TIDMIMTK
RNS Number : 6009C
Imaginatik PLC
17 November 2009
17 November 2009
Imaginatik Plc
("Imaginatik" or the "Company")
Interim Results
Imaginatik plc (AIM: IMTK.L), a provider of enterprise collaboration software
and services for innovation, announces its unaudited Interim Results for the
half year ended 30 September 2009.
Financial Highlights
* Turnover up 26% to GBP2.27m (H1 2008: GBP1.80m)
* Cash and cash equivalents of GBP1.34m (H1 2008: GBP0.49m)
* Annual recurring revenues up 8% to GBP3.17m as at 30 September 09 (H1 2008:
GBP2.93m)
* Operating loss before share based payments increased to GBP0.57m (H1 2008: loss
GBP0.22m)
* Increased spend on Sales and Marketing GBP0.89m (H1 2008: GBP0.62m)
Corporate Highlights
* Innovation market growing rapidly with validation from Gartner Group on
evolution of "idea management" software sector
* Significant multi-year deals signed in the half with clients including State
Farm Insurance, a global financial services company, and a leading US hospital
system
* Secured GBP1.58 million of new funds via a placing of new shares to accelerate
growth
* Significant expansion of the sales team and marketing activities
* Investment in new enhanced version of our core product, Idea Central V10, on
track for January 2010 launch
* Post period end, appointment of Matthew Cooper as Non-executive Chairman
Chief Executive, Mark Turrell commented: "Imaginatik enjoyed a strong close to
the first half year, growing turnover by 26% despite the backdrop of a
challenging global economy. We secured several significant multi-year deals with
organisations in insurance, manufacturing, financial services and healthcare.
"Innovation is firmly back on the corporate agenda, as is the use of
collaboration software to support innovation. As one of the pioneers in the
space, we are delighted that industry analysts predict Idea Management to be on
track to be a mainstream business application within the next two years, having
successfully navigated the technology 'chasm'. So far this year we have made
significant investments in sales, marketing and in our core software platform,
and we are confident that we will be able to take advantage of our current and
future market opportunity as the market expands."
For further information please contact:
+-------------------------------------------+---------------------+
| Imaginatik plc | Tel: 020 7917 |
| | 2975 |
+-------------------------------------------+---------------------+
| Mark Turrell, CEO / Shawn Taylor, CFO | |
+-------------------------------------------+---------------------+
| | |
+-------------------------------------------+---------------------+
| Arbuthnot Securities Limited | Tel: 020 7012 |
| | 2000 |
+-------------------------------------------+---------------------+
| Tom Griffiths | |
+-------------------------------------------+---------------------+
| | |
+-------------------------------------------+---------------------+
| ICIS | Tel: 020 7651 |
| | 8688 |
+-------------------------------------------+---------------------+
| Caroline Evans-Jones / Hilary Millar | |
+-------------------------------------------+---------------------+
About Imaginatik
Imaginatik is a provider of Innovation Management and Collective Intelligence
software and services. The world's leading companies use the Company's Idea
Central software platform and consulting services to identify and develop the
important ideas and strategies that will drive the future of their business.
For more than 10 years, Imaginatik has helped customers including CSC, Pfizer,
Boeing, Chubb and Cargill achieve outstanding results with the experience of its
consulting team and highly configurable web-based software.
Imaginatik is a public company whose shares are traded on the AIM market of the
London Stock Exchange [LSE:IMTK.L] and a World Economic Forum Technology Pioneer
with offices in Boston, MA, and London, UK. Imaginatik is committed to ongoing
research into the nature of human networks, innovation and collective
intelligence. The Company collaborates with several academic institutions
including the IXL Center at Hult International Business School.
