TIDMBGBL

RNS Number : 1064V

Bglobal PLC

10 December 2013

BGLOBAL PLC

("Bglobal" or the "Company" or the "Group")

HALF-YEARLY FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013

Bglobal plc (AIM: BGBL), the leading provider of smart energy solutions and services to the UK energy market is pleased to announce its half-yearly financial report for the six months ended 30 September 2013.

Commenting on the results John Grant, Chairman said: "One conclusion I have drawn so far from work on the strategic review is that our business remains undervalued. Utiligroup alone produced EBITDA in the period of GBP0.46 million. Our Nutech Training business remains poised to capitalise on the need to develop the skills required to support the Government's carbon-reduction programmes. Our end-to-end solutions continue to find new applications and Bsmart has grown organically to a point at which it is soon to reach a monthly breakeven position and feedback from Bsmart customers has been positive as typically they save over 20% on their utility bills."

Highlights:

   --      Revenue of GBP6.17 million (2012: GBP5.82 million from continuing operations) 

-- Recurring revenues increased by 2.1% to GBP4.04 million (2012: GBP3.95 million from continuing operations), up 47.4% in the Software and services segment offsetting losses in metering business

   --      Gross margin up to 62.5% (2012: 54.1%) 
   --      Adjusted Operating loss GBP0.91 million(1) (2012: GBP1.16 million loss(2) ) 
   --      Adjusted loss before taxation of GBP0.95 million loss(1) (2012: GBP1.19 million loss(2) ) 
   --      Loss before tax of GBP2.16 million (2012: GBP0.83 million loss) 
   --      Cash balances at 30 September 2013 GBP2.52 million 

-- Two new entrants brought in via "supplier in a box" since 1 April 2013, plus the extension of software and services to a supplier who has launched a new residential brand in the market

--

<Note: All highlights above exclude Utilisoft Pty which was sold in February 2013>

(1) Before debiting GBP0.03 million in relation to share based payments, debiting GBP0.48 million in relation to providing against capitalised development costs, debiting GBP0.20 million against the recoverability of the loan note issued in 2011 to Pure World Technologies Limited and before charging amortisation of acquired intangibles of GBP0.49 million

(2) Before crediting GBP0.83 million on Draig acquisition, crediting GBP0.03 million in relation to share based payments and before charging amortisation of acquired intangibles of GBP0.51 million

Tim Jackson-Smith, Group Chief Executive Officer added: "Following the strategic review carried out by KPMG, we have already taken significant cost out of the business (approximately GBP1.0 million on an annualised basis) and strict cash management procedures are now in place. We believe that a third party may be better placed to develop the potential in our Metering business and take it forward to the next phase of its development allowing the Board to focus on its software and services businesses of Utiligroup, Nutech and Bsmart."

- ends -

For further information, please visit www.bglobalplc.com or contact:

 
 John Grant Executive,    Mark Taylor 
  Chairman 
 Tim Jackson-Smith, CEO   Charles Stanley      Dwight Burden 
                           Securities 
 Bglobal plc              Nominated Adviser    RedLeaf 
 Tel: 01254 819 600       Tel: 020 7149 6000   Tel: 0207 382 4735 
 

CHAIRMAN'S STATEMENT

I report below on the Group's results for the half year ended 30 September 2013. This is my first statement as Chairman since my appointment in August, and so I want to take the opportunity to explain the work the Board and the Company has been undertaking in the past few months and my initial impressions of the business.

Strategic Review

As requested by shareholders, the Board has been conducting a strategic review of the Group. This has been a collaborative process, which has involved a great deal of time commitment on behalf of the whole of our Board, senior management, KPMG and other advisers. The purpose of the exercise has been to improve the performance of the business and enhance shareholder value. The first outcomes of the review have included taking significant cost out of Bglobal's head office, re-focusing the business on its customers and implementing strict cash management procedures. In addition, as previously announced, we have decided to explore a potential sale of our metering business as we believe that a third party may be better placed to take this business to the next phase of its development.

One conclusion I have drawn so far from work on the strategic review is that our business remains undervalued by the market. Utiligroup alone produced EBITDA in the period of GBP0.46 million. Our Nutech training business remains poised to capitalise on the need to develop the skills required to support the Government's carbon-reduction programmes. Our end-to-end solutions continue to find new applications and Bsmart has grown organically to a point at which it is soon expected to reach a monthly breakeven position. Feedback from Bsmart customers has been positive as typically they save over 20% on their utility bills. Bsmart has been further strengthened as Pure World Technologies Limited, a competitor, went into administration. Whilst we have had to write off our convertible debt of GBP0.2million to this company, Bsmart was able to acquire some of its key assets as part of the debenture security we had.

Business Development

The Group's staff is enthusiastic and ambitious and have the ability to grow and develop many of our product lines both organically and by finding new markets for them. I have sought to channel their energies into projects, which have a short-to-medium prospect of financial return, whilst ensuring longer term projects are progressed at an appropriate pace. There has, historically, been a focus on revenue generation which, in part, has not been tempered by cost controls befitting a Group of our size. The financial performance of the Group has, accordingly, been disappointing over this period as costs have been incurred for projects, which were a long way from being cash generative.

