RNS Number:3491I
Business Systems Group Hldgs PLC
23 November 2007
23 November 2007
Business Systems Group Holdings plc ('BSG' or the 'Group')
Interim results for the six months ended 30 September 2007
Business Systems Group Holdings plc, which designs, deploys and operates a range
of information technology products, solutions and managed services, today
announces interim results for the six months ended 30 September 2007.
Contacts:
Business Systems Group
Nick Gerard, Group Chief Executive Tel: 020 7880 8888
James Wheaton, Group Finance Director
KBC Peel Hunt
Oliver Scott
Richard Kauffer Tel: 020 7418 8900
CHAIRMAN'S STATEMENT
I am pleased to present the results for the Group for the six months ended 30
September 2007. It has been an encouraging six months which has seen the Group
return to operating profit and the continued development of a balanced IT
services company.
Crucial to the Group's future prospects is the building of contractual revenues,
especially in Managed Services. Progress in the first half of the year has been
strong with a net increase in the annualised value of contractual revenues of
#800k to #7.9m.
The key points to note for the period were:
*In the first six months of the year, the Group produced an operating
profit of #225k compared with an operating loss of #551k in the
corresponding period of the prior year. The profit before tax was #465k, up
from a loss of #344k in the same period of the prior year.
*Revenue fell marginally by 2% from #16.2m to #15.8m. This reduction was
due to a fall in Hardware sales, while sales in both Managed Services and
Solutions grew strongly.
*Contractual revenues have grown to an annualised #7.9m as at September
2007, from an annualised #7.1m at March 2007, an increase of #800k. This
remains the Group's most important KPI.
*Gross margins reflect the rise in services sales with an increase from
16% in the previous financial year to 20% in the first six month of this
year.
*The Group's balance sheet remains strong with #7.1m cash and no debt.
This compares with #8.1m of cash a year ago.
*The Solutions business, which develops and supports software
applications, has continued its recovery with sales up 124% and margins up
to 41% for the six months.
*Earnings per share were 0.61p, from a loss per share of 0.46p in the same
period in 2006.
The Board does not recommend that an interim dividend be paid.
In accordance with AIM rules, we are now reporting our results under
International Financial Reporting Standards rather than UK Generally Accepted
Accounting Practice. The transition is covered in detail in the notes to the
interim report. While there are presentational differences the underlying
business and its cash flows are not affected by the changes.
Outlook
The Group remains committed to its stated strategy of growing contractual
revenues, and Managed Services in particular. Following the successful increase
in these revenues in the first six months the Board expects this expansion to
continue over the second half. The fixed cost base of the Managed Services
business will increase in the second half, due to the re-negotiation of existing
data centre contracts, which will fix these costs for four years. While this
will modestly affect the financial performance to the year end, it will provide
certainty of supply and cost.
In addition the Board is considering securing further long-term data centre
capacity, in order to capitalise on the current demand for well specified,
contemporary data centre space.
Roger Keenan
Chairman
22 November 2007
CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Unaudited
Six months to Six months to Year ended
30 September 30 September 31 March
2007 2006 2007
Notes #'000 #'000 #'000
------------------- ------ ----------- ---------- ---------
Revenue 2 15,823 16,187 32,861
Cost of sales (12,664) (13,642) (27,150)
------------------- ------ ----------- ---------- ---------
Gross profit 2 3,159 2,545 5,711
Administrative
expenses (2,934) (3,096) (6,399)
------------------- ------ ----------- ---------- ---------
Operating
profit/(loss) 2 225 (551) (688)
Finance income 240 207 436
------------------- ------ ----------- ---------- ---------
Profit/(loss)
before taxation 465 (344) (252)
Taxes 3 - - -
------------------- ------ ----------- ---------- ---------
Profit/(loss)
for the period 2 465 (344) (252)
------------------- ------ ----------- ---------- ---------
------------------- ------ ----------- ---------- ---------
Basic
earnings/(loss)
per share 5 0.61p (0.46)p (0.33)p
Diluted
earnings/(loss)
per share 5 0.60p (0.46)p (0.33)p
------------------- ------ ----------- ---------- ---------
CONSOLIDATED BALANCE SHEET
Unaudited at Unaudited at Unaudited at
30 September 30 September 31 March
2007 2006 2007
#'000 #'000 #'000
