of subsidiaries
from 1 January 2010.
* IAS 36 (Amendment), 'Impairment of assets' (effective from 1 January 2009). The
amendment is part of the IASB's annual improvements project published in May
2008. Where fair value less costs to sell is calculated on the basis of
discounted cash flows, disclosures equivalent to those for value-in-use
calculation should be made. The Group will apply the IAS 36 (Amendment) and
provide the required disclosure where applicable for impairment tests from 1
January 2009.
* IAS 19 (Amendment), 'Employee benefits' (effective from 1 January 2009). The
amendment is part of the IASB's annual improvements project published in May
2008. The amendment clarifies that a plan amendment that results in a change in
the extent to which benefit promises are affected by future salary increases is
a curtailment, while an amendment that changes benefits attributable to past
service gives rise to a negative past service cost if it results in a reduction
in the present value of the defined benefit obligation. The definition of return
on plan assets has been amended to state that plan administration costs are
deducted in the calculation of return on plan assets only to the extent that
such costs have been excluded from measurement of the defined benefit
obligation. The distinction between short term and long term employee benefits
will be based on whether benefits are due to be settled within or after 12
months of employee service being rendered. IAS 37, 'Provisions, contingent
liabilities and contingent assets, requires contingent liabilities to be
disclosed, not recognised. IAS 19 has been amended to be consistent. The Group
will apply the IAS 19 (Amendment) from 1 January 2009.
* IAS 39 (Amendment), 'Financial instruments: Recognition and measurement'
(effective from January 2009). The amendment is part of the IASB's annual
improvements project published in May 2008. This amendment clarifies that it is
possible for there to be movements into and out of the fair value through profit
or loss category where a derivative commences or ceases to qualify as a hedging
instrument in cash flow or net investment hedge. The definition of financial
asset or financial liability at fair value through profit or loss as it relates
to items that are held for trading is also amended. This clarifies that a
financial asset or liability that is part of a portfolio of financial
instruments managed together with evidence of an actual recent pattern of
short-term profit taking is included in such a portfolio on initial recognition.
The current guidance on designating and documenting hedges states that a hedging
instrument needs to involve a party external to the reporting entity and cites a
segment as an example of a reporting entity. This means that in order for hedge
accounting to be applied at segment level, the requirements for hedge accounting
are currently required to be met by the applicable segment. The amendment
removes the example of a segment so that the guidance is consistent with IFRS 8,
'Operating segments', which requires disclosure for segments to be based on
information reported to the chief operating decision-maker. Currently, for
segment reporting purposes, each subsidiary designates contracts with group
treasury as fair value or cash flow hedges so that the hedges are reported in
the segment to which the hedged items relate. This is consistent with the
information viewed by the chief operating decision-maker. After the amendment is
effective, the hedge will continue to be reflected in the segment to which the
hedged items relate (and information provided to the chief operating
decision-maker), but the company will not formally document and test this
relationship. When remeasuring the carrying amount of a debt instrument on
cessation of fair value hedge accounting, the amendment clarifies that a revised
effective interest rate (calculated at the date fair value hedge accounting
ceases) are used. The company will apply the IAS 39 (Amendment) from 1 January
2009. It is not expected to have an impact on the company's income statement.
* There are a number of minor amendments to IFRS 7, 'Financial instruments:
Disclosures', IAS 8, 'Accounting policies, changes in accounting estimates and
errors', IAS 10, 'Events after the reporting period', IAS 18, 'Revenue' and IAS
34, 'Interim financial reporting', which are part of the IASB's annual
improvements project published in May 2008 (not addressed above). These
amendments are unlikely to have an impact on the company's accounts and have
therefore not been analysed in detail.
(c) Standards, amendments and interpretations to existing standards that are
not yet effective and not relevant to the Group's operations . The following
interpretations to existing standards have been published and are mandatory for
the company's accounting periods beginning on or after 1 January 2008 or later
periods but are not relevant to the Group's operations:
* IFRS 5 (Amendment), 'Non-current assets held-for-sale and discontinued
operations' (and consequential amendments to IFRS 1, 'First-time
adoption')(effective from 1 July 2009).
* IAS 1 (Amendment), 'Presentation of financial statements' - 'Puttable financial
instruments and obligations arising on liquidation' (effective from 1 January
2009).
* IAS 16 (Amendment), 'Property, plant and equipment' (and consequential amendment
to IAS 7, 'Statement of cash flows') (effective from 1 January 2009).
* IAS 19 (Amendment), 'Employees benefits' (effective from 1 January 2009).IAS 20
(Amendment), 'Accounting for government grants and disclosure of government
assistance' (effective from 1 January 2009).
* IAS 23 (Amendment), 'Borrowing costs' (effective from 1 January 2009).
* IAS 28 (Amendment), 'Investments in associates' (and consequential amendments to
IAS 32, 'Financial Instruments: Presentation' and IFRS 7, 'Financial
instruments: Disclosures') (effective from 1 January 2009).
* IAS 29 (Amendment), 'Financial reporting in hyperinflationary economies'
(effective from 1 January 2009).
* IAS 31 (Amendment), 'Interest in joint ventures' (and consequential amendments
to IAS 32 and IFRS 7) (effective from 1 January 2009).
* IAS 40 (Amendment), 'Investment property' (and consequential amendments to IAS
16) (effective from 1 January 2009).
* IAS 41 (Amendment), 'Agriculture' (effective from 1 January 2009).
* IFRIC 15, 'Agreements for construction of real estate' (effective from 1 January
2009).
* The minor amendments to IAS 20 'Accounting for government grants and disclosure
of government assistance', and IAS 20, 'Financial reporting in hyperinflationary
economies', IAS 40, ' Investment property', and IAS 41, 'Agriculture'.
* IFRIC 16, 'Hedges of a net investment in a foreign operation'.
Consolidation
Subsidiaries
Subsidiaries are all entities over which YCO Deuxmil Plc has the power to govern
the financial and operating policies generally accompanying a shareholding of
more than one half of the voting rights. The existence and effect of potential
voting rights that are currently exercisable or convertible are considered when
assessing whether the Group controls another entity. Subsidiaries are fully
consolidated from the date on which control is transferred to YCO Deuxmil Plc
(formerly Deuxmil Marine Plc). They are de-consolidated from the date that
control ceases.
The purchase method of accounting is used to account for the acquisition of
subsidiaries by the Group. The cost of an acquisition is measured as the fair
value of the assets given, equity instruments issued and liabilities incurred or
assumed at the date of exchange, plus costs directly attributable to the
acquisition. Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured initially at their
fair values at the acquisition date, irrespective of the extent of any minority
interest. The excess of the cost of acquisition over the fair value of the
Group's share of the identifiable net assets acquired is recorded as goodwill.
If the cost of acquisition is less than the fair value of the net assets of the
subsidiary acquired, the difference is recognised directly in the income
statement.
Inter-company transactions, balances and unrealised gains on transactions
between Group companies are eliminated. Unrealised losses are also eliminated
but considered an impairment indicator of the asset transferred. Accounting
policies of subsidiaries have been changed or adjusted upon consolidation where
necessary to ensure consistency with the policies adopted by the Group.
Intangible assets
(a) Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value
of the Group's share of the net identifiable assets of the acquired subsidiary
or associate at the date of acquisition. Goodwill on acquisitions of
subsidiaries is included in 'intangible assets'. Goodwill on acquisitions of
associates is included in 'investments in associates' and is tested for
impairment as part of the overall balance. Separately recognised goodwill is
tested annually for impairment and carried at cost less accumulated impairment
losses. Impairment losses on goodwill are not reversed. Gains and losses on the
disposal of an entity include the carrying amount of goodwill relating to the
entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment
testing. The allocation is made to those cash-generating units or Groups of
cash-generating units that are expected to benefit from the business combination
in which the goodwill arose. The Group allocates goodwill to each business
segment in each country in which it operates.
(b) Trademarks and licences
Acquired trademarks and licences are shown at historical cost. Trademarks and
licences have a finite useful life and are carried at cost less accumulated
amortisation. Amortisation is calculated using the straight-line method to
allocate the cost of trademarks and licences over their estimated useful lives.
+------------------+--------------------------------------------+
| Licenses | 20% on cost |
+------------------+--------------------------------------------+
(c) Software
Acquired software and websites are shown at historical cost. They have a finite
useful life and are carried at cost less accumulated amortisation. Amortisation
is calculated using the straight-line method to allocate the cost of software
and website over their estimated useful lives.
+------------------+--------------------------------------------+
| Software | 15% - 20% on cost |
+------------------+--------------------------------------------+
(d) Product development
Product development expenditure is capitalised when it is considered that there
is a commercially and technically viable product, the related expenditure is
separately identifiable and there is reasonable expectation that the related
expenditure will be exceeded by future revenues. Following initial recognition,
product development are carried at cost less any accumulated amortisation and
any accumulated impairment losses. The useful lives of these intangible assets
are assessed to have finite life. Amortisation is charged on assets with finite
lives, this expense is taken to the income statement. Useful lives are also
reviewed on an annual basis. Product development cost will not be amortised
whilst the Microsoft Dynamics CRM project is still in its development phase.
Impairment of non-financial assets
Assets that have an indefinite useful life, for example goodwill, are not
subject to amortisation and are tested annually for impairment. Assets that are
subject to amortisation are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognised for the amount by which the asset's carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of
an asset's fair value less costs to sell and value in use. For the purposes of
assessing impairment, assets are grouped at the lowest levels for which there
are separately identifiable cash flows (cash-generating units). Non-financial
assets other than goodwill that suffered impairment are reviewed for possible
reversal of the impairment at each reporting date.
Property, plant and equipment
Tangible non-current assets are stated at historical cost less depreciation.
Historical cost includes expenditure that is directly attributable to the
acquisition of the items.
Subsequent costs are included in the assets carrying amount or recognised as a
separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Group and the cost of the
item can be measured reliably. The carrying amount of the replaced part is
derecognised. All other repairs and maintenance are charged to the income
statement during the financial Year in which they are incurred. Depreciation is
provided at the following annual rates in order to write off each asset over its
estimated useful life.
+-----------------------------+--------------------------------------+
| Fixtures, fittings and | - 5% - 35% on cost |
| equipment | |
+-----------------------------+--------------------------------------+
| Motor vehicles | - 16% - 25% on cost |
+-----------------------------+--------------------------------------+
The asset's residual values and useful economic lives are reviewed, and adjusted
if appropriate, at each balance sheet date. An asset's carrying amount is
written down immediately to its recoverable amount if the asset's carrying
amount is greater than its estimated recoverable value.
Gains and losses on disposals are determined by comparing the proceeds with the
carrying amount and are recognised within other (losses) or gains in the income
statement. When revalued assets are sold, the amounts included in other reserves
are transferred to retained earnings.
Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for
the sale of goods and services in the ordinary course of the Group's activities.
Revenue is shown net of value-added tax, returns, rebates and discounts and
after eliminating sales within the Group.
