RNS Number:6331I
Plasmon PLC
28 November 2007
Plasmon Plc
2007 Interim Results
Overview
Plasmon continues its transition from a specialised vendor of optical hardware
to an Archive Solution Provider, meeting key Enterprise customer priorities for
archiving integrity, longevity and legal compliance. The environmental
friendliness of our solutions (90-95% lower energy requirements than rival hard
disk systems) is also increasingly attracting business and public sector
customers.
Key Highlights for the Six Months ended 30 September 2007
Despite sales weakness experienced since the summer, the business continues to
develop in line with the Board's expectations for the transition underway and
the goal of reaching cash flow breakeven in the 4th quarter.
* Sales declined by 20% to #14.8m (2006: #18.6m) as older, non-Solutions
products were impacted by cyclical declines and a weak US IT market since the
summer. On a constant currency basis, sales declined by 14%.
* However, Archive Appliance sales grew by more than 50% in constant
currency and are gaining momentum. Over the first half, our new Channel sales
achieved:
- A doubling of average sales order size for Archive Appliance
- A doubling of active Order Registrations
* Operating losses declined to #4.8m (2006: #5.7m) before rationalisation
costs of #0.5m (2006: #nil).
* The Outsourcing and Cost Alignment programme (OSCA) is ahead of
schedule and reduced overheads in the period by 17%.
* Raised #8m gross capital in May 2007.
* Steven Murphy appointed as Chief Executive Officer on 13 November 2007.
Rod Powell (Chairman of Plasmon Plc) said "The past 6 months have seen a
successful restructuring of our cost and manufacturing base, and a successful
launch of our UDO2 and Archive Appliance solutions. Steven Murphy is a proven
CEO in the Storage sector, and his experience in Enterprise Solutions sales will
accelerate the promising growth our next generation products are demonstrating."
Steven Murphy (Chief Executive of Plasmon Plc) said "The Enterprise archiving
market wants something better than magnetic tapes or power-hungry RAID server
farms. Plasmon has an unchallenged leadership position with Archive Appliance;
our optical solution offers low cost of ownership, fast retrieval and a
physically permanent storage media. In the second half, a direct sales focus on
the corporate, financial and government sectors, where these attributes are
critical, will build a major opportunity for future sales growth."
Strategy
During the first half of the 2008 financial year, Plasmon continued to execute
its transition from a specialised vendor of optical hardware to an Archive
Solution Provider. We focused product management, development, and sales and
marketing efforts to build our Solution Provider position in this growing
market, whilst maintaining our legacy document management components business.
We continued investing in sales and marketing to create awareness of the archive
solution strategy and to stimulate demand through a new enterprise-class set of
distributors and certified archive consultant resellers. The previously
announced Outsourcing and Cost Alignment programme ("OSCA") successfully reduced
costs in our legacy businesses, and this work will continue to restructure our
internal operations and costs in line with the archive solution strategy.
Channel development
We will continue to invest in developing the enterprise-class indirect solutions
channel and in programmes to stimulate end-customer demand in the enterprise
archive market. The process of recruiting this new tier of resellers has
progressed ahead of plan; in the first half, 16 of our 22 priority targets were
signed up to formal contracts and had staff qualify as Plasmon-certified
archive consultants.
The key metrics we use to gauge progress during this channel development are:
1) the percentage of tier one reseller targets under contract
2) the number of opportunities or leads turned over to certified archive
resellers
3) the conversion of leads to registered qualified opportunities by each channel
partner
4) the rate and quality of new quotes
5) the average deal sizes
6) the mean time to convert the opportunities to shipped business
7) the revenue after initial contract.
The registered opportunity pipeline has grown steadily during the first half of
the year and the average configuration and sale price has doubled, as the new
channels have succeeded in engaging with larger enterprise customers. However,
the faster rate of decline of our legacy components business, compounded by the
longer time needed to close "large ticket" solutions sales has impacted our
revenue expectations. Overall, revenues declined 20% to #14.8m (2006: #18.6m)
or 14% on a constant currency basis. We reported softness in the US market,
with an apparent slow down in IT spend in key financial and medical markets, at
our AGM in September and we continue to see that effect.
