RNS Number:0949A
Wyatt Group PLC
12 July 2007
WYATT GROUP PLC AND ITS SUBSIDIARY UNDERTAKINGS
PRELIMINARY RESULTS ANNOUNCEMENT FOR THE YEAR ENDED
31 March 2007
I am delighted to report on what has been a significant year in the Group's
development. It is a pleasure to be able to announce that the Group made an
operating profit before joint venture, amortisation and interest of #353,662
compared to a loss last year of #541,571. This was on a turnover of #2,990,863
(2006: #1,296,149) which represents an increase of 131%. The profit attributable
to shareholders (after amortisation, depreciation, interest, joint venture
interests, minority interests and tax was #121,589 (2006: #687,280 loss).
Operations
The Group's principal subsidiaries are Risksmart Limited, Premier Employer
Solutions Limited ('PES') and Wyatt Biotech Limited.
Risksmart provides an on-line fire risk assessment solution for small and medium
sized businesses. The long awaited Fire Safety legislation became effective on
1st October 2006. This has been the turning point that the team were awaiting
and Risksmart is now close to trading profitably on a month on month basis. This
is just reward for the management team who have worked hard to build the
foundations despite the continued set-backs that the considerable delays in
implementing the legislation have presented.
PES provides a range of employment related consultancy and support services
focused around human resources, reward and employment tax. It has made
significant progress in 2006/07 and has continued to develop its range of
products and services and to build on its impressive client base. The results
for the year ended 31 March 2007 are excellent with the company generating a
profit for the year after tax. PES is currently marketing a tax product that has
proved tremendously successful, generating significant revenues and giving it
access to a number of high profile blue chip clients. The management team are
reinvesting much of the revenues generated from this product into building and
expanding the core business activities of PES. The beginning of the current
financial year has already been encouraging and we are confident of yet another
strong performance.
Wyatt Biotech is the Group's drug testing operation. It has been a long and
frustrating year for this business. There have been unforeseen delays in the
testing and production of the drug testing product, resulting in it still not
being ready to commence market trials. I believe that if these issues can be
overcome then there is an exciting future for this business. However, in the
short term the Group is taking steps to limit further funding for ongoing costs.
It is intended that these costs will instead be met by the US inventor/developer
who will inject funds into the business to bring the product up to the point
where it can be taken to market. In return, the company will become a joint
venture between Wyatt and the US inventor. I believe that this course of action
is in the best interests of our shareholders.
Prospects
This is a fantastic turnaround for the Group and hopefully indicates to
shareholders that their continued patience and belief will be rewarded in the
future. I would like to thank everybody involved in Wyatt for their hard work
and dedication. We have now built a platform for growth and with continued hard
work we will be able to take Wyatt to the next level.
R Holt
Chairman
11 July 2007
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 March 2007
Note 2007 2006
# #
Turnover: Group and share of joint venture 2,990,863 1,296,149
Less: Share of joint venture's turnover (19,763) (33,919)
Turnover 2,971,100 1,262,230
Cost of sales (781,047) (458,272)
Gross profit 2,190,053 803,958
Operating charges
Other operating charges (1,836,391) (1,345,529)
Amortisation 3 (133,071) (131,780)
Total operating charges (1,969,462) (1,477,309)
Operating profit/(loss) 220,591 (673,351)
Share of operating loss in joint venture (31,963) (6,153)
Net interest (80,427) (37,755)
Profit/(loss) on ordinary activities before taxation 108,201 (717,259)
Tax on profit/(loss) on ordinary activities - -
Profit/(loss) on ordinary activities after taxation 108,201 (717,259)
Equity minority interests 13,388 29,979
Profit/(loss) for the financial year 4 121,589 (687,280)
Basic earnings/(loss) per share 2 0.96p (5.43)p
All of the activities of the Group are classed as continuing.
There were no recognised gains or losses other than the profit for the year.