For further information please visit http://www.imaginatik.com
Chairman's Statement
On joining the Board of Imaginatik in October this year, it was clear to me that
the business had valuable software, a strong reputation for customer service,
excellent consultancy capabilities and an outstanding customer base, which
includes some of the largest companies in the world. The Company's unique
experience and insight into corporate collaboration has the potential to enable
complex and significant business problems to be solved; driving forward
innovation and change at a rate previously unachievable without the assistance
of technology. I therefore believe the future for Imaginatik to be an exciting
one.
The first half of this year has been another period of significant development
for Imaginatik. Against a backdrop of a challenging global economy, revenues
have grown by 26% and through the support of the investors the Company
successfully raised an additional GBP1.58 million of new funds by way of a share
placing to drive future growth. As was flagged at the time of the AGM in July
2009, the start of this financial year was particularly quiet. However, the
increased spend in sales and marketing and a renewed market interest in
innovation resulted in the closing of several multi-year deals later in the
half, increasing average contract values and a growing amount of upsell. The
benefits of these activities combined with the investment of the funds raised in
the Placing are expected to emerge in the second half with the full benefits
being evidenced in the next financial year.
The pipeline of new business and the expected level of contract renewals remain
high as we move into the traditionally stronger second half of the year.
Combined with a significant recurring revenue base, we believe that Imaginatik
remains well positioned to capitalise on the opportunities.
I would like to thank all our employees, customers, partners and investors for
their continued support and look forward to helping Mark and the team continue
to grow the business.
Matthew Cooper
Non-Executive Chairman
17 November 2009
Chief Executive's Review
Imaginatik continues to make solid progress, growing revenues whilst investing
for the future. The collaborative innovation market continues to grow at pace,
particularly in the U.S. where we are seeing an increased level of interest in
our business offering. This half has seen us solidify our position in the
healthcare and insurance markets, make further progress in financial services,
and enter the U.S. Government sector for the first time. Average contract values
have increased year-on-year and it is encouraging to see an increased number of
multi-year deals being signed.
Our software and services are designed to help companies both innovate and
improve their internal processes. In the last 18 months we have aided companies
implement programs for New Product Development, Research and Development, Open
Innovation, Sustainability, CSR, and lean process improvements. Our major
clients, which include Boeing, Chubb, Pfizer, State Farm and Whirlpool,
benefit by leveraging the collective intelligence of their employee base and
third parties to solve problems faster, more cheaply and with higher quality
than traditional tools.
I would like to highlight five areas of particular importance in understanding
our market place:
* There is a growing trend towards engaging consumers and other large groups of
people in working together to solve problems and create new things. In the
consumer internet world this is termed 'crowdsourcing', and in the enterprise
world this is called 'collective intelligence'.
* Our technology and services have been designed explicitly to help companies
manage both innovation and process improvement, giving us comfort that our
services would still be needed in an economic downturn, as we have just
experienced.
* Innovation is back on the corporate agenda in a major way. According to the Bain
Management Tools and Trends Study 2009, 75% of executives plan to use the
recession to improve their competitive position, and 76% believe that innovation
is more important than cost reduction for long-term success.
* Gartner Group's recent White Paper on Emerging Technologies positions 'Idea
Management', Imaginatik's core offering for collaborative innovation, as two
years away from mainstream adoption. Having successfully passed the "trough of
disillusionment", Idea Management joins similar Web 2.0 social technologies such
as microblogging (Twitter for the enterprise) and wikis.
* There has been an influx of venture capital and private equity investment in the
area of idea management and collaborative innovation, with more than $40 million
raised, primarily by US businesses in the past few months. This activity shows
that there is a belief that this is a growing market that will be a successful
space for specialised enterprise software vendors, such as Imaginatik.
We believe Imaginatik has a strong competitive position in this market space:
* The Company has a strong research focus, based on the Ph.D. work of its
co-founders Mark Turrell and Dr. Yvonne Lindow, and continues to carry out
research to drive our product and service development, both internally and with
universities.
* Imaginatik has the broadest amount of practical, multi-year deployment
experience across a range of different industries.
* We have a good position as industry thought leader, giving us influence and
leverage in guiding the direction of the industry.
