TIDMIMTK
RNS Number : 0549Z
Imaginatik PLC
08 December 2014
8 December 2014
Imaginatik Plc
("Imaginatik" or the "Company")
Interim Results
Imaginatik plc (AIM: IMTK.L), the world's first full service
innovation provider offering a range of consultancy and technology
products, announces its unaudited results for the half year ended
30 September 2014.
Imaginatik enables organisations to compete in the
information-rich, rapidly-changing 21(st) century by helping them
to build a sustainable innovation discipline.
Key points
-- Recognised revenue of GBP1.47m (2013: GBP1.51m)
-- Deferred revenue as at 30 September 2014 of GBP2.59m (30 September 2013: GBP2.34m)
-- Loss after tax of GBP0.70m (2013: loss of GBP0.81m)
-- 8 new customers signed in the period (2013: 6)
-- Increased customer base to 40 as at 30 September 2014 (30
September 2013: 32), result of new customer wins and good customer
retention rate
-- 58% of customer base now on multi-year contracts (2013: 38%)
-- Roll-out and ongoing refinement of three new consultancy
offerings launched in the second half of 2013
-- Placing in May 2014 raising GBP1.34m before expenses
-- Significant pipeline for the remainder of the year valued at
GBP7.2m (2013: GBP5.2m; 2012: GBP3.6m), reflecting a mix towards
larger, more complex deals
-- Post period end appointment of Ralph Welborn as CEO to support next growth phase
Matt Cooper, Non-Executive Chairman of Imaginatik, commented,
"We are pleased with developments in the first half of the
financial year, including a number of new business wins and the
further refinement of our new consultancy offerings. We enter the
second half with a bigger pipeline of new sales opportunities than
ever before and the second half has begun well with several new
contract wins. Furthermore, with a new CEO working alongside the
existing management team, the Board is confident that we can
continue to make further progress strategically and also in
converting our sales opportunities into contracted business.
"We believe that our comprehensive offering, which combines
consultancy with proprietary technology, is what is required to
affect real innovation change within our customers' organisations.
This, combined with an evolving and increasingly sophisticated
market, leaves us confident in the Company's future prospects."
For further information please contact:
Imaginatik plc Tel: 01329
243243
Matt Cooper, Non-Executive
Chairman / Shawn Taylor, CFO
finnCap Tel: 0207
220 0500
Charlotte Stranner/ Victoria
Bates
Newgate Threadneedle Tel: 020 7653
9850
Hilary Buchanan / John Coles
/ Edward Treadwell
About Imaginatik
Imaginatik(R) is the world's first full-service innovation
provider. Through a mix of consulting and advisory, hands-on
innovation projects and program management, and our award-winning
enterprise software platform, we help clients develop innovation
capability into a permanent competitive advantage. Imaginatik is
the trusted partner of leading organisations including Blue Cross
Blue Shield, Cargill, The World Bank, Mayo Clinic, The Chubb Group
of Insurance Companies, HCA, Dow Chemical and Goodyear.
Imaginatik is a public company whose shares are traded on the
AIM market of the London Stock Exchange (LSE:IMTK.L) and is a World
Economic Forum Technology Pioneer with offices in Boston, MA, and
Fareham, UK. For more information visit www.imaginatik.com.
Introduction
We continue to make steady progress as the business progresses
through its transition which was initiated little over two years
ago. The Company has evolved from a provider of solely technology
to a full service innovation provider comprising a range of
consulting offerings coupled with our proprietary technology. At
the start of this transition, we recognised that businesses of all
sizes were increasingly addressing the big issue of innovation -
how to embed innovation within a business culture - and that this
discussion was being elevated higher up the corporate agenda. As a
result, the Imaginatik team has been hard at work developing and
implementing the right strategy to be able to help customers affect
real change within their organisations. We are pleased to report
that during the six months under review we have achieved some
meaningful objectives in line with this repositioning and,
following mounting evidence that our strategy is working, we
believe we are approaching the end of this transition and are at
the start of a period of expansion.
