TIDMILI
RNS Number : 4251J
Imagelinx PLC
07 August 2012
Imagelinx plc ("Imagelinx" or the "Company")
Interim Results
for the six months ended 30 June 2012
7 August 2012
Imagelinx (AIM: ILI), the provider of graphic brand management
services announces Interim Results for the six months ended 30 June
2012.
Highlights
For the six months ending
---------------------------------------------
June 2012 June 2011 December 2011
GBP3,719,000 GBP6,070,000 GBP4,277,000
* Revenues
(GBP280,000) GBP598,000 (GBP1,011,000)
* (Loss)/Profit before tax
(GBP11,000) GBP987,000 (GBP596,000)
* EBITDA
GBP104,000 GBP987,000 (GBP138,000)
* Adjusted EBITDA (before exceptional items and share
based payments)
GBP571,000 GBP180,000 GBP621,000
* Net cash
GBP115,000 - GBP432,000
* Exceptional costs
Commenting today, Richard Clothier, Chairman of Imagelinx plc,
said:
"The half year results reflect the full impact of the loss of
P&G as the Group's largest account. The remaining business has
grown a little from the same period last year and after a
significant period of change is now refocused on its core business
and on innovation and customer service.
The financial performance for the majority of the first half was
ahead of management expectations, however, in the latter weeks we
experienced a sudden drop in revenue that resulted in a trading
loss. Existing accounts have been less active than we would
normally expect, but new clients in Europe have started to generate
revenue which we expect to improve our financial performance during
the second half.
Adjusted EBITDA, before exceptional items, improved to
GBP104,000 from a deficit of GBP138,000 in the second half of 2011
as the Group's cost structure was brought in line with the expected
turnover. Action taken earlier in the year to realign cost with
revenue has resulted in net cash remaining positive and unused
working capital facilities are in place to fund growth."
Enquiries:
Imagelinx
Richard Clothier, Chairman
Alistair Rae, Chief Executive Tel: +44 7771
644 962
Tel: +44 7736
883934
finnCap
Edward Frisby / Rose Herbert (corporate
finance) Tel: +44 20 7220
Victoria Bates (corporate broking) 0500
Cadogan PR
Alex Walters
Emma Wigan Tel: +44 20 7839
9260
Operational review
Revenues of GBP3.72m for the first half year (2011: GBP6.07m)
are significantly lower than the equivalent prior period but less
so in relation to the latter half of last year (GBP4.27m). This
difference is as a result of the progressive loss of P&G
turnover which was GBP2.38m in the first half of 2011. On an
adjusted basis the first six months showed a modest three percent
increase in core business revenues.
The Group reported an operating loss before exceptional items of
GBP134,000 compared to the equivalent profit of GBP666,000 in 2011,
including a charge of GBP31,000 for exchange rate losses (2011 gain
of GBP19,000). This reduction in operating profit is mainly a
result of GBP2.4m reduction in sales revenues and a corresponding
GBP1.5m reduction in operating expenses. The operating loss before
depreciation and amortisation was GBP11,000 compared to a profit of
GBP987,000 in 2011. After finance costs of GBP31,000 (2011:
GBP68,000) the pre-tax loss was GBP280,000 (2011: profit
GBP598,000) and, due to previous losses, no tax is payable.
The loss at EBITDA level has improved to GBP11,000 compared to
the second half of 2011 (EBITDA loss of GBP596,000), mainly as a
result of reducing the cost structure of the Group, GBP317,000
lower exceptional costs and a nil charge for share based
payments.
The Group has continued to upgrade its infrastructure with
capital expenditure of GBP198,000 and cash has remained relatively
stable at GBP571,000 (full year 2011: GBP622,000). Debtors have
reduced approximately GBP375,000 as have trade and other creditors
by GBP298,000, since the year end.
Losses per share were 0.10p, compared to earnings per share in
the first half of 2011 of 0.21p.
As reported during 2011, the loss of P&G as our largest
client significantly changed the scale and scope of the business.
This can be seen in the reduced revenue and associated costs
between 2011 and 2012. Having made the necessary changes without
delay, the company made a good start to the current year. The
latter part of the period however saw sales decline to unexpectedly
low levels. Resources have not been further reduced to compensate
in the short term as customer revenue is expected to recover during
the second half of the year.
Exceptional costs relate to further restructuring and strategy
work within the Group.
Further capital investment has been made on new flexographic
plate making equipment as well as significant scheduled upgrades to
data storage and security systems. The Group's cash position is in
line with the beginning of the year and as revenue returns to
anticipated levels the Group expects to become cash generative.
Financing costs have been significantly reduced as the Group has
recently renegotiated its working capital facilities for a minimum
of a further twelve months.
