TIDMIBL
RNS Number : 3675N
International Brand Licensing PLC
10 June 2010
International Brand Licensing PLC
("IBL" or the "Company")
Final Results for the year ended 31 December 2009
International Brand Licensing plc, which has recently re-focussed on building a
business within the in vitro diagnostic devices market, announces its final
results for the year ended 31 December 2009.
Highlights:
· Change of strategy to one focused on building a business within the
diagnostics market place through acquisition and organic growth
· New management team of David Evans and Julian Baines appointed
· Continued asset disposal of certain Admiral rights
· Cash at year end of GBP3.037 million
Commenting on Outlook, David Evans, Chairman of IBL, said:
The future is exciting as we seek to acquire businesses specialising in In-Vitro
Diagnostics. We will make these acquisitions where we believe it is appropriate
and we can deliver long term value to the Company and its shareholders.
Enquiries:
+---------------------------------------+-----------------------------+
| International Brand Licensing plc | Tel: 020 7245 1100 |
+---------------------------------------+-----------------------------+
| David Evans, Chairman | |
+---------------------------------------+-----------------------------+
| | |
+---------------------------------------+-----------------------------+
| Zeus Capital | Tel: 0161 831 1512 |
+---------------------------------------+-----------------------------+
| Ross Andrews | |
+---------------------------------------+-----------------------------+
| | |
+---------------------------------------+-----------------------------+
| Walbrook PR | Tel: 020 7933 8787 |
+---------------------------------------+-----------------------------+
| Paul McManus | Mob: 07980 541 893 |
+---------------------------------------+-----------------------------+
| | paul.mcmanus@walbrookpr.com |
+---------------------------------------+-----------------------------+
Chairman's Statement
This is my first report to you since becoming Chairman in late November last
year and I want to both report on the past and give you a view of the future
given the recent change in the Company's strategy.
Financials
Turnover for the year ended 31 December 2009 declined to GBP256,000 (2008:
GBP465,000), reflecting the decision to exit from the brand licensing business.
Consequentially we were also able to reduce our Operating Expenses net of
exceptionals from GBP1,474,000 in 2008 to GBP561,000. The resulting net loss was
GBP305,000 (2008: GBP1,009,000).
The net exceptional items consisted of a gain on sale of certain territory
rights of GBP362,000 (2008: GBP834,000) and a loss of GBP207,000 relating to a
combination of costs of termination of a director's contract, a bad debt charge
and strategic change. There was no impairment to the value of intangible assets
(2008: GBP1,300,000).
The loss before tax amounted to GBP277,000 (2008: GBP923,000). The tax credit
for the year was GBP74,000 (2008: tax charge GBP146,000) resulting in an overall
net loss for the year of GBP203,000 (2008: GBP1,307,000).
Balance Sheet
At the Balance Sheet date the Group had a cash balance of GBP3,037,000 (2008:
GBP2,501,000), the increase reflecting the successful fundraising in December
last year. This represents a solid foundation to build upon for the Company's
new direction.
Management
In November myself, Julian Baines and Kevin Wilson joined your Board and Tony
Hutchinson stepped down on the announced change of strategic direction. The
Board would like to thank Tony for his hard work on behalf of the Company during
a challenging period.
Asset Disposals
During the period we divested certain Admiral rights in Australia, New Zealand
and Asia. Since the year end we have disposed of further rights in the UK and
Ireland and in certain other territories in North Africa and the Middle East for
a total cash consideration of GBP530,000. We are also confident about disposing
the remaining rights over the next few months and we are actively negotiating
the sale of these territories.
Strategic Direction
As announced and subsequently confirmed by Shareholders, the Company has decided
to focus on opportunities in In-Vitro Diagnostics ("IVD"), with an emphasis on
diagnostic tests in the point of care arena.
I do believe that there are opportunities to build an IVD Company of scale from
a UK base and we have been working hard to deliver on this by looking at
companies to acquire with existing channels of distribution.