The market in which we operate is still very much in its nascent
stage but it is maturing, and we see growing evidence that it is
evolving in the way in which we anticipated. We are having
conversations with more senior people within our prospective
customer base where engagement discussions are increasingly
consultancy-led with technology playing a supporting role in the
overall proposition. In light of this, we believe the product set
we have developed and continue to refine is unique in addressing
the market's developing and increasingly sophisticated approach to
innovation. Our comprehensive offering, with a dual focus on
operational implementation (Innovation Body) and strategy
(Innovation Mind), is, we believe, jointly necessary to deliver
real innovation change and this is what continues to differentiate
us in the market.
This approach has resulted in encouraging early success and we
are pleased to have grown our customer base with 8 new customers
added in the period, including Ecco, Novartis, and Philips
Electronics (2013: 6). Importantly, we continue to grow our
footprint within the existing customer base with upsell into
several existing customers that have added to the growing base of
renewals, which is testament to the quality of service we
deliver.
As the market develops, and in order to support the Company as
it moves to the next stage of growth, we are pleased to have
welcomed a number of senior hires to the team, including a senior
consultant in Boston and the introduction of a more senior sales
executive in the UK. Both hires represent the continued skilling-up
of our sales force and reflect the focus on customer engagement at
more senior levels within our customer and prospective customer
base. It is gratifying to see that the strategy we have put in
place is not only positioning us well to win new business but is
also supporting our recruitment drive. Furthermore, we are
delighted that Ralph Welborn has joined the team as Chief Executive
Officer as announced on 19 November. He brings to the Group a
wealth of industry insight and experience, and the whole team is
excited to be working with Ralph to drive the Imaginatik
proposition forward. As a result, I have reverted back to my role
as Non-Executive Chairman and I look forward to my continuing deep
involvement in the business, working alongside Ralph to as we grow
the business.
In May 2014 we raised GBP1.34m before expenses from new and
existing institutional shareholders. We would like to thank them
for their continued support. The additional funds provide us with
the resources to continue to build the business.
As we enter the second half of the year, the new business
pipeline continues to build. At the period end it was valued at
GBP7.2m (2013: GBP5.2m; 2012: GBP3.6m). The sales pipeline contains
a mixture of engagements, with a greater proportion now having some
form of operational or strategic consulting component at its heart,
and this we believe is a consequence of the more comprehensive
approach organisations are now taking to innovation. However, given
the typical length of contract negotiations with large blue chip
organisations, this increased pipeline will take time to flow
through into contracted business and then into recognised
revenue.
In spite of slower than expected sales results, we remain
committed to our strategy and we believe we now have the right
tools, personnel and infrastructure in place to drive the Company
forward. We are focussed on converting the sales pipeline into
contracted sales in the second half of the year which will take the
Company closer to a break even position.
Financial Review
Total recorded revenue for the six months to 30 September 2014
was broadly level with the prior year at GBP1.47m (2013: GBP1.51m).
Revenues recognised from the US in the period accounted for
approximately 75% of the total (2013: 85%) with the balance derived
from 'Rest of World', primarily the European market where we feel
we are gaining good traction. Of the 8 new customers added in the
period, 5 are European in origin with the balance from the US.
Gross bookings in the period at GBP1.0m (2013: GBP1.66m) were
lower than the prior year, largely the result of the timing of
sales contracts and also the result of two large multi-year
contract renewals falling into the prior year. In the period under
review 40% of bookings were from up-selling our software and
consultancy services into existing customers, 43% from selling into
new customers, and 17% from renewals business (2013: 31%: 30%: 39%
respectively).
With relatively few contracts up for renewal in the period under
review, renewal bookings amounted to GBP0.15m (2013: GBP0.7m). Of
the 6 contracts that came up for renewal, 4 were successfully
secured on extensions (2013: 7 secured out of 9 possible renewals).
We now have approximately 58% of our entire customer base on
multi-year contracts (2013: 38%). Additionally, we have a
significant number of multi-year contracts up for renewal in the
next full financial year and the Board is confident that these
prospective renewals will be successfully closed on similar
arrangements.