Plasmon has now established a top tier reseller foundation as planned, and our
next phase is to develop a complementary direct customer sales capability for
our key vertical segments, to allow us to stimulate demand, design the best-fit
enterprise archive solution closer to the end customer, and support our
resellers with specialised compliance and solutions expertise. In parallel to
this initiative, we are creating a long-term archive solutions roadmap with our
technology partners. This will increase our software-based storage management
capabilities and grow the capacity of our unique UDO technology to allow Plasmon
to serve the very largest and most demanding Enterprise customers. This segment
is particularly attracted to our solutions' archiving integrity and lower life
cycle and power costs, as an alternative to ever-expanding disk server farms.
Project OSCA and rationalisation costs
Project OSCA and other cost reduction programs have reduced the overhead cost
base, including manufacturing costs, by 17% this year and offset the impact of
lower sales. The operating losses for the six months ended 30 September 2007
totalled #4.8m (2006: #5.7m) before rationalisation costs of #0.5m (2006: #nil).
Plasmon has entered contract negotiations with our chosen library outsourcing
partner and are on target to have completed the project by June of 2008 when we
will move into a smaller facility in Colorado Springs. The rationalisation
costs incurred in the first half related to the resignation of Nigel Street as
Chief Executive in May 2007 and redundancies, principally in the North American
operations.
Fund raising
In May 2007 Plasmon completed a #8m placing at 20p per Ordinary Share to fund
the next stage of growth plans and to strengthen the Group's finances. At 30
September 2007, net debt totalled #8.8m (2006: #7.9m), a gearing of 29% (2006:
21%) of net assets.
Related parties
Related party disclosures are given in Note 8.
Outlook
Despite the ongoing softness in US IT capital spend and reduced revenue
visibility, the Board believes that we can still meet the cash break even goal
in the 4th quarter. This is due to the following factors: the strengthening of
our senior leadership, the demand for our new Archive Solutions to meet the
compliance and environmental priorities of enterprise customers, the increasing
maturity of our new channel partners and our continued cost control.
The Board is extremely pleased that Steven Murphy has joined Plasmon as CEO. His
experience and track record in the storage management market is exactly the
right fit for the next stage of Plasmon's development, as we grow our archiving
solutions business to its full market potential. The Board would also like to
thank Jeff Hewitt for his work as Chairman over the past 18 months in completing
a major fund raising and introducing new leadership to Plasmon.
Enquiries:
Plasmon Plc (01763 261466)
Steven Murphy (Chief Executive)
Timothy Arthur (Finance Director)
Citigate Dewe Rogerson (020 7638 9571)
Martin Jackson
Ged Brumby
Angharad Couch
Principal risk factors
The directors believe that the following major risks face the business over the
next six months through to March 2008.
* UDO
UDO is proving to be reliable in the field and it has already passed the
stringent testing requirements of major OEM customers. As a result the directors
believe that the technological risk associated with the original UDO development
programme is now minimal. However, there remain a number of specific risks
associated with the widespread deployment of UDO technology that will impact the
ultimate success of UDO technology. The most significant of these risks relate
to the adoption of the UDO Archive Appliance, the development of future
generations of UDO products and the support of major OEM customers.
* Competition
The mass data storage market is highly competitive and the Group faces
competition from companies who have much greater capital resources than the
Group.
* Technological change
The technology upon which the Group's products are based may become obsolete or
may not achieve sufficient market acceptance to create adequate demand for the
Group to return to profitability.
* Alliance partnerships
Part of the Group's strategy is to leverage its alliances with strategic
partners. The Group's failure to establish further strategic alliances, or the
loss of existing partners, could have a materially adverse impact on the Group.
In order to mitigate this risk, the Group continues to invest in developing
competitive, market-leading products and to work with major development and
sales partners.
* Short order book and quarter-end weighting
In line with industry norms, the Company operates with an order book less than
one month and with significant quarter-end weighting. This position provides the
Company with limited guidance on the outlook for future revenues, which could
vary significantly from historical trends.