Functional currency translation
i)Functional and presentation currency
Items included in the financial statements of the Group are measured using the
currency of the primary economic environment in which the entity operates (the
functional currency), which is mainly Euros (EUR). The financial statements are
presented in Pounds Sterling (GBP), which is the Group's presentation currency.
ii) Transactions and balances
Foreign currency transactions are translated into the presentational currency
using exchange rates prevailing at the dates of the transactions. Foreign
exchange gains and losses resulting from the settlement of such transactions and
from the translation at year-end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognised in the income
statement.
iii) Group companies
The results and financial position of all Group entities (none of which has the
currency of a hyper-inflationary economy) that have a functional currency
different from the presentation currency are translated into the presentation
currency as follows:
(a)assets and liabilities for each balance sheet presented are translated at the
closing rate at the date of that balance sheet;
(b)income and expenses for each income statement are translated at average
exchange rates (unless this average is not a reasonable approximation of the
cumulative effect of the rates prevailing on the transaction dates, in which
case income and expenses are translated at the rate on the dates of the
transactions); and
(c)all resulting exchange differences are recognised as a separate component of
equity.
On consolidation, exchange differences arising from the translation of the net
investment in foreign operations, and of borrowings and other currency
instruments designated as hedges of such investments, are taken to shareholders'
equity. When a foreign operation is partially disposed of or sold, exchange
differences that were recorded in equity are recognised in the income statement
as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign
entity are treated as assets and liabilities of the foreign entity and
translated at the closing rate.
Taxation
The tax expense represents the sum of the tax currently payable and deferred
tax. The tax currently payable is based on the taxable profit for the year.
Taxable profit differed from net profit as reported in the income statement
because it excludes items of income or expense that are taxable or deductible in
other years and it further excludes items that are never taxable or deductible.
The entity's liability for current tax is calculated using tax rates that have
been enacted or substantively enacted by the balance sheet date.
Deferred tax
Deferred income tax is provided in full, using the liability method, on
temporary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the financial statements. However, the deferred
income tax is not accounted for if it arises from initial recognition of an
asset or liability in a transaction other than a business combination that at
the time of the transaction affects neither accounting nor taxable profit or
loss. Deferred income tax is determined using tax rates (and laws) that have
been enacted or substantially enacted by the balance sheet date and are expected
to apply when the related deferred income tax asset is realised or the deferred
income tax liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that
future taxable profit will be available against which the temporary differences
can be utilised.
Operating leases
Rental leases in which a significant portion of the risks and rewards of
ownership are retained by the lessor are classified as operating leases.
Payments made under operating leases (net of any incentives received from the
lessor) are charged to the income statement.
Segment reporting
A business segment is a Group of assets and operations engaged in providing
products or services that are subject to risks and returns that are different
from those of other business segments. A geographical segment is engaged in
providing products or services within a particular economic environment that are
subject to risks and returns that are different from those of segments operating
in other economic environments.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held on call with
banks, other short-term highly liquid investments with original maturities of
three months or less, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities on the balance sheet.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is
determined using the first-in, first-out (FIFO) method. The cost of finished
goods and work in progress comprises raw materials and other direct costs. It
excludes borrowing costs. Net realisable value is the estimated selling price in
the ordinary course of business, less applicable variable selling expenses.
Trade receivables
Trade receivables are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method, less provision
for impairment. A provision for impairment is established when there is
objective evidence that the Group will not be able to collect all amounts due
according to the original terms of the receivables. Significant financial
difficulties of the debtor, probability that the debtor will enter bankruptcy or
financial reorganisation and default or delinquency in payments is considered
indicators that the trade receivable is impaired.
Trade payables
Trade payables are recognised initially at fair value and subsequently measured
at amortised cost using the effective interest method.
Borrowings
Borrowings are recognised initially at fair value, net of transaction costs
incurred. Borrowings are subsequently stated at amortised cost; any difference
between the proceeds (net of transaction costs) and the redemption value is
recognised in the income statement over the year of the borrowings using the
effective interest method.
Borrowings are classified as current liabilities unless the Group has an
unconditional right to defer settlement of the liability for at least 12 months
after the balance sheet date.
Financial Instruments
Non-derivative financial instruments comprise investments in equity and debt
securities, trade and other receivables, cash and cash equivalents, loans and
borrowings, and trade and other payables.
Non-derivative financial instruments are recognised initially at fair value
plus, for instruments not at fair value through profit or loss, any directly
attributable transactions costs, except as described below. Subsequent to
initial recognition non-derivative financial instruments are measured as
described below.
A financial instrument is recognised when the Group becomes a party to the
contractual provisions of the instrument. Financial assets are derecognised if
the Group's contractual rights to the cash flows from the financial assets
expire or if the Group transfers the financial assets to another party without
retaining control or substantially all risks and rewards of the asset. Regular
way purchases and sales of financial assets are accounted for at trade date,
i.e. the date that the Group commits itself to purchase or sell the asset.
Financial liabilities are derecognised if the Group's obligations specified in
the contract expire or are discharged or cancelled.
Fair values
The carrying amounts of the financial assets and liabilities such as cash and
cash equivalents, receivables and payables of the Group at the balance sheet
date approximated their fair values, due to relatively short term nature of
these financial instruments.
The Company provides financial guarantees to licensed banks for credit
facilities extended to a subsidiary companies. The fair value of such financial
guarantees is not expected to be significantly different as the probability of
the subsidiary company defaulting on the credit lines is remote.
Share-based compensation
The fair value of the employees, directors and suppliers services received in
exchange for the grant of the options and warrants are recognised as an expense.
The total amount to be expensed over the vesting year is determined by reference
to the fair value of the options granted, excluding the impact of any non-market
vesting conditions (for example, profitability and sales growth targets).
Non-market vesting conditions are included in assumptions about the number of
options that are expected to vest. At each balance sheet date, the entity
revises its estimates of the number of options that are expected to vest. It
recognises the impact of the revision to original estimates, if any, in the
income statement, with a corresponding adjustment to equity.
The proceeds received net of any directly attributable transaction costs are
credited to share capital (nominal value) and share premium when the options and
warrants are exercised.
Share capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds.
Critical accounting estimates and judgements
The preparation of consolidated financial statements requires the Group to make
estimates and assumptions that affect the application of policies and reported
amounts. Estimates and judgements are continually evaluated and are based on
historical experience and other factors including expectations of future events
that are believed to be reasonable under the circumstances. Actual results may
differ from these estimates. The estimates and assumptions which have a
significant risk of causing a material adjustment to the carrying amount of
assets and liabilities are discussed below:
(a) Impairment of goodwill
The Group is required to test, at least annually, whether goodwill has suffered
any impairment. The recoverable amount is determined based on value in use
calculations. The use of this method requires the estimation of future cash
flows and the choice of a suitable discount rate in order to calculate the
present value of these cash flows. Actual outcomes could vary.
(b) Impairment of intangibles (other than goodwill)
Intangible assets are reviewed for impairment if events or changes in
circumstances indicate that the carrying amount may not be recoverable. When a
review for impairment is conducted, the recoverable amount is determined based
on value in use calculations prepared on the basis of management's assumptions
and estimates.
(c) Impairment of property, plant and equipment
Property, plant and equipment are reviewed for impairment if events or changes
in circumstances indicate that the carrying amount may not be recoverable. When
a review for impairment is conducted, the recoverable amount is determined based
on value in use calculations prepared on the basis of management's assumptions
and estimates.
(d) Depreciation of property, plant and equipment
Depreciation is provided so as to write down the assets to their residual values
over their estimated useful lives as set out above. The selection of these
residual values and estimated lives requires the exercise of management
judgement.
(e) Share-based compensation
The fair value of options and warrants are determined by reference to the fair
value of the options granted, excluding the impact of any non-market vesting
conditions (for example, profitability and sales growth targets). Non-market
vesting conditions are included in assumptions about the number of options that
are expected to vest. At each balance sheet date, the entity revises its
estimates of the number of options that are expected to vest. It recognises the
impact of the revision to original estimates, if any, in the income statement,
with a corresponding adjustment to equity.
2. SEGMENTAL ANALYSIS
The Group's primary segment is business segment and the secondary segment is
geographical location. The business segment consists of marine fuel and support
services as shown below:
+----------------------------------------------+-------------+------------------+-------------+
| | Marine fuel | Support services | Total |
+----------------------------------------------+-------------+------------------+-------------+
| Segment Results | 2008 | 2008 | 2008 |
+----------------------------------------------+-------------+------------------+-------------+
| | GBP | GBP | GBP |
+----------------------------------------------+-------------+------------------+-------------+
| Revenue | | | |
+----------------------------------------------+-------------+------------------+-------------+
| Total | 20,549,943 | 9,067,788 | 29,617,731 |
+----------------------------------------------+-------------+------------------+-------------+
| Inter company | (905,835) | (210,884) | (1,116,719) |
+----------------------------------------------+-------------+------------------+-------------+
| | | | |
+----------------------------------------------+-------------+------------------+-------------+
| Revenue | 19,644,108 | 8,856,904 | 28,501,012 |
+----------------------------------------------+-------------+------------------+-------------+
| | | | |
+----------------------------------------------+-------------+------------------+-------------+
| Operating profit before depreciation, | 254,734 | (352,648) | (97,914) |
| amortisation share based payment charges and | | | |
| restructuring costs | | | |
+----------------------------------------------+-------------+------------------+-------------+
| Depreciation of tangibles | (1,310) | (117,551) | (118,861) |
+----------------------------------------------+-------------+------------------+-------------+
| Amortisation of intangibles | - | (110,115) | (110,115) |
+----------------------------------------------+-------------+------------------+-------------+
| Restructuring costs | - | (396,746) | (396,746) |
+----------------------------------------------+-------------+------------------+-------------+
| Operating profit | 253,424 | (977,060) | (723,636) |
+----------------------------------------------+-------------+------------------+-------------+
| Net finance expense | | | 39,557 |
+----------------------------------------------+-------------+------------------+-------------+
| Profit before taxation | | | (684,079) |
+----------------------------------------------+-------------+------------------+-------------+
| | | | |
+----------------------------------------------+-------------+------------------+-------------+
| Segment Assets | | | |
+----------------------------------------------+-------------+------------------+-------------+
| Property, plant and equipment | 14,775 | 812,530 | 827,305 |
+----------------------------------------------+-------------+------------------+-------------+
| Intangible assets | 1,794,265 | 13,818,128 | 15,612,393 |
+----------------------------------------------+-------------+------------------+-------------+
| Other assets | 1,270,737 | 5,760,663 | 7,031,400 |
+----------------------------------------------+-------------+------------------+-------------+
| | 3,079,777 | 20,391,321 | 23,471,098 |
+----------------------------------------------+-------------+------------------+-------------+
+----------------------------------------------+-------------+-----------+-----------+-+
| | Marine | Support | Total |
| | fuel | Services | |
+----------------------------------------------+-------------+-----------+-------------+
| Segment Results | 2007 | 2007 | 2007 |
+----------------------------------------------+-------------+-----------+-------------+
| | GBP | GBP | GBP |
+----------------------------------------------+-------------+-----------+-------------+
| Revenue | | | |
+----------------------------------------------+-------------+-----------+-------------+
| Total | 14,867,413 | 2,237,278 | 17,104,691 |
+----------------------------------------------+-------------+-----------+-------------+
| Inter company | (455,827) | (15,557) | (471,384) |
+----------------------------------------------+-------------+-----------+-------------+
| | | | |
+----------------------------------------------+-------------+-----------+-------------+
| Revenue | 14,411,586 | 2,221,721 | 16,633,307 |
+----------------------------------------------+-------------+-----------+-------------+
| | | | |
+----------------------------------------------+-------------+-----------+-------------+
| Operating profit before depreciation, | 341,881 | 105,209 | 447,090 |
| amortisation share based payment charges and | | | |
| restructuring costs | | | |
+----------------------------------------------+-------------+-----------+-------------+
| Depreciation of tangibles | (848) | (30,843) | (31,691) |
+----------------------------------------------+-------------+-----------+-----------+
| Amortisation of intangibles | - | (2,066) | (2,066) |
+----------------------------------------------+-------------+-----------+-------------+
| Restructuring costs | - | - | - |
+----------------------------------------------+-------------+-----------+-------------+
| Operating profit | 341,033 | 72,300 | 413,333 |
+----------------------------------------------+-------------+-----------+-------------+
| Net finance expense | | | (3,484) |
+----------------------------------------------+-------------+-----------+-------------+
| Profit before taxation | | | 409,849 |
+----------------------------------------------+-------------+-----------+-------------+
| | | | |
+----------------------------------------------+-------------+-----------+-------------+
| Segment Assets | | | |
+----------------------------------------------+-------------+-----------+-------------+
| Property, plant and equipment | 2,815 | 198,819 | 201,634 |
+----------------------------------------------+-------------+-----------+-------------+
| Intangible assets | 1,794,265 | 1,011,509 | 2,805,774 |
+----------------------------------------------+-------------+-----------+-------------+
| Other assets | 592,361 | 1,355,570 | 1,947,931 |
+----------------------------------------------+-------------+-----------+-------------+
| | 2,389,441 | 2,565,898 | 4,955,339 |
+----------------------------------------------+-------------+-----------+-----------+-+
The geographical segment consists of Europe, Americas and the rest of the world.