We are pleased with the addition of 8 new customers in the 6
months to 30 September 2014 (2013: 6), this takes the annualised
value of our renewals to GBP2.48m (2013: GBP2.13m). We look forward
to growing this further as we progress through the second half of
the year.
Good customer retention rates over recent periods as well as the
ongoing addition of new customers has increased the customer base
as at 30 September 2014 to 40 (30 September 2013: 32). We expect
this number to increase in the second half of the year.
Deferred revenue as a result of the growing customer base
increased 11% to GBP2.59m at 30 September 2014 (30 September 2013:
GBP2.34m).
Capitalised internal development costs amounted to GBP0.08m
(2013: GBP0.07m) as we continue to invest in our platform as well
as new software offerings, including Discovery Labs (formerly
Discovery Central), a new Portal and various analytic tools.
Once again we have been successful in securing an R&D tax
credit from HMRC amounting to GBP0.12m (2013: GBP0.11m), reflecting
the pioneering nature of certain elements of our R&D efforts in
building out our software platform.
Administrative expenses at GBP2.16m were flat relative to the
prior period (2013: GBP2.17m). There has been a modest increase in
staff costs as we have brought on more senior personnel, but this
increase has been compensated by cost reductions in other
areas.
Losses after tax on ordinary activities for the period were
similar to the prior year at GBP0.70m (2013: GBP0.81m), with losses
funded through a placing in May 2014 which generated net proceeds
of GBP1.21m. The 2013 losses include share issue costsincurred in
connection with a placing in May 2013. The shares were issued at
nominal value and not above nominal value. The Companies Act
prohibits the costs associated with this placing being charged to
the share premium account.
Cash outflows from operating activities amount to GBP1.08m
(2013: GBP1.06 million).
Operational Review
Our strategy continues to focus on the "Innovation Body and
Mind," providing both the strategic consultancy but also the
structure to implement innovation programmes at an operational
level - including the technology, process and training of
people.
Customers
We are pleased to see that our differentiated offering is
resonating in the wider marketplace and driving new business to the
Group with the number of new customers growing once again. As
mentioned above, during the period we signed 8 new customers,
including 4 new annual contracts, 2 discrete consulting engagements
and 2 pilot projects. The majority of new contracts signed in the
period contained elements of both consultancy and technology, with
75% of new and upsell contracts closed in the period containing
some form of consulting component (2013: 63%; 2012: 56%). This
further validates our strategy to provide a comprehensive offering
with a dual focus on operational implementation (Innovation Body)
and strategy (Innovation Mind). We will continue to stress the
importance of consulting being a key part of building a long term
innovation competence.
Senior appointments and Board changes
To support the growing sales pipeline and capitalise on the
escalating demand in the market, we have made a number of senior
appointments in the period and post period end. We are pleased to
have further bolstered our US client services team with the
addition of a senior consultant in Boston as well as added a senior
sales executive to the UK team to support further growth in this
region.
In November, we announced that Ralph Welborn had joined the
Group as Chief Executive Officer, effective from 1 December. Ralph
Welborn has significant global business advisory and technology
implementation experience, focussing on identifying where value is
being created and destroyed and how to capture new sources of
value. Ralph founded Jericho Group, an independent advisory firm
focussed on business model innovation and market access, and was
most recently a partner at Tapestry Networks, a stakeholder
advisory firm that works with senior business and regulatory
executives to govern and lead in times of systemic change.
Consultancy offerings
As we highlighted at the time of the full year results in July
2014, in late 2013 we launched exploratory versions of three new
service offerings which integrated both software and consulting,
named Innovation Governance, Discovery, and People Centric. We have
spent a significant amount of effort in the roll-out phase
listening to customer feedback, allowing us to refine our approach
in tune with market needs.