--------------------- ---------- --------- ----------
Non-current Assets
Property, plant and equipment 1,393 1,260 1,235
--------------------- ---------- --------- ----------
1,393 1,260 1,235
Current Assets
Inventories 78 159 141
Trade and other receivables 7,811 5,290 6,218
Cash and cash equivalents 7,140 8,115 8,244
--------------------- ---------- --------- ----------
15,029 13,564 14,603
Current Liabilities
Trade and other payables (8,452) (7,285) (8,189)
Short-term provisions - (90) (150)
--------------------- ---------- --------- ----------
(8,452) (7,375) (8,339)
Non-current Liabilities
Long-term provisions - (58) -
--------------------- ---------- --------- ----------
Net Assets 7,970 7,391 7,499
--------------------- ---------- --------- ----------
Equity
Share capital 4,209 4,209 4,209
Own shares held (872) (821) (872)
Retained earnings 4,725 4,178 4,255
EBT reserve (92) (175) (93)
--------------------- ---------- --------- ----------
Total Equity 7,970 7,391 7,499
--------------------- ---------- --------- ----------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Own
Share shares Retained EBT
capital held earnings reserve Total
#'000 #'000 #'000 #'000 #'000
Balance at 1 April 2006 4,209 (114) 4,751 (190) 8,656
Loss for the period - - (344) - (344)
Movement in reserves from EBT
redemptions - - (4) 15 11
Dividends - - (234) - (234)
Purchase of own shares - (707) - - (707)
Share-based payment - - 9 - 9
-------- -------- -------- -------- --------
Balance at 30 September 2006 4,209 (821) 4,178 (175) 7,391
-------- -------- -------- -------- --------
Own
Share shares Retained EBT
capital held earnings reserve Total
#'000 #'000 #'000 #'000 #'000
Balance at 1 April 2007 4,209 (872) 4,255 (93) 7,499
Profit for the period - - 465 - 465
Movement in reserves from
EBT redemptions - - - 1 1
Share-based payment - - 5 - 5
-------- -------- -------- -------- --------
Balance at 30 September 2007 4,209 (872) 4,725 (92) 7,970
-------- -------- -------- -------- --------
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Unaudited
Six months to Six months to Year ended
30 September 30 September 31 March
2007 2006 2007
#'000 #'000 #'000
Cash flows from operating activities
Profit/(loss) after taxation 465 (344) (252)
Adjustments for:
Depreciation 327 215 484
Share-based payment 5 9 11
Interest income (240) (207) (436)
Loss on disposal of equipment - 2 2
Decrease in provisions (150) (45) (43)
Decrease/(increase) in inventories 63 (72) (54)
(Increase)/decrease in trade and
other receivables (1,593) 926 (9)
Increase/(decrease) in trade
payables 263 (473) 438
----------- ----------- ----------
Cash (used)/generated from
operations (860) 11 141
Income taxes paid - - -
----------- ----------- ----------
Net cash (outflow)/inflow from
operating activities (860) 11 141
Cash flows from investing activities
Purchase of property, plant and
equipment (485) (427) (672)
Proceeds from sale of equipment - 2 3
Interest received 240 207 436
----------- ----------- ----------
Net cash used in investing
activities (245) (218) (233)
Cash flows from financing activities
Proceeds of sale of shares from
EBT 1 11 76
Purchase of own shares - (707) (758)
Dividends paid - (234) (234)
----------- ----------- ----------
Net cash generated/(used) in
financing activities 1 (930) (916)
----------- ----------- ----------
Net decrease in cash and cash
equivalents (1,104) (1,137) (1,008)
Cash and cash equivalents at
beginning of period 8,244 9,252 9,252
----------- ----------- ----------
Cash and cash equivalents at end
of period 7,140 8,115 8,244
----------- ----------- ----------
NOTES
1. Basis of Preparation
These interim condensed consolidated financial statements are for the six months
ended 30 September 2007. They have been prepared on a basis consistent with
anticipated IFRS (International Financial Reporting Standards) accounting
policies based on those IFRS which are expected to be endorsed by the European
Commission by the time the Group prepares its first set of consolidated
financial statements as at 31 March 2008. They do not include all the
information required for full annual financial statements. A full explanation of
the transition is set out below.
These financial statements have been prepared under the historical cost
convention.
The financial information for the six months ended 30 September 2007 and 30
September 2006 has been neither audited nor reviewed and does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985.
The financial statements and statutory accounts for the year ended 31 March 2007
were prepared under UK GAAP (Generally Accepted Accounting Practice) and have
been filed with the Registrar of Companies. The auditors' report on those
accounts was unqualified and did not contain any statement under section 237(2)
or (3) of the Companies Act 1985.