Forward-looking statements
Certain statements in this half-yearly report are forward-looking. Although the
Group believes that the expectations reflected in these forward-looking
statements are reasonable, we can give no assurance that these expectations will
prove to have been correct. Because these statements involve risks and
uncertainties, actual results may differ materially from those expressed or
implied by these forward-looking statements.
We undertake no obligation to update any forward-looking statements whether as a
result of new information, future events or otherwise.
Plasmon Plc
Consolidated half-year balance sheet
Notes As at 30 As at 30 As at 31 March
September 2007 September 2006 2007
(Unaudited) (Unaudited) (Audited)
#'000's #'000's #'000's
Assets
Non current assets
Goodwill 7,925 8,048 7,966
Intangible assets 5 3,735 4,589 4,152
Property, plant and equipment 5 19,692 21,571 19,964
31,352 34,208 32,082
Current assets
Inventories 10,943 12,868 11,343
Trade and other receivables 6,793 8,526 7,504
Current tax assets 2
Cash and cash equivalents 720 946 347
18,456 22,340 19,196
Liabilities
Current liabilities
Trade and other payables (8,735) (9,137) (9,580)
Current tax liabilities (82) (106) (83)
Obligations under finance leases (418) (599) (406)
Bank overdraft and loans (5,092) (3,425) (6,579)
Provisions 10 (993) - (1,319)
(15,320) (13,267) (17,967)
Net current assets
3,136 9,073 1,229
Non-current liabilities
Bank loans (3,706) (4,193) (3,935)
Obligations under finance leases (279) (628) (461)
Deferred tax (289) (356) (332)
(4,274) (5,177) (4,728)
Net assets
30,214 38,104 28,583
Equity
Share capital 6 6,037 4,037 4,037
Share premium account 6 75,731 70,336 70,336
Foreign exchange reserves (1,198) (648) (973)
Profit and loss account (50,356) (35,621) (44,817)
Total shareholders' equity 30,214 38,104 28,583
Notes 1 to 10 form an integral part of this consolidated half-year financial
information.
Consolidated half-year income statement
Six months Six months Six months Six months
Ended Ended Ended ended
30 September 2007 30 September 2007 30 September 2007 30 September 2006
Before After (Unaudited)
rationalisation Rationalisation rationalisation
costs costs costs
(Unaudited) (Unaudited) (Unaudited)
Continuing operations Notes #'000's #'000's #'000's #'000's
Revenue 4 14,840 - 14,840 18,638
Cost of sales (10,601) (29) (10,630) (13,443)
Gross profit 4,239 (29) 4,210 5,195
Sales and marketing expenses (4,442) (44) (4,486) (4,632)
Research and development expenses (2,961) (10) (2,971) (4,180)
Administrative expenses (1,678) (391) (2,069) (2,112)
Operating loss from continuing 4 (4,842) (474) (5,316) (5,729)
operations
Interest payable and other (394) - (394) (306)
similar charges
Interest receivable 24 - 24 14
Loss on continuing activities (5,212) (474) (5,686) (6,021)
before taxation
Tax on loss on ordinary 16 - 16 (29)
activities
Loss for the period attributable (5,196) (474) (5,670) (6,050)
to shareholders
Losses per share expressed in 9
pence per share:
From continuing operations - (4.71) (0.43) (5.14) (7.57)
basic and diluted
Year Year Year
ended ended ended
31 March 2007 31 March 31 March 2007
Before 2007 After
rationalisation Rationalisation rationalisation
costs costs costs
(Audited) (Audited) (Audited)
Notes #'000's #'000's #'000's
Continuing operations
Revenue 4 35,884 - 35,884
Cost of sales (25,838) (1,791) (27,629)
Gross profit 10,046 (1,791) 8,255
Sales and marketing expenses (8,946) (99) (9,045)
Research and development expenses (7,684) (882) (8,566)
Administrative expenses (4,253) (946) (5,199)
Operating loss from continuing operations 4 (10,837) (3,718) (14,555)
Interest payable and other similar charges (685) - (685)
Interest receivable 13 13
Loss on continuing activities before taxation (11,509) (3,718) (15,227)
Tax on loss on ordinary activities (126) (126)
Loss for the period attributable to shareholders (11,635) (3,718) (15,353)
Losses per share expressed in pence per share: 9
From continuing operations - basic and diluted (14.48) (4.63) (19.11)