Results

Total revenue increased by 6% to GBP6.17 million (2012: GBP5.82 million). The gross margin has increased to 62.5% (2012: 54.1%) as the Group further concentrates on the software and services business and has brought the Draig business in house. Administrative costs from continuing operations increased to GBP4.56 million (2012: GBP4.10 million) with operating costs within the new businesses of Nutech and Bsmart totalling GBP0.51 million (2012: GBP0.18 million) and costs acquired with Draig of GBP0.20 million. The Draig acquisition has helped save costs from the cost of sales line and will, in the future, improve our gross margins. Since the period end, we have reduced ongoing administrative costs by approximately GBP1 million per annum.

Adjusted Operating Loss for the period was GBP0.91 million (2012: GBP1.16 million loss) after adjusting for the one-off items detailed in the accounts.

The reported basic loss per share, including the one-off items, was 1.93p (2012: 0.66p loss).

However, despite the trading deficit, the Group's cash balances at 30 September 2013 were GBP2.52 million.

Dividend

The Board is not recommending a dividend, as all funds are currently needed for the Group's working capital requirements.

Board and employees

I have had the pleasure over the last few months of meeting many of the Group's employees. They are clearly one of the Group's great strengths and I would like to take this opportunity to thank them for their support during my transition into this role. I feel very strongly that one of my roles as Chairman is to imbue the Group with a culture of honesty, transparency, effectiveness and efficiency. I shall strive to live up to those standards and ensure the Group reflects them. I would also like to thank my Board colleagues for their support and advice in what has been a difficult period for the Company.

Conclusion

Implementing the first batch of recommendations from the strategic review is the Board's priority for the next quarter. The management team, led by our CEO Tim Jackson-Smith, will continue to pursue any significant profitable growth opportunities that have been identified to date and to develop our existing businesses in line with our strategy. I look forward to being able to report on more positive developments in future.

John Grant

Chairman

CHIEF EXECUTIVE'S STATEMENT

The six months to 30 September have presented a number of challenges for the Group, but despite these I am pleased to report that turnover in the period increased to GBP6.17 million, a 6% increase on the same period last year. Whilst the Metering business has continued to face difficult trading conditions, Utiligroup has had its strongest ever start to a year and continues to flourish. The two new businesses, Nutech and Bsmart, which were established during the last financial year, are now starting to build momentum and both are pursuing a number of interesting opportunities.

Software and Related Services

Utiligroup's performance was ahead of our expectations in the period and the business continues to see strong demand for its software and services. Utiliserve has had a particularly successful six months and was over 25% ahead of budget and has delivered a profit in the 6 months to 30 September 2013. Turnover increased by 63% to GBP2.97 million in the six months ended 30 September 2013 (2012: GBP1.82 million). Recurring revenue in the period was GBP2.38 million (2012: GBP1.61 million)

Utilisoft has brought two more companies into the market as energy suppliers through its "Supplier in a Box" product, hasextended the provision of software and services to a supplier who has launched a new residential brand in the market and has a strong pipeline of customers keen to enter the UK energy market. The business has benefited from its hard work in the previous year, which helped to build a solid recurring revenue stream that provided a stable platform from which it could grow and that has been further built upon during the period.

The recent developments in the UK energy market present a number of opportunities for Utiligroup to further exploit its position as an integral part of that market. Calls from the Prime Minister for more competition to the Big 6 and his desire for there to be a Big 60 has helped to drive demand for the software and services that Utiligroup provides.

Metering and Data Services

Revenue from meter installations was GBP1.24 million (2012: GBP2.03 million) which was slightly ahead of the Board's expectations. The Group's accredited data collection, data aggregation and meter operation revenue for the period was GBP1.66 million (2012: GBP2.11 million). The volume of meter installations during the period has been in line with our expectations and has stabilised since the dramatic fall in volume seen in the last financial year. As the deadline regarding the mandate to install smart meters into properties in profile classes 5-8 draws ever closer, we have seen increased interest from a number of our customers to assist them in fulfilling their obligations.

Following the completion of the strategic review, it has also been decided that we will no longer pursue certain research and development initiatives and this has lead to an exceptional impairment charge of GBP0.48 million against capitalised development costs.

Training Services

The delay to the mass rollout of smart meters has meant that Nutech Training has not performed in line with our expectations and its turnover for the six months ending 30 September was only GBP0.09 million. The management team has continued to look at ways of creating revenue streams for the business that enable it to leverage its accreditations without leading to direct investment in training facilities. I am pleased to report that Nutech has recently signed a franchise agreement with Future Energy Solutions, who will open a new training centre in the North East. The centre will operate under Nutech's accreditations, which will allow it to provide dual fuel smart meter installation and other relevant training. A number of other organisations have approached Nutech about the franchise model and the business continues to discuss the training needs of a number of energy suppliers ahead of the mass rollout of smart meters. I am confident that Nutech is well placed to capitalise on the training opportunities that will arise over the coming years.