The interim results for the six months ended 30 September 2007 were approved by
the Board of Directors on 22 November 2007.
The preparation of financial statements under IFRS requires the Board to make
judgements, estimates and assumptions that affect the application of accounting
policies, the reported amounts of balance sheet items at the period end and the
reported amount of revenue and expense during the reporting period. The
estimates and associated assumptions 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 that are
not readily apparent from other sources. However, the actual results may differ
from these estimates. The estimates and underlying assumptions are reviewed on
an on-going basis.
The recognition of revenue and profit on projects which span the period end
constitutes the main area of judgement exercised by the Board in respect of the
Group's results. The Board has relied on its experience and that of the teams
involved and project management methodologies used by the business to estimate
the final outcome of each project, and to recognise the appropriate portion for
the period.
The Board has also exercised judgements in the estimate of factors involved in
the IFRS2 charge for share options. These estimates include staff turnover and
share price volatility during the vesting period.
An explanation of how the transition from UK GAAP to IFRS has affected the
Group's financial position, financial performance and cash flows is set out
below. Business Systems Group Holdings plc (BSG) has historically prepared its
consolidated (the Group) financial statements under UK GAAP. With effect from 1
April 2007 the Group is required to prepare its financial statements in
accordance with IFRS. As stated above, the Group's first annual financial
statements under IFRS will be for the year ended 31 March 2008, with the first
published IFRS results being this interim report for the six months ended 30
September 2007. The Group is required to publish one year of comparative
information, which results in a date of transition to IFRS of 1 April 2006.
IFRS does not affect the underlying business performance of BSG and has no
impact on the cash generated from operations. There is however a change in
presentation and disclosure, along with a restatement of the results as
explained in the table below. In summary, for the year ended 31 March 2007, loss
before tax is decreased by #10k.
Impact on comparative periods:
Six months to Twelve months
30 September to 31 March
2006 2007
#'000 #'000
Holiday pay accrual 61 10
Impact on profit before and after tax 61 10
IFRS1 (First-time adoption of IFRS) permits companies adopting IFRS for the
first time to take certain exemptions from the full requirements of IFRS in the
transition period. These interim financial statements have been prepared on the
basis of taking the following exemptions:
*Business combinations: BSG has taken the exemptions from restating
business combinations occurring before the transition date, 1 April 2006.
*Fair value or revaluation as cost: BSG has not taken the option to
restate items of property, plant and equipment to their fair value at 1
April 2006, being the date of transition. For all items, BSG has elected to
take their cost or revalued amount as shown previously under FRS15 as their
cost under IFRS.
Presented in the following three tables are the reconciliations of UK GAAP to
IFRS for all adjustments:
Holiday pay accrual (IAS19): As a result of specific guidance in IAS19, the
Group has recognised an additional accrual for holiday pay. The impact is to
reduce net assets by #54k at 1 April 2006 and by #44k at 31 March 2007, but to
increase net assets by #7k at 30 September 2006.
Leases (IAS17): The Group has undertaken a review of its leases in relation to
the new rules and concluded that no adjustments are required on translation to
IFRS.
Provisions (IAS37): Provisions must be analysed between short and long-term.
This is purely a balance sheet re-classification.
The format and terminology of the primary statements included in this document
have been presented in accordance with IAS1 (Presentation of financial
statements). The only re-classification under the new format has been the
analysis of provisions between current and non-current.