As a result of these efforts, we've structured Imaginatik's
offerings into two broad categories. The first offerings category
is Sustainable Innovation Competence and leverages the complete set
of Imaginatik services and products toward the multi-year journey
of helping customers building a lasting core competence for
innovation. In pursuit of this larger prize with customers, we've
learned that the Innovation Governance service offering is
particularly invaluable, as it ensures that a client's burgeoning
innovation programme develops healthy connections to overall
corporate strategy, while also building scaled enterprise processes
and metrics for innovation.
The second category of Imaginatik's offerings is Innovation
Pathways - which are discrete service lines that focus on building
our customer's capabilities within a particular type of core
innovation process. In addition to our longstanding offering around
Idea Challenges, new offerings around Discovery Labs and Innovation
Communities (formerly "Discovery" and "People Centric") allow us to
offer introductory programmes and engagements for a wider variety
of new clients and corresponding innovation. We've learned that
success along specific Innovation Pathways is a strong indicator of
a client's likelihood to subsequently sign up for Imaginatik's
complete Sustainable Innovation Competence programme of change.
We have been pleased with the response so far and all products
and have seen uptake for all three new offerings. The Discovery
Labs offering in particular, which is our business strategy
approach to identifying disruptive innovation and white space, has
seen strong demand during the period. Our method blends human
dynamics with proven virtual tools, and links to a full suite of
follow-on innovation management tools, providing the customer with
expert guidance through a journey from discovery to actualisation.
With several contracts closed and with many more opportunities in
the sales pipeline set for closure in the remainder of this
financial year, we believe this will be a decisive tool to propel
us further ahead in the market and help differentiate Imaginatik
from pure technology vendors. We will continue to refine all of
Imaginatik's offerings in line with continued market feedback.
Customer case studies
Several case studies are illustrative of the expanded scope of
services Imaginatik is now performing with our customers:
-- With Dutch airline KLM, Imaginatik ran a highly public Open
Innovation idea challenge called "Green Aruba 2020"
(https://klmtakescare.com/en/content/join-or-share-the-green-aruba-challenge-).
The purpose of the event was to further Aruba's goal of becoming
carbon-neutral by 2020, while promoting KLM's commitment to
sustainability.
-- With a major North American restaurant chain, Imaginatik
conducted a series of innovation strategy workshops with the
executive team. The goal was to assess the company's innovation
maturity level, benchmark its innovation readiness against other
enterprises, and chart an action plan for deepening its ability to
innovate across the company.
-- With a major North American consumer products manufacturer,
Imaginatik has launched an Innovation Community, providing a
cross-section of employees with an online forum for their efforts
to build a new line of business. The larger objective is to unite
the entire community around actionable plans to help the company
move beyond a dependence on its traditional core businesses.
Marketing activities
We have been active in our marketing campaign during the period
with the aim of growing the awareness of our brand and taking our
new integrated product offerings to market. New marketing
initiatives have been undertaken to develop growth avenues in
specific industry verticals and functions. We believe that
increasing experimentation in targeted segments is likely to expand
the total addressable market, as well as Imaginatik's share within
these market segments.
As before, the majority of marketing activity and brand
awareness consists of outbound appointment-setting and conference
attendance to ensure that Imaginatik's sales team and consultants
are talking with senior executives whenever possible. This
continues to be augmented with a growing stream of practitioner
webinars, Innovation Leader Forums (ILF), and smaller-group
Innovation Roundtable meetings. As this market is maturing, we are
starting to see a greater flow of inbound leads calling Imaginatik
with active interest to invest in our services.
Technology
Since our last market update we have had a major release of our
enterprise software platform, Innovation Central. The new release
provides the platform with significant new capabilities to drive
greater still participation, a very important element to ensuring
success. An enhanced look and feel to the product has allowed us to
better address growing customer branding expectations, without the
need for time consuming customisations. We have also continued to
further develop our Discovery Labs tool, aligning it with the
existing platform with a short path now created to allow this to be
a fully licensable platform in 2015.
As announced at the time of our final results, we have spent
time creating a suite of algorithm-based analytics tools to enable
sophisticated filtering and executive decision-making on very large
data volumes and social collaboration activity. This will continue
into 2015 and beyond.