CONSOLIDATED BALANCE SHEET AT 31 MARCH 2007
Note 2007 2006
# #
Fixed assets
Intangible assets 3 1,151,936 1,254,163
Tangible assets 207,312 239,943
Investments 67,574 67,574
Investment in joint venture:
Share of gross assets - 18,085
Share of gross liabilities - (31,583)
Transfer to creditors due in less than one year - 13,498
- -
1,426,822 1,561,680
Current assets
Stocks 15,500 52,027
Debtors 586,904 246,015
602,404 298,042
Creditors: amounts falling due within one year (1,674,725) (1,147,328)
Net current liabilities (1,072,321) (849,286)
Total assets less current liabilities 354,501 712,394
Creditors: amounts falling due after (949,265) (1,351,110)
more than one year
(594,764) (638,716)
Capital and reserves
Called up share capital 126,594 126,594
Share premium account 1,902,700 1,902,700
Merger reserve 41,802 41,802
Other reserve (45,640) -
Profit and loss account (2,479,257) (2,600,846)
Shareholders' deficit 4 (453,801) (529,750)
Equity minority interests (140,963) (108,966)
(594,764) (638,716)
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 March 2007
Note 2007 2006
# #
Net cash inflow/(outflow) from operating activities 5 409,740 (538,398)
Returns on investments and servicing of finance
Interest paid (80,427) (37,755)
Net cash outflow from returns on investments and servicing of
finance (80,427) (37,755)
Taxation - -
Capital expenditure and financial investment
Purchase of tangible fixed assets (89,738) (42,315)
Net cash outflow from capital expenditure and
financial investment (89,738) (42,315)
Acquisitions
Purchase of subsidiary undertaking (2,050) -
Net cash acquired with subsidiary undertaking (1,056) -
Net cash outflow from acquisitions (3,106) -
Net cash inflow/(outflow) before financing 236,469 (618,468)
Financing
Repayment in short term borrowings - (11,000)
Repayment of borrowings (42,236) (49,088)
Net cash outflow from financing (42,236) (60,088)
Increase/(decrease) in cash 6 194,233 (678,556)
NOTES
1 BASIS OF PREPARATION
The financial information set out in the announcement does not constitute the
Group's statutory accounts for the years ended 31 March 2007 or 2006. The
financial information for the year ended 31 March 2006 is derived from the
statutory accounts for that year which have been delivered to the Registrar of
Companies. The auditors reported on those accounts; their report was
unqualified and did not contain a statement under s.237 (2) or (3) Companies Act
1985. The statutory accounts for the year ended 31 March 2007 will be finalised
on the basis of the financial information presented by the directors in this
preliminary announcement and will be delivered to the Registrar of Companies.
2 EARNINGS PER SHARE
The basic earnings per share is based upon an equity profit of #121,589 (2006:
#687,280 loss) and 12,659,446 (2006: 12,659,446) ordinary shares of 1p each,
being the weighted average number of shares in issue during the period.
The diluted profit per share is identical to the basic profit per share as the
profit attributable to ordinary shareholders and weighted average number of
ordinary shares for the purpose of calculating the diluted earnings per ordinary
share are identical to those used for basic earnings per ordinary share. This is
because the exercise price of all the share options in issue during the year was
greater than the average market price of the share throughout the year. In the
prior year, the diluted loss per share was identical to the basic loss per
share. This is because the exercise of share options would have the effect of
reducing the loss per ordinary share and is therefore not dilutive under the
terms of FRS 22 Earnings per Share.
3 Intangible fixed assets
Group Goodwill on Licences Total
consolidation
# # #
Cost
At 1 April 2006 1,529,183 186,434 1,715,617
Additions 30,844 - 30,844
At 31 March 2007 1,560,027 186,434 1,746,461
Amortisation
At 1 April 2006 461,454 - 461,454
Provided in the year 133,071 - 133,071
At 31 March 2007 594,525 - 594,525
Net book amount at 31 March 2007 965,502 186,434 1,151,936
Net book amount at 31 March 2006 1,067,729 186,434 1,254,163
During the year, a Group company, Premier Employer Solutions Limited (PES)
increased its shareholding in its joint venture company Premier Employee
Benefits Limited (PEB). The shareholding was increased from 49% of PEB's issued
share capital to 80%. The consideration for these shares was #2,050. This
transaction resulted in the creation of #30,844 of goodwill on consolidation. On
1 April 2007 PES acquired a further 20% of the share capital in PEB to make it a
wholly owned subsidiary.
4 Reconciliation of movements in shareholders' DEFICIT
2007 2006
# #
Profit/(loss) for the financial year 121,589 (687,280)
Increase in other reserves (45,640) -
Net increase/(decrease) in shareholders' funds 75,949 (687,280)
Shareholders' deficit at 31 March 2006 (529,750) 157,530
Shareholders' deficit at 31 March 2007 (453,801) (529,750)
5 NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES
2007 2006
# #
Operating profit/(loss) 220,591 (673,351)
Depreciation and amortisation 256,651 238,459
Decrease/(increase) in stocks 36,527 (18,055)
Increase in debtors (328,772) (104,779)
Increase in creditors 270,203 19,328
Increase in other reserves (45,460) -
Net cash inflow/(outflow) from operating activities 409,740 (538,398)
6 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
2007 2006
# #
Increase/(decrease) in cash in the year 194,233 (678,556)
Cash outflow from decrease in debt 42,236 60,088
Change in net cash resulting from cash flows and movement in 236,469 (618,468)
net debt in the period
Net debt at 1 April 2006 (894,467) (275,999)
Net debt at 31 March 2007 (657,998) (894,467)
7 ANALYSIS OF CHANGES IN NET DEBT
At 1 April Cash flow At 31 March
2006 2007
# # #
Cash in hand and at bank - - -
Overdrafts (772,920) 194,233 (578,687)
(772,920) 194,233 (578,687)
Other loan - (3,000) (3,000)
Bank loan (121,547) 45,236 (76,311)
(894,467) 236,469 (657,998)
8 PRELIMINARY FINANCIAL STATEMENTS
Further copies of the preliminary statements are available from the registered
office of Wyatt Group PLC at Parkway House, Hambrook Lane, Stoke Gifford,
Bristol, BS34 8QB.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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