TIDMIDG
RNS Number : 2087G
i-design Group Plc
27 June 2012
IDG
I-DESIGN GROUP PLC
("i-design" or "the Group" or "the Company")
Unaudited Interim Results
for the six months ended 31 March 2012
i-design is the leading developer and supplier of ATM and
self-service marketing solutions for the banking industry (enabling
banks and ATM owners to run both their own targeted marketing
campaigns and third party advertising).
Key Points
-- Results show continuing progress
-- Revenue increased by 13% to GBP1,606,000 (2011: GBP1,427,000)
-- Operating profit of GBP44,000 (2011: loss of GBP106,000)
-- Profit before tax of GBP45,000 (2011: loss before tax of GBP105,000)
-- Profit per share (basic and diluted) of 0.5p (2011: loss per share of 0.4p)
-- Net cash of GBP0.81m and no bank debt at 31 March 2012 (2011: GBP0.70m and no bank debt)
-- Major new contract for joono signed with leading Canadian bank in November 2011:
- via channel partner IBM
- first contract win in Canada
- joono implemented across the bank's entire ATM estate in Canada
-- Post-period end significant developments:
- major contract signed with First Data for supply of joono
- additional 3,000 software licenses purchased by Barclays Bank and Cardtronics, Inc
-- Total licensed ATM and self-service estate now circa 28,000
devices up from 21,500 devices at 30 September 2011
-- Growth opportunities remain encouraging
James Faulds, Chairman, commented,
"I am pleased to report that i-design's performance in the first
half of the financial year has been encouraging, with revenues 13%
ahead at GBP1.6m, generating a pre-tax profit of GBP45,000 compared
to a loss of GBP105,000 in the same period last year. Results
include the benefit of our contract win with a leading Canadian
bank, which has deployed our marketing software solution, joono,
across its entire estate.
The second half of the year has started well. We signed a
significant agreement with FDR Limited, part of First Data
Corporation, marking the third sale of joono to a major ATM
operator. Two of our existing customers, Barclays and Cardtronics,
also purchased 3,000 additional software licences between them.
With GBP0.81m net cash and no bank debt, i-design's financial
position remains robust. This, together with the significant growth
opportunities available to the Group, means that we view the future
positively."
Enquiries:
i-design group plc Ana Stewart, Chief T: 020 3178 6378
Executive (today)
Ian Sunter, Finance T: 01382 323 000
Director
Biddicks Katie Tzouliadis T: 020 3178 6378
Sophie McNulty
Westhouse Securities Tom Griffiths T: 020 7601 6100
CHAIRMAN'S STATEMENT
Introduction
I am very pleased to report our results for the six months ended
31 March 2012. They show revenue up by 13% to GBP1.6m and a profit
before tax of GBP45,000 against a loss for the same period last
year of GBP105,000. These encouraging figures include the benefit
of the major contract we secured in November 2011, when we signed
terms with a leading Canadian bank for the deployment of our
marketing software solution, joono. The contract covers the bank's
entire ATM estate in Canada and establishes us with a presence in
this region for the first time. The Canadian contract is our fourth
with a major overseas ATM network owner, alongside Cardtronics in
the US and major banks in Ecuador and Europe.
As we previously reported, the launch of joono, the next
generation of our marketing solution, which took place last summer,
will help us to remain at the forefront of our market. We remain
engaged in conversations with prospective new customers for our
joono solution and after the period end, earlier this month, we
were delighted to report that we had concluded a major contract to
provide joono to FDR Limited, a branch of First Data Corporation, a
global leader in electronic commerce and payment processing. At the
beginning of this month, we also announced that two of our existing
customers, Barclays and Cardtronics, had each bought a significant
number of additional licences for our software.
In total, our marketing software solution is now used by ten
major ATM network owners in the UK and overseas and it remains
unrivalled. We continue to view growth prospects positively.
Results
Revenue for the six months to 31 March 2012 increased by 13% to
GBP1,606,000 from GBP1,427,000 in the same period last year and, as
a result, gross profit rose by 39% to GBP667,000 from GBP481,000 in
2011.