+-----------------------------+-------------+------------+------------+------------+
| | Europe | Americas | Rest of | Total |
| | | | the world | |
+-----------------------------+-------------+------------+------------+------------+
| | 2008 | 2008 | 2008 | 2008 |
+-----------------------------+-------------+------------+------------+------------+
| | GBP | GBP | GBP | GBP |
+-----------------------------+-------------+------------+------------+------------+
| Revenue | 19,411,278 | 3,555,174 | 5,534,560 | 28,501,012 |
+-----------------------------+-------------+------------+------------+------------+
| | | | | |
+-----------------------------+-------------+------------+------------+------------+
| | | | | |
+-----------------------------+-------------+------------+------------+------------+
| Total assets | 23,471,098 | - | - | 23,471,098 |
+-----------------------------+-------------+------------+------------+------------+
| | | | | |
+-----------------------------+-------------+------------+------------+------------+
| Capital Expenditure | 666,857 | - | - | 666,857 |
+-----------------------------+-------------+------------+------------+------------+
| | | | | |
+-----------------------------+-------------+------------+------------+------------+
+-----------------------------+-------------+------------+------------+-------------+
| | Europe | Americas | Rest of | Total |
| | | | the world | |
+-----------------------------+-------------+------------+------------+-------------+
| | 2007 | 2007 | 2007 | 2007 |
+-----------------------------+-------------+------------+------------+-------------+
| | GBP | GBP | GBP | GBP |
+-----------------------------+-------------+------------+------------+-------------+
| | | | | |
+-----------------------------+-------------+------------+------------+-------------+
| Revenue | 11,416,760 | 4,471,326 | 745,221 | 16,633,307 |
+-----------------------------+-------------+------------+------------+-------------+
| | | | | |
+-----------------------------+-------------+------------+------------+-------------+
| | | | | |
+-----------------------------+-------------+------------+------------+-------------+
| Total assets | 4,955,339 | - | - | 4,955,339 |
+-----------------------------+-------------+------------+------------+-------------+
| | | | | |
+-----------------------------+-------------+------------+------------+-------------+
| | | | | |
+-----------------------------+-------------+------------+------------+-------------+
| Capital Expenditure | 117,781 | - | - | 117,781 |
+-----------------------------+-------------+------------+------------+-------------+
| | | | | |
+-----------------------------+-------------+------------+------------+-------------+
| | | | | |
+-----------------------------+-------------+------------+------------+-------------+
3. EMPLOYEES AND DIRECTORS
+------------------------------------------------------+------------+------------+
| | 2008 | 2007 |
+------------------------------------------------------+------------+------------+
| | GBP | GBP |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Directors emoluments | 824,273 | 41,839 |
+------------------------------------------------------+------------+------------+
| Wages and salaries | 1,823,294 | 459,421 |
+------------------------------------------------------+------------+------------+
| Social security costs | 490,601 | 96,400 |
+------------------------------------------------------+------------+------------+
| Benefits | 33,109 | 6,763 |
+------------------------------------------------------+------------+------------+
| Compensation for loss of office | 396,746 | - |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| | 3,568,023 | 604,423 |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| The average monthly number of employees (including | | |
| directors) during the year was as follows: | | |
+------------------------------------------------------+------------+------------+
| | 2008 | 2007 |
+------------------------------------------------------+------------+------------+
| | Number | Number |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Directors | 7 | 4 |
+------------------------------------------------------+------------+------------+
| Operations | 60 | 22 |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| | 67 | 26 |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| | 2008 | 2007 |
+------------------------------------------------------+------------+------------+
| | GBP | GBP |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Directors' emoluments | 728,037 | - |
+------------------------------------------------------+------------+------------+
| Directors' fees | 96,236 | 41,839 |
+------------------------------------------------------+------------+------------+
| Directors' benefits | 33,109 | 6,763 |
+------------------------------------------------------+------------+------------+
| Compensation for loss of office | 260,000 | - |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| | 1,117,382 | 48,602 |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
Peter Jay's fees were invoiced by Meze Ltd totalling GBP25,833 (2007 -
GBP14,582). Peter Shea's fees were invoiced by Daniel Stewart & Company
totalling GBP23,903 (2007 - GBPnil).
Emoluments disclosed above include the following amounts paid to the highest
paid director in the year:
+------------------------------------------------------+------------+------------+
| | 2008 | 2007 |
+------------------------------------------------------+------------+------------+
| | GBP | GBP |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Emoluments | 180,000 | - |
+------------------------------------------------------+------------+------------+
| Benefits | 3,993 | - |
+------------------------------------------------------+------------+------------+
| Compensation for loss of office | 260,000 | - |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| | 443,993 | |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
4.NET FINANCE INCOME
+-------------------------------------------+-----------------+-----------------+
| | 2008 | 2007 |
+-------------------------------------------+-----------------+-----------------+
| | GBP | GBP |
+-------------------------------------------+-----------------+-----------------+
| | | |
+-------------------------------------------+-----------------+-----------------+
| Finance income: | | |
+-------------------------------------------+-----------------+-----------------+
| Deposit account interest | 54,159 | 174 |
+-------------------------------------------+-----------------+-----------------+
| | | |
+-------------------------------------------+-----------------+-----------------+
| Finance costs: | | |
+-------------------------------------------+-----------------+-----------------+
| Bank interest | 12,563 | 262 |
+-------------------------------------------+-----------------+-----------------+
| Bank loan interest | 771 | 2,574 |
+-------------------------------------------+-----------------+-----------------+
| Other interest | 1,268 | 822 |
+-------------------------------------------+-----------------+-----------------+
| | | |
+-------------------------------------------+-----------------+-----------------+
| | 14,602 | 3,658 |
+-------------------------------------------+-----------------+-----------------+
| | | |
+-------------------------------------------+-----------------+-----------------+
| Net finance income/(costs) | 39,557 | (3,484) |
+-------------------------------------------+-----------------+-----------------+
| | | |
+-------------------------------------------+-----------------+-----------------+
| | | |
+-------------------------------------------+-----------------+-----------------+
| | | |
+-------------------------------------------+-----------------+-----------------+
5.OPERATING (LOSS)/PROFIT FOR THE YEAR
The operating profit for the year is stated after charging/(crediting):
+-------------------------------------------+-----------------+-----------------+
| | 2008 | 2007 |
+-------------------------------------------+-----------------+-----------------+
| | GBP | GBP |
+-------------------------------------------+-----------------+-----------------+
| | | |
+-------------------------------------------+-----------------+-----------------+
| Rent operating leases | 361,707 | 65,573 |
+-------------------------------------------+-----------------+-----------------+
| Depreciation - owned assets | 115,187 | 28,327 |
+-------------------------------------------+-----------------+-----------------+
| Depreciation - leased assets | 3,674 | 3,364 |
+-------------------------------------------+-----------------+-----------------+
| Amortisation of intangibles | 110,115 | 2,066 |
+-------------------------------------------+-----------------+-----------------+
| Loss on sale of tangible assets | 24,413 | - |
+-------------------------------------------+-----------------+-----------------+
| Auditors' remuneration (Company | 33,477 | 22,000 |
| GBP20,000; 2007: GBP15,000) | | |
+-------------------------------------------+-----------------+-----------------+
| Auditors' remuneration (Non-audit work) | 5,000 | 4,380 |
+-------------------------------------------+-----------------+-----------------+
| Auditors' remuneration (Corporate finance | 128,000 | - |
| work) | | |
+-------------------------------------------+-----------------+-----------------+
| Compensation for loss of office | 396,746 | - |
+-------------------------------------------+-----------------+-----------------+
| Foreign exchange differences | (19,141) | (9,700) |
+-------------------------------------------+-----------------+-----------------+
| | | |
+-------------------------------------------+-----------------+-----------------+
The analysis of administrative expenses in the consolidated income statement by
nature of expense:
+--------------------------------------------+-----------------+-----------------+
| | 2008 | 2007 |
+--------------------------------------------+-----------------+-----------------+
| | GBP | GBP |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| Employment costs | 3,568,023 | 555,821 |
+--------------------------------------------+-----------------+-----------------+
| Depreciation and amortisation | 228,976 | 33,457 |
+--------------------------------------------+-----------------+-----------------+
| Advertising costs | 527,681 | 56,151 |
+--------------------------------------------+-----------------+-----------------+
| Travelling and entertaining | 333,531 | 124,965 |
+--------------------------------------------+-----------------+-----------------+
| Establishment costs | 375,635 | 81,376 |
+--------------------------------------------+-----------------+-----------------+
| Other expenses | 964,135 | 246,479 |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| | 5,997,981 | 1,098,249 |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
6.INCOME TAX EXPENSE
The tax charge on the profit for the year was as follows:
+--------------------------------------------+-----------------+-----------------+
| | 2008 | 2007 |
+--------------------------------------------+-----------------+-----------------+
| | GBP | GBP |
+--------------------------------------------+-----------------+-----------------+
| Current tax: | | |
+--------------------------------------------+-----------------+-----------------+
| Corporation tax | - | 109,025 |
+--------------------------------------------+-----------------+-----------------+
| Overseas Corporation tax | - | 25,113 |
+--------------------------------------------+-----------------+-----------------+
| Prior year tax adjustment | - | - |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| | - | 134,138 |
+--------------------------------------------+-----------------+-----------------+
| Deferred tax | | - |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| Total | - | 134,138 |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| Profit/(loss) before tax | (684,079) | 409,849 |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| Profit/(loss) on ordinary activities | (191,542) | 122,955 |
| before taxation multiplied by standard | | |
| rate of UK corporation tax of 28% (2007 - | | |
| 30%) | | |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| Effects of: | | |
+--------------------------------------------+-----------------+-----------------+
| Non deductible expenses | 5,754 | 2,036 |
+--------------------------------------------+-----------------+-----------------+
| Depreciation add back | 33,281 | 9,417 |
+--------------------------------------------+-----------------+-----------------+
| Capital allowance | (3,842) | (2,720) |
+--------------------------------------------+-----------------+-----------------+
| Losses carried forward | 156,349 | - |
+--------------------------------------------+-----------------+-----------------+
| Other tax adjustments | - | 2,450 |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| | 191,542 | 11,183 |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| Current tax charge | - | 134,138 |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
The Group has estimated trading loss of GBP452,000 (2007 - GBPnil), management
expense excess of GBP86,000 (2007 - GBPnil) and non trading losses of GBP12,000
(2007 - GBPnil) available to carry forward against future profits. The deferred
tax asset not provided at 28% on the grounds that the recovery could not be
foreseen with reasonable certainty was GBP126,560 (2007 - GBPnil).