Outlook
The future is exciting as we seek to acquire businesses specialising in In-Vitro
Diagnostics. We will make these acquisitions where we believe it is appropriate
and we can deliver long term value to the Company and its shareholders.
I look forward to updating you on progress throughout the rest of the year.
David Evans
Chairman
10 June 2010
Principal Activities and Business Review
The principal activity of the Group has historically been the exploitation of a
portfolio of sports and lifestyle brands, trademarks, trade names and logos. The
Group has sought to exploit the value of its brands by granting licences to
third parties authorising the manufacture, marketing and sale of specified
licensed products for a fixed term by reference to a particular territory. On 4
January 2010, the Company's shareholders approved a proposed change in strategy
of the Company to dispose of the brands and to build a business focused within
the In-Vitro Diagnostic devices ("IVD") market place. Further announcements with
regard to the development of this strategy will be made in due course.
Historically, the revenue stream has consisted of two main elements a) royalties
received worldwide through the licensing of the Admiral brand to contracted
licensees, and b) sales of cricket replica kits through its sponsorship
agreements with the ECB and WICB. As both these sponsorship contracts terminated
during 2008, the financial statements reflect only the ongoing business i.e.
royalty income received from licensees around the world. As such, all income and
costs relating to the cricket replica business have been classified as
discontinued operations on the Consolidated Income Statement in the 2008
comparatives.
Group turnover decreased by 45% to GBP256,000 (2008: GBP465,000). This reduction
in turnover is largely due to the Company having disposed of further
Admiral-licensed territories during 2009 and the latter part of 2008, as
follows:
· Sale of Admiral trademarks in Turkey to Diethnis Athlitiki in June 2008
for a cash consideration of Eur 400,000.
· Sale of Admiral trademarks in Southern Africa to Admiral IP Limited in
July 2008 for a cash consideration of GBP225,000.
· Sale of Admiral trademarks in Japan to IPGI Inc and Toyota Tsusho Trading
Corporation in September 2008 for a cash consideration of GBP1,180,000.
· Sale of Admiral trademarks in Australia and New Zealand to Soccer Shirts
International (Pty) Limited in August 2009 for a cash consideration of
GBP117,000.
In addition, in late-December 2009 the Company sold its 49% stake in Admiral
Asia Limited to Rich Crest Group for a cash consideration of GBP375,000. This
was announced on 5 January 2010. In addition, on 28 May 2010 the Company
announced that it had sold the rights to the Admiral sports brand in the UK and
Ireland and certain other territories in North Africa and the Middle East for a
total consideration of GBP530,000.
Whilst the sale of the above territories has resulted in a drop in revenues, the
Group has obviously benefited from the sizeable cash considerations which will
allow the business to pursue its new proposed strategy.
The Group made an operating loss before exceptional items for the year ended 31
December 2009 of GBP399,000 (2008: loss GBP482,000), hence despite a reduction
in revenues for the year, significant reductions in overheads has resulted in a
reduction in operating expenses of 31% to GBP655,000 (2008: GBP947,000).
Specific points worth highlighting are:
(a) Travel costs decreased by GBP32,000 in 2009, due to reduced visits to
worldwide licensees. This has been largely as a result of the Company now having
a lower number of licensees, albeit there was also a concerted effort to reduce
the cost of servicing the current licensees, as indicated in last year's
Business Review.
(b) Legal fees decreased by GBP49,000 in 2009. Similar to the point made above,
fewer territories and less trademark registrations means lower legal maintenance
costs; negotiations were also made with the Company's trademark lawyers to
reduce the cost of servicing the ongoing trademark registrations.
(c) The 2008 financial statements included a one-off provision of GBP120,000
for a potential liability to one of our European licensees. Although the
Directors believe this liability is unlikely to crystallise, they have been
prudent and kept the provision in place for the foreseeable future.
(d) The 2008 financial statements reflected a GBP57,000 adverse currency
exchange difference arising on the settlement of certain transactions, whereas
the 2009 financial statements reflected a favourable currency exchange of
GBP22,000, a movement of GBP79,000.