Administrative expenses rose slightly, by 6%, to GBP648,000
(2011: GBP610,000). The main increase related to travel costs. The
Group delivered an operating profit of GBP44,000 compared with an
operating loss of GBP106,000 in 2011 and a profit before tax of
GBP45,000 compared with a loss before tax of GBP105,000 for the
same period last year. After a tax credit of GBP23,000 (2011: tax
credit of GBP43,000) relating to R&D, the profit after tax was
GBP68,000 (2011: loss after tax of GBP62,000). Profit per share was
0.5p against a loss per share of 0.4p in the first six months of
2011.
The net cash outflow from operating activities in the period was
GBP167,000 (2011: outflow of GBP164,000). Taxation inflows were
GBP45,000 (2011: GBP86,000) and other investing and financing
outflows were GBP6,000 (2011: inflow of GBP31,000), resulting in a
net decrease in cash and cash equivalents of GBP128,000 (2011:
decrease of GBP47,000). The fall in taxation inflows this year is a
function of a restricted R&D tax claim as a result of the
improved 2011 trading position. In addition, the 2011 investing and
financing comparison included an inflow from the disposal of a
property of GBP70,000.
There was no bank debt at 31 March 2012 (2011: GBPnil) and
finance leases amounted to GBP11,000 (2011: GBPnil). The Group's
net cash and cash equivalents at the period end stood at GBP813,000
showing a 16% improvement (2011: GBP700,000).
Business Model
i-design has developed an ATM advertising solution which enables
retail banks to benefit from both their own one-to-one marketing on
self-service device screens and receipts, and from third party
advertisers using self-service devices to reach their audiences.
joono is the next generation version of our software solution,
replacing atmAd, the Company's earlier solution. The new version of
our software offers additional functionality, broader capability
and greater customer engagement, encompassing multiple channels,
including mobile phones and plasma screens.
joono provides a comprehensive solution, handling all aspects of
campaign management from booking, scheduling, distribution,
playback and reporting. Importantly, any advertising is displayed
during the 'dead space' in a transaction, when customers are
waiting for their cash, card or receipt and it therefore does not
extend customers' time at the cash machine. joono is also unique in
being platform independent, running on any type of Windows-based
ATM environment.
In selling joono or atmAd, we are able to generate three main
sources of revenue, of which software sales and advertising
services represent our key revenue generators, as set out
below:-
-- Software sales and consultancy
These are generated through the sale of software licences to ATM
network owners for the use of joono or atmAd. There are also
associated maintenance fees and consultancy services such as
implementation.
-- Advertising and operations services
Advertising revenue is generated from the Company, acting as
principal, selling advertising space on ATMs and generating
additional creative and campaign operations sales to advertisers.
The Company is responsible for all aspects of the transaction with
an advertiser including quotes, pricing, receiving and processing
orders, delivery, invoicing and cash receipts.
-- Creative sales
In addition to the creative element of advertising sales, these
derive from fees generated from ATM screen design services to
banks.
Currently, i-design's offering is unrivalled in being the only
dedicated ATM advertising solution globally which combines the
software and advertising services capability necessary to enable
network owners to enhance their communication with customers and
generate revenue from third party advertising.
Business Development
A major highlight in the first half was the signing of a leading
Canadian bank as a new customer. The contract, which we secured in
November 2011, represented our first win in Canada. It was also
significant because it was secured through IBM Canada Limited, our
channel partner in the region, and was therefore our first win via
IBM as well as being our first win in this major new territory. The
multi-year agreement covers the deployment of i-design's next
generation marketing software, joono, across the Bank's entire ATM
estate.
The adoption of joono by the Bank is further encouraging
confirmation of the appeal of joono's enhanced range and
functionality. Replacing our original ATM marketing software, joono
enables ATM network owners to deliver interactive, personalised
communications with customers. At the same time, it preserves the
unique features of its predecessor, enabling all digital marketing
communications to be managed centrally and compatible with any type
of ATM.
We remain focused on building our customer base of banks and ATM
owners both in the UK and overseas and are encouraged by the
dialogues in progress with existing and potential customers. After
the period end, in June 2012, we announced two major new
developments. Firstly, that Barclays and Cardtronics had both
bought significant numbers of additional software licences from us.