CONSOLIDATED INCOME STATEMENT
(Unaudited) (Unaudited) (Audited)
6 months 6 months Year
Notes ended ended ended
30 June 30 June 31 December
2012 2011 2011
GBP'000 GBP'000 GBP'000
cONTINUING OPERATIONS
Revenue 3 3,719 6,070 10,347
Cost of sales (2,649) (3,676) (6,849)
_____________ _____________ _____________
GROSS PROFIT 1,070 2,394 3,498
Other operating income 17 12 41
Administration expenses (1,221) (1,641) (3,164)
Other operating expenses - (99) (233)
_____________ _____________ _____________
OPERATING PROFIT/(LOSS)
BEFORE EXCEPTIONAL ITEMS (134) 666 142
Exceptional costs (115) - (432)
_____________ _____________ _____________
OPERATING PROFIT/(LOSS) (249) 666 (290)
Finance Costs (31) (68) (123)
_____________ _____________ _____________
PROFIT/(LOSS) BEFORE TAX (280) 598 (413)
_____________ _____________ _____________
Profit/(loss) per ordinary
share 4
Basic (0.10p) 0.21p (0.14p)
Diluted (0.10p) 0.21p (0.14p)
_____________ _____________ _____________
consolidated STATEMENT OF comprehensive income
(Unaudited) (Unaudited) (Audited)
6 months 6 months Year
ended ended ended 31 December
30 June 30 June
2012 2011 2011
GBP'000 GBP'000 GBP'000
Profit/(loss) for the period (280) 598 (413)
Exchange differences on translation of foreign operations - 12 (54)
_____________ _____________ _____________
Total COMPREHENSIVE income for the period (280) 610 467
_____________ _____________ _____________
consolidated STATEMENT OF CHanges in equity
Share Capital Share Premium Translation reserve Retained earnings
Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July 2011 289 - (28) 8,400 8,661
____________ ____________ ____________ ____________ ____________
Credit in respect of share
based payments and total
transactions with owners - - - 26 26
____________ ____________ ____________ ____________ ____________
Loss for the period - - - (1,011) (1,011)
Currency translation
differences - - (66) - (66)
____________ ____________ ____________ ____________ ____________
Total comprehensive income - - (66) (985) (1,051)
____________ ____________ ____________ ____________ ____________
At 31 December 2011 289 - (94) 7,415 7,610
____________ ____________ ____________ ____________ ____________
Capital reduction and total - - - - -
transactions with owners
____________ ____________ ____________ ____________ ____________
Loss for the period - - - (280) (280)
Currency translation - - - - -
differences
____________ ____________ ____________ ____________ ____________
Total comprehensive income - - - (280) (280)
____________ ____________ ____________ ____________ ____________
At 30 June 2012 289 - (94) 7,134 7,329
____________ ____________ ____________ ____________ ____________
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(Unaudited) (Unaudited) (Audited)
30 June 30 June 31 December
2012 2011 2011
GBP'000 GBP'000 GBP'000
NON-CURRENT ASSETS
Goodwill 4,384 4,384 4,384
Other intangible assets 320 515 352
Property, plant and equipment 1,234 1,228 1,248
_________ _________ _________
5,938 6,127 5,984
CURRENT ASSETS
Inventories 89 84 78
Trade and other receivables 1,878 3,636 2,253
Cash and cash equivalents 571 437 622
_________ _________ _________
2,538 4,157 2,953
_________ _________ _________
TOTAL ASSETS 8,476 10,284 8,937
_________ _________ _________
CURRENT LIABILITIES
Trade and other payables (732) (1,172) (1,030)
Obligations under finance leases (158) (53) (134)
Bank overdrafts and loans - (257) (1)
_________ _________ _________
(890) (1,482) (1,165)
_________ _________ _________
NON-CURRENT LIABILITIES
Obligations under finance leases (257) (141) (162)
_________ _________ _________
(257) (141) (162)
_________ _________ _________
TOTAL LIABILITiES (1,147) (1,623) (1,327)
_________ _________ _________
NET ASSETS 7,329 8,661 7,610
_________ _________ _________
EQUITY
Share capital 289 289 289
Share premium account - - -
Translation reserve (94) (28) (94)
Profit and loss account 7,134 8,400 7,415
_________ _________ _________
7,329 8,661 7,610
_________ _________ _________
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited) (Unaudited) (Audited)
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2012 2011 2011
GBP'000 GBP'000 GBP'000
OPERATING ACTIVITIES
Operating (loss) / Profit (249) 666 (290)
Income Tax paid - - -
_________ _________ _________
(249) 666 (290)
Adjustment to reconcile
operating (loss) to net
cash flows:
Non-cash
Depreciation of property,
plant and equipment 207 222 448
Amortisation of intangible
assets 32 99 233
Share-based payments - - 26
Impairment of intangible
assets - - 43
Loss on disposal of tangible
assets 2 - 43
Working capital adjustments
Decrease / (increase) in
trade and other receivables 375 (8) 1,375