Table 1: Reconciliation as at 1 April 2006
Balance Sheet Adjustment
GAAP Holiday Pay Provision IFRS
#'000 #'000 #'000 #'000
Non-current Assets
Property plant equipment 1,052 1,052
------- -------
1,052 1,052
Current Assets
Inventories 87 87
Trade and other receivables 6,209 6,209
Cash and cash equivalents 9,252 9,252
------- -------
15,548 15,548
Current Liabilities
Trade and other liabilities (7,697) (54) (7,751)
Short-term provisions (108) (108)
Non-current Liabilities
Long-term provisions (193) 108 (85)
------- -------
Net Assets 8,710 8,656
------- -------
Equity
Share capital 4,209 4,209
Own shares held (114) (114)
Retained earnings 4,805 54 4,751
EBT reserve (190) (190)
------- --------- ------- -------
Total Equity 8,710 0 0 8,656
------- --------- ------- -------
Table 2: Reconciliations for six months ended 30 September 2006
Balance Sheet Adjustment
GAAP Holiday Pay Provision IFRS
#'000 #'000 #'000 #'000
Non-current Assets
Property plant equipment 1,260 1,260
------ -------
1,260 1,260
Current Assets
Inventories 159 159
Trade and other receivables 5,283 7 5,290
Cash and cash equivalents 8,115 8,115
------ -------
13,557 13,564
Current Liabilities
Trade and other liabilities (7,285) (7,285)
Short-term provisions (90) (90)
Non-current Liabilities
Long-term provisions (148) 90 (58)
------- -------
Net Assets 7,384 7,391
------- -------
Equity
Share capital 4,209 4,209
Own shares held (821) (821)
Retained earnings 4,171 (7) 4,178
EBT reserve (175) (175)
------- --------- ------- -------
Total Equity 7,384 0 0 7,391
------- --------- ------- -------
Income Statement
Revenue 16,187 16,187
Cost of sales (13,666) 24 (13,642)
------- -------
Gross Profit 2,521 2,545
Administrative expenses (3,133) 37 (3,096)
------- -------
Operating Profit/(loss) (612) (551)
Finance Income 207 207
------- -------
Profit/(loss) before taxation (405) (344)
Taxes 0 0
------- -------- ------- -------
Profit for period (405) 61 0 (344)
------- -------- ------- -------
Earnings per share
- Basic (0.54)p (0.46)p
- Diluted (0.54)p (0.46)p
Table 3: Reconciliations for the twelve months ended 31 March 2007
Balance Sheet Adjustment
GAAP Holiday Pay Provision IFRS
#'000 #'000 #'000 #'000
Non-current Assets
Property plant equipment 1,235 1,235
------- -------
1,235 1,235
Current Assets
Inventories 141 141
Trade and other receivables 6,218 6,218
Cash and cash equivalents 8,244 8,244
------- -------
14,603 14,603
Current Liabilities
Trade and other liabilities (8,145) (44) (8,189)
Short-term provisions (150) (150)
Non-current Liabilities
Long-term provisions (150) 150 0
------- -------
Net Assets 7,543 7,499
-------
Equity
Share capital 4,209 4,209
Own shares held (872) (872)
Retained earnings 4,299 44 4,255
EBT reserve (93) (93)
------- --------- ------- -------
Total Equity 7,543 0 0 7,499
------- --------- ------- -------
Income Statement
Revenue 32,861 32,861
Cost of sales (27,148) (2) (27,150)
------- -------
Gross Profit 5,713 5,711
Administrative expenses (6,411) 12 (6,399)
------- -------
Operating Profit/(loss) (698) (688)
Finance Income 436 436
------- -------
Profit/(loss) before taxation (262) (252)
Taxes 0 0
------- -------- ------- -------
Profit for period (262) 10 0 (252)
------- -------- ------- -------
Earnings per share
- Basic (0.35)p (0.33)p
- Diluted (0.35)p (0.33)p
Set out below are the accounting policies which the Group has adopted under
IFRS, and they have been applied consistently to all periods presented.
Basis of Consolidation
The Group accounts incorporate the results of the Company and its subsidiaries,
Business Systems Group Limited and Webgenerics Limited. The principal activities
of the Group are the provision of managed IT services to customers, and the
design and deployment of IT infrastructure solutions.
Acquisitions are consolidated from the effective date of acquisition. The
purchase consideration is allocated to each class of asset on the basis of fair
value at the date of acquisition. Any excess purchase consideration over the
fair values of the identifiable assets acquired is recognised as goodwill. Any
deficiency of the purchase consideration below the fair values of the
identifiable net assets acquired is credited to the income statement in the
period of acquisition.
All transactions, balances, income and expenses between Group companies are
eliminated in the consolidated financial statements.
Goodwill
Goodwill arising on consolidation represents the excess of the purchase
consideration over the Group's interest in the fair value of the identifiable
assets and liabilities of the subsidiary entity at the date of acquisition.
Goodwill is recognised as an asset and reviewed for impairment at least
annually. Any impairment is recognised immediately in the income statement and
is not subsequently reversed.
Goodwill arising before the date of transition to IFRS has been retained at the
previous UK GAAP amounts. Goodwill written off to reserves under UK GAAP has not
been reinstated.
Revenue recognition
Revenue is measured by reference to the fair value of consideration received or
receivable by the Group for goods supplied and services provided, excluding VAT
and trade discounts.
Revenue is recognised upon the performance of services or transfer of risk to
the customer. Revenue from the sale of products is recognised when the Group has
transferred to the buyer the significant risks and rewards of ownership of the
goods, which is generally when the goods have been delivered.