Barclays added a further 1,500 licences to cover the roll-out of
our marketing software onto new branch and retail-based ATMs in the
UK. Cardtronics, the world's largest non-bank ATM owner, acquired
an additional 1,500 licences, for further ATMs in the US but also
for a chain of ATMs Cardtronics is managing in Canada. The second
major development after the period end was the signing of FDR
Limited, a branch of First Data Corporation ("First Data"), a
global leader in electronic commerce and payment processing. The
contract to supply First Data with joono was negotiated after a
competitive tender process and the company is our tenth major ATM
owner client.
The total number of ATMs licensed to use i-design's software now
stands at approximately 28,000 (compared with 21,500 at 30
September 2011), with the majority, approximately 19,000, located
in the UK and the remainder mainly in North America.
Sales from third party advertising in the first six months were
at a similar level to the same period last year in trading
conditions which remained tough and are not expected to improve in
the second half. We continue to work at deepening relationships
both with advertisers and with advertising agencies. Some of the
more high profile ATM-based campaigns that we ran in the first half
included the 'Do Your Country Proud' campaign from Wrigleys which
encouraged the British public to keep Britain's streets litter
free, and Arla's "Cravendale; The Muppets" campaign, which
incorporated an interactive question at the ATM into the
advertising campaign. In March 2012, the Payments Council reported
that ATM usage in the UK reached an all-time high in 2011 with 2.87
billion withdrawals and GBP191 billion of cash withdrawn in 2011.
This data once again highlights the unique advertising medium that
ATMs represent for advertisers, with consumers interacting with
ATMs in a highly engaged, focused way. Coupon redemptions also
illustrate the effectiveness of the medium which remains the only
outdoor advertising channel to offer a high degree of
accountability. Additionally, data obtained from point of sale
systems demonstrate in-store sales increases where advertising is
running compared to sites where advertising is not running.
Outlook
Growth prospects for the Group remain encouraging. The scope to
increase i-design's base of ATM customers is significant and while
the sale process can be lengthy, our proposition - which provides
ATM network owners with the ability both to communicate their own
marketing messages far more effectively and to generate revenues
from their ATM estates - remains compelling. This is borne out by
our recent agreements in Canada and with First Data and by the
increased use of our software by both Barclays and Cardtronics. We
believe that the highly accountable, focused nature of ATM
advertising represents an attractive option for advertisers.
With GBP0.81m net cash and no bank debt, i-design's financial
position remains robust. This, together with the significant growth
opportunities available to the Group, means that we view the future
positively.
James Faulds
Chairman
I-DESIGN GROUP PLC
Interim statement of comprehensive income for the six months
ended 31 March 2012
Unaudited Unaudited Audited
6 months 6 months Year to
to to
31 Mar 31 Mar 30 Sept
2012 2011 2011
Note GBP000 GBP000 GBP000
Revenue 1,606 1,427 3,518
Cost of sales (939) (946) (2,141)
---------- ---------- ---------
Gross profit 667 481 1,377
---------- ---------- ---------
Other income 25 23 23
Administrative expenses (648) (610) (1,299)
---------- ---------- ---------
Operating profit/(loss) before
interest and tax 44 (106) 101
Finance income 1 1 5
Finance costs - - (1)
---------- ---------- ---------
Profit/(loss) before taxation 45 (105) 105
Taxation 5 23 43 46
---------- ---------- ---------
Profit/(loss) and total comprehensive
profit/(loss) for the financial
period 68 (62) 151
========== ========== =========
Profit/(loss) per share
Basic and diluted 4 0.5p (0.4)p 1.1p
========== ========== =========
I-DESIGN GROUP PLC
Interim statement of financial position at 31 March 2012
Unaudited Unaudited Audited
31 Mar 31 Mar 30 Sept
2012 2011 2011
Note GBP000 GBP000 GBP000
Assets
Non-current assets
Property, plant and equipment 53 47 61
Intangible asset 62 - 74
115 47 135
---------- ---------- ---------
Current assets
Trade and other receivables 1,138 816 1,075
Cash and cash equivalents 813 700 941
Total current assets 1,951 1,516 2,016
---------- ---------- ---------
Total assets 2,066 1,563 2,151
========== ========== =========
Liabilities
Current liabilities
Trade and other payables 1,512 1,305 1,665