Energy Management

The Group's energy management business, Bsmart Energy Solutions, has had a slower start to the year than we had expected but has still grown its turnover significantly from last year, generating a turnover of GBP0.32 million in the six months to 30 September. The business continues to see demand for its products and services and we expect the recent energy price increases to see growing interest in the energy saving solutions that Bsmart offers and that companies, such as JD Sports, are benefiting from.

Strategic review

On 11 November 2013, the Board announced the conclusion of the strategic review and the initial conclusions resulting from that. Following detailed consultation with, and the receipt of a report from, KPMG the Board has begun implementing a number of actions in order to improve the performance of the business and enhance shareholder value. These actions include taking significant cost out of Bglobal's head office, re-focusing the business on its customers and implementing strict cash management procedures. In addition, the Board has decided to explore a potential sale of its metering business, B Global Metering Limited.

A disposal of the metering business will allow the Group to focus its resources on the software and services side of the business which the Board believes is capable of generating significant shareholder value. A number of changes within the UK energy market create opportunities for, in particular, Utiligroup. Indeed, the advent of the Data Collection Company (DCC), following the recent award of contracts by DECC, generates the need for integration software to be developed and sold into Utiligroup's existing customer base and the need for more competition within the UK energy market stimulates demand for the 'Supplier in a Box' product as more businesses consider becoming energy suppliers. We have also seen increased interest from the public sector in the 'Supplier in a Box' model with local authorities and housing associations seeing their own entry into the market as a way of alleviating fuel poverty amongst their constituents and tenants.

All of these opportunities leave Utiligroup in a strong position to capitalise on its position within the UK energy market and to continue delivering strong results for the Group.

Outlook

I would like to highlight the quality, commitment and dedication of the Group's employees. The Group has had a number of distractions to deal with in this financial year, some of which have unfortunately been played out in public, but despite this, our colleagues have continued to focus on doing the best job they can and on delivering a quality service to all our customers. The improved performance on many fronts for the six months ending 30 September 2013 is a testament to their hard work and abilities.

The Board remains committed to creating value for all our stakeholders and to improving the performance of the business. We have already taken significant cost out of the business (approximately GBP1.0 million on an annualised basis) and strict cash management procedures are now in place. As stated above, we believe that a third party may be better placed to develop the potential in our Metering business and take it forward to the next phase of its development and, accordingly, the decision has been taken to explore a sale of this business. I am pleased to say that we have had an encouraging level of interest in this business and look forward to updating shareholders as this process evolves.

Tim Jackson-Smith

Chief Executive Officer

Bglobal plc

Consolidated statement of comprehensive income for the period ended 30 September 2013

 
                6 Months ended  6 Months ended         Year ended 
                    30 Sept 13      30 Sept 12          31 Mar 13 
                     Unaudited       Unaudited            Audited 
                       GBP'000         GBP'000            GBP'000 
          Note 
REVENUE      2           6,167           5,818             11,578 
 
 
Cost of sales                   (2,315)                  (2,670)                  (5,046) 
                -----------------------  -----------------------  ----------------------- 
Gross profit                      3,852                    3,148                    6,532 
 
 
Total administrative expenses                                      (5,970)                  (3,952)                  (8,580) 
                                                                 _________                 ________                 ________ 
OPERATING LOSS                                                     (2,118)                    (804)                  (2,048) 
 
Results from operating activities 
 before adjustments in respect 
 of the following:                                                   (912)                  (1,163)                  (1,711) 
Share based compensation                                              (34)                       33                       19 
Amortisation of acquisition-related 
 intangibles                                                         (494)                    (501)                    (969) 
Impairment provision of capitalised 
 development cost                               3                    (478)                        -                        - 
 Provision in relation to financial 
  asset                                         3                    (200)                        -                        - 
 Reversal of fair value adjustment 
  on supplier companies                                                  -                        -                    (214) 
  Gain on acquisition of Draig 
  Technology                                    3                        -                      827                      827 
                                                3 
                                                   -----------------------  -----------------------  ----------------------- 
OPERATING LOSS                                                     (2,118)                    (804)                  (2,048) 
 
 
Finance costs                                                         (45)                     (39)                     (78) 
Finance income                                                           6                       12                       21 
                                                   -----------------------  -----------------------  ----------------------- 
LOSS BEFORE TAXATION                            2                  (2,157)                    (831)                  (2,105) 
 
 
 
Taxation                               4                 104                      126                    (779) 
                                        --------------------  -----------------------  ----------------------- 
 
  LOSS FOR THE PERIOD FROM CONTINUING 
  OPERATIONS                                         (2,053)                    (705)                  (2,884) 
                                        --------------------  -----------------------  ----------------------- 
 
  PROFIT/(LOSS) FOR THE 
  PERIOD FROM DISCONTINED 
  OPERATIONS                                               -                        1                    (423) 
                                        --------------------  -----------------------  ----------------------- 
ATTRIBUTABLE TO OWNERS OF THE 
 PARENT                                              (2,053)                    (704)                  (3,307) 
 