(Increase)/decrease in inventories (11) (4) 2
(Decrease)/increase in trade
and other payables (298) (309) (505)
_________ _________ _________
Net cash generated from
operating activities 58 666 1,375
Investing activities
Purchase of property, plant
and equipment (196) (143) (454)
Expenditure on intangible
assets - (212) (226)
Sales of property, plant
and equipment - - 16
_________ _________ _________
Net cash used in investing
activities (196) (355) (664)
Financing activities
Interest paid - (6) (21)
New finance leases 192 162
Payment of finance lease
liabilities (73) (50) (110)
Facility charges (31) (62) (102)
_________ _________ _________
Net cash flows used in financing
activities 88 (118) (71)
_________ _________ _________
Net increase / (decrease)
in cash and cash equivalents (50) 193 640
Cash and cash equivalents
at beginning of period 621 (19) (19)
Net foreign exchange difference - 6 -
_________ _________ _________
Cash and cash equivalents
at end of the period 571 180 621
1 Basis of Preparation
This interim announcement was approved by the Board of Directors
on 7 August 2012.
The financial information set out in this interim report does
not constitute statutory accounts within the meaning of section 435
of the Companies Act 2006. The group's statutory financial
statements for the year ended 31 December 2011, prepared under
International Financial Reporting Standards as issued by the IASB
and adopted by the European Union (IFRS), have been filed with the
Registrar of Companies. The auditor's report on those financial
statements was unmodified and did not contain a statement under
Section 498(2) or (3) (accounting records or returns inadequate,
accounts not agreeing with records and returns or failure to obtain
necessary information and explanations) of the Companies Act
2006.
The directors continually monitor the financial position of the
group, taking into account the latest forecasts of future cash
flows and analyses of these forecasts, sensitised in respect of the
key uncertainties facing the group's ability to generate cash. The
directors consider that the group's ability to continue as a going
concern is dependent on the timing of actual versus targeted sales
in Imagelinx while it is building up the client base for its
services.
A copy of the Interim Results is available on the Company's
website www.imagelinx.co.uk
2 Accounting Policies
The accounting policies used in this interim report are the same
as those set out in the financial statements for the year ended 31
December 2011.
3 segmental analysis
Imagelinx plc operates in only one division, that of packaging
graphics services, with all significant operations now being based
either in the UK. Historically the Group has operated in Germany
and the United States. The segmental analysis of operations is as
follows:
Segmental analysis by activity (Unaudited) (Unaudited) (Audited)
30 30 31 December
June June
2012 2011 2011
GBP'000 GBP'000 GBP'000
REVENUE BY ORIGIN FROM EXTERNAL
CUSTOMERS
UK 3,719 4,879 8,773
US - 1,191 1,574
_________ _________ _________
Total Revenue 3,719 6,070 10,347
_________ _________ _________
SEGMENT RESULT
UK (134) 718 407
Germany - (9) 79
US - (43) (344)
_________ _________ _________
Operating result pre exceptional
items (134) 666 142
Exceptional loss (115) - (432)
Operating Result (249) 666 (290)
Finance costs (31) (68) (123)
_________ _________ _________
Profit/(loss) before tax (280) 598 (413)
_________ _________ _________
4 PROFIT per ordinary share
The calculation of basic and diluted earnings per share is based
on the following data.
Earnings:
(Unaudited) (Unaudited) (Audited)
30 June 30 June 31 December
2012 2011 2011
GBP'000 GBP'000 GBP'000
Profit/(loss) for the
period (280) 598 (413)
Number of shares
30 June 30 June 31 December
2012 2011 2011
No. No. No.
------------------------- ------------- ------------- -------------
Weighted average number
of ordinary shares
for the purposes of
basic earnings per
share 289,038,635 289,038,635 289,038,635
Effect of dilutive - - -
potential ordinary
shares Share options
------------------------- ------------- ------------- -------------
Weighted average number
of ordinary shares
for the purposes of
diluted earnings per
share 289,038,635 289,038,635 289,038,635
------------------------- ------------- ------------- -------------
In accordance with IAS 33 "Earnings per share", diluted earnings
per share for 30 June 2012 is taken as being equal to basic
earnings per share, where the Group has recorded a loss, as the
effect of including share options is anti-dilutive.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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