Current borrowings 5 - 5
Total current liabilities 1,517 1,305 1,670
---------- ---------- ---------
Non-current liabilities
Non-current borrowings 6 - 9
Total liabilities 1,523 1,305 1,679
---------- ---------- ---------
Net assets 543 258 472
========== ========== =========
Equity
Share capital 6 1,410 1,410 1,410
Share premium account 2,232 2,232 2,232
Reverse acquisition account 324 324 324
Retained earnings (3,423) (3,708) (3,494)
---------- ---------- ---------
Total equity attributable
to the owners of the parent 543 258 472
========== ========== =========
I-DESIGN GROUP PLC
Interim statement of changes in equity for the six months ended
31 March 2012
Share Share Reverse Retained Total
capital premium acquisition earnings
reserve
GBP000 GBP000 GBP000 GBP000
Balance at 30 September 2010
as previously stated 533 3,433 - (3,648) 318
Adjustment per IFRS3 (retrospective
restatement) 877 (1,201) 324 - -
Restated balance at 30 September
2010 1,410 2,232 324 (3,648) 318
Share based payments - - - 2 2
Transactions with owners - - - 2 2
Loss and total comprehensive
loss for the period - - - (62) (62)
--------- --------- ------------- ---------- -------
Balance at 31 March 2011
(unaudited) 1,410 2,232 324 (3,708) 258
========= ========= ============= ========== =======
Balance at 30 September 2010 1,410 2,232 324 (3,648) 318
Share based payments - - - 3 3
Transaction with owners - - - 3 3
Profit and total comprehensive
profit for the period - - - 151 151
--------- --------- ------------- ---------- -------
Balance at 30 September 2011
(audited) 1,410 2,232 324 (3,494) 472
========= ========= ============= ========== =======
Balance at 30 September 2011 1,410 2,232 324 (3,494) 472
Share based payments - - - 3 3
Transactions with owners - - - 3 3
Profit and total comprehensive
profit for the period - - - 68 68
--------- --------- ------------- ---------- -------
Balance at 31 March 2012
(unaudited) 1,410 2,232 324 (3,423) 543
========= ========= ============= ========== =======
The adjustment to the September 2010 values is detailed in note
6.
I-DESIGN GROUP PLC
Interim statement of cash flows for the six months ended 31
March 2012
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 Mar 31 Mar 30 Sept
2012 2011 2011
GBP000 GBP000 GBP000
Cash flows from operating activities
Operating profit/(loss) before interest and tax 44 (106) 101
Depreciation 12 10 22
Amortisation 12 - -
Gain on sale of property, plant and equipment - (18) (18)
Increase in trade and other receivables (85) (217) (472)
(Decrease)/increase in trade and other payables (153) 165 525
Share based payment expense 3 2 3
Net cash (outflow)/inflow from operating activities (167) (164) 161
Taxation
Cash flows from investing activities 45 86 85
Purchases of property, plant and equipment (4) (27) (38)
Purchase of intangible assets - - (74)
Disposals of property, plant and equipment - 70 70
Interest received 1 1 5
------------- ------------- ---------
Net cash (used in)/received from investing activities (3) 44 (37)
Cash flows from financing activities
Repayment of borrowings - (13) (13)
Capital element of finance leases repaid (3) - (1)
Interest paid - - (1)
------------- ------------- ---------
Net cash outflow from financing activities (3) (13) (15)
------------- ------------- ---------
Net (decrease)/increase in cash and
cash equivalents (128) (47) 194
Cash and cash equivalents at beginning
of period 941 747 747
------------- ------------- ---------
Cash and cash equivalents at end of the period 813 700 941
============= ============= =========
I-DESIGN GROUP PLC
Notes to the interim financial statements
1 This statement for the six months ended 31 March 2012 is
unaudited and was approved by the Directors on 26 June 2012. The
information set out in this announcement does not constitute
statutory accounts within the meaning of Section 434 of the
Companies Act 2006.
2 Report and financial statements
The statutory accounts for the financial year ended 30 September
2011 which were prepared in accordance with International Financial
Reporting Standards as adopted by the EU (IFRSs) and with those
parts of the Companies Act 2006 applicable to companies reporting
under IFRS have been delivered to the Registrar of Companies. The
report of the auditors was unqualified and did not contain a
statement under section 498 (2) or (3) of the Companies Act 2006.
Copies of the financial statements for 2011 are available to the
public free of charge from the Company's registered office at 30
City Quay, Camperdown Street, Dundee DD1 3JA and from the Company's
website at www.i-designplc.com.