 
Reclassification to profit 
 and loss on disposal of 
 foreign operation                                        -                        (8)                          - 
                                       --------------------    -----------------------    ----------------------- 
Other comprehensive income/(loss)                         -                        (8)                          - 
                                       --------------------    -----------------------    ----------------------- 
TOTAL COMPREHENSIVE (LOSS)/INCOME 
 FOR THE PERIOD                                     (2,053)                      (712)                    (3,307) 
                                       --------------------    -----------------------    ----------------------- 
Loss per share including 
 discontinued 
 operations 
 Basic loss per share - pence        5                        (1.93)                     (0.66)                (3.11) 
 Fully diluted loss per share 
  - pence                            5                        (1.93)                     (0.66)                (3.11) 
 Loss earnings per share 
  excluding 
  discontinued operations 
 Basic loss per share - pence        5                        (1.93)                     (0.66)                (2.71) 
 Fully diluted loss per share 
  - pence                            5                        (1.93)                     (0.66)                (2.71) 
 
 

Bglobal plc

Consolidated statement of Financial Position at 30 September 2013

 
                                            As at           As at      As at 
                                          30 Sept         30 Sept     31 Mar 
                                               13    12 Unaudited         13 
                                        Unaudited         GBP'000    Audited 
                                          GBP'000                    GBP'000 
------------------------------  ----  -----------  --------------  --------- 
 ASSETS 
 NON CURRENT ASSETS 
 Intangible assets                          5,928           9,122      6,540 
 Property, plant & equipment                  618             725        655 
 Financial asset                                -             200        200 
 Deferred tax assets                            -           1,208          - 
------------------------------  ----  -----------  --------------  --------- 
                                            6,546          11,255      7,395 
 -----------------------------------  -----------  --------------  --------- 
 CURRENT ASSETS 
 Inventories                                  823           1,223      1,081 
 Energy supply companies held 
  for sale                                    116             336        112 
 Trade and other receivables                2,867           4,069      3,228 
 Cash and cash equivalents                  2,519           1,779      3,021 
------------------------------------  -----------  --------------  --------- 
                                            6,325           7,407      7,442 
 -----------------------------------  -----------  --------------  --------- 
 
 TOTAL ASSETS                              12,871          18,662     14,837 
------------------------------------  -----------  --------------  --------- 
 
 EQUITY AND LIABILITIES 
 EQUITY 
 Share capital                              1,063           1,063      1,063 
 Share premium                             20,709          20,709     20,709 
  Share based compensation                    227             182        195 
 Merger reserve                               792             792        792 
 Translation reserve                            -             (8)          - 
 Retained losses                         (15,141)        (10,487)   (13,090) 
------------------------------------  -----------  --------------  --------- 
 TOTAL EQUITY                               7,650          12,251      9,669 
------------------------------------  -----------  --------------  --------- 
 
 NON CURRENT LIABILITIES 
 Deferred taxation                            642           1,304        745 
 Other financial liabilities                    -             950          - 
------------------------------  ----  -----------  --------------  --------- 
                                              642           2,254        745 
 -----------------------------------  -----------  --------------  --------- 
 
 
 CURRENT LIABILITIES 
 Trade and other payables                   3,276           4,068      3,449 
 Other financial liabilities                1,303              52        974 
 Current tax                                    -              37          - 
------------------------------  ----  -----------  --------------  --------- 
                                            4,579           4,157      4,423 
 -----------------------------------  -----------  --------------  --------- 
 
 TOTAL LIABILITIES                          5,221           6,411      5,168 
------------------------------------  -----------  --------------  --------- 
 TOTAL EQUITY AND LIABILITIES              12,871          18,662     14,837 
------------------------------------  -----------  --------------  --------- 
 
 

Bglobal plc

Consolidated statement of cash flows for the period to 30 September 2013

 
                                                     6 Months        6 Months       Year 
                                                        ended           ended      ended 
                                                      30 Sept         30 Sept     31 Mar 
                                                           13    12 Unaudited         13 
                                                    Unaudited         GBP'000    Audited 
                                                      GBP'000                    GBP'000 
--------------------------------------------      -----------  --------------  --------- 
 Cash flow from operating activities 
 Loss before taxation from continuing 
  operations                                          (2,157)           (831)    (2,105) 
 Profit/(loss) before taxation 
  from discontinued operations                              -              18       (10) 
 Gain on bargain purchase of Draig 
  Technology                                                -           (827)      (827) 
 Share based compensation                                  34            (32)       (19) 
 Finance costs                                             45              39         78 
 Finance income                                           (6)            (26)       (21) 
 Impairment provision in relation                         478               -          - 
  to capitalised development costs 
 Depreciation                                             106             114        233 
 Amortisation                                             589             883      1,705 
 Decrease/(increase) in inventories                       258           (209)       (68) 
 Decrease in trade and other receivables                  562             728      1,188 
 (Decrease)/increase in trade 
  and other payables                                    (172)           (190)        351 
 Movement on subsidiaries held 
  for sale                                                (5)            (68)        157 
 Foreign exchange difference                                -             (8)          - 
--------------------------------------------      -----------  --------------  --------- 
 Cash (used in)/generated from 
  operations                                            (268)           (409)        662 
 Taxation received/(paid)                                   -               9       (81) 
--------------------------------------------      -----------  --------------  --------- 
 Net cash (used in)/generated 
  by operating activities                               (268)           (400)        581 
 