Revenues from support agreements are recognised by reference to the stage of
completion of the transaction at the balance sheet date. The stage of completion
of each transaction is measured by reference to the documented contract between
the Group and the buyer.
Project based revenue reflects the value of work performed during the period.
Profit is recognised on project based contracts, if the final outcome can be
assessed with reasonable certainty, by including in the income statement revenue
and related costs as contract activity progresses. Revenue is calculated as that
proportion of total contract value which costs to the balance sheet date bear to
total expected costs for that contract.
Income not recognised in the income statement is included in the balance sheet
as deferred income within accruals.
Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated depreciation
and any recognised impairment loss.
The cost of property, plant and equipment net of estimated residual value and
impairment, is depreciated in equal annual instalments over the estimated useful
lives of the assets. The residual values of assets or group of like assets are
reviewed annually.
The estimated useful lives of the assets are as follows:
* Leased assets the shorter of the term of the lease and the useful
economic life of the asset
* Plant and machinery 3 years
* Fixtures, fittings and equipment 4 years
* Motor vehicles 4 years
The gain or loss arising on the disposal or retirement of an asset is determined
as the difference between the sales proceeds and the carrying amount of the
asset and is recognised in income.
Derivatives and Other Financial Instruments
Financial assets and liabilities are recognised on the Group's balance sheet
when the Group becomes a party to the contractual provisions of the instrument.
The Group's financial instruments comprise trade receivables and trade payables,
which are not interest bearing and are stated at their fair value. Derivative
instruments are not used by the Group. The Group does not enter into speculative
derivative contracts.
Trade and other receivables are stated at their fair value, amortised using the
effective interest method if applicable, less impairment losses. Provision
against trade receivables is made when there is objective evidence that the
Group will not be able to collect all amounts due to it in accordance with the
original term of those receivables. The amount of the write-down is determined
as the difference between the asset's carrying amount and the present value of
estimated future cash flows.
Trade and other payables are stated at fair value, amortised using the effective
interest method if applicable.
Foreign Exchange
Transactions denominated in foreign currencies are translated into the
functional currency at the rates ruling at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the balance
sheet date are retranslated at the rates ruling at that date. These translation
differences are dealt with in the income statement.
Taxation
The tax charge for the periods presented comprises current and deferred tax.
Current tax is tax currently payable based on taxable profit for the period.
Deferred income taxes are calculated using the liability method on temporary
differences. Deferred tax is generally provided on the difference between the
carrying amounts of assets and liabilities and their tax bases. However,
deferred tax is not provided on the initial recognition of goodwill, nor on the
initial recognition of an asset or liability unless the related transaction is a
business combination or affects tax or accounting profit. In addition, tax
losses available to be carried forward as well as other income tax credits to
the Group are assessed for recognition as deferred tax assets.
Deferred tax liabilities are provided in full, with no discounting. Deferred tax
assets are recognised to the extent that it is probable that the underlying
deductible temporary differences will be able to be offset against future
taxable income. Current and deferred tax assets and liabilities are calculated
at tax rates that are expected to apply to their respective period of
realisation, provided they are enacted or substantively enacted at the balance
sheet date.
Changes in deferred tax assets and liabilities are recognised as a component of
tax expense in the income statement, except where they relate to items that are
charged or credited directly to equity, in which case the related deferred tax
is also charged directly to equity.
Leases
Operating leases and rentals paid under operating leases are charged to the
income statement on a straight line basis over the shorter of the period of the
lease and the estimated useful economic lives of the assets. Lease incentives
received or paid are recognised in the income statement as an integral part of
the total lease expense.
Finance Income and Finance Costs
Interest income and interest payable are recognised in the income statement as
it accrues, using the effective interest method.
Dividends
Dividends are recorded in the financial statements in the period in which they
are approved by the Company's shareholders.
Own Shares Held
The cost of own share held in treasury is deducted from shareholders' equity
until the shares are cancelled or sold.
Pension Costs
Payments made to defined contribution schemes are charged to the income
statement as they accrue. Assets of the schemes are not included within the
financial statements of the Group.
Share-Based Compensation
All share-based payment arrangements granted after 7 November 2002 that had not
vested prior to 1 January 2005 are recognised in the financial statements. The
Group issues equity settled share-based payments to most employees under the
Group's share options scheme. The share option scheme allows Group employees to
acquire shares of the ultimate parent company, Business Systems Group Holdings
plc, and these awards are granted by this company.