Outlook
We are pleased with developments achieved in the first half of
the financial year, including a number of new business wins and the
further refinement of our new consultancy offerings. We enter the
second half with a bigger pipeline of new sales opportunities than
ever before and the period has begun well with several new contract
wins. Furthermore, with a new CEO working alongside the existing
management team, the Board is confident that we can continue to
make further progress strategically and also in converting our
sales opportunities into contracted business.
We believe that our comprehensive offering, which combines
consultancy with proprietary technology, is what is required to
affect real innovation change within our customers' organisations.
This, combined with an evolving and increasingly sophisticated
market, leaves us confident in the Company's future prospects.
Matt Cooper
Non- Executive Chairman
8 December 2014
Imaginatik Plc
Condensed Unaudited Consolidated Interim Statement of
Comprehensive Income
For the six months ended 30 September 2014
Restated
Unaudited 6 months to 30 Unaudited 6 months to 30
Sept Sept Audited year to 31 March
2014 2013 2014
Note GBP'000 GBP'000 GBP'000
Revenue 1,472 1,512 2,899
Cost of sales (133) (131) (261)
Gross profit 1,339 1,381 2,638
-------------------------- -------------------------- ---------------------------
Administrative expenses
before share issue costs (2,157) (2,168) (4,185)
Operating loss before share
issue costs, before
financing and taxation (818) (787) (1,547)
Share issue costs - (125) (143)
Operating loss after share
issue costs, before
financing and taxation (818) (912) (1,690)
Operating loss before share
option costs (770) (861) (1,566)
Share option costs (48) (51) (124)
--------------------------- ---- -------------------------- -------------------------- ---------------------------
Finance income/(costs) - - (24)
Loss on ordinary activities
before taxation (818) (912) (1,714)
Taxation 119 105 105
Loss on ordinary activities
for the period (699) (807) (1,609)
-------------------------- -------------------------- ---------------------------
Basic and diluted loss per
share (p) 4 (1.24) (2.65) (4.55)
-------------------------- -------------------------- ---------------------------
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.
Imaginatik Plc
Condensed Unaudited Consolidated Interim Statement of Financial
Position
As at 30 September 2014
Restated
Unaudited Unaudited
30 Sept 30 Sept
2014 2013 Audited 31 March 2014
Note GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and equipment 43 24 26
Intangible assets 325 284 291
Trade & other receivables 221 381 329
--------- ---------- ---------------------
589 689 646
Current assets
Trade and other receivables 1,697 1,499 1,614
Cash and cash equivalents 123 215 94
1,820 1,714 1,708
--------- ---------- ---------------------
Total assets 2,409 2,403 2,354
--------- ---------- ---------------------
EQUITY AND LIABILITIES
Equity
Issued capital 6 3,087 1,824 1,940
Share premium 6 6,472 6,405 6,405
Share option reserve 6 1,015 894 967
Retained earnings 6 (11,108) (9,607) (10,409)
--------- ---------- ---------------------
Total equity attributable to equity holders of the parent (534) (484) (1,097)
--------- ---------- ---------------------
Liabilities
Non-current liabilities
Other payables 531 852 1,079
--------- ---------- ---------------------
Total non-current liabilities 531 852 1,079
--------- ---------- ---------------------
Current liabilities
Trade and other payables 2,412 2,035 2,372
2,412 2,035 2,372
--------- ---------- ---------------------
Total liabilities 2,943 2,887 3,451
--------- ---------- ---------------------
Total equity and liabilities 2,409 2,403 2,354
--------- ---------- ---------------------
Imaginatik Plc
Condensed Unaudited Consolidated Interim Statement of Cash
Flows
For the six months ended 30 September 2014
Unaudited
6 months Restated
to 30 Sept Unaudited
Note 2014 6 months to 30 Sept 2013 Audited Year to 31 March 2014
GBP'000 GBP'000 GBP'000
Cash outflows from operating activities 7 (1,077) (1,184) (1,353)
----------- ------------------------- -----------------------------
Investing activities
Acquisition of property, plant and
equipment (27) (5) (18)
Acquisition of intangible assets (81) (66) (121)