 Investing activities 
 Payments to acquire property, 
  plant and equipment                                    (68)           (176)      (293) 
 Payments to acquire intangible 
  assets                                                (456)           (461)    (1,165) 
 Payments to acquire subsidiary 
  undertaking                                               -           (675)      (675) 
 Net cash acquired with subsidiary 
  undertaking                                               -               7          7 
 Disposal of subsidiary, net of 
  cash disposed                                             -               -      1,155 
 Finance income                                             6              26         21 
--------------------------------------------      -----------  --------------  --------- 
 Cash used in investing activities                      (518)         (1,279)      (950) 
 
 Financing 
 New bank loan/(repayment of bank 
  loan)                                                   329            (15)       (31) 
 Payments in respect of obligations 
  under finance leases                                      -            (28)       (41) 
 Finance costs                                           (45)            (39)       (78) 
--------------------------------------------      -----------  --------------  --------- 
 Net cash generated by/(used in) 
  financing activities                                    284            (82)      (150) 
--------------------------------------------      -----------  --------------  --------- 
 
 Decrease in cash and cash equivalents                  (502)         (1,761)      (519) 
 Cash and cash equivalents at 
  the beginning of the financial 
  period                                                3,021           3,540      3,540 
------------------------------------------------  -----------  --------------  --------- 
 Cash and cash equivalents at 
  the end of the financial period                       2,519           1,779      3,021 
------------------------------------------------  -----------  --------------  --------- 
 
 

Bglobal plc- Consolidated statement of changes in equity for the period ended 30 September 2013

 
                                 Share       Share    Share based      Merger    Translation    Retained         Total 
                               capital     premium   compensation     reserve        Reserve      losses        equity 
                               GBP'000     GBP'000        reserve     GBP'000        GBP'000     GBP'000       GBP'000 
                                                          GBP'000 
--------------------------  ----------  ----------  -------------  ----------  -------------  ----------  ------------ 
 Balance as at 
  31 March 2012                  1,063      20,709            351         792              -     (9,920)        12,995 
 
 Share based compensation            -           -           (32)           -              -           -          (32) 
  Lapsed options                     -           -          (137)           -              -         137             - 
--------------------------  ----------  ----------  -------------  ----------  -------------  ----------  ------------ 
 Total transactions 
  with owners in 
  their capacity 
  as owners                          -           -          (169)           -              -         137          (32) 
  Loss for the 
   period                            -           -              -           -              -       (704)         (704) 
  Currency 
   translation 
   difference                        -           -              -           -            (8)           -           (8) 
 Balance as at 
  30 September 
  2012                           1,063      20,709            182         792            (8)    (10,487)        12,251 
 
 Share based compensation            -           -             13           -              -           -            13 
--------------------------  ----------  ----------  -------------  ----------  -------------  ----------  ------------ 
 Total transactions 
  with owners in 
  their capacity 
  as owners                          -           -             13           -              -           -            13 
  Loss for the 
   period                            -           -              -           -              -     (2,603)       (2,603) 
 Currency translation 
  difference                         -           -              -           -              8           -             8 
 Total comprehensive 
  loss for the 
  period                             -           -              -                          -     (2,603)       (2,603) 
--------------------------  ----------  ----------  -------------  ----------  -------------  ----------  ------------ 
 
 Balance as at 
  31 March 2013                  1,063      20,709            195         792              -    (13,090)         9,669 
 
 Share based compensation            -           -             34           -              -           -            34 
  Lapsed options                     -           -            (2)           -              -           2             - 
--------------------------  ----------  ----------  -------------  ----------  -------------  ----------  ------------ 
 Total transactions 
  with owners in 
  their capacity 
  as owners                          -           -             32           -              -           2            34 
  Loss for the 
   period                            -           -              -           -              -     (2,053)       (2,053) 
 Total comprehensive 
  loss for the 
  period                             -           -              -           -              -     (2,053)       (2,053) 
--------------------------  ----------  ----------  -------------  ----------  -------------  ----------  ------------ 
 Balance as at 
  30 September 
  2013                           1,063      20,709            227         792              -    (15,141)         7,650 
--------------------------  ----------  ----------  -------------  ----------  -------------  ----------  ------------ 
 

Notes to the accounts

   1.         Basis of preparation and accounting policies 

Basis of preparation

The Group's half-yearly financial report consolidates the results of the company and its subsidiary undertakings made up to 30 September 2013. The company is a limited liability company incorporated and domiciled in England & Wales and whose shares are quoted on AIM, a market operated by The London Stock Exchange. The consolidated financial information of Bglobal plc is presented in Pounds Sterling (GBP), which is also the functional currency of the parent.

The financial information contained in this half-yearly financial report does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. It does not therefore include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as at 31 March 2013.

The financial information for the 6 months ended 30 September 2013 is also unaudited.

The Group's statutory accounts for the year ended 31 March 2013 have been delivered to the Registrar of Companies. The report of the auditors on these accounts was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.

Significant accounting policies

The accounting policies used in the preparation of the financial information for the six months ended 30 September 2013 are in accordance with the recognition and measurement criteria of International Financial Reporting Standards ('IFRS') as adopted by the European Union and are consistent with those which will be adopted in the annual statutory financial statements for the year ending 31 March 2014.