* Our software platform is very flexible and has handled a wide variety of
customer uses without undue customisation or consulting work.
In my view we are entering a new stage in Imaginatik's - and the market's -
evolution. We are well placed to take advantage of the new focus on innovation,
and I believe the investments that we have made, and continue to make, will be
successful, supporting growing customer numbers and achieving our market
potential.
Financial Review
Turnover for the six months ended 30 September 2009 grew by 26% to GBP2.27
million (H1 2008: GBP1.80 million). This growth was driven mainly by new
customer acquisition and increasing average contract value. The revenue split
between geographies has moved slightly more in favour of the U.S., being 86%
U.S. and 14% Rest of World compared to a 78%:22% split in the first half of the
previous year.
Annual recurring revenues have grown by 8% to GBP3.17 million at 30 September
2009, from GBP2.93 million at 30 September 2008.
As in previous years, our renewals continue to be predominantly second half
weighted, and we continue to seek ways to adjust this balance over time.
In August 2009 we raised GBP1.58 million before expenses through a placing of
26,266,666 new ordinary shares of 0.0625 pence each at a price of 6 pence per
share. The net proceeds of the Placing are being used to provide the Company
with the resources to pursue its growth plans and for general working capital
purposes.
Spending on Sales and Marketing increased significantly in the half to GBP0.89
million (H1 2008: GBP0.62 million) resulting in total operating costs, before
share option charges, increasing 41% in the half to GBP2.84 million (2008:
GBP2.02 million). The Company reported an increased operating loss before share
option costs of GBP0.57 million compared to an operating loss in 2008 of GBP0.22
million.
Cash and cash equivalents at the half year end remained strong at GBP1.34
million (H1 2008: GBP0.49 million) and with trade and other receivables of
GBP2.23 million (H1 2008: GBP1.58 million) the Company has significant financial
resources to continue the development of the business.
Sales and Marketing
As a result of the new funds secured by way of the Placing in August 2009, we
have been able to continue our investment in extending our sales team. We have
doubled the size of the sales team since the start of the financial year, and
are looking to add further headcount in the second half. This significantly
enhanced team, which is predominately based in the US, is now arranged into
teams divided between new business generation, upsell opportunities, renewals
and front-end lead generation.
While we have signed fewer new customers in the half compared with last year, we
have been successful in signing larger, multi-year contracts rather than smaller
pilot projects. In the period, we signed four new customers onto annual licenses
and a number of pilot projects, which are all delivered via the Software as a
Service (SaaS) model. We continue to sell across a range of verticals adding new
clients from the telecommunications, public and manufacturing sectors.
We invested in increased marketing activities during the period. Our US PR
campaign launched in the period has started to show promising results to raise
our profile, and we have started to engage with industry analysts in order to
capitalise on the growing awareness of our market, particularly with the
upcoming launch of Idea Central Version 10. We have put considerable effort
towards enhancing our web presence and will be launching an improved website in
the second half of the year. The internet continues to be a significant driver
of new business and we believe this increased web presence will work towards
securing new business leads.
It is said that a company's best sales people are its own clients, and
Imaginatik is no exception. The Imaginatik Global Forum, a community event for
our clients, prospects and partners, was held in Boston in October 2009, and
attracted a record level of attendees. We are in the process of planning our
European event for February 2010, and a series of regional events across the US
to further expand our 'client sales team'.
Customer Case Studies
Idea Central continues to deliver significant results for some of the world's
leading organisations. Some examples of projects implemented over the year
through the use of our software are as follows;
* Boeing taps its managers worldwide to enhance business decision making: The
US-based global aerospace leader wished to rapidly secure feedback from 8,000
managers on ways to improve decision support. A rapidly executed idea campaign
yielded 35% participation across Boeing, generating new ideas on making smarter
business decisions. Rob Williams, Senior Manager Innovation & Integration at
Boeing IDS stated, "The work we've done with Idea Central enables us to reach
broadly and deeply into our diverse enterprise to harvest new business and
process improvement ideas."