An exceptional profit on the sale of intangible assets of GBP362,000 was
generated in the year. This has arisen due to three main elements:
(a) The Admiral territorial sale of Australia and New Zealand grossed
GBP117,000 in sales proceeds; around GBP28,000 of costs were associated with
this sale, resulting in a profit of GBP89,000.
(b) The group sold its 49% stake in Admiral Asia for GBP375,000 just before the
year end, against which associated costs of GBP102,000 were allocated, resulting
in a profit of GBP273,000.
(c) Further exceptional costs incurred in the year totalled GBP207,000, which
includes a termination payment to former CEO Anthony Hutchinson of GBP104,000,
bad debt write-offs of GBP67,000, and other non-recurring costs of GBP36,000.
A share based payment, which is a non-cash item, of GBP61,000 (2008: GBP61,000)
has been charged to the Income Statement.
Following the above charges, an operating loss after exceptional items of
GBP305,000 (2008: loss GBP1,009,000) has been incurred during the year.
After having received interest income of GBP29,000 (2008: GBP86,000), and having
incurred a finance cost of GBP1,000 (2008: GBPnil) a loss before tax of
GBP277,000 (2008: loss GBP923,000) was reported.
Income tax of (GBP74,000) (2008: GBP146,000) was charged in the year, resulting
in a loss from continuing operations of GBP203,000 (2008: loss GBP1,069,000).
No charges were made to the Income Statement in relation to discontinued
operations (2008: GBP238,000).
The loss for the year was reported at GBP203,000 (2008: loss GBP1,307,000).
The balance sheet shows that the Group's financial position remains strong with
total assets of GBP6.40 million (2008: GBP5.74 million) and net assets of
GBP5.62 million (2008: GBP5.07 million).
Included in the above assets are cash and cash equivalent balances of GBP3.04
million (2008: GBP2.50 million) as well as GBP425,000 of accrued income, most of
which has since been received after the year end.
On 26 November 2009, the Company raised over GBP1 million of cash through the
issue of 8,398,300 new ordinary shares at a premium of 11.75p, thereby
increasing the Company's share capital to GBP420,000.
It is worth noting that Intangible Assets are now valued at GBP1.95 million
(2008: GBP2.62 million); the reduction is, in part, due to a transfer to current
asset intangibles of GBP473,000, being the value of territories currently under
negotiation to be sold in 2010. In addition, an exchange rate loss of GBP199,000
has reduced the value of the brand; in accordance with International Financial
Reporting Standards this loss has not been realised in the Income Statement but
has been charged to Equity as a Foreign Currency Reserve as shown on the face of
the Group Balance Sheet.
Future Outlook
The Group is now focussed on building a business within the In-Vitro Diagnostics
industry; further announcements with regards the Company's progress with this
new strategy will be made in due course.