7.PROFIT OF PARENT COMPANY
As permitted by Section 230 of the Companies Act 1985, the profit and loss
account of the parent company is not presented as part of these financial
statements. The parent company's loss for the financial year was GBP576,904
(2007 - Profit of GBP1,134).
8.EARNINGS PER SHARE
The calculation of earnings per ordinary share is based on earnings after tax
and the weighted average number of ordinary shares in issue during the year. For
diluted earnings per share, the weighted average number of ordinary shares in
issue is adjusted to assume conversion of all dilutive potential ordinary
shares. The Group has two classes of dilutive potential ordinary shares being
those share options granted to employees and suppliers where the exercise price
is less than the average market price of the Group's ordinary shares during the
year and the shares to be issued to satisfy the deferred consideration on the
acquisition of a subsidiary.
Details of the adjusted earnings per share are set out below:
+--------------------------------------------+-----------------+-----------------+
| | 2008 | 2007 |
+--------------------------------------------+-----------------+-----------------+
| | GBP | GBP |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| Basic EPS | | |
+--------------------------------------------+-----------------+-----------------+
| Earnings attributable to ordinary | (684,079) | 275,711 |
| shareholders (GBP) | | |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| Weighted average number of shares | 37,020,278 | 145,379,299 |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| Basic EPS (pence) | (1.85) | 0.19 |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
+--------------------------------------------+-----------------+-----------------+
| | 2008 | 2007 |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| Basic EPS | | |
+--------------------------------------------+-----------------+-----------------+
| Earnings attributable to ordinary | (684,079) | 275,711 |
| shareholders (GBP) | | |
+--------------------------------------------+-----------------+-----------------+
| Weighted average number of shares (0.35p | 37,020,278 | 146,379,299 |
| per share) | | |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| Diluted EPS (pence) | (1.85) | 0.19 |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
Detail of the proforma earnings per share after share consolidation is set out
below:
+--------------------------------------------+-----------------+-----------------+
| | 2007 | 2008 |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| Basic EPS | | |
+--------------------------------------------+-----------------+-----------------+
| Earnings attributable to ordinary | (684,079) | 275,711 |
| shareholders (GBP) | | |
+--------------------------------------------+-----------------+-----------------+
| Weighted average number of shares (0.35p | 37,020,278 | 20,911,328 |
| per share) | | |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
| Basic EPS (pence) | (1.85) | 1.33 |
+--------------------------------------------+-----------------+-----------------+
| | | |
+--------------------------------------------+-----------------+-----------------+
9.GOODWILL
Group
+-------------------------------------------------------------+-----------------+
| COST | GBP |
+-------------------------------------------------------------+-----------------+
| At 1 January 2007 | 1,794,265 |
+-------------------------------------------------------------+-----------------+
| Additions | 990,557 |
+-------------------------------------------------------------+-----------------+
| | |
+-------------------------------------------------------------+-----------------+
| At 31 December 2007 | 2,784,822 |
+-------------------------------------------------------------+-----------------+
| Additions | 12,547,965 |
+-------------------------------------------------------------+-----------------+
| | |
+-------------------------------------------------------------+-----------------+
| | |
+-------------------------------------------------------------+-----------------+
| At 31 December 2008 | 15,332,787 |
+-------------------------------------------------------------+-----------------+
| | |
+-------------------------------------------------------------+-----------------+
| | |
+-------------------------------------------------------------+-----------------+
| CARRYING AMOUNT | |
+-------------------------------------------------------------+-----------------+
| At 31 December 2008 | 15,332,787 |
+-------------------------------------------------------------+-----------------+
| | |
+-------------------------------------------------------------+-----------------+
| At 31 December 2007 | 2,784,822 |
+-------------------------------------------------------------+-----------------+
| | |
+-------------------------------------------------------------+-----------------+
Goodwill additions in 2008 arose on the acquisition of YCO S.A.M and the
issuance of Company's new shares to the employees of Yacht Help Group (Mallorca)
S.L..
During the year the Company issued 233,704 new shares of 0.35p each at 34p each
amounting to GBP79,459 to the employees of Yacht Help Group (Mallorca) S.L. as
part of the acquisition agreement in April 2007.
The fair value of consideration and assets acquired for YCO S.A.M. is as
follows:
+-------------------------------------------------------------+-----------------+
| | GBP |
+-------------------------------------------------------------+-----------------+
| Investments | |
+-------------------------------------------------------------+-----------------+
| Consideration -cash | 7,200,000 |
+-------------------------------------------------------------+-----------------+
| Consideration - shares | 4,724,409 |
+-------------------------------------------------------------+-----------------+
| Legal fees | 874,162 |
+-------------------------------------------------------------+-----------------+
| | |
+-------------------------------------------------------------+-----------------+
| | 12,798,571 |
+-------------------------------------------------------------+-----------------+
| | |
+-------------------------------------------------------------+-----------------+
| Fair value of net assets acquired | |
+-------------------------------------------------------------+-----------------+
| Intangible assets | 154,635 |
+-------------------------------------------------------------+-----------------+
| Tangible assets | 347,206 |
+-------------------------------------------------------------+-----------------+
| Inventories | 136,943 |
+-------------------------------------------------------------+-----------------+
| Receivables | 5,476,785 |
+-------------------------------------------------------------+-----------------+
| Cash and cash in hand | 449,651 |
+-------------------------------------------------------------+-----------------+
| Payables | (6,230,308) |
+-------------------------------------------------------------+-----------------+
| Formation expense write-off | (4,847) |
+-------------------------------------------------------------+-----------------+
| | |
+-------------------------------------------------------------+-----------------+
| Net assets | 330,065 |
+-------------------------------------------------------------+-----------------+
| | |
+-------------------------------------------------------------+-----------------+
| Goodwill | 12,468,506 |
+-------------------------------------------------------------+-----------------+
The acquisition of YCO S.A.M includes its subsidiary undertakings YCO S.A.R.L.,
YCO Yacht Limited (formerly WBC Maritime Limited, YCO Limited and YCO London
Limited.
The Company assesses at each reporting date whether there is an indication that
the goodwill may be impaired, by considering the net present value of discounted
cash flows forecasts. If an indication exists an impairment review is carried
out. At the year end, there was no indication of impairment of the value of
goodwill.
Goodwill is allocated to the Group's cash generating units (CGU) identified
according to the country of operation and business segment.
A segment level summary of the goodwill allocation is presented below:
+---------------------+------+-------------+---------------+-------------+
| | | Marine fuel | Support | Total |
| | | | services | |
+---------------------+------+-------------+---------------+-------------+
| | | GBP | GBP | GBP |
+---------------------+------+-------------+---------------+-------------+
| Europe | | 1,794,265 | 13,538,522 | 15,332,787 |
+---------------------+------+-------------+---------------+-------------+
| USA | | - | - | - |
+---------------------+------+-------------+---------------+-------------+
| Rest of the World | | - | - | - |
+---------------------+------+-------------+---------------+-------------+
| | | 1,794,265 | 13,538,522 | 15,332,787 |
+---------------------+------+-------------+---------------+-------------+
The recoverable amount of CGU is determined based on value-in use calculations.
These calculations use pre-tax cash flow projections based on financial budgets
approved by management covering a four year period. Cashflow beyond four year
period are extrapolated using the price earning ratio to determine the terminal
value.
The key assumptions used for value in use calculations are as follows:
+-------------------------------------+----------+------------+------------+
| | | Marine | Support |
| | | fuel | services |
+-------------------------------------+----------+------------+------------+
| | | | |
+-------------------------------------+----------+------------+------------+
| Revenue growth | | 5%-6% | 5%-6% |
+-------------------------------------+----------+------------+------------+
| GP Margin | | 6% | 20%-43% |
+-------------------------------------+----------+------------+------------+
| Expenses growth | | 5% | 5% |
+-------------------------------------+----------+------------+------------+
| Discount rate (HSBC OD rate base | | 5% | 5% |
| rate + 3%) | | | |
+-------------------------------------+----------+------------+------------+
| PE ratio | | 5 | 5 |
+-------------------------------------+----------+------------+------------+
| | | | |
+-------------------------------------+----------+------------+------------+
The assumptions have been used for the analysis of each CGU within business
segment
Management determined budgeted gross margin based on past performance and its
expectations of market development. The discount rates used are pre-tax and
reflect specific risks relating to the relevant segments and the cost of
borrowings.