* Goodyear strengthens bonds with suppliers through collaborative innovation
efforts: A world leader in tire manufacturing, Goodyear wished to take better
advantage of the technical knowledge and research advances of its strategic
suppliers. A collaborative innovation event achieved 100% participation and
jump-started a new channel for Goodyear's collaboration with suppliers. Yves
Sinner, Idea Portfolio Manager at The Goodyear Tire and Rubber Company, stated
"Goodyear's success is in creating a productive, efficient and secure
environment for solving complex problems collaboratively within the supply
chain. We see Imaginatik as an important part of that success."
Product and Services
During the period we have significantly progressed work on Version 10 of our
software platform, with a substantial overhaul of the user interface and new
tools to support Web 2.0 social computing and community requirements. The
product is entering its Beta phase in December 2009, and will be launched to
clients in January 2010, in line with plan.
We have further advanced our work on the ChemBioConnect product, launched in
August 2009, working closely with Pfizer and our co-development partner,
CambridgeSoft. The product adds collaboration and workflow functionality to the
market leading chemistry and biology visualisation software, and early customer
feedback indicates that it is a revolutionary approach to chemistry for large
organisations.
To deliver these improvements, we have added further in-house capacity to
Development, and engaged contract resources to allow us to deliver more
functionality faster and with more confidence.
Outlook
Following a slow start to the year, Imaginatik enjoyed a strong close to the
first half, growing turnover by 26% despite the backdrop of a challenging global
economy. We secured several significant multi-year deals with organisations in
insurance, manufacturing, financial services and healthcare. The Placing carried
out in August 2009 has enabled us to continue our accelerated investment into
sales and marketing which we believe positions us well as we enter our
traditionally stronger second half of the year. With innovation back on the
agenda and a significant level of renewals expected to close in the second half,
we remain confident of a successful outcome to the year and the continued growth
of Imaginatik.
Mark Turrell
Chief Executive
17 November 2009
Condensed unaudited consolidated interim income statement
For the six months ended 30 September 2009
+---------------------------------------------+------+-----------+-----------+----------+
| | | Unaudited | Unaudited | Audited |
| | | 6 months | 6 months | Year to |
| | | to 30 | to 30 | 31 March |
| | | Sept 2009 | Sept 2008 | 2009 |
+---------------------------------------------+------+-----------+-----------+----------+
| |Note | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------------------+------+-----------+-----------+----------+
| Revenue | | 2,274 | 1,801 | 4,581 |
+---------------------------------------------+------+-----------+-----------+----------+
| Staff costs | | (1,504) | (1,159) | (2,643) |
+---------------------------------------------+------+-----------+-----------+----------+
| Depreciation written off tangible | | (43) | (30) | (66) |
| non-current assets | | | | |
+---------------------------------------------+------+-----------+-----------+----------+
| Amortisation written off intangible | | (34) | (17) | (43) |
| non-current assets | | | | |
+---------------------------------------------+------+-----------+-----------+----------+
| Other external charges | | (164) | (136) | (312) |
+---------------------------------------------+------+-----------+-----------+----------+
| Other operating charges | | (1,177) | (712) | (1,622) |
+---------------------------------------------+------+-----------+-----------+----------+
| Operating loss before financing and | | (648) | (253) | (105) |
| taxation | | | | |
+---------------------------------------------+------+-----------+-----------+----------+
| | | | | |
+---------------------------------------------+------+-----------+-----------+----------+
| Operating (loss)/profit before share option | | (566) | (220) | 128 |
| costs | | | | |
+---------------------------------------------+------+-----------+-----------+----------+
| Share option costs | | (82) | (33) | (233) |
+---------------------------------------------+------+-----------+-----------+----------+
| | | | | |
+---------------------------------------------+------+-----------+-----------+----------+
| Finance costs | | - | (2) | (7) |
+---------------------------------------------+------+-----------+-----------+----------+
| Finance income | | 1 | 5 | 9 |
+---------------------------------------------+------+-----------+-----------+----------+
| Loss on ordinary activities before taxation | | (647) | (250) | (103) |
+---------------------------------------------+------+-----------+-----------+----------+
| | | | | |
+---------------------------------------------+------+-----------+-----------+----------+
| Taxation expense | | - | - | - |
+---------------------------------------------+------+-----------+-----------+----------+
| Loss on ordinary activities for the period | | (647) | (250) | (103) |
+---------------------------------------------+------+-----------+-----------+----------+
| | | | | |
+---------------------------------------------+------+-----------+-----------+----------+
| Basic and diluted loss per share (p) | 4 | (0.05) | (0.19) | (0.08) |
+---------------------------------------------+------+-----------+-----------+----------+
All amounts are attributable to equity holders of the parent, and all arise from
continuing operations. No amounts were recognised directly in equity, and
therefore no separate statement of comprehensive income has been presented.