Consolidated half-year statement of changes in equity
Attributable to equity holders of the company
Share Share Foreign Profit and Total #'000
capital premium exchange loss
#'000 account reserves account
#'000 #'000 #'000
At 31 March 2006 (Audited) 3,670 64,861 106 (29,671) 38,966
Share options - value of employee services - - - 100 100
Currency translation differences - - (754) - (754)
Total (expense)/income recognised directly - - (754) 100 (654)
in equity
Issue of shares net of fees 367 5,475 - - 5,842
Net loss for the period - - - (6,050) (6,050)
At 30 September 2006 (Unaudited) 4,037 70,336 (648) (35,621) 38,104
Share options - value of employee services - - - 107 107
Currency translation differences - - (325) - (325)
Total (expense)/income recognised directly - - (325) 107 (218)
in equity
Net loss for the period - - - (9,303) (9,303)
At 31 March 2007 (Audited) 4,037 70,336 (973) (44,817) 28,583
Share options - value of employee services - - - 131 131
Currency translation differences - - (225) - (225)
Total (expense)/income recognised directly - - (225) 131 (94)
in equity
Issue of shares net of fees 2,000 5,395 - - 7,395
Net loss for the period - - - (5,670) (5,670)
At 30 September 2007 (Unaudited) 6,037 75,731 (1,198) (50,356) 30,214
Consolidated half-year cash flow statement
Notes Six months ended Six months Year
30 September ended 30 ended
2007 September 2006 31 March 2007
(Unaudited) (Unaudited) (Audited)
#'000's #'000's #'000's
Continuing operations
Operating loss (5,316) (5,729) (14,555)
Adjustments for:
Depreciation - property, plant and equipment 5 915 1,330 2,669
Impairment loss on property, plant and equipment - - 875
Amortisation of intangible assets 5 360 397 800
Impairment loss on intangible assets - - 217
(Profit)/loss on disposal of property, plant and (11) 11 (13)
equipment
Share options - value of employee services 131 100 207
Changes in working capital:
Decrease in inventories 164 863 1,982
Decrease in trade and other receivables 444 113 882
(Decrease)/increase in payables (765) (1,777) 623
Cash absorbed from operations (4,078) (4,692) (6,313)
Cash absorbed by operating activities
Interest received 24 14 13
Interest paid - bank loans and overdrafts (370) (285) (606)
Interest paid - finance leases (26) (48) (85)
Taxation paid (27) (59) (175)
Net cash absorbed by operating activities (4,477) (5,070) (7,166)
Investing activities
Proceeds from the sale of property, plant and 12 28 39
equipment
Purchase of intangible assets (274)
Purchase of property, plant and equipment 5 (704) (597) (1,337)
Net cash used in investing activities (692) (569) (1,572)
Financing activities
Issue of ordinary shares, net 6 7,395 5,842 5,842
Repayment of borrowings (254) (2,798) (3,192)
Repayment of obligations under finance leases (191) (585) (948)
New bank loans issued - 4,600 4,600
Net cash raised through financing activities 6,950 7,059 6,302
Effect of foreign exchange rate changes 55 155 258
Net increase/(decrease) in cash and cash equivalents 1,836 1,575 (2,178)
Cash and cash equivalents at the beginning of the (5,739) (3,561) (3,561)
period
Cash and cash equivalents at end of period (3,903) (1,986) (5,739)
Notes to the consolidated half-yearly financial information
1. General information
The Company is a Public Limited Company incorporated and domiciled in the United
Kingdom. The address of its registered office is Whiting Way, Melbourn,
Hertfordshire SG8 6EN.
The Company has its primary listing on the London Stock Exchange.
This condensed consolidated half-yearly financial information was approved for
issue on 28 November 2007.
These interim financial results do not comprise statutory accounts within the
meaning of Section 240 of the Companies Act 1985. Statutory accounts for the
year ended 31 March 2007 were approved by the Board of Directors on 15 June 2007
and delivered to the Registrar of Companies. The report of the auditors on those
accounts was unqualified, did not contain an emphasis of matter paragraph and
did not contain any statement under Section 237 of the Companies Act 1985.
