TIDMIHUK
Press Release
1 July 2016
Impact Holdings (UK) plc
("Impact" or "The Group")
Preliminary results for the year ended 31st March 2016
Impact Holdings (UK) plc (AIM: IHUK), the specialist lender, announces its
preliminary results for the year ended 31st March 2016.
Financial Highlights
* Group's pre-tax loss of GBP227,823 (2015: profit GBP252,669)
* Loss per share 8.6p (2015: profit 10.0p)
* Further reduced exposure to external debt
providers
* Cash and cash equivalents of GBP0.3 million (2015: GBP1.6 million)
* Net assets of GBP5.6 million (2015: GBP5.8 million)
Commenting on the results Roger Barlow, non-executive Chairman said "These
results reflect the ongoing complex and long running litigation we are engaged
in. We continue to de-risk the business and reduce our exposure to external
debt providers."
For further information:
Impact Holdings (UK) plc.
Paul Davies Chief Executive Officer Tel: +44 (0)1928 793
550
www.impactholdings.net
Zeus Capital
Nick Cowles/Andrew Jones Tel +44 (0)161 831
1512
Notes to the Editor:
Impact Holdings (UK) plc through its individual subsidiaries provides financial
outsourcing and ancillary services to the legal profession.
In addition Impact will fund other opportunities where debt instruments or
debentures provide the primary security and there are opportunities for short
term bespoke funding where serviceability precludes larger lenders from
entering this area.
Impact is regulated by the Office of Fair Trading through which it is licensed
to lend under the Consumer Credit Act 1974.
The financial information detailed below has been extracted from the Annual
Report and Accounts for the year ended 31st March 2016, which are available
from Zeus Capital, 82 King Street, Manchester, M2 4WQ and on the Company's
website (www.impactholdings.net).
CHAIRMAN'S STATEMENT
INTRODUCTION
The recognition of revenue, normally generated from loans to clients of
solicitor firms, has (as previously announced) been suspended pending the
outcome of a hearing in the Supreme Court that was heard on 30 June 2016. The
Directors and their legal team remain confident that the Appeal Court decision
handed down in February 2015 will be upheld by the Supreme Court which would
result in further recoveries thereafter from a number of professional indemnity
insurers of those solicitor firms who have defaulted on the loans advanced.
THE BOARD
The Board remains committed to adhering to strong Corporate Governance and
operating within a framework of prudent controls which ensures the future risks
of the business are controlled and managed.
STRATEGY
The development of the strategic direction of the business has continued in
this financial year with a further reduction in our exposure to third party
funders. This peaked at GBP10.0m in March 2010 and now stands at GBP1.0m as at 31
March 2016.
OUTLOOK
The group remains focused on recovering monies owed to it by third parties. The
Board of Directors is committed to the opportunities identified and continues
to develop this strategy which is expected to provide, over time, enhanced
shareholder value.
The dedication and commitment of all staff to re-align the business is a credit
as they have collectively worked with commitment and resilience to deliver this
performance.
I would like to place on record my appreciation for the efforts of the
executive, management and staff during the year. I also appreciate the
enthusiasm and support of my fellow directors and thank them for their
continued encouragement and counsel.
Roger Barlow
Non-executive Chairman
CONSOLIDATED INCOME STATEMENT FOR THE YEARED 31 MARCH 2016
Year Year
ended Ended
31/03/2016 31/03/2015
GBP GBP
Revenue 406,547 1,988,087
Cost of sales (30,818) (467,606)
Gross profit 375,729 1,520,481
Operating expenses (603,552) (1,267,812)
(Loss)/profit for the year from operations (227,823) 252,669
before tax
Tax 22,678 (10,904)
(Loss)/profit for the year (250,501) 263,573
attributable to the owners of the
parent
(Loss)/Earnings per share (pence) (8.6p) 10.0p
Basic 8.3p
Diluted (7.2p)
Other than as disclosed in the consolidated Income Statement and the
Consolidated Statement of Changes in Equity there are no further gains or
losses. Accordingly, no separate statement of Other Comprehensive Income has
been presented.