Condensed unaudited consolidated interim balance sheet
+---------------------------------------------+------+-----------+-----------+---------+
| | | Unaudited | Unaudited | Audited |
| | | 30 Sept | 30 Sept | 31 |
| | | 2009 | 2008 | March |
| | | | | 2009 |
+---------------------------------------------+------+-----------+-----------+---------+
| |Note | GBP000 | GBP000 | GBP000 |
+---------------------------------------------+------+-----------+-----------+---------+
| ASSETS | | | | |
+---------------------------------------------+------+-----------+-----------+---------+
| Non-current assets | | | | |
+---------------------------------------------+------+-----------+-----------+---------+
| Property, plant and equipment | | 130 | 69 | 91 |
+---------------------------------------------+------+-----------+-----------+---------+
| Intangible assets | | 154 | 83 | 154 |
+---------------------------------------------+------+-----------+-----------+---------+
| Trade & other receivables | | 675 | - | - |
+---------------------------------------------+------+-----------+-----------+---------+
| | | 959 | 152 | 245 |
+---------------------------------------------+------+-----------+-----------+---------+
| Current assets | | | | |
+---------------------------------------------+------+-----------+-----------+---------+
| Trade and other receivables | | 1,554 | 1,582 | 1,552 |
+---------------------------------------------+------+-----------+-----------+---------+
| Cash and cash equivalents | | 1,340 | 494 | 1,136 |
+---------------------------------------------+------+-----------+-----------+---------+
| | | 2,894 | 2,076 | 2,688 |
+---------------------------------------------+------+-----------+-----------+---------+
| Total assets | | 3,853 | 2,228 | 2,933 |
+---------------------------------------------+------+-----------+-----------+---------+
| | | | | |
+---------------------------------------------+------+-----------+-----------+---------+
| EQUITY AND LIABILITIES | | | | |
+---------------------------------------------+------+-----------+-----------+---------+
| Equity | | | | |
+---------------------------------------------+------+-----------+-----------+---------+
| Issued capital | | 99 | 82 | 83 |
+---------------------------------------------+------+-----------+-----------+---------+
| Share premium | | 3,919 | 2,403 | 2,430 |
+---------------------------------------------+------+-----------+-----------+---------+
| Retained earnings | 6 | (1,627) | (1,409) | (1,062) |
+---------------------------------------------+------+-----------+-----------+---------+
| Total equity attributable to equity holders | | 2,391 | 1,076 | 1,451 |
| of the parent | | | | |
+---------------------------------------------+------+-----------+-----------+---------+
| | | | | |
+---------------------------------------------+------+-----------+-----------+---------+
| Liabilities | | | | |
+---------------------------------------------+------+-----------+-----------+---------+
| Non-current liabilities | | | | |
+---------------------------------------------+------+-----------+-----------+---------+
| Interest-bearing loans and borrowings | | - | 5 | - |
+---------------------------------------------+------+-----------+-----------+---------+
| Total non-current liabilities | | - | 5 | - |
+---------------------------------------------+------+-----------+-----------+---------+
| | | | | |
+---------------------------------------------+------+-----------+-----------+---------+
| Current liabilities | | | | |
+---------------------------------------------+------+-----------+-----------+---------+
| Interest-bearing loans and borrowings | | 6 | 27 | 20 |
+---------------------------------------------+------+-----------+-----------+---------+