While the financial information has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS), as adopted by the European Union (EU), this announcement does not in itself contain sufficient information to comply with IFRS's.

Going concern

The directors believe that the use of the going concern basis of accounting remains appropriate because, despite the operating loss in the period and associated operating cash outflow, the Group continues to have significant cash reserves. The directors have reviewed the budget and working capital forecasts for the period to 31 March 2015 and have performed a sensitivity analysis over the forecasts. The projections include forecasts of revenue growth based on management's best estimates, and steps would be taken to reduce costs if those revenue forecasts are not met in the short term.

The Directors also are currently exploring the possibility of disposing of B Global Metering Limited to further increase the reserves of cash.

The directors therefore have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

   2.         Segmental information 

The Group has four reportable segments: Metering and data services, Energy management, Training Services and Software and related services. This disclosure correlates with the information which is presented to the Group's Chief Decision Maker, the CEO. The Group's revenue and result before taxation were derived from its principal activities. Operations are carried out within the United Kingdom and, up to the time of the disposal of the Australian business on 28 February 2013, in Australia.

 
 6 months ended 30                      Metering                                 Software 
  September 2013                             and                                      and 
  REVENUE                                   data          Energy     Training     related 
                                        services      management     services    services      Adjustments       Total 
                                         GBP'000         GBP'000      GBP'000     GBP'000          GBP'000     GBP'000 
--------------------------------  --------------  --------------  -----------  ----------  ---------------  ---------- 
 Total revenue - UK                        2,896             316           90       2,973                -       6,275 
  Inter segment sales 
   - UK                                        -               -            -           -            (108)       (108) 
 
 Total revenue                             2,896             316           90       2,973            (108)       6,167 
--------------------------------  --------------  --------------  -----------  ----------  ---------------  ---------- 
 
 6 months ended 30                      Metering                                 Software 
  September 2013                             and                                      and          Central 
  RESULT                                    data          Energy     Training     related           Costs/ 
                                        services      management     services    services             Adjs       Total 
                                         GBP'000         GBP'000      GBP'000     GBP'000          GBP'000     GBP'000 
--------------------------------  --------------  --------------  -----------  ----------  ---------------  ---------- 
 Segment result before 
  amortisation, depreciation 
  and separately                           (536)           (147)        (228)         458            (292)       (745) 
  identifiable items                        (88)             (4)         (11)        (99)            (493)       (695) 
  Amortisation and depreciation 
--------------------------------  --------------  --------------  -----------  ----------  ---------------  ---------- 
 Segment result before 
  separately identifiable 
  items                                    (624)           (151)        (239)         359            (785)     (1,440) 
 Separately identifiable 
  items                                    (478)               -            -           -                -       (478) 
                                               -               -            -           -            (200)       (200) 
  Impairment provision 
   of capitalised development 
   costs 
 
  Provision in relation 
   to financial asset 
--------------------------------  --------------  --------------  -----------  ----------  ---------------  ---------- 
 Segment result after 
  separately identifiable 
  items                                  (1,102)           (151)        (239)         359            (985)     (2,118) 
  Finance income                               -               -            -           -                6           6 
  Finance costs                                -               -            -         (7)             (38)        (45) 
--------------------------------  --------------  --------------  -----------  ----------  ---------------  ---------- 
 Profit / (loss) before 
  tax                                    (1,102)           (151)        (239)         352          (1,017)     (2,157) 
--------------------------------  --------------  --------------  -----------  ----------  ---------------  ---------- 
 
 
 
                                       Metering                                Software 
                                            and                                     and 
 6 months ended 30                         data         Energy     Training     related 
  September 2012                       services     management     services    services        Adjustments       Total 
  REVENUE                               GBP'000        GBP'000      GBP'000     GBP'000            GBP'000     GBP'000 
--------------------------------  -------------  -------------  -----------  ----------  -----------------  ---------- 
  Continuing operations 
   - UK                                   4,137              5            -       1,820                  -       5,962 
   Inter segment sales 
    - UK                                      -              -            -           -              (144)       (144) 
--------------------------------  -------------  -------------  -----------  ----------  -----------------  ---------- 
  Total sales from continuing 
   operation                              4,137              5            -       1,820              (144)       5,818 
 Discontinued operations 
  - Australia                                 -              -            -       1,461                  -       1,461 
 
 Total revenue                            4,137              5            -       3,281              (144)       7,279 
--------------------------------  -------------  -------------  -----------  ----------  -----------------  ---------- 
 
                                       Metering                                Software 
                                            and                                     and            Central 
 6 months ended 30                         data         Energy     Training     related             Costs/ 
  September 2012                       services     management     services    services               Adjs       Total 
  RESULT                                GBP'000        GBP'000      GBP'000     GBP'000            GBP'000     GBP'000 
--------------------------------  -------------  -------------  -----------  ----------  -----------------  ---------- 
 Segment result before 
  amortisation and depreciation 
  from continuing operation               (383)           (54)        (123)         233              (358)       (685) 
  Amortisation and depreciation           (106)            (2)          (3)        (90)              (745)       (946) 
--------------------------------  -------------  -------------  -----------  ----------  -----------------  ---------- 
 Segment result before 
  separately identifiable 
  items                                   (489)           (56)        (126)         143            (1,103)     (1,631) 
 Separately identifiable 
  items 
 
