Income tax expense (279)
--------
Profit for the
year 773
========
The segment results for the year ended 28th February 2010 were
as follows:
Online Direct Central Total
GBP000 GBP000 GBP000 GBP000
Revenue 4,535 13,940 - 18,475
Less inter segment sales (223) (67) - (290)
------- ------- -------- -------
Revenues from external customers 4,312 13,873 - 18,185
Results
Profit from operations before
restructuring costs 413 647 (240) 820
Restructuring
costs (170) (70) (302) (542)
------- ------- -------- -------
Profit from
operations 243 577 (542) 278
Net finance
costs 4
-------
Profit before
tax 282
Income tax expense -
-------
Profit for the
year 282
=======
4. Earnings per share
The calculation of the basic and diluted earnings per share is
based on the following:
2011 2010
GBP000 GBP000
-------------------------------------------- -------- --------
Profit attributable to shareholders 773 282
-------------------------------------------- -------- --------
Number Number
000 000
-------------------------------------------- -------- --------
Weighted average number of shares:
For basic earnings per share 173,264 168,903
Adjustment for options outstanding 3,814 4,083
Adjustment for consideration shares yet to
be issued 1,126 4,158
-------------------------------------------- -------- --------
For diluted earnings per share 178,204 177,144
-------------------------------------------- -------- --------
Pence per Pence per
Share Share
--------------------- ---------- ----------
Earnings per share:
Basic 0.45 0.17
Diluted 0.43 0.16
--------------------- ---------- ----------
Diluted earnings per share is calculated by adjusting the
weighted average number of ordinary shares outstanding to assume
conversion of all dilutive potential ordinary shares. At 28
February 2011 Tangent had two categories of dilutive potential
ordinary shares: share options and shares contingently issuable as
consideration for an acquisition.
A calculation is performed for the share options to determine
the number of shares that could have been acquired at fair value
based on the monetary value of the subscription rights attached to
the outstanding share options. The number of shares from this
calculation is compared with the number of shares that would have
been issued assuming the exercise of the options and the difference
is deemed to be the number of dilutive shares attributable to share
options.
5. Dividends
2011 2010
GBP000 GBP000
-------------------------------------------- ------- -------
Recommended final dividend for the year of
0.2p (2009: 0.2p) per share 349 338
-------------------------------------------- ------- -------
The recommended final dividend is subject to approval by
shareholders at the 2011 annual general meeting and has not been
included as a liability in these financial statements.
The Tangent employee share ownership trust, which holds a total
of 1,428,340 ordinary shares, has agreed to waive all dividends so
the directors estimate that the dividend will be payable on
approximately 173m ordinary shares.
2011 2010
GBP000 GBP000
------------------------------------------ ------- -------
Final dividend paid for the year of 0.2p
(2009: 0.2p) per share 347 338
------------------------------------------ ------- -------
6. Intangible assets
Other Intangible
Note Goodwill assets Total
Group GBP000 GBP000 GBP000
------------------------------ ------ --------- ----------------- -------
Cost
At 1 March 2009 14,961 - 14,961
On acquisition of subsidiary 971 - 971
Acquired with subsidiary - 3 3
Additions - 114 114
At 28 February 2010 15,932 117 16,049
Additions 302 - 302
-------------------------------------- --------- ----------------- -------
At 28 February 2011 16,234 117 16,351
-------------------------------------- --------- ----------------- -------
Amortisation and impairment
At 1 March 2009 - - -
Acquired with subsidiary - 3 3
Amortisation during the year - 42 42
-------------------------------------- --------- ----------------- -------
At 28 February 2010 - 45 45
Amortisation during the year - 45 45
At 28 February 2011 - 90 90
-------------------------------------- --------- ----------------- -------
Net book value
At 28 February 2011 16,234 27 16,261
-------------------------------------- --------- ----------------- -------
At 28 February 2010 15,932 72 16,004
-------------------------------------- --------- ----------------- -------
On 16 September 2009 Tangent acquired the entire share capital
of The DDG Network Limited together with the business and assets of
Double D Management LLP, collectively known as "Snowball". The
acquisition agreement contained provision for a maximum additional
consideration, of GBP1.68m payable in cash and GBP500,000 in shares
at a valuation of 6.17p per share to be paid in three equal
tranches, subject to earnings before interest and tax rising to a
total of GBP1.5m over a three year period to 31 August 2012.No
additional consideration was payable in respect of the first year.
Having reviewed the performance of the acquired business the
directors are of the opinion that additional consideration will
become payable in respect of the year to 31 August 2011 and a
provision of GBP302,000 (GBP233,000 in cash and GBP69,000 in
shares), has therefore been included in these financial
statements.
Impairment of goodwill
Goodwill acquired in a business combination is allocated, at
acquisition, to the cash generating units (CGUs) that are expected
to benefit from that business combination.
From 1 March 2011 Tangent revised the business segments as
follows:
Software and Communications This business segment includes
Tangent One, Snowball and Tangent Labs
Design and Print This business segment includes Ravensworth and
Tangent on Demand.
As it is the future cash flows from each CGU that needs to be
measured against the carrying value of goodwill in each business
segment the impairment testing undertaken has been based upon the
amended segments from 1(st) March 2011, this will ensure that
future cash flows are measured against the CGU in which the benefit
of the business combination is expected.
Following the above changes the carrying value of goodwill
relating to the acquisition of Snowball has been reallocated to the
Software and Communications segment as follows:
2011 2010
-------- --------
GBP,000 GBP'000
Direct CGU 11,799 11,497
Snowball acquired goodwill transferred (1,273) -
-------- --------
Design and print CGU 10,526 11,497
Online CGU 4,435 4,435
Snowball acquired goodwill transferred 1,273 -
-------- --------
Software and communications CGU 5,708 -
-------- --------
Total unimpaired goodwill 16,234 15,932
-------- --------
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