| Trade and other payables | | 1,456 | 1,120 | 1,462 |
+---------------------------------------------+------+-----------+-----------+---------+
| | | 1,462 | 1,147 | 1,482 |
+---------------------------------------------+------+-----------+-----------+---------+
| Total liabilities | | 1,462 | 1,152 | 1,482 |
+---------------------------------------------+------+-----------+-----------+---------+
| Total equity and liabilities | | 3,853 | 2,228 | 2,933 |
+---------------------------------------------+------+-----------+-----------+---------+
Condensed unaudited consolidated interim statement of cash flows
For the six months ended 30 September 2009
+------------------------------------------+------+-----------+-----------+----------+
| |Note | Unaudited | Unaudited | Audited |
| | | 6 months | 6 months | Year to |
| | | to 30 | to 30 | 31 March |
| | | Sept 2009 | Sept 2008 | 2009 |
+------------------------------------------+------+-----------+-----------+----------+
| | | GBP000 | GBP000 | GBP000 |
+------------------------------------------+------+-----------+-----------+----------+
| | | | | |
+------------------------------------------+------+-----------+-----------+----------+
| Cash flows from operating activities | 7 | (1,171) | (782) | 1 |
+------------------------------------------+------+-----------+-----------+----------+
| | | | | |
+------------------------------------------+------+-----------+-----------+----------+
| Cash flows from investing activities | | | | |
+------------------------------------------+------+-----------+-----------+----------+
| Acquisition of property, plant and | | (82) | (39) | (97) |
| equipment | | | | |
+------------------------------------------+------+-----------+-----------+----------+
| Acquisition of intangible fixed assets | | (34) | - | (98) |
+------------------------------------------+------+-----------+-----------+----------+
| Net cash from investing activities | | (116) | (39) | (195) |
+------------------------------------------+------+-----------+-----------+----------+
| | | | | |
+------------------------------------------+------+-----------+-----------+----------+
| Cash flows from financing activities | | | | |
+------------------------------------------+------+-----------+-----------+----------+
| Net proceeds from the issue of share | | 1,505 | 237 | 264 |
| capital | | | | |
+------------------------------------------+------+-----------+-----------+----------+
| Repayment of borrowings | | (14) | (12) | (24) |
+------------------------------------------+------+-----------+-----------+----------+
| Net cash from financing activities | | 1,491 | 225 | 240 |
+------------------------------------------+------+-----------+-----------+----------+
| | | | | |
+------------------------------------------+------+-----------+-----------+----------+
| Net increase /(decrease) in cash and | | 204 | (596) | 46 |
| cash equivalents | | | | |
+------------------------------------------+------+-----------+-----------+----------+
| Cash and cash equivalents at start of | | 1,136 | 1,090 | 1,090 |
| period | | | | |
+------------------------------------------+------+-----------+-----------+----------+
| Cash and cash equivalents at end of | | 1,340 | 494 | 1,136 |
| period | | | | |
+------------------------------------------+------+-----------+-----------+----------+
Notes to the unaudited condensed consolidated interim financial statements
1. Background
Imaginatik plc (the "Company") is a company domiciled in the United Kingdom. The
unaudited condensed consolidated interim financial statements of the Company for
the six months ended 30 September 2009 comprise the Company and its subsidiary
(together referred to as the "Group").
The condensed consolidated interim financial statements were authorised for
issuance on 17 November 2009.