3 Accounting policies
Basis of preparation
The interim financial information has been prepared in
accordance with the Group's principal accounting policies and
estimation techniques as applied in the Group financial statements
for the year ended 30 September 2011 and as will be adopted in the
Group financial statements for the year ending 30 September 2012.
The Group financial statements for the year ended 30 September 2011
were prepared under International Financial Reporting Standards.
These financial statements have been prepared on a consistent basis
and format; however IAS 34 'Interim Financial Reporting' has not
been applied in full, since as an AIM quoted company we are not
required to do so.
The preparation of financial statements in conformity with
Adopted IFRSs requires the directors to make judgements, estimates
and assumptions that affect the application of policies and
reported amounts of assets and liabilities, income and expense. The
estimates and judgements are based on historical experience and
various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making
judgements about carrying amounts of assets and liabilities that
are not readily apparent from other sources. Actual results may
differ from these estimates.
New standards, interpretations and amendments effective from 1
October 2011
The International Accounting Standards Board and the
International Financial Reporting Interpretations Committee have
issued a number of standards and interpretations with an effective
date after the date of the 30 September 2011 financial
statements.
The Directors do not anticipate that the adoption of the
remaining standards and interpretations will have a material impact
on the Group's financial statements in the period of initial
application.
4 Earnings per share and dividends
No dividends have been paid during the period ended 31 March
2012.
The earnings per share have been calculated on a weighted
average basis.
Unaudited Unaudited Audited
6 months 6 months Year to
to to
31 Mar 31 Mar 30 Sept
2012 2011 2011
GBP000 GBP000 GBP000
Profit/(loss) attributable
to equity holders of the Group 68 (62) 151
No. No. No.
Weighted average number of
shares in issue for the purposes
of basic EPS 14,105,437 14,105,437 14,105,437
Effect of dilutive potential
ordinary shares
Options 53,215 - 35,315
14,158,652 14,105,437 14,140,752
============ ============ ============
Number of shares - diluted
earnings per share
Profit/(loss) per share - 0.5p (0.4)p 1.1p
basic 0.5p (0.4)p 1.1p
Profit/(loss) per share -
diluted
In the previous period the Directors considered the ordinary
shares relating to share options to be anti-dilutive as their
conversion to ordinary shares would decrease the loss per share
from continuing operations.
5 Taxation
The Company has recognised a taxation credit of GBP23,000 (2011:
GBP43,000) in relation to R&D taxation credits. The record of
successful R&D claims continued with an accepted claim relating
to the year ended 30 September 2011. The reduced value of the 2012
claim reflects the estimated restricted tax claim as a result of
the Company's improved trading position.
6 Share capital
31 March 2012 31 March 2011 30 September
2011
No. GBP000 No. GBP000 No. GBP000
000 000 000
Allotted, called up and
fully
paid
Ordinary shares of
10p each as previously
reported 14,105 1,410 14,105 533 14,105 533
Prior year adjustment - - - 877 - 877
14,105 1,410 14,105 1,410 14,105 1,410
======== ======= ======== ======= ======== =======
The share capital of i-design group plc consists of ordinary
shares with a par value of 10p. All shares are equally eligible to
receive dividends and represent one vote at the shareholders'
meetings of i-design group plc. All shares issued at 31 March 2012
are fully paid.
The Company has reclassified amounts in these financial
statements between share capital, share premium and reverse
acquisition reserve. The adjustment of GBP877,000 has been
determined using the exchange ratio in IFRS 3(2008).B22(d), in
order that the share capital reflects the 14,105,437 issued shares
at a value of 10p each. The share premium account has also been
adjusted to reflect the share premium that arose on issue in July
2007 less the costs of the issue, ignoring the share premium that
existed pre-incorporation of i-design group plc. The adjustment to
share premium of GBP1,201,000 less the adjustment to share capital
of GBP877,000 has resulted in the creation of a reverse acquisition
reserve of GBP324,000. These adjustments do not alter the amount of
total equity attributable to the owners of the parent.
7 Availability of interim statement
Copies of this interim statement are available from the
Company's registered office at 30 City Quay, Camperdown Street,
Dundee DD1 3JA and from its website at www.i-designplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QQLFLLQFEBBK
I-Design (LSE:IDG)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
I-Design (LSE:IDG)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024