Consolidated Income Statement
For the year ended 31 December 2009
+--------------------------------+--------+-------------+-+------------+
| | Notes | 2009 | | 2008 |
+--------------------------------+--------+-------------+-+------------+
| | | GBP'000 | | GBP'000 |
| | | | | |
+--------------------------------+--------+-------------+-+------------+
| Group revenue | 2 | 256 | | 465 |
+--------------------------------+--------+-------------+-+------------+
| Operating expenses | | (561) | | (1,474) |
+--------------------------------+--------+-------------+-+------------+
| Operating loss | 3 | (305) | | (1,009) |
+--------------------------------+--------+-------------+-+------------+
| | | | | |
+--------------------------------+--------+-------------+-+------------+
| Operating loss analysed as: | | | | |
+--------------------------------+--------+-------------+-+------------+
| Group revenue | | 256 | | 465 |
+--------------------------------+--------+-------------+-+------------+
| Operating expenses before | | (655) | | (947) |
| exceptional items | | | | |
+--------------------------------+--------+-------------+-+------------+
| Operating loss before | | (399) | | (482) |
| exceptional items | | | | |
+--------------------------------+--------+-------------+-+------------+
| | | | | |
+--------------------------------+--------+-------------+-+------------+
| Exceptional profit on sale of | 4 | 362 | | 834 |
| intangible assets | | | | |
+--------------------------------+--------+-------------+-+------------+
| Exceptional impairment of | | - | | (1,300) |
| intangible assets | | | | |
+--------------------------------+--------+-------------+-+------------+
| Exceptional other costs | 4 | (207) | | - |
+--------------------------------+--------+-------------+-+------------+
| Share based payments | | (61) | | (61) |
+--------------------------------+--------+-------------+-+------------+
| Operating loss after | | (305) | | (1,009) |
| exceptional items | | | | |
+--------------------------------+--------+-------------+-+------------+
| | | | | |
+--------------------------------+--------+-------------+-+------------+
| Finance income | 5 | 29 | | 86 |
+--------------------------------+--------+-------------+-+------------+
| Finance costs | 5 | (1) | | - |
+--------------------------------+--------+-------------+-+------------+
| | | | | |
+--------------------------------+--------+-------------+-+------------+
| Loss before income tax | | (277) | | (923) |
+--------------------------------+--------+-------------+-+------------+
| Taxation | 6 | 74 | | (146) |
+--------------------------------+--------+-------------+-+------------+
| Loss from continuing | | (203) | | (1,069) |
| operations | | | | |
+--------------------------------+--------+-------------+-+------------+
| Loss from discontinued | | - | | (238) |
| operations | | | | |
+--------------------------------+--------+-------------+-+------------+
| Loss for the year attributable | | (203) | | (1,307) |
| to shareholders | | | | |
+--------------------------------+--------+-------------+-+------------+
| | | | | |
+--------------------------------+--------+-------------+-+------------+
| Loss per ordinary share | | Pence | | Pence |
+--------------------------------+--------+-------------+-+------------+
| Basic and diluted | 7 | (0.6) | | (3.9) |
+--------------------------------+--------+-------------+-+------------+
| | | | | |
+--------------------------------+--------+-------------+-+------------+
Consolidated Statement of Recognised Income and Expenses
For the year ended 31 December 2009
+------------------------------------------+------------+-+------------+
| | 2009 | | 2008 |
+------------------------------------------+------------+-+------------+
| | GBP'000 | | GBP'000 |
| | | | |
+------------------------------------------+------------+-+------------+
| Exchange differences on translation of | (218) | | 1,420 |
| foreign operations | | | |
+------------------------------------------+------------+-+------------+
| Fair value adjustment in respect of | (130) | | (49) |
| available-for-sale financial | | | |
| assets | | | |
+------------------------------------------+------------+-+------------+
| | | | |
+------------------------------------------+------------+-+------------+
| Income and expense recognised directly | (348) | | 1,371 |
| in equity | | | |
+------------------------------------------+------------+-+------------+
| Loss for the year | (203) | | (1,307) |
+------------------------------------------+------------+-+------------+
| | | | |
+------------------------------------------+------------+-+------------+
| Total recognised (expenses)/income for | (551) | | 64 |
| the year | | | |
+------------------------------------------+------------+-+------------+
| | | | |
+------------------------------------------+------------+-+------------+
| All amounts are attributable to equity | | | |
| holders of the company. | | | |
+------------------------------------------+------------+-+------------+
Group and Company Balance Sheets
As at 31 December 2009
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| | | Group | | Group | | Company | | Company |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| | | 2009 | | 2008 | | 2009 | | 2008 |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Assets |Notes | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Non-current assets | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Property, plant and | | - | | 3 | | - | | - |
| equipment | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Intangibles | 8 | 1,949 | | 2,621 | | - | | - |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Deferred tax assets | | 94 | | 62 | | 94 | | 62 |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Investments | | - | | - | | 213 | | 213 |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Available-for-sale | | 141 | | 21 | | 141 | | 21 |
| financial assets | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Total non-current | | 2,184 | | 2,707 | | 448 | | 296 |