The interim financial statements are not statutory accounts for the purposes of
S435 of the Companies Act 2006. The comparative figures for the year ended 31
March 2009 are not the Company's statutory accounts for that financial year. The
financial information for the year ended 31 March 2009 is based on the statutory
accounts for the financial year ended 31 March 2009 restated for the effects of
the adoption of International Financial Reporting Standards in issue and adopted
for use in the European Union ("IFRSs"). Those accounts have been reported on by
the Company's auditors and delivered to the Registrar of Companies. The report
of the auditors was (i) unqualified, (ii) did not include a reference to any
matters to which the auditors drew attention by way of emphasis without
qualifying their report, and (iii) did not contain a statement under section
237(2) or (3) of the Companies Act 1985.
2. Basis of preparation
The financial statements are presented in pounds sterling, rounded to the
nearest thousand, unless stated otherwise. They are prepared on the historical
cost basis.
These interim financial statements have been prepared using accounting policies
based on IFRS as adopted by the European Union (including IAS and
interpretations issued by the International Financial Reporting Interpretations
Committee ("IFRIC") that are expected to be applicable for the full reporting
year in 2009. These remain subject to ongoing amendment and/or interpretation
and are therefore subject to possible change. Consequently, information
contained in these interim financial statements may need updating for any
subsequent amendments to IFRS, or for any new standards that the Group may elect
to adopt early.
The accounting policies have been applied consistently throughout the Group for
purposes of these condensed unaudited consolidated interim financial statements.
3. Barter transactions
During the period barter transactions totaling GBP198,633 (6 months ended 30
September 2008: GBP80,000; year ended 31 March 2009: GBP 246,000) were entered
into. No profit or loss was recorded on these transactions.
4. Loss per share
Basic loss per share
The calculation of basic loss per share for the period ended 30 September 2009
was based on the loss attributable to ordinary shareholders of GBP647,179
(period ended 30 September 2008: GBP249,659; year ended 31 March 2009:
GBP102,428) and a weighted average number of ordinary shares outstanding during
the period ended 30 September 2009 of 140,267,985 (period ended 30 September
2008: 126,304,402; year ended 31 March 2009: 129,258,575).
Diluted loss per share
The options in place during the periods ended 30 September 2009 and 30 September
2008 and during the year ended 31 March 2009 are considered to have an
anti-dilutive effect. Therefore, basic and diluted loss per share is the same
for each of the three periods.
5. Segment reporting
Segment information is presented in the condensed consolidated interim financial
statements in respect of the Group's geographical segments, which are the
primary basis of segment reporting. The geographical segment reporting format
reflects the Group's management and internal reporting structure.
Segment results include items directly attributable to a segment as well as
those that can be allocated on a reasonable basis.
Geographical segments
The Group's operations comprise the following main geographical segments,
determined on the basis of the location of customers:
+--------------------------------------------+-----------+-----------+----------+
| | Unaudited | Unaudited | Audited |
| | 6 months | 6 months | Year to |
| | to | to | 31 March |
| | 30 Sept | 30 Sept | 2009 |
| | 2009 | 2008 | |
+--------------------------------------------+-----------+-----------+----------+
| | GBP000 | GBP000 | GBP000 |
+--------------------------------------------+-----------+-----------+----------+
| Segment revenue | | | |
+--------------------------------------------+-----------+-----------+----------+
| United States of America | 1,966 | 1,397 | 3,699 |
+--------------------------------------------+-----------+-----------+----------+
| Rest of the world | 308 | 404 | 882 |
+--------------------------------------------+-----------+-----------+----------+
| | 2,274 | 1,801 | 4,581 |
+--------------------------------------------+-----------+-----------+----------+
| Segment (loss)/profit | | | |
+--------------------------------------------+-----------+-----------+----------+
| United States of America | (236) | (135) | (68) |
+--------------------------------------------+-----------+-----------+----------+