10.INTANGIBLES
Group
+---------------------------+--------------+------------+-------------+-----------+
| | Licenses | Software | Product | Total |
| | | | development | |
+---------------------------+--------------+------------+-------------+-----------+
| | GBP | GBP | GBP | GBP |
+---------------------------+--------------+------------+-------------+-----------+
| COST | | | | |
+---------------------------+--------------+------------+-------------+-----------+
| At 1 January 2007 | - | - | - | - |
+---------------------------+--------------+------------+-------------+-----------+
| Additions | 23,018 | - | - | 23,018 |
+---------------------------+--------------+------------+-------------+-----------+
| | | | | |
+---------------------------+--------------+------------+-------------+-----------+
| At 1 January 2008 | 23,018 | - | - | 23,018 |
+---------------------------+--------------+------------+-------------+-----------+
| Additions | - | 156,479 | 51,542 | 208,021 |
+---------------------------+--------------+------------+-------------+-----------+
| Acquisition (Note 9) | - | 154,635 | - | 154,635 |
+---------------------------+--------------+------------+-------------+-----------+
| Currency revaluation | 6,777 | - | - | 6,777 |
+---------------------------+--------------+------------+-------------+-----------+
| Disposals | - | - | - | - |
+---------------------------+--------------+------------+-------------+-----------+
| | | | | |
+---------------------------+--------------+------------+-------------+-----------+
| At 31 December 2008 | 29,795 | 311,114 | 51,542 | 392,451 |
+---------------------------+--------------+------------+-------------+-----------+
| | | | | |
+---------------------------+--------------+------------+-------------+-----------+
| AMORTISATION | | | | |
+---------------------------+--------------+------------+-------------+-----------+
| At 1 January 2007 | - | - | - | - |
+---------------------------+--------------+------------+-------------+-----------+
| Amortisation for the year | 2,066 | - | - | 2,066 |
+---------------------------+--------------+------------+-------------+-----------+
| At 1 January 2008 | 2,066 | - | - | 2066 |
+---------------------------+--------------+------------+-------------+-----------+
| Amortisation for the year | 2,769 | 107,346 | - | 110,115 |
+---------------------------+--------------+------------+-------------+-----------+
| Currency revaluation | 664 | - | - | 664 |
+---------------------------+--------------+------------+-------------+-----------+
| Eliminated on disposal | - | - | - | - |
+---------------------------+--------------+------------+-------------+-----------+
| At 31 December 2008 | 5,499 | 107,346 | - | 112,845 |
+---------------------------+--------------+------------+-------------+-----------+
| | | | | |
+---------------------------+--------------+------------+-------------+-----------+
| CARRYING VALUE | | | | |
+---------------------------+--------------+------------+-------------+-----------+
| At 31 December 2008 | 24,296 | 203,768 | 51,542 | 279,606 |
+---------------------------+--------------+------------+-------------+-----------+
| | | | | |
+---------------------------+--------------+------------+-------------+-----------+
| At 31 December 2007 | 20,952 | - | - | 20,952 |
+---------------------------+--------------+------------+-------------+-----------+
| | | | | |
+---------------------------+--------------+------------+-------------+-----------+
| | | |
+---------------------------+--------------+------------+-------------+-----------+
The trademarks and patents relates to a license held by a Spanish subsidiary.
Software and product development relate to the website and new CRM project which
meet the definition of an intangible asset.
The Company assesses at each reporting date whether there is an indication that
the intangible assets may be impaired, by considering the value in use is
greater than the recoverable amount. If an indication exists an impairment
review is carried out. At the year end, there was no indication of impairment of
the value of the intangibles.
Included above is product development cost held under finance lease with a
carrying value of GBP51,542 and amortisation of GBPnil. The product is in the
development stage. Hence, no amortisation has been applied.
11.PROPERTY, PLANT AND EQUIPMENT
Group
+------------------------------------------+------------+-------------+-----------+
| | Fixtures | | |
+------------------------------------------+------------+-------------+-----------+
| | and | Motor | |
+------------------------------------------+------------+-------------+-----------+
| | fittings | vehicles | Totals |
+------------------------------------------+------------+-------------+-----------+
| COST | GBP | GBP | GBP |
+------------------------------------------+------------+-------------+-----------+
| At 1 January 2007 | 38,991 | - | 38,991 |
+------------------------------------------+------------+-------------+-----------+
| Additions | 63,414 | 55,156 | 118,570 |
+------------------------------------------+------------+-------------+-----------+
| Acquisitions of subsidiaries | 43,040 | 68,841 | 111,881 |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| At 31 December 2007 | 145,445 | 123,997 | 269,442 |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| Additions | 425,646 | - | 425,646 |
+------------------------------------------+------------+-------------+-----------+
| Acquisition of subsidiaries (Note 9) | 347,206 | - | 347,206 |
+------------------------------------------+------------+-------------+-----------+
| Revaluation | 7,024 | 17,756 | 24,780 |
+------------------------------------------+------------+-------------+-----------+
| Disposals | (45,864) | (28,180) | (74,044) |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| At 31 December 2008 | 879,457 | 113,573 | 993,030 |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| DEPRECIATION | | | |
+------------------------------------------+------------+-------------+-----------+
| At 1 January 2007 | 36,117 | - | 36,117 |
+------------------------------------------+------------+-------------+-----------+
| Charge for the year | 20,305 | 11,386 | 31,691 |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| At 31 December 2007 | 56,422 | 11,386 | 67,808 |
+------------------------------------------+------------+-------------+-----------+
| Charge for the year | 97,894 | 20,967 | 118,861 |
+------------------------------------------+------------+-------------+-----------+
| Revaluation | 5,637 | 7,195 | 12,832 |
+------------------------------------------+------------+-------------+-----------+
| Disposals | (27,049) | (6,727) | (33,776) |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| At 31 December 2008 | 132,904 | 32,821 | 165,725 |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| CARRYING VALUE | | | |
+------------------------------------------+------------+-------------+-----------+
| At 31 December 2008 | 746,553 | 80,752 | 827,305 |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| At 31 December 2007 | 89,023 | 112,611 | 201,634 |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
Company
+------------------------------------------+------------+-------------+-----------+
| | Fixtures | | |
+------------------------------------------+------------+-------------+-----------+
| | and | Motor | |
+------------------------------------------+------------+-------------+-----------+
| | fittings | vehicles | Totals |
+------------------------------------------+------------+-------------+-----------+
| COST | GBP | GBP | GBP |
+------------------------------------------+------------+-------------+-----------+
| 1 January 2007 | - | - | - |
+------------------------------------------+------------+-------------+-----------+
| Additions | 62,625 | 55,156 | 117,781 |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| 1 January 2008 | 62,625 | 55,156 | 117,781 |
+------------------------------------------+------------+-------------+-----------+
| Additions | 4,163 | - | 4,163 |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| At 31 December 2008 | 66,788 | 55,156 | 121,944 |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| DEPRECIATION | | | |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| 1 January 2007 | - | - | - |
+------------------------------------------+------------+-------------+-----------+
| Charge for the year | 2,504 | 4,538 | 7,042 |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| 31 December 2007 | 2,504 | 4,538 | 7,042 |
+------------------------------------------+------------+-------------+-----------+
| Charge for the year | 15,483 | 11,655 | 27,138 |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| At 31 December 2008 | 17,987 | 16,193 | 34,180 |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| CARRYING VALUE | | | |
+------------------------------------------+------------+-------------+-----------+
| At 31 December 2008 | 48,801 | 38,963 | 87,764 |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
| At 31 December 2007 | 60,121 | 50,618 | 110,739 |
+------------------------------------------+------------+-------------+-----------+
| | | | |
+------------------------------------------+------------+-------------+-----------+
Included in motor vehicles are assets held under finance lease with a carrying
value of GBP18,294 (2007 - GBP21,968) and depreciation charge for the year of
GBP3,674 (2007 - GBP3,346).
12.FIXED ASSET INVESTMENTS
Company
+--------------------------------------------------------+-------------------+
| | Total |
+--------------------------------------------------------+-------------------+
| COST | GBP |
+--------------------------------------------------------+-------------------+
| | |
+--------------------------------------------------------+-------------------+
| At 1 January 2007 | 2,307,054 |
+--------------------------------------------------------+-------------------+
| Additions | 921,164 |
+--------------------------------------------------------+-------------------+
| | |
+--------------------------------------------------------+-------------------+
| At 1 January 2008 | 3,228,218 |
+--------------------------------------------------------+-------------------+
| Additions | 13,020,447 |
+--------------------------------------------------------+-------------------+
| | |
+--------------------------------------------------------+-------------------+
| At 31 December 2008 | 16,248,665 |
+--------------------------------------------------------+-------------------+
| | |
+--------------------------------------------------------+-------------------+
| CARRYING AMOUNT | |
+--------------------------------------------------------+-------------------+
| At 31 December 2008 | 16,248,665 |
+--------------------------------------------------------+-------------------+
| | |
+--------------------------------------------------------+-------------------+
| At 31 December 2007 | 3,228,218 |
+--------------------------------------------------------+-------------------+
In the opinion of the directors, the aggregate value of the Company's investment
in subsidiary undertakings is not less than the amount included in the balance
sheet
The details of the subsidiaries are as set out below:
+---------------------------+---------------+---------------+--------------------------+
| | Country of |Shareholdings | Nature of business |
| |incorporation | | |
+---------------------------+---------------+---------------+--------------------------+
| | | | |
+---------------------------+---------------+---------------+--------------------------+
| Yacht Fuel Services | UK | 100% | Supply of marine fuel |
| Limited | Spain | 100% | and lubricants |
| Yacht Help Group | Gibraltar | 100% | Supply of goods and |
| (Mallorca) S.L. | Spain | 100% | services to yachts |
| Yacht Help Group | | | Supply of goods and |
| Gibraltar Ltd | | | services to yachts |
| BA Yachts Assistance S.L. | | | Supply of goods and |
| | | | services to yachts |
+---------------------------+---------------+---------------+--------------------------+
| YCO SAM | Monaco | 100% | Supply of goods and |
| | | | services to yachts |
+---------------------------+---------------+---------------+--------------------------+
| YCO SARL * | | 100% | Supply of goods and |
| | | | services to yachts |
+---------------------------+---------------+---------------+--------------------------+
| YCO Yacht Limited * | UK | 100% | Supply of goods and |
| (formerly WBC Maritime | | | services to yachts |
| Limited) | | | |
+---------------------------+---------------+---------------+--------------------------+
| YCO Support Limited * | Isle of Man | 100% | Supply of goods and |
| | | | services to yachts |
+---------------------------+---------------+---------------+--------------------------+
| YCO London Limited * | UK | 100% | Dormant |
+---------------------------+---------------+---------------+--------------------------+
| YCO Ltd * | UK | 100% | Supply of goods and |
| | | | services to yachts |
+---------------------------+---------------+---------------+--------------------------+
* These companies are wholly owned subsidiaries of YCO S.A.M.
The Company acquired the whole issued share capital of Yacht Fuel Services
Limited in 2005 for a total consideration of GBP2,307,054.
The Company acquired the whole issued share capital of Yacht Help Group
(Mallorca) S.L. on 30 April 2007 for a total consideration of GBP400,000,
satisfied by GBP100,000 in cash and GBP300,000 in shares.
The Company acquired the whole issued share capital of Yacht Help Group
Gibraltar Limited on 30 April 2007 for a total cash consideration of GBP100,000.
The Company acquired the whole issued share capital of BA Yachts Assistance S.L.
on 29 May 2007 for a total consideration of GBP418,598, satisfied by GBP251,251
in cash, GBP34,014 deferred consideration in cash and GBP133,333 deferred
consideration in shares.
The Company acquired the whole issued share capital of YCO SAM on 27 May 2008
for a total consideration of GBP12,798,571, satisfied by GBP8,074,162 in cash
and GBP4,724,409 in shares.