| assets | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Current assets | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Current asset | | 473 | | - | | - | | - |
| intangibles | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Trade and other | | 703 | | 530 | | 185 | | 25 |
| receivables | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Cash and cash | | 3,037 | | 2,501 | | 2,940 | | 2,385 |
| equivalents | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Total current assets | | 4,213 | | 3,031 | | 3,125 | | 2,410 |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Total assets | | 6,397 | | 5,738 | | 3,573 | | 2,706 |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Liabilities | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Current liabilities | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Trade and other | | (622) | | (457) | | (1,703) | | (1,283) |
| payables | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Current tax | | (155) | | (211) | | - | | - |
| liabilities | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Total current | | (777) | | (668) | | (1,703) | | (1,283) |
| liabilities | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Net assets | | 5,620 | | 5,070 | | 1,870 | | 1,423 |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Equity | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Share capital | | 420 | | 336 | | 420 | | 336 |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Share premium | | 4,077 | | 3,090 | | 4,077 | | 3,090 |
| account | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Other reserve | | 244 | | 244 | | - | | - |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Foreign currency | | 1,265 | | 1,483 | | - | | - |
| reserves | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Retained earnings | | (386) | | (83) | | (2,627) | | (2,003) |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| Total shareholders' | | 5,620 | | 5,070 | | 1,870 | | 1,423 |
| equity | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
| | | | | | | | | |
+----------------------+-------+---------+----------+----------+----------+---------+----------+---------+
Consolidated Cash Flow Statement
For the year ended 31 December 2009
+---------------------------------------------+----------+-+----------+
| | 2009 | | 2008 |
+---------------------------------------------+----------+-+----------+
| | GBP'000 | | GBP'000 |
+---------------------------------------------+----------+-+----------+
| Cash Flow from operating activities | | | |
+---------------------------------------------+----------+-+----------+
| Operating loss | (305) | | (1,009) |
+---------------------------------------------+----------+-+----------+
| Loss from discontinued operations | - | | (238) |
| Depreciation | 3 | | 3 |
| Exceptional impairment of intangible assets | - | | 1,300 |
+---------------------------------------------+----------+-+----------+
| Exceptional profit on sale of intangible | (362) | | (834) |
| asset | | | |
+---------------------------------------------+----------+-+----------+
| Increase in receivables | (173) | | (3) |
+---------------------------------------------+----------+-+----------+
| Increase/(decrease) in payables | 135 | | (65) |
+---------------------------------------------+----------+-+----------+
| Decrease in inventories | - | | 110 |
+---------------------------------------------+----------+-+----------+
| Share-based payment | 61 | | 61 |
+---------------------------------------------+----------+-+----------+
| Taxes paid | (12) | | (45) |
| Foreign currency translation | (22) | | 73 |
+---------------------------------------------+----------+-+----------+
| Net cash used in operating activities | (675) | | (647) |
+---------------------------------------------+----------+-+----------+
| | | | |
+---------------------------------------------+----------+-+----------+
| Cash flow from investing activities | | | |
+---------------------------------------------+----------+-+----------+
| Interest received | 29 | | 86 |
+---------------------------------------------+----------+-+----------+
| Net proceeds on sale of intangible asset | 362 | | 1,625 |
+---------------------------------------------+----------+-+----------+
| Purchase of listed Investments | (250) | | - |
+---------------------------------------------+----------+-+----------+
| Net cash generated by investing activities | 141 | | 1,711 |
+---------------------------------------------+----------+-+----------+
| | | | |
+---------------------------------------------+----------+-+----------+
| Cash flow from financing activities | | | |
+---------------------------------------------+----------+-+----------+
| Interest paid | (1) | | - |
+---------------------------------------------+----------+-+----------+
| Proceeds from issue of equity instruments | 1,071 | | - |
+---------------------------------------------+----------+-+----------+
| Net cash generated by financing activities | 1,070 | | - |
+---------------------------------------------+----------+-+----------+
| | | | |
+---------------------------------------------+----------+-+----------+
| Net increase in cash and cash equivalents | 536 | | 1,064 |
+---------------------------------------------+----------+-+----------+
| | | | |
+---------------------------------------------+----------+-+----------+
| Cash and cash equivalents at beginning of | 2,501 | | 1,437 |
| year | | | |
+---------------------------------------------+----------+-+----------+
| | | | |
+---------------------------------------------+----------+-+----------+
| Cash and cash equivalents at end of year | 3,037 | | 2,501 |
+---------------------------------------------+----------+-+----------+
| | | | |
+---------------------------------------------+----------+-+----------+
Notes
1. Accounting policies
The principal accounting policies adopted in preparation of the Group's
financial statements are set out below. The policies have been consistently
applied, unless otherwise stated.