----------- ------------------------- -----------------------------
Net cash used in investing activities (108) (71) (139)
----------- ------------------------- -----------------------------
Net cash flow before financing activities (1,185) (1,255) (1,492)
----------- ------------------------- -----------------------------
Financing activities
Net proceeds from the issue of share
capital 1,214 1,296 1,412
Net proceeds from sales of Treasury
shares - 38 38
----------- ------------------------- -----------------------------
Net cash generated from financing
activities 1,214 1,334 1,450
----------- ------------------------- -----------------------------
Net (decrease)/increase in cash and cash
equivalents 29 79 (42)
Cash and cash equivalents at start of
period 94 136 136
Cash and cash equivalents at end of
period 123 215 94
----------- ------------------------- -----------------------------
Imaginatik Plc
Condensed Unaudited Consolidated Interim Statement of Changes in
Equity
For the six months ended 30 September 2014
Restated Restated Restated
Share capital Share premium Share option reserve Retained earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 April 2013 528 6,405 843 (8,838) (1,062)
--------------- ---------------- --------------------- ------------------- --------
Loss for the period - - - (807) (807)
Share option costs - - 51 - 51
Sale of Treasury shares - - - 38 38
Shares issued 1,296 - - - 1,296
--------------- ---------------- --------------------- ------------------- --------
1,296 - 51 (769) 578
Balance at 30 September 2013 1,824 6,405 894 (9,607) (484)
--------------- ---------------- --------------------- ------------------- --------
Loss for the period - - - (802) (802)
Share option costs - - 73 - 73
Shares issued 116 - - - 116
--------------- ---------------- --------------------- ------------------- --------
116 - 73 (802) (613)
Balance at 31 March 2014 1,940 6,405 967 (10,409) (1,097)
--------------- ---------------- --------------------- ------------------- --------
Loss for the period - - - (699) (699)
Share option costs - - 48 - 48
Shares issued 1,147 67 - - 1,214
--------------- ---------------- --------------------- ------------------- --------
1,147 67 48 (699) 563
Balance at 30 September 2014 3,087 6,472 1,015 (11,108) (534)
--------------- ---------------- --------------------- ------------------- --------
Imaginatik Plc
Notes to the Condensed Unaudited Consolidated Interim Financial
Statements
For the six months ended 30 September 2014
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 2014 comprise the Company and its subsidiary (together
referred to as the "Group").
The condensed consolidated interim financial statements were
authorised for issuance on 8 December 2014.
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 2014 are not the Company's
statutory accounts for that financial year. The financial
information for the year ended 31 March 2014 is based on the
statutory accounts for the financial year ended 31 March 2014.
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 498(2) or (3) of the Companies Act
2006.
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 2014.
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. Prior period adjustment
An error was found in the prior period share capital and share
premium reserve. The September 2013 comparative figures have been
restated to reclassify this difference.
4. Loss per share
Basic loss per share
During the year the company completed a share consolidation
converting its 4,908,980,456 ordinary shares of GBP0.000625 into
61,745,004 ordinary shares of GBP0.05. To enable a like-for-like
comparison the average shares used for the 30 September 2013 and 31
March 2014 comparatives have been restated as though the share
consolidation had been completed on 1 April 2013.
The calculation of basic loss per share for the period ended 30
September 2014 was based on the loss attributable to ordinary
shareholders of GBP699,000 (period ended 30 September 2013:
GBP807,000; year ended 31 March 2014: GBP1,609,000) and a weighted
average number of ordinary shares outstanding during the period
ended 30 September 2014 of 56,288,463 (restated period ended 30
September 2013: 30,446,199); restated year ended 31 March 2014:
35,354,105).