The results of the subsidiaries are as follows:
+------------------------------------------------------+-----------+----------+
| | 2008 | 2007 |
+------------------------------------------------------+-----------+----------+
| | GBP | GBP |
+------------------------------------------------------+-----------+----------+
| Yacht Fuel Services Limited | | |
+------------------------------------------------------+-----------+----------+
| Aggregate capital and reserves | 1,137,844 | 884,568 |
+------------------------------------------------------+-----------+----------+
| Profit for the year | 253,276 | 231,795 |
+------------------------------------------------------+-----------+----------+
| Yacht Help Group (Mallorca) S.L. | | |
+------------------------------------------------------+-----------+----------+
| Aggregate capital and reserves | (220,674) | (76,098) |
+------------------------------------------------------+-----------+----------+
| Profit/(loss) for the year | (286,993) | 2,778 |
+------------------------------------------------------+-----------+----------+
| Yacht Help Group Gibraltar Limited | | |
+------------------------------------------------------+-----------+----------+
| Aggregate capital and reserves | 2,202 | 1,979 |
+------------------------------------------------------+-----------+----------+
| Profit/(loss) for the year | 376 | (4,201) |
+------------------------------------------------------+-----------+----------+
| BA Yachts Assistance S.L. | | |
+------------------------------------------------------+-----------+----------+
| Aggregate capital and reserves | 63,330 | 55,867 |
+------------------------------------------------------+-----------+----------+
| Profit for the year | 7,463 | 49,761 |
+------------------------------------------------------+-----------+----------+
| YCO SAM SRL | | |
+------------------------------------------------------+-----------+----------+
| Aggregate capital and reserves | 166,440 | - |
+------------------------------------------------------+-----------+----------+
| Loss for the year | (129,758) | - |
+------------------------------------------------------+-----------+----------+
| YCO SARL | | |
+------------------------------------------------------+-----------+----------+
| Aggregate capital and reserves | 35,797 | - |
+------------------------------------------------------+-----------+----------+
| Loss for the year | (12,813) | - |
+------------------------------------------------------+-----------+----------+
| WBC Maritime Limited | | |
+------------------------------------------------------+-----------+----------+
| Aggregate capital and reserves | 675 | - |
+------------------------------------------------------+-----------+----------+
| Profit for the year | 14,065 | - |
+------------------------------------------------------+-----------+----------+
| YCO Support limited | | |
+------------------------------------------------------+-----------+----------+
| Aggregate capital and reserves | (11,361) | - |
+------------------------------------------------------+-----------+----------+
| Loss for the year | (11,363) | - |
+------------------------------------------------------+-----------+----------+
13.INVENTORIES
+--------------------------------+-----------+-----------+-----------+-----------+
| | Group | Company |
+--------------------------------+-----------------------+-----------------------+
| | 2008 | 2007 | 2008 | 2007 |
+--------------------------------+-----------+-----------+-----------+-----------+
| | GBP | GBP | GBP | GBP |
+--------------------------------+-----------+-----------+-----------+-----------+
| | | | | |
+--------------------------------+-----------+-----------+-----------+-----------+
| Finished goods | 203,960 | 17,942 | - | - |
+--------------------------------+-----------+-----------+-----------+-----------+
| | | | | |
+--------------------------------+-----------+-----------+-----------+-----------+
The directors consider that the carrying amount of inventories is at fair value.
14.TRADE AND OTHER RECEIVABLES
+--------------------------------+-----------+-----------+-----------+-----------+
| | Group | Company |
+--------------------------------+-----------------------+-----------------------+
| | 2008 | 2007 | 2008 | 2007 |
+--------------------------------+-----------+-----------+-----------+-----------+
| | GBP | GBP | GBP | GBP |
+--------------------------------+-----------+-----------+-----------+-----------+
| Current: | | | | |
+--------------------------------+-----------+-----------+-----------+-----------+
| Trade receivables | 3,990,435 | 991,069 | - | - |
+--------------------------------+-----------+-----------+-----------+-----------+
| Other receivables | 581,761 | 55,432 | - | - |
+--------------------------------+-----------+-----------+-----------+-----------+
| Other taxes receivables | 142,508 | 11,411 | 674 | 5,409 |
+--------------------------------+-----------+-----------+-----------+-----------+
| Prepayments | 1,253,453 | 22,951 | 3,667 | 4,468 |
+--------------------------------+-----------+-----------+-----------+-----------+
| Receivables from Group | - | - | 629,271 | 173,061 |
| undertakings | | | | |
+--------------------------------+-----------+-----------+-----------+-----------+
| | | | | |
+--------------------------------+-----------+-----------+-----------+-----------+
| | 5,968,157 | 1,080,863 | 633,612 | 182,938 |
+--------------------------------+-----------+-----------+-----------+-----------+
| | | | | |
+--------------------------------+-----------+-----------+-----------+-----------+
The directors consider that the carrying amount of trade and other receivables
approximates their fair value.
15.CASH AND CASH EQUIVALENTS
+-------------------------------+------------+-----------+-----------+------------+
| | Group | Company |
+-------------------------------+------------------------+------------------------+
| | 2008 | 2007 | 2008 | 2007 |
+-------------------------------+------------+-----------+-----------+------------+
| | GBP | GBP | GBP | GBP |
+-------------------------------+------------+-----------+-----------+------------+
| Bank current account | 815,433 | 821,152 | - | - |
+-------------------------------+------------+-----------+-----------+------------+
| Bank deposit account | 20,000 | 20,000 | - | - |
+-------------------------------+------------+-----------+-----------+------------+
| Cash in hand | 23,850 | 7,974 | - | - |
+-------------------------------+------------+-----------+-----------+------------+
| | | | | |
+-------------------------------+------------+-----------+-----------+------------+
| | 859,283 | 849,126 | - | - |
+-------------------------------+------------+-----------+-----------+------------+
| | | | | |
+-------------------------------+------------+-----------+-----------+------------+
16. TRADE AND OTHER PAYABLES
+-------------------------------+-----------+-----------+-----------+-----------+
| | Group | Company |
+-------------------------------+-----------------------+-----------------------+
| | 2008 | 2007 | 2008 | 2007 |
+-------------------------------+-----------+-----------+-----------+-----------+
| | GBP | GBP | GBP | GBP |
+-------------------------------+-----------+-----------+-----------+-----------+
| Current: | | | | |
+-------------------------------+-----------+-----------+-----------+-----------+
| Trade payables | 5,072,033 | 1,821,000 | 167,290 | 30,168 |
+-------------------------------+-----------+-----------+-----------+-----------+
| Payables to Group | - | - | 1,237,258 | 1,143,526 |
| undertakings | | | | |
+-------------------------------+-----------+-----------+-----------+-----------+
| Social security and other | 278,733 | 71,364 | 22,626 | 536 |
| taxes | | | | |
+-------------------------------+-----------+-----------+-----------+-----------+
| Accruals and deferred income | 2,562,460 | 61,709 | 228,599 | 21,661 |
+-------------------------------+-----------+-----------+-----------+-----------+
| Amounts owed to related | 262,657 | 91,368 | 10,301 | 61,893 |
| parties | | | | |
+-------------------------------+-----------+-----------+-----------+-----------+
| Other payables | 142,237 | 9,306 | - | - |
+-------------------------------+-----------+-----------+-----------+-----------+
| | | | | |
+-------------------------------+-----------+-----------+-----------+-----------+
| | 8,318,120 | 2,054,747 | 1,666,074 | 1,257,784 |
+-------------------------------+-----------+-----------+-----------+-----------+
| | | | | |
+-------------------------------+-----------+-----------+-----------+-----------+
Trade payables and accruals principally comprise amounts outstanding for trade
purchases and ongoing expenses.
The directors consider that the carrying amount of trade and other payables
approximates their fair value.
17. FINANCIAL LIABILITIES - BORROWINGS
Maturity of the borrowings is as follows:
+-------------------------------+-----------+-----------+-----------+-----------+
| | Group | Company |
+-------------------------------+-----------------------+-----------------------+
| | 2008 | 2007 | 2008 | 2007 |
+-------------------------------+-----------+-----------+-----------+-----------+
| | GBP | GBP | GBP | GBP |
+-------------------------------+-----------+-----------+-----------+-----------+
| | | | | |
+-------------------------------+-----------+-----------+-----------+-----------+
| Repayable within one year on | | | | |
| demand | | | | |
+-------------------------------+-----------+-----------+-----------+-----------+
| Bank loans | 1,355 | 51,689 | - | - |
+-------------------------------+-----------+-----------+-----------+-----------+
| Finance leases (see note 18) | 22,417 | 38,523 | 16,667 | - |
+-------------------------------+-----------+-----------+-----------+-----------+
| Bank overdraft | - | 66 | 502,977 | 66 |
+-------------------------------+-----------+-----------+-----------+-----------+
| | | | | |
+-------------------------------+-----------+-----------+-----------+-----------+
| Repayable between one and | | | | |
| five years: | | | | |
+-------------------------------+-----------+-----------+-----------+-----------+
| Finance leases (see note 18) | 41,113 | 9,633 | 31,944 | - |
+-------------------------------+-----------+-----------+-----------+-----------+
| | | | | |
+-------------------------------+-----------+-----------+-----------+-----------+
| | 64,885 | 99,911 | 551,588 | 66 |
+-------------------------------+-----------+-----------+-----------+-----------+
| | | | | |
+-------------------------------+-----------+-----------+-----------+-----------+
Yacht Help Group (Mallorca) S.L drew a bank loan of GBP55,172 (EUR80,000) on 10
March 2005. The loan is for a period of twelve years. The loan is subject to
interest rate of 5.75% per annum on the outstanding loan amount. The outstanding
loan balance was repaid during the year.
During the year, the Group and HSBC Bank Plc ("HSBC") agreed on a secured
overdraft facility of GBP300,000. The facility is due for review in December
2009 and is being charged at an interest rate of 3%. per annum above HSBC's
sterling base rate, as published from time to time. Under the overdraft facility
agreement, the Group has the right to set off the multi currency balances within
the Group.
An unlimited corporate guarantee given by each of the Group companies in favour
of HSBC given on 3 January 2008 to secure the Group's obligations under the loan
facility above.
18. FINANCE LEASES
Group
Minimum lease payments under finance leases fall due as follows:
+------------------------------------------------------------+-----------+----------+
| | 2008 | 2007 |
+------------------------------------------------------------+-----------+----------+
| | GBP | GBP |
+------------------------------------------------------------+-----------+----------+
| | | |
+------------------------------------------------------------+-----------+----------+
| No later than one year | 26,003 | 41,367 |
+------------------------------------------------------------+-----------+----------+
| Later than one year but not more than five | 46,900 | 10,520 |
+------------------------------------------------------------+-----------+----------+
| | | |
+------------------------------------------------------------+-----------+----------+
| | 72,904 | 51,887 |
+------------------------------------------------------------+-----------+----------+
| | | |
+------------------------------------------------------------+-----------+----------+
| Future finance obligations | (8,019) | (3,730) |
+------------------------------------------------------------+-----------+----------+
| | | |
+------------------------------------------------------------+-----------+----------+
| | 64,885 | 48,157 |
+------------------------------------------------------------+-----------+----------+
Yacht Help Group (Mallorca) S.L finance lease is in respect of purchase of motor
vehicles. The finance leases were repaid in full in May 2008. The interest rate
was 8% per annum.
BA Yachts Assistance S.L. finance lease is in respect of a purchase of motor
vehicle. The finance lease is for sixty months from 1 June 2007 to 1 May 2011.
The interest rate is 12% per annum.
YCO Deuxmil PLC finance lease relates to the Microsoft Dynamics CRM project. The
lease is for thirty six months from 11 November 2008 to 10 October 2010. The
interest rate is 6% per annum.