Basis of preparation
The consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS and IFRIC Interpretations)
issued by the International Accounting Standards Board (IASB) as adopted by the
European Union and with those parts of the Companies Acts applicable to
companies preparing their financial statements under IFRS. Practice is
continuing to evolve on the application and interpretations of IFRS. Further
standards may be issued by the International Accounting Standards (IASB) and
standards currently in issue and endorsed by the EU may be subject to
interpretations issued by IFRIC.
The preparation of financial statements, in conformity with general accepted
accounting principles under IFRS, requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reported period. Although these estimates are based on
management's best knowledge of the amount, event or actions, actual results may
ultimately differ from those estimates. The accounting policies have been
applied consistently throughout the Group for the purposes of preparation of
these consolidated financial statements.
As permitted by section 408 of the Companies Act 2006 a separate income
statement for the parent Company is not presented. The Company's loss for the
year was GBP524,000 (2008: Loss GBP430,000).
2. Segmental Reporting
Primary segmental reporting
During 2008 the group discontinued its Replica kit business. Since then, the
group's business is attributable to a single segment, being its licensing
business.
Secondary segmental reporting format
The turnover is attributable to the principal activity of the Group. An analysis
of turnover by geographical destination is given below:
+------------------------------------------+------------+-+------------+
| | 2009 | | 2008 |
+------------------------------------------+------------+-+------------+
| | GBP'000 | | GBP'000 |
+------------------------------------------+------------+-+------------+
| | | | |
+------------------------------------------+------------+-+------------+
| United Kingdom | 138 | | 190 |
+------------------------------------------+------------+-+------------+
| Europe and Scandinavia | 7 | | 30 |
+------------------------------------------+------------+-+------------+
| North America | 100 | | 134 |
+------------------------------------------+------------+-+------------+
| Asia | 11 | | 95 |
+------------------------------------------+------------+-+------------+
| Rest of the World | - | | 16 |
+------------------------------------------+------------+-+------------+
| | 256 | | 465 |
+------------------------------------------+------------+-+------------+
3. Operating loss
Operating loss has been arrived at after charging:
+---------------------------------------------+---------+--+---------+
| | 2009 | | 2008 |
+---------------------------------------------+---------+--+---------+
| |GBP'000 | |GBP'000 |
+---------------------------------------------+---------+--+---------+
| | | | |
+---------------------------------------------+---------+--+---------+
| Staff costs | 217 | | 354 |
+---------------------------------------------+---------+--+---------+
| Depreciation of property, plant and | 3 | | 3 |
| equipment | | | |
+---------------------------------------------+---------+--+---------+
| Operating lease expenditure: | | | |
+---------------------------------------------+---------+--+---------+
| - Land and buildings | 7 | | 11 |
+---------------------------------------------+---------+--+---------+
| - Motor vehicles | 4 | | 6 |
+---------------------------------------------+---------+--+---------+
| Auditors' remuneration: | | | |
+---------------------------------------------+---------+--+---------+
| - Fees payable to the Company's auditors | | | |