  Gain on acquisition 
  of Draig Technology                         -              -            -         827                  -         827 
--------------------------------  -------------  -------------  -----------  ----------  -----------------  ---------- 
 Segment result after 
  separately identifiable 
  items                                   (489)           (56)        (126)         970            (1,103)       (804) 
  Finance income                              2              -            -           1                  9          12 
  Finance costs                               -              -            -         (1)               (38)        (39) 
--------------------------------  -------------  -------------  -----------  ----------  -----------------  ---------- 
                                          (487)           (56)        (126)         970            (1,132)       (831) 
  Loss before tax from 
   continuing operations                      -                           -          18                  -          18 
 
   Profit before tax 
    from discontinued 
    operations 
--------------------------------  -------------  -------------  -----------  ----------  -----------------  ---------- 
 Profit / (loss) before 
  tax                                     (487)           (56)        (126)         988            (1,132)       (813) 
--------------------------------  -------------  -------------  -----------  ----------  -----------------  ---------- 
 
 

The table above has been restated to be consistent with the current year's presentation whereby the results of the Energy Management Segment are separately disclosed (previously held within Metering and Data Services) and Utilisoft Pty has been reclassified as a discontinued operation, in accordance with the format of the information which is regularly provided to the Group's chief decision maker.

 
                                        Metering                                 Software 
                                             and                                      and 
 Year ended 31 March                        data          Energy     Training     related 
  2013                                  services      management     services    services      Adjustments       Total 
  REVENUE                                GBP'000         GBP'000      GBP'000     GBP'000          GBP'000     GBP'000 
--------------------------------  --------------  --------------  -----------  ----------  ---------------  ---------- 
  Continuing operations 
   - UK                                    7,420              64           93       4,411                -      11,988 
   Inter segment sales 
    - UK                                       -               -            -           -            (410)       (410) 
--------------------------------  --------------  --------------  -----------  ----------  ---------------  ---------- 
  Total sales from continuing 
   operation                               7,420              64           93       4,411            (410)      11,578 
 Discontinued operations 
  - Australia                                  -               -            -       2,649                -       2,649 
 
 Total revenue                             7,420              64           93       7,060            (410)      14,227 
--------------------------------  --------------  --------------  -----------  ----------  ---------------  ---------- 
 
                                        Metering                                 Software 
                                             and                                      and          Central 
 Year ended 31 March                        data          Energy     Training     related           Costs/ 
  2013                                  services      management     services    services             Adjs       Total 
  RESULT                                 GBP'000         GBP'000      GBP'000     GBP'000          GBP'000     GBP'000 
--------------------------------  --------------  --------------  -----------  ----------  ---------------  ---------- 
 Segment result before 
  amortisation and depreciation 
  from continuing operations               (867)           (301)        (289)         771            (574)     (1,260) 
  Amortisation and depreciation            (200)             (4)         (16)       (266)            (915)     (1,401) 
--------------------------------  --------------  --------------  -----------  ----------  ---------------  ---------- 
 Segment result before 
  separately identifiable 
  items                                  (1,067)           (305)        (305)         505          (1,489)     (2,661) 
 Separately identifiable 
  items                                        -               -            -         827                -         827 
                                               -               -            -       (214)                -       (214) 
  Reversal of fair value 
   adjustment on supplier 
   companies 
 
  Gain on acquisition 
   of Draig Technology 
--------------------------------  --------------  --------------  -----------  ----------  ---------------  ---------- 
 Segment result after 
  separately identifiable 
  items                                  (1,067)           (305)        (305)       1,118          (1,489)     (2,048) 
  Finance income                               3               -            -           1               17          21 
  Finance costs                                -               -          (1)         (1)             (76)        (78) 
--------------------------------  --------------  --------------  -----------  ----------  ---------------  ---------- 
 Loss before tax from 
  continuing operations                  (1,064)           (305)        (306)       1,118          (1,548)     (2,105) 
                                               -               -            -       (611)                -       (611) 
  Loss before tax from 
   discontinued operations 
--------------------------------  --------------  --------------  -----------  ----------  ---------------  ---------- 
 Profit / (loss) before 
  tax                                    (1,064)           (305)        (306)         507          (1,548)     (2,716) 
--------------------------------  --------------  --------------  -----------  ----------  ---------------  ---------- 
 
 

The table above has been restated to be consistent with the current year's presentation whereby the results of the Energy Management Segment are separately disclosed (previously held within Metering and Data Services), in accordance with the format of the information which is regularly provided to the Group's chief decision maker.