19.CALLED UP SHARE CAPITAL
+----------------------------+-----------+-------------+-----------+-----------+
| Authorised: | | | | |
+----------------------------+-----------+-------------+-----------+-----------+
| Number: | Class: | Nominal | 2008 | 2007 |
+----------------------------+-----------+-------------+-----------+-----------+
| | | value: | GBP | GBP |
+----------------------------+-----------+-------------+-----------+-----------+
| 142,857,143/1,000,000,000 | Ordinary | 0.35p/0.05p | 500,000 | 500,000 |
+----------------------------+-----------+-------------+-----------+-----------+
| | | | | |
+----------------------------+-----------+-------------+-----------+-----------+
| Allotted, called up and | | | | |
| fully paid: | | | | |
+----------------------------+-----------+-------------+-----------+-----------+
| Number: | Class: | Nominal | 2008 | 2007 |
+----------------------------+-----------+-------------+-----------+-----------+
| | | value: | GBP | GBP |
+----------------------------+-----------+-------------+-----------+-----------+
| 48,166,401/150,895,806 | Ordinary | 0.35p/0.05p | 168,584 | 75,448 |
+----------------------------+-----------+-------------+-----------+-----------+
| 1,342 | Deferred | 0.35p | 5 | - |
+----------------------------+-----------+-------------+-----------+-----------+
* The deferred shares in the capital of the Company shall have no rights, powers
or benefits attached to them whatsoever and, without limitation, shall not
confer on the holders of deferred shares any right to vote, to share in a
dividend declared by the Company or to appoint a director, provided that on a
return of capital on a winding-up or otherwise the surplus assets of the Company
remaining after payment of its liabilities shall be applied first in repayment
to the holders of the ordinary shares of the amount paid up on such ordinary
shares together with a premium of GBP10,000 per ordinary share and the balance
of such assets shall be distributed among the holders of the ordinary shares and
the holders of the deferred shares rateably according to the amount paid up on
such shares.
On 1 May 2008, the issued share capital of the Company being 150,895,806
ordinary shares of 0.05p each was consolidated so that every seven shares of
0.05p each held by a shareholder became one ordinary share of 0.35p having all
the rights attaching to the ordinary shares as set out in the articles of
association, save that all residual holdings of less than seven ordinary shares
held by a shareholder have not been consolidated as aforesaid but have been
reclassified as deferred shares of 0.05p each having all the rights attaching to
the deferred shares of 0.05p each as set out in the amended Articles of
Association of the Company.
Also on 1 May 2008, the unissued share capital of the Company being 849,104,194
ordinary shares of 0.05p each was consolidated so that every seven shares of
0.05p each held by a shareholder became one ordinary share of 0.35p having all
the rights attaching to the ordinary shares as set out in the articles of
association, save that all residual holdings of less than seven ordinary shares
held by a shareholder have not been consolidated as aforesaid but have been
reclassified as deferred shares of 0.05p each having all the rights attaching to
the deferred shares of 0.05p each as set out in the amended Articles of
Association of the Company.
On 27 May 2008, the Company made share placement of 16,734,684 ordinary share of
0.35p each at 49p each.
On 27 May 2008, the Company issued 9,641,652 ordinary shares of 0.35p each at
49p, as part of the acquisition of YCO S.A.M.
On 27 October 2008, the Company issued 233,704 ordinary shares of 0.35p each at
34p in lieu of services provided by the employees of the Company's subsidiary as
part of the acquisition of Yacht Help Group (Mallorca) S.L..
20.RESERVES
+--------------------------+-----------+------------+-----------+-------------+-------------+
| | Group | Retained | Share | Other |Translation |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| | earnings | premium | reserves | reserves | Totals |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| | GBP | GBP | GBP | GBP | GBP |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| At 1 January 2007 | 146,157 | 1,072,813 | - | - | 1,218,970 |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| Shares issued in the | - | 975,143 | - | - | 975,143 |
| year | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| Profit for the year | 275,711 | - | - | - | 275,711 |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| Deferred equity to be | - | - | 133,333 | - | 133,333 |
| issued | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| At 31 December 2007 | 421,868 | 2,047,956 | 133,333 | - | 2,603,157 |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| Shares issued in the | - | 12,910,729 | - | - | 12,910,729 |
| year | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| Loss for the year | (684,079) | - | - | - | (684,079) |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| Deferred equity to be | - | - | 61,373 | - | 61,373 |
| issued | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| Translation reserve | - | - | - | 28,329 | 28,329 |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| At 31 December 2008 | (262,211) | 14,958,685 | 194,706 | 28,329 | 14,919,509 |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| Company | Retained | Share | Other |Translation | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| | earnings | premium | reserves | reserves | Totals |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| | GBP | GBP | GBP | GBP | GBP |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| At 1 January 2007 | 6,174 | 1,072,813 | 133,333 | - | 1,212,320 |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| Shares issued in the | - | 975,143 | - | - | 975,143 |
| year | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| Profit for the year | 1,134 | - | - | - | 1,134 |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| At 31 December 2007 | 7,308 | 2,047,956 | 133,333 | - | 2,188,597 |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| Shares issued in the | - | 12,910,729 | - | - | 12,910,729 |
| year | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| Loss for the year | (576,904) | - | - | - | (576,904) |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| Deferred equity to be | - | - | 61,373 | - | 61,373 |
| issued | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| | | | | | |
+--------------------------+-----------+------------+-----------+-------------+-------------+
| At 31 December 2008 | (569,596) | 14,958,685 | 194,706 | - | 14,583,795 |
+--------------------------+-----------+------------+-----------+-------------+-------------+
21.RISK AND SENSITIVITY ANALYSIS
The Group's activities expose it to a variety of financial risks: interest rate
risk, liquidity risk, foreign currency risk, capital risk and credit risk. The
Group's activities also expose it to non-financial risks: market risk. The
Group's overall risk management programme focuses on unpredictability and seeks
to minimise the potential adverse effects on the Group's financial performance.
The Board, on a regular basis, reviews key risks and, where appropriate, actions
are taken to mitigate the key risks identified.
Interest rate and foreign currency risk
The Group does not have formal policies on interest rate risk or foreign
currency risk. However, the Group's exposure in these areas (as at the balance
sheet date) was minimal.
The Group is exposed to foreign currency risk on sales, purchases and borrowings
that are denominated in a currency other than pound sterling (GBP). The Group
maintains a natural hedge that minimises the foreign exchange exposure by
matching foreign currency income with foreign currency costs.
The Group does not consider it necessary to enter into foreign exchange
contracts in managing its foreign exchange risk resulting from cash flows from
transactions denominated in foreign currency, given the nature of the business
for the time being.
The net unhedged financial assets and liabilities of the Group that are
denominated in its functional currency are as follows:
+------------------------+-----------+------------+-----------+-------------+
| Group | Financial Assets | Financial Liabilities |
+------------------------+------------------------+-------------------------+
| | 2008 | 2007 | 2008 | |
| | | | | 2007 |
+------------------------+-----------+------------+-----------+-------------+
| | GBP | GBP | GBP | GBP |
+------------------------+-----------+------------+-----------+-------------+
| | | | | |
+------------------------+-----------+------------+-----------+-------------+
| Euro (EUR) | 1,410,196 | 356,881 | 2,176,017 | 608,600 |
+------------------------+-----------+------------+-----------+-------------+
| United States Dollars | 3,786,605 | 641,396 | 3,668,436 | 1,241,599 |
| (US$) | | | | |
+------------------------+-----------+------------+-----------+-------------+
| | | | | |
+------------------------+-----------+------------+-----------+-------------+
| | 5,196,801 | 998,277 | 5,844,453 | 1,850,199 |
+------------------------+-----------+------------+-----------+-------------+
| | | | | |
+------------------------+-----------+------------+-----------+-------------+
The foreign exchange rates affecting the Group are as follows:
+------------------------+-----------+------------+------------+-------------+
| Group | Income statement | Balance sheet |
+------------------------+------------------------+--------------------------+
| | 2008 | 2007 | 2008 | 2007 |
+------------------------+-----------+------------+------------+-------------+
| | GBP | GBP | GBP | GBP |
+------------------------+-----------+------------+------------+-------------+
| | | | | |
+------------------------+-----------+------------+------------+-------------+
| Euro (EUR) | 0.79 | 0.68 | 0.97 | 0.68 |
+------------------------+-----------+------------+------------+-------------+
| United States Dollars | 0.54 | 0.53 | 0.69 | 0.51 |
| (US$) | | | | |
+------------------------+-----------+------------+------------+-------------+
| | | | | |
+------------------------+-----------+------------+------------+-------------+
Liquidity risk
The Group prepares periodic working capital forecasts for the foreseeable
future, allowing an assessment of the cash requirements of the company, to
manage liquidity risk. The directors have considered the risk posed by liquidity
and are satisfied that there is sufficient growth and equity in the company. The
Group has an overdraft facility with the bank for GBP300,000 and is being
charged at an interest rate of 3% per annum above HSBC's sterling base rate, as
published from time to time. The overdraft facility is due for renewal in
December 2009.
Capital risk
The Group's objectives when managing capital are to safeguard the ability to
continue as a going concern in order to provide returns for shareholders and
benefits to other stakeholders and to maintain an optimal capital structure to
reduce the cost of capital.
Market risk
The market may not grow as rapidly as anticipated. The Group may lose customers
to its competitors. The Group's major competitors may have significantly greater
financial resources than those available to the company. There is no certainty
that the company will be able to achieve its projected levels of sales or
profitability.
Credit risk
The Group's principal financial assets are bank balances and cash, trade and
other receivables. The credit risk on liquid funds is limited because the
counter parties are banks with high credit ratings assigned by international
credit-rating agencies. The Group's credit risk is primarily attributable to its
trade. The amounts presented in the balance sheet are net of allowance for
doubtful receivables. An allowance for impairment is made where there is an
identified loss event which, based on previous experiences, is evidence of a
reduction in the recoverability of the cash flows. The Group has no significant
concentration of credit risk, with exposure spread over a large number of
counter parties and customers.
22.FINANCIAL COMMITMENTS
Operating lease commitments
The Group leases office premises under a non-cancellable operating lease
agreement, which contains various escalation clauses and renewal rights. The
lease expenditure is charged to the income statement during the year as
incurred. At the balance sheet date the Group was committed to payments under
the operating lease agreement as follows:
+-----------------------+-------------+------------+------------+------------+
| | Land & | Land & | Others | Others |
| | buildings | buildings | | |
+-----------------------+-------------+------------+------------+------------+
| | 2008 | 2007 | 2008 | 2007 |
+-----------------------+-------------+------------+------------+------------+
| | GBP | GBP | GBP | GBP |
+-----------------------+-------------+------------+------------+------------+
| | | | | |
+-----------------------+-------------+------------+------------+------------+
| Less than one year | 514,727 | 51,727 | 169,234 | - |
+-----------------------+-------------+------------+------------+------------+
| Between one and five | 1,857,004 | 5,260 | 141,704 | - |
| years | | | | |
+-----------------------+-------------+------------+------------+------------+
| More than five years | 66,750 | - | - | - |
+-----------------------+-------------+------------+------------+------------+
| | | | | |
+-----------------------+-------------+------------+------------+------------+
| | 2,438,481 | 56,987 | 310,938 | - |
+-----------------------+-------------+------------+------------+------------+
| | | | | |
+-----------------------+-------------+------------+------------+------------+
Capital commitments
At the year end the Group had a capital commitment of GBP90,000 (2007 - GBPnil)
for new software.