All activities are considered to be continuing.
CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2016
2016 2015
GBP GBP
Non-current assets
Goodwill 421,766 421,766
Investments 364 -
Property, plant and equipment 3,257 882,397
Deferred taxation 181,074 181,074
606,461 1,485,237
Current assets
Trade and other receivables including amounts
falling due after more than one year 5,135,618 4,451,612
Non-current assets classified as held for 990,000 -
sale 331,005 1,604,945
Cash and cash equivalents
6,456,623 6,056,557
Total assets 7,063,084 7,541,794
Equity and liabilities
Share capital
1,311,201 1,311,201
Shares held by Employee Benefit Trust
(45,070) (45,070)
Retained earnings
4,346,395 4,574,218
Issued capital and reserves attributable to parent
5,612,526 5,840,349
Trade and other payables due after more than one year
450,404 481,782
Trade and other payables due in less than one year
1,000,154 1,219,663
Total equity and liabilities
7,063,084 7,541,794
These financial statements were approved by the board on 30 June 2016
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEARED 31 MARCH 2016
2016 2015
GBP GBP
Operating activities
Cash generated by operations (1,009,721) 1,278,528
Net cash generated by operating activities (1,009,721) 1,278,528
Investing activities
Interest received - 25
Sale of assets 2,183 -
Purchase of investments (364) -
Revaluation of property (136,469) -
Purchases of property, plant and equipment (3,661) (783)
Net cash used in investing activities (138,311) (758)
Financing activities
Net decrease in other amounts owed to lending (125,908) (365,510)
institutions
Net cash outflow from financing activities (125,908) (365,510)
Net (decrease)/increase in cash and cash (1,273,940) 912,260
equivalents
Cash and cash equivalents at 1 April 1,604,945 692,685
Cash and cash equivalents at 31 March 331,005 1,604,945
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 31 MARCH 2016
Share Shares Share Profit and Total
capital held by options loss
account
EBT
GBP GBP GBP GBP GBP
Balance as at 31 March 2014 1,311,201 (45,070) 39,349 4,271,296 5,576,776
Net profit for the year - - - 263,573 263,573
Balance as at 31 March 2015 1,311,201 (45,070) 39,349 4,534,869 5,840,349
Net loss for the year - - - (227,823) (227,823)
Balance as at 31 March 2016 1,311,201 (45,070) 39,349 4,307,046 5,612,526
Notes
1. The financial information set out in this announcement does not constitute
the group's financial statements (as defined by s434 of the Companies Act 2006)
for the year ended 31st March 2016. The results for the year ended 31st March
2016 are extracted from the Annual Report of Impact Holdings (UK) plc, on which
the auditors have issued an unqualified report which includes an emphasis of
matter.
2. Pursuant to AIM Rule 20 copies of the Annual Report may be downloaded from
the company's web site www.impactholdings.netand will be posted to shareholders
shortly. Further copies will be available from Zeus Capital, 82 King Street,
Manchester, M2 4WQ.
3. Two of the group's subsidiary companies continue to pursue litigation
against a number of solicitor practices and professional indemnity insurers. In
one of those actions the Appeal Court overturned a lower Court decision in
favour of Impact Funding Solutions Limited on 3 February 2015 which resulted in
the payment of GBP986,515 by the defendant's insurers to that company. The
defendant's insurer made Application for Leave to Appeal to the Supreme Court
which was granted on 20 May 2015. The matter was heard by the Supreme Court on
30 June 2016 and we await its decision. Whilst the subsidiary company's legal
team and leading Counsel remain confident that the Appeal Court decision will
be upheld, there remains a possibility that the Supreme Court could overturn
the Appeal Court decision which would result in the aforementioned monies being
returned to the defendant. No provision has been made for this in these
financial statements.
4. The Annual General Meeting will be held at the Company's registered
office, 7500 Daresbury Park, Daresbury, Warrington WA4 4BS on 20 September 2016
at 8.45am.
END
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