Diluted loss per share
The options in place during the periods ended 30 September 2014
and 30 September 2013 and during the year ended 31 March 2014 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. Segmental reporting
Management currently identifies the Group's two revenue streams
as its operating segments. These operating segments are monitored
by the Group's chief operating decision maker. For these operating
segments only revenues are reported the Group's chief operating
decision maker as results, other costs and assets and liabilities
cannot be reliably allocated to the operating segments.
Unaudited Unaudited Audited
6 months 6 months Year
to 30 to 30 to
Sept Sept 31 March
2014 2013 2014
GBP'000 GBP'000 GBP'000
Segmental revenue
Technology 1,172 1,252 2,463
Consultancy 300 260 436
---------- ---------- ----------
1,472 1,512 2,899
---------- ---------- ----------
All other information presented to the Chief operating decision
maker is the same as is reported in these financial statements.
The Group's revenues from external customers and its non-current
assets are divided into the following geographical areas:
Unaudited
6 months Unaudited
to 30 Sept 6 months to 30 Sept Audited Year to
2014 2013 31 March 2014
GBP'000 GBP'000 GBP'000
Segmental revenue
United States of America 1,100 1,284 2,243
Rest of the world 372 228 656
1,472 1,512 2,899
----------- -------------------- ---------------
Segmental non-current assets
United States of America 59 265 189
Rest of the world 530 424 457
----------- -------------------- ---------------
589 689 646
----------- -------------------- ---------------
Revenues from external customers have been identified on the
basis of the customer's geographical location. Non-current assets
are allocated based on their physical location.
The Group has one customer (2013: one customer), who accounted
for revenues of GBP171,000 (2013: GBP164,000), which amounted to
more than 10% of Group revenues. These revenues arose in the
Technology segment.
6. Share Capital and Reserves
Unaudited
6 months Restated Audited Year to
to 30 Sept Unaudited 6 months 31 March
2014 to 30 Sept 2013 2014
GBP'000 GBP'000 GBP'000
Share Capital
At the beginning of the period 1,940 528 528
Shares issued 1,147 1,296 1,412
----------- ------------------- ---------------
At the end of the period 3,087 1,824 1,940
----------- ------------------- ---------------
Share premium
At the beginning of the period 6,405 6,405 6,405
Shares issued in the period, net of expenses 67 - -
----------- ------------------- ---------------
At the end of the period 6,472 6,405 6,405
----------- ------------------- ---------------
Share option reserve
At the beginning of the period 967 843 843
Share-based payments 48 51 124
----------- ------------------- ---------------
At the end of the period 1,015 894 967
----------- ------------------- ---------------
Retained earnings
At the beginning of the period (10,409) (8,838) (8,838)
Sale of Treasury shares - 38 38
Loss for the period (699) (807) (1,609)
At the end of the period (11,108) (9,607) (10,409)
----------- ------------------- ---------------
7. Cash flows from operating activities
Unaudited
6 months Restated
to 30 Sept Unaudited 6 months Audited Year to
2014 to 30 Sept 2013 31 March 2014
GBP'000 GBP'000 GBP'000
Operating loss (818) (912) (1,690)
Depreciation of tangible fixed assets 10 10 21
Amortisation of intangible fixed assets 47 36 84
Share-based payment expense 48 51 124
----------- ------------------- ---------------
Operating cash flows before movements in working capital (713) (815) (1,461)
(Increase) / decrease in trade and other receivables 24 (478) (541)
Increase / (decrease) in payables (507) 4 568
----------- ------------------- ---------------
Net movement in working capital (483) (474) 27
----------- ------------------- ---------------
Cash used by operations (1,196) (1,289) (1,434)
----------- ------------------- ---------------
Corporation tax received 119 105 105
Net interest expense - - (24)
----------- ------------------- ---------------
Net cash from operating activities (1,077) (1,184) (1,353)
----------- ------------------- ---------------
8. Availability of announcement
Copies of this announcement will be available from the Company's
offices at Carnac Cottage, Cams Hall Estate, Fareham, Hampshire,
PO16 8UU and from its website, www.imaginatik.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EANAXELLLFFF
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