| Rest of the world | (411) | (115) | (35) |
+--------------------------------------------+-----------+-----------+----------+
| | (647) | (250) | (103) |
+--------------------------------------------+-----------+-----------+----------+
6. Share Capital and Reserves
+--------------------------------------------+-----------+-----------+----------+
| | Unaudited | Unaudited | Audited |
| | 6 months | 6 months | Year to |
| | to | to | 31 March |
| | 30 Sept | 30 Sept | 2009 |
| | 2009 | 2008 | |
+--------------------------------------------+-----------+-----------+----------+
| | GBP000 | GBP000 | GBP000 |
+--------------------------------------------+-----------+-----------+----------+
| | | | |
+--------------------------------------------+-----------+-----------+----------+
| Share Capital | | | |
+--------------------------------------------+-----------+-----------+----------+
| At the beginning of the period | 83 | 78 | 78 |
+--------------------------------------------+-----------+-----------+----------+
| Shares issued | 16 | 4 | 5 |
+--------------------------------------------+-----------+-----------+----------+
| At the end of the period | 99 | 82 | 83 |
+--------------------------------------------+-----------+-----------+----------+
| | | | |
+--------------------------------------------+-----------+-----------+----------+
| Share premium | | | |
+--------------------------------------------+-----------+-----------+----------+
| At the beginning of the period | 2,430 | 2,170 | 2,170 |
+--------------------------------------------+-----------+-----------+----------+
| Shares issued in the period, net of | 1,489 | 233 | 260 |
| expenses | | | |
+--------------------------------------------+-----------+-----------+----------+
| At the end of the period | 3,919 | 2,403 | 2,430 |
+--------------------------------------------+-----------+-----------+----------+
| | | | |
+--------------------------------------------+-----------+-----------+----------+
| Retained earnings | | | |
+--------------------------------------------+-----------+-----------+----------+
| At the beginning of the period | (1,062) | (1,192) | (1,192) |
+--------------------------------------------+-----------+-----------+----------+
| Loss for the period | (647) | (250) | (103) |
+--------------------------------------------+-----------+-----------+----------+
| Share-based payments | 82 | 33 | 233 |
+--------------------------------------------+-----------+-----------+----------+
| At the end of the period | (1,627) | (1,409) | (1,062) |
+--------------------------------------------+-----------+-----------+----------+
7. Cash flows from operating activities
+--------------------------------------------+-----------+-----------+----------+
| | Unaudited | Unaudited | Audited |
| | 6 months | 6 months | Year to |
| | to | to | 31 March |
| | 30 Sept | 30 Sept | 2009 |
| | 2009 | 2008 | |
+--------------------------------------------+-----------+-----------+----------+
| | GBP000 | GBP000 | GBP000 |
+--------------------------------------------+-----------+-----------+----------+
| | | | |
+--------------------------------------------+-----------+-----------+----------+
| Operating loss | (648) | (253) | (105) |
+--------------------------------------------+-----------+-----------+----------+
| Depreciation of tangible fixed assets | 43 | 30 | 66 |
+--------------------------------------------+-----------+-----------+----------+
| Amortisation of intangible fixed assets | 34 | 17 | 43 |
+--------------------------------------------+-----------+-----------+----------+
| Net interest expense | 1 | 3 | 2 |
+--------------------------------------------+-----------+-----------+----------+
| Share-based payment expense | 82 | 33 | 233 |
+--------------------------------------------+-----------+-----------+----------+
| (Increase)/decrease in trade and other | (677) | (697) | (666) |
| receivables | | | |
+--------------------------------------------+-----------+-----------+----------+
| Increase/(decrease) in payables | (6) | 85 | 428 |
+--------------------------------------------+-----------+-----------+----------+
| Net cash from operating activities | (1,171) | (782) | 1 |
+--------------------------------------------+-----------+-----------+----------+
8. Availability of announcement
Copies of this announcement will be available from the Company's offices at 6
Wessex Way, Colden Common, Winchester SO21 1WP and from its website,
www.imaginatik.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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