23.RELATED PARTY TRANSACTIONS
The Company repaid loan advances by L J Milton and N Miller, who are directors
of the Company.
+------------------------------------------------+------------+------------+
| | 2008 | 2007 |
+------------------------------------------------+------------+------------+
| | GBP | GBP |
+------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------+------------+------------+
| L J Milton | (24,292) | (167,206) |
+------------------------------------------------+------------+------------+
| N Miller | 6,714 | (130,462) |
+------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------+------------+------------+
During the year, the Company paid legal fees of GBP143,886 (2007 - GBP9,500) to
Beachcroft LLP, in which P Jay, is a Partner of the firm. This year's legal fee
of GBP141,246 was in respect of the acquisition of YCO S.A.M.
Neil Miller was paid GBP18,000 (2007 - GBPnil) for rental of office premises.
All the above transactions with related parties were conducted at arms length.
The following amounts were owed to related parties:
+------------------------------------------------+------------+------------+
| | 2008 | 2007 |
+------------------------------------------------+------------+------------+
| | GBP | GBP |
+------------------------------------------------+------------+------------+
| B Alonso | - | 63,489 |
+------------------------------------------------+------------+------------+
| L J Milton | - | 24,292 |
+------------------------------------------------+------------+------------+
| N Miller | 10,301 | 3,587 |
+------------------------------------------------+------------+------------+
| G Wright * | 86,304 | - |
+------------------------------------------------+------------+------------+
| C Birkett * | 77,350 | - |
+------------------------------------------------+------------+------------+
| J Clarke * | 88,702 | - |
+------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------+------------+------------+
* The balance at the year end is in respect of the loan advanced prior to the
acquisition of YCO S.A.M. The loan has no fixed repayment period and is interest
free. J Clarke is a director in YCO S.A.M
During the year, the Group repaid B Alonso, a director of BA Yachts S.L,
GBP34,014 and GBP29,475 in respect of deferred consideration on the acquisition
of BA Yachts S.L., and for an advance respectively. At the year end, the Group
did not have any amounts owing to B Alonso (2007 - GBP63,489).
During the year, the Company received management fees from Yacht Fuel Services
Limited, YCO Yacht Limited (formerly WBC Maritime Limited) and YCO S.A.M. It
also (advanced) or received loan from fellow subsidiaries. The details are as
follows:
+----------------------------------------+----------------+---------------+
| | 2008 | 2007 |
+----------------------------------------+----------------+---------------+
| | GBP | GBP |
+----------------------------------------+----------------+---------------+
| Yacht Fuel Services Limited - | 190,000 | 202,000 |
| management fee | | |
+----------------------------------------+----------------+---------------+
| Yacht Fuel Services Limited | 310,842 | 297,023 |
+----------------------------------------+----------------+---------------+
| Yacht Help Group (Mallorca) S.L. | (252,958) | (158,061) |
+----------------------------------------+----------------+---------------+
| Yacht Help Group Gibraltar Limited. | (28,000) | (15,000) |
+----------------------------------------+----------------+---------------+
| BA Yachts Assistance S.L. | - | 36,844 |
+----------------------------------------+----------------+---------------+
| YCO Yacht limited (formerly WBC | 65,000 | - |
| Maritime Limited) - management Fee | | |
+----------------------------------------+----------------+---------------+
| YCO S.A.M. - management Fee | 420,000 | - |
+----------------------------------------+----------------+---------------+
| | | |
+----------------------------------------+----------------+---------------+
| | | |
+----------------------------------------+----------------+---------------+
At 31 December 2008, the following amounts were due from or (owed to) subsidiary
companies:
+----------------------------------------+----------------+---------------+
| | 2008 | 2007 |
+----------------------------------------+----------------+---------------+
| | GBP | GBP |
+----------------------------------------+----------------+---------------+
| Yacht Fuel Services Limited | (1,227,523) | (1,106,682) |
+----------------------------------------+----------------+---------------+
| Yacht Help Group (Mallorca) S.L. | 411,019 | 158,061 |
+----------------------------------------+----------------+---------------+
| Yacht Help Group Gibraltar Limited | 43,000 | 15,000 |
+----------------------------------------+----------------+---------------+
| BA Yachts Assistance S.L. | (9,735) | (36,844) |
+----------------------------------------+----------------+---------------+
| YCO S.A.M. | 110,252 | - |
+----------------------------------------+----------------+---------------+
| YCO Yacht Limited (formerly WBC | 65,000 | - |
| Maritime Limited) | | |
+----------------------------------------+----------------+---------------+
| | | |
+----------------------------------------+----------------+---------------+
24.SHARE-BASED PAYMENTS
There is no charge for share-based payments as the fair values at the date of
grant were below the exercise prices:
The details of the share options and warrants are as follows:
+------------------------------+------------+------------+------------+------------+
| | 2008 | 2007 |
+------------------------------+-------------------------+-------------------------+
| | Number | Weighted | Number | Weighted |
+------------------------------+------------+------------+------------+------------+
| | of share | average | of share | average |
| | options | | options | |
+------------------------------+------------+------------+------------+------------+
| | | exercise | | exercise |
+------------------------------+------------+------------+------------+------------+
| | | Price | | Price |
+------------------------------+------------+------------+------------+------------+
| | | GBP | | GBP |
+------------------------------+------------+------------+------------+------------+
| Outstanding at the beginning | | | | |
+------------------------------+------------+------------+------------+------------+
| of the year | 4,333,333 | 0.05 | 4,333,333 | 0.05 |
+------------------------------+------------+------------+------------+------------+
| | | | | |
+------------------------------+------------+------------+------------+------------+
| At the beginning of the year | | | | |
| after | | | | |
+------------------------------+------------+------------+------------+------------+
| consolidation of shares | | | | |
+------------------------------+------------+------------+------------+------------+
| (0.05p to 0.35p per share) | 619,048 | 0.35 | | - |
+------------------------------+------------+------------+------------+------------+
| Granted on 2 May 2008 | 1,536,605 | 0.49 | | - |
+------------------------------+------------+------------+------------+------------+
| Granted on 2 May 2008 | 239,664 | 0.49 | - | - |
+------------------------------+------------+------------+------------+------------+
| Granted on 2 May 2008 | 239,664 | 0.735 | | |
+------------------------------+------------+------------+------------+------------+
| Forfeited | (142,857) | (0.35) | - | - |
+------------------------------+------------+------------+------------+------------+
| | | | | |
+------------------------------+------------+------------+------------+------------+
| Balance carried forward | 2,492,124 | 0.487 | 4,333,333 | 0.05 |
+------------------------------+------------+------------+------------+------------+
| | | | | |
+------------------------------+------------+------------+------------+------------+
| | | | | |
+------------------------------+------------+------------+------------+------------+
| | | | | |
+------------------------------+------------+------------+------------+------------+
| | 2008 | 2007 |
+------------------------------+-------------------------+-------------------------+
| | Number | Weighted | Number | Weighted |
+------------------------------+------------+------------+------------+------------+
| | of | average | of | average |
| | warrants | | warrants | |
+------------------------------+------------+------------+------------+------------+
| | | exercise | | exercise |
+------------------------------+------------+------------+------------+------------+
| | | Price | | Price |
+------------------------------+------------+------------+------------+------------+
| | | GBP | | GBP |
+------------------------------+------------+------------+------------+------------+
| Outstanding at the beginning | | | | |
+------------------------------+------------+------------+------------+------------+
| of the year | - | - | - | - |
+------------------------------+------------+------------+------------+------------+
| Granted on 2 May 2008 | 239,664 | 0.49 | - | - |
+------------------------------+------------+------------+------------+------------+
| Granted on 2 May 2008 | 239,664 | 0.735 | | |
+------------------------------+------------+------------+------------+------------+
| Exercised | - | - | - | - |
+------------------------------+------------+------------+------------+------------+
| | | | | |
+------------------------------+------------+------------+------------+------------+
| Balance carried forward | 479,328 | 0.613 | - | |
+------------------------------+------------+------------+------------+------------+
| | | | | |
+------------------------------+------------+------------+------------+------------+
The fair values of the options granted have been calculated using Black-Scholes
model assuming the inputs shown below:
+-----------------------------------+--------------+-----------------+
| Grant Date | May-08 | Sep-06 |
+-----------------------------------+--------------+-----------------+
| Share price at grant date | 38p | 10p |
+-----------------------------------+--------------+-----------------+
| Exercise price | 49p/73.5p | 5p |
+-----------------------------------+--------------+-----------------+
| Option life in years | 5 years | 5 years |
+-----------------------------------+--------------+-----------------+
| Risk free rate | 5% | 5% |
+-----------------------------------+--------------+-----------------+
| Expected volatility | 10% | 10% |
+-----------------------------------+--------------+-----------------+
| Expected dividend yield | 0% | 0% |
+-----------------------------------+--------------+-----------------+
| Fair value of option | 0p | 0p |
+-----------------------------------+--------------+-----------------+
25.CONTINGENT LIABILITIES AND GUARANTEES
The Group has no contingent liabilities in respect of legal claims arising from
the ordinary course of business and it is not anticipated that any material
liabilities will arise from the contingent liabilities other than those provided
for.
A debenture in favour of HSBC Bank Plc was created on 11 January 2008 and
registered on 18 January 2008 to secure the Group's obligations under the
overdraft facility. The debenture is a fixed and floating charge over the
Group's undertaking and all of its property and assets present and future
including its goodwill, book debts, uncalled capital, buildings, fixtures and
fixed plant and machinery.
An unlimited corporate guarantee given by each of the Group companies in favour
of HSBC was given on 3 January 2008 to secure the Group's obligations under the
overdraft facility referred above.
On 9 January 2008, the Company provided a guarantee in favour of Banco Deposit
Account Credito Balear, Spain for Euro 22,000.
At the year end, YCO limited had GBP356,604 overdrawn amount in clients'
accounts. In the event that the yacht owners do not pay the overdrawn amount in
the clients' accounts, the Group would be liable for the balance to the bank.
26.POST BALANCE SHEET EVENTS
On 2 March 2009, the Group received approval from HSBC Bank Plc for the increase
in the overdraft facility by GBP200,000 to GBP500,000. The GBP200,000 increase
is temporary which expiries in July 2009. The interest rate for the additional
GBP200,000 facility is base rate plus 5%.
27.ULTIMATE CONTROLLING PARTY
The Company is quoted on the Alternative Investment Market of the London Stock
Exchange. At the date of the annual report, in the Directors opinion there is no
one controlling party. In total the directors owned 28% of the share capital of
the Company as at 31 December 2008.
As at 29 May 2009, there is no one controlling party.
28.AVAILABILITY OF REPORT
The Annual Report will be dispatched to shareholders around 22 June 2009. Copies
will be available from the Company's website, www.ycodeuxmil.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GUUGGQUPBGAB
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