| for the audit of the | 19 | | 25 |
| company's annual financial statements and | | | |
| subsidiaries' | 3 | | 5 |
| financial statements | | | |
| - Tax compliance services | | | |
+---------------------------------------------+---------+--+---------+
4. Exceptional Items
+---------------------------------------------+---------+-+---------+
| | 2009 | | 2008 |
+---------------------------------------------+---------+-+---------+
| |GBP'000 | |GBP'000 |
+---------------------------------------------+---------+-+---------+
| Exceptional profit on sale of intangible | | | |
| assets | | | |
+---------------------------------------------+---------+-+---------+
| Sales of intangible assets | 486 | | 1,812 |
+---------------------------------------------+---------+-+---------+
| Costs associated with sale of intangible | (124) | | (978) |
| assets | | | |
+---------------------------------------------+---------+-+---------+
| | 362 | | 834 |
+---------------------------------------------+---------+-+---------+
| | | | |
+---------------------------------------------+---------+-+---------+
| Exceptional other costs | | | |
+---------------------------------------------+---------+-+---------+
| Bad debt write off | (67) | | - |
+---------------------------------------------+---------+-+---------+
| Future change of strategy costs | (36) | | - |
+---------------------------------------------+---------+-+---------+
| Termination payment for Anthony Hutchinson | (104) | | - |
| (former director) | | | |
+---------------------------------------------+---------+-+---------+
| | (207) | | - |
+---------------------------------------------+---------+-+---------+
Exceptional items are those significant items which are separately disclosed by
virtue of their size or incidence to enable a full understanding of the Group's
financial performance.
5. Finance income and costs
+--------------------------------------------+---------+-+---------+
| | 2009 | | 2008 |
+--------------------------------------------+---------+-+---------+
| |GBP'000 | |GBP'000 |
+--------------------------------------------+---------+-+---------+
| Finance Income | | | |
+--------------------------------------------+---------+-+---------+
| Interest income from deposits | 29 | | 86 |
+--------------------------------------------+---------+-+---------+
| | | | |
+--------------------------------------------+---------+-+---------+
| Finance Costs | | | |
+--------------------------------------------+---------+-+---------+
| Interest expense from borrowings at | 1 | | - |
| amortised cost | | | |
+--------------------------------------------+---------+-+---------+
6. Taxation
+--------------------------------------------+---------+-+---------+
| | 2009 | | 2008 |
+--------------------------------------------+---------+-+---------+
| |GBP'000 | |GBP'000 |
+--------------------------------------------+---------+-+---------+
| Current Tax Expense | | | |
+--------------------------------------------+---------+-+---------+
| Current tax charge | - | | 158 |
+--------------------------------------------+---------+-+---------+
| Adjustment in respect of prior periods | (42) | | - |
+--------------------------------------------+---------+-+---------+
| Current tax expense | (42) | | 158 |
+--------------------------------------------+---------+-+---------+
| Deferred tax income | (32) | | (12) |
+--------------------------------------------+---------+-+---------+
| Total tax expense | (74) | | 146 |
+--------------------------------------------+---------+-+---------+
The tax charge is all attributable to continuing operations.
The tax assessed for the year differs from the standard rate of corporation tax
in the UK at 28%.