   3          Separately identifiable items 
 
  These comprise:                          6 Months      6 Months         Year 
                                              ended         ended        ended 
                                         30 Sept 13    30 Sept 12    31 Mar 13 
                                          Unaudited     Unaudited      Audited 
                                            GBP'000       GBP'000      GBP'000 
-------------------------------------  ------------  ------------  ----------- 
 
 Impairment provision of capitalised          (478)             -            - 
  development cost 
 Provision in respect of loan                 (200)             -            - 
  note 
 Credit arising on acquisition 
  of Draig Technology Limited                     -           827          827 
  Reversal of fair value adjustment 
   on supplier companies                          -             -        (214) 
 
                                              (678)           827          613 
-------------------------------------  ------------  ------------  ----------- 
 

Following the completion of the strategic review, it has also been decided that we will no longer pursue certain research and development initiatives and this has lead to an impairment of GBP0.48m against capitalised development costs within B Global Metering Limited.

The separately identifiable debit of GBP200,000 relates to a full provision made in respect of the loan note issued to Pure World Technologies Limited in November 2011. Pure World Technologies Limited was subject to a winding up order issued on 11 October 2013 and are currently in administration.

The separately identifiable credit of GBP826,650 for the year ended 31 March 2013 arose upon the bargain purchase of Draig Technologies Limited in September 2012.

During the year ended 31 March 2013, four "Supplier in a Box(TM)" energy companies were sold resulting in a gain of GBP226,839. The gain of GBP226,839 is after charging fair value adjustments previously applied totalling GBP214,420, those adjustments being made following the acquisition of Utiligroup by Bglobal plc in 2010 and are considered non-recurring in nature.

   4          Taxation 
 
  Current tax:                      6 Months      6 Months         Year 
                                       ended         ended        ended 
                                     30 Sept    30 Sept 12    31 Mar 13 
                                          13     Unaudited      Audited 
                                   Unaudited       GBP'000      GBP'000 
                                     GBP'000 
-------------------------------  -----------  ------------  ----------- 
 Corporation tax at 23% (March 
  2013: 24%)                               -             -          128 
  R & D tax credit                         -             -        (291) 
  Total current tax                        -             -        (163) 
-------------------------------  -----------  ------------  ----------- 
  Deferred tax: 
  Origination and reversal of 
   temporary differences                 104           126        (616) 
-------------------------------  -----------  ------------  ----------- 
 
  Income tax credit/(charge)             104           126        (779) 
-------------------------------  -----------  ------------  ----------- 
 
   5          Loss per share 

The calculation of basic loss per ordinary share is based on:

 
                                            6 Months   6 Months ended      Year ended 
                                               ended       30 Sept 12       31 Mar 13 
                                          30 Sept 13        Unaudited         Audited 
                                           Unaudited          GBP'000         GBP'000 
                                             GBP'000 
---------------------------------  -----------------  ---------------  -------------- 
 Loss attributable to equity 
  holders including discontinued 
  operations                                 (2,053)            (704)         (3,308) 
 
 Weighted average number 
  of shares - basic                      106,307,871      106,307,871     106,307,871 
  Weighted average number 
   of shares - diluted                   106,307,871      106,307,871     106,307,871 
---------------------------------  -----------------  ---------------  -------------- 
  Loss per share - basic 
   (pence)                                    (1.93)           (0.66)          (3.11) 
 Loss per share - diluted 
  (pence)                                     (1.93)           (0.66)          (3.11) 
---------------------------------  -----------------  ---------------  -------------- 
 
 
                                        6 Months   6 Months ended     Year ended 
                                           ended       30 Sept 12      31 Mar 13 
                                      30 Sept 13        Unaudited        Audited 
                                       Unaudited          GBP'000        GBP'000 
                                         GBP'000 
---------------------------------  -------------  ---------------  ------------- 
 Loss attributable to equity 
  holders excluding discontinued 
  operations                             (2,053)            (705)        (2,884) 
 
  Weighted average number 
   of shares - basic                 106,307,871      106,307,871    103,486,998 
  Weighted average number 
   of shares - diluted               106,307,871      106,307,871    103,563,694 
---------------------------------  -------------  ---------------  ------------- 
  Loss per share - basic 
   (pence)                                (1.93)           (0.66)         (2.71) 
 Loss per share - diluted 
  (pence)                                 (1.93)           (0.66)         (2.71) 
---------------------------------  -------------  ---------------  ------------- 
 

The loss for the period and the weighted average number of ordinary shares for calculating the diluted loss per share for each period are identical to those for the basic loss per share. This is because the outstanding share options and shares arising on conversion of the convertible financial liabilities would have the effect of reducing the loss per ordinary share and would therefore not be dilutive under the terms of International Accounting Standard ("IAS") No 33.

 
  Loss per share from discontinued      6 Months   6 Months ended   Year ended 
   operations                              ended       30 Sept 12    31 Mar 13 
                                      30 Sept 13        Unaudited      Audited 
                                       Unaudited 
----------------------------------  ------------  ---------------  ----------- 
  Basic loss per share -                       -                -       (0.40) 
   pence 
   Fully diluted loss per                      -                -       (0.40) 
    share - pence 
----------------------------------  ------------  ---------------  ----------- 
 

6 The half-yearly financial report was approved for issue by the Board of Directors on 10 December 2013.

7 A copy of this half-yearly financial report is available from the Company's Registered Office or by visiting our website at www.bglobalplc.com.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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