The fair value of options granted is recognised as an employee expense with a
corresponding increase in equity. The fair value is measured at grant date and
spread over the period during which the employees become unconditionally
entitled the options. The fair value of the options granted is measured using a
Black Scholes model, taking into account the terms and conditions upon which the
options were granted. The amount recognised as an expense is adjusted to reflect
the actual number of share options that vest.
Employee Benefit Trust
The assets and liabilities of the Group's Employee Benefit Trust (EBT) are
recognised in the financial statements where there is de facto control of those
assets and liabilities.
The cost of purchasing own shares held by the EBT are shown as a deduction
against equity. The proceeds from the sale of own shares held increase equity.
Neither the purchase nor sale of own shares leads to a gain or loss being
recognised in the income statement.
Cash and Cash Equivalents
The Group manages its short-term liquidity through holding of cash and highly
liquid interest bearing deposits. For the purpose of the cash flow statement
only deposits which are readily convertible into cash, and with no penalty of
lost interest, are shown as cash and cash equivalents.
Provisions
Provision is made where the Group has a present legal or contractual obligation
as a result of past events and it is probable that an outflow of economic
benefit will be required to settle the obligation.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost
comprises the purchase cost of materials. Net realisable value is based on
estimated selling prices less all relevant marketing, selling and distribution
costs.
2. Business Segmentation
The Group's turnover and profit on ordinary activities are derived entirely from
its principal activity. For management purposes the Group had three operating
units during the period; Hardware, Managed Services and Solutions (application
development). These units are the primary segments of the Group.
Unaudited Unaudited Unaudited
Six months to Six months to Year ended
30 September 30 September
2007 2006 31 March
#'000 #'000 2007
#'000
---------------------- ---------- ---------- ----------
Revenue 9,392 11,620 23,120
-------
Hardware 4,910 3,889 8,151
-------
Managed
Services 1,521 678 1,590
-------
Solutions 15,823 16,187 32,861
--------
Total
---------------------- ---------- ---------- ----------
Gross Profit 1,181 1,362 2,982
Hardware 1,348 923 2,109
Managed
Services 630 260 620
Solutions 3,159 2,545 5,711
Total
---------------------- ---------- ---------- ----------
Operating
profit/(loss) 546 623 1,461
Hardware 589 179 685
Managed
Services 522 146 386
Solutions (1,432) (1,499) (3,220)
Central costs 225 (551) (688)
Operating
profit/(loss) 240 207 436
Finance income 465 (344) (252)
Profit/(loss) for the period
---------------------- ---------- ---------- ----------
The operations are integrated to such an extent that it is not practical to
disaggregate the assets and liabilities of the Group into segments.
3. Taxation
The Group has not incurred any taxation in the period due to the losses
available for relief.
4. Dividend
No interim dividend will be paid in respect of the six month period ending 30
September 2007 (2006: nil).
5. Earnings per share
Basic earnings per share has been calculated by dividing the profit/(loss) on
ordinary activities after taxation by the weighted average number of ordinary
shares in issue during the period.
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares in issue on the assumption of conversion of all
dilutive potential ordinary shares. The Group has only one category of dilutive
potential ordinary shares, those share options granted under the Enterprise
Management Incentive Plan. When a loss is incurred, since the conversion of
potential Ordinary shares to Ordinary shares would decrease net loss per share,
options are not dilutive and therefore diluted and basic posses per share are
the same.
Unaudited Unaudited Unaudited
Six months to Six months to Year ended
30 September 30 September 31 March
2007 2006 2007
Profit/(loss) for the
financial period and basic
and diluted earnings
attributable to ordinary
shareholders (#'000) 465 (344) (252)
---------------------- ---------- ---------- ----------
Weighted average number
of ordinary shares ('000) 75,946 75,556 75,693
Effect of dilutive share
options ('000) 2,204 2,077 2,167
---------------------- ---------- ---------- ----------
Adjusted weighted
average number
of ordinary
shares ('000) 78,150 77,633 77,860
---------------------- ---------- ---------- ----------
Earnings/(loss) per
share 0.61p (0.46)p (0.33)p
Diluted/(loss)
earnings per share 0.60p (0.46)p (0.33)p
---------------------- ---------- ---------- ----------
6. Copies of Report
The interim report will be mailed to shareholders and copies will also be
available at the Company's registered office at 226 - 236 City Road, London,
EC1V 2TT and at the Company's website at www.bsg.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UUOWRBURAUAA
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