The differences are explained below:
+---------------------------------------------+---------+----------+---------+
| | 2009 | | 2008 |
+---------------------------------------------+---------+----------+---------+
| |GBP'000 | |GBP'000 |
+---------------------------------------------+---------+----------+---------+
| | | | |
+---------------------------------------------+---------+----------+---------+
| Loss before tax | (277) | | (923) |
+---------------------------------------------+---------+----------+---------+
| Loss on ordinary activities at the standard | | | |
| rate of corporation tax | (78) | | (259) |
| In the UK of 28% (2008 - 28%) | | | |
+---------------------------------------------+---------+----------+---------+
| Effects of: | | | |
+---------------------------------------------+---------+----------+---------+
| Expenses that are not deductible in | 61 | | 30 |
| determining taxable profit | | | |
+---------------------------------------------+---------+----------+---------+
| Impairment review of intangible assets | - | | 364 |
| Discontinued operations - losses utilised | - | | (71) |
+---------------------------------------------+---------+----------+---------+
| Adjustment in respect of prior periods | (42) | | - |
+---------------------------------------------+---------+----------+---------+
| Other tax adjustments | (15) | | 82 |
+---------------------------------------------+---------+----------+---------+
| Total tax expense | (74) | | 146 |
+---------------------------------------------+---------+----------+---------+
7. Loss per share
+--------------------------------------------+------------+----------+------------+
| | 2009 | | 2008 |
+--------------------------------------------+------------+----------+------------+
| | GBP'000 | | GBP'000 |
+--------------------------------------------+------------+----------+------------+
| Loss | | | |
+--------------------------------------------+------------+----------+------------+
| Loss for the purposes of basic and diluted | | | |
| earnings | (203) | | (1,307) |
| per share | | | |
+--------------------------------------------+------------+----------+------------+
| | | | |
| Numbers | | | |
+--------------------------------------------+------------+----------+------------+
| Weighted average number of ordinary shares | | | |
| for the purpose of |34,293,228 | |33,593,353 |
| basic earnings per share | | | |
+--------------------------------------------+------------+----------+------------+
| | | | |
+--------------------------------------------+------------+----------+------------+
| Basic loss per 1p share | (0.6) | | (3.9) |
| | pence | | pence |
+--------------------------------------------+------------+----------+------------+
There is no dilutive effect of the options.
8. Intangible Fixed Assets
Group
+----------------------------------------------------+------------+
| |Intangible |
| | Fixed |
| | Assets |
+----------------------------------------------------+------------+
| | GBP'000 |
+----------------------------------------------------+------------+
| Cost | |
+----------------------------------------------------+------------+
| At 1 January 2008 | 3,365 |
+----------------------------------------------------+------------+
| Disposals | (791) |
+----------------------------------------------------+------------+
| Exceptional impairment | (1,300) |
+----------------------------------------------------+------------+
| Exchange Differences | 1,347 |
+----------------------------------------------------+------------+
| At 31 December 2008 | 2,621 |
+----------------------------------------------------+------------+
| Transfer to current assets | (473) |
+----------------------------------------------------+------------+
| Exchange Differences | (199) |
+----------------------------------------------------+------------+
| At 31 December 2009 | 1,949 |
+----------------------------------------------------+------------+
During the year, the Group's trademarks were tested for impairment in accordance
with IAS 36 on the basis of the relevant cash generating units. The recoverable
amount of a cash generating unit is determined by value-in-use calculations.
These calculations use cash flow projections over the next 10 years. The key
assumptions for the value-in-use calculations are those regarding revenue growth
and discount rates. The directors determined budgeted revenue growth based on
past performance and their expectations for market development. The discount
rate of approximately 10% was determined using post-tax rates that reflect
current market assessments of the time value of money and the risks attached to
these trademarks.
The sale of certain other territories is currently under negotiation and hence
GBP473,000 has been transferred to current assets in anticipation of this
transaction.
The Group's trademarks are held by the Swiss Subsidiary whose functional
currency is Swiss Francs. Exchange differences arise upon the retranslation of
the assets into British Pounds Sterling at the balance sheet date.
9. Delivery of Accounts
The statutory accounts in respect of the prior year ended 31 December 2008 have
been delivered to the Registrar of Companies and the auditors of the Company
made a report thereon under Section 235 of the Act. That report was an
unqualified report and did not contain a statement under Section 237 (2) or (3)
of the Act.
10. Availability of Accounts
This statement is not being posted to shareholders. The Report and Accounts will
be posted to shareholders later today. Copies of this announcement and further
copies of the Report and Accounts can be downloaded from the website:
www.iblplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SSUESUFSSELM
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