2. Basis of preparation
This condensed consolidated half-yearly financial information for the half-year
ended 30 September 2007 has been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Services Authority and with IAS 34, 'Interim
financial reporting' as adopted by the European Union. The half-yearly condensed
consolidated financial report should be read in conjunction with the annual
financial statements for the year ended 31 March 2007, which have been prepared
in accordance with IFRSs as adopted by the European Union.
3. Accounting Policies
The accounting policies adopted are consistent with those of the annual
financial statements for the year ended 31 March 2007, as described in those
financial statements.
The following new standards, amendments to standards or interpretations are
mandatory for the first time for the year ending 31 March 2008.
* IFRIC 8, 'Scope of IFRS 2', effective for annual periods
beginning on or after 1 May 2006. This interpretation has not had any impact on
the recognition of share-based payments in the Group.
* IFRIC 9, 'Reassessment of embedded derivatives', effective
for annual periods beginning on or after 1 June 2006. This interpretation is not
relevant for the Group.
* IFRIC 10, 'Interims and impairment', effective for annual
periods beginning on or after 1 November 2006. This interpretation has not had
any impact on the timing or recognition of impairment losses as the Group
already accounted for such amounts using principles consistent with IFRIC 10.
* IFRIC 11, 'IFRS 2 - Group and treasury share transactions',
effective for annual periods beginning on or after 1 March 2007. Management do
not expect this interpretation to have any effect on the Group as it already
accounts for group share transactions using principles consistent with IFRIC 11.
* IFRS 7, 'Financial instruments: Disclosures', effective for
annual periods beginning on or after 1 January 2007. IAS 1, 'Amendments to
capital disclosures', effective for annual periods beginning on or after 1
January 2007. IFRS 4, 'Insurance contracts', revised implementation guidance,
effective when an entity adopts IFRS 7. As this interim report contains only
condensed financial statements, the full IFRS 7 disclosures are not required at
this stage. The full IFRS 7 disclosures, including the sensitivity analysis to
market risk and capital disclosures required by the amendment of IAS 1, will be
given in the annual financial statements.
The following new standards, amendments to standards and interpretations have
been issued, but are not effective for the financial year ending 31 March 2008
and have not been early adopted:
* IFRIC 12, 'Service concession arrangements', effective for
annual periods beginning on or after 1 January 2008. Management do not expect
this interpretation to be relevant for the Group.
* IFRS 8, 'Operating segments', effective for annual periods
beginning on or after 1 January 2009, subject to EU endorsement. Management do
not currently foresee any changes to the group's business segments as a result
of this standard.
4. Segmental information
The Group is managed on a geographical basis by location of assets and therefore
geographical segments are the basis on which the Group reports its primary
segment information.
Six months ended 30 September 2007 US Europe Group
(Unaudited) (Unaudited) (Unaudited)
#'000 #'000 #'000
Continuing operations
Total revenue 11,326 7,767 19,093
Inter-segment revenue (1,797) (2,456) (4,253)
External revenue 9,529 5,311 14,840
Segment result from continuing operations
(2,852) (2,464) (5,316)
Six months ended 30 September 2006 US Europe Group
(Unaudited) (Unaudited) (Unaudited)
#'000 #'000 #'000
Continuing operations
Total revenue 12,972 9,312 22,284
Inter-segment revenue (1,307) (2,339) (3,646)
External revenue 11,665 6,973 18,638
Segment result from continuing operations
(3,590) (2,139) (5,729)
Year ended 31 March 2007 US Europe Group
(Audited) (Audited) (Audited)
#'000 #'000 #'000
Continuing operations
Total revenue 24,986 19,376 44,362
Inter-segment revenue (2,857) (5,621) (8,478)
External revenue 22,129 13,755 35,884
Segment result from continuing operations
(6,596) (7,959) (14,555)
5. Capital expenditure
During the six months to 30 September 2007 the Group continued to spend
significant sums on its Archive Solution software programmes.
Tangible
And
Intangible
Assets
#'000
Six months ended 30 September 2007
Opening net book amount at 1 April 2007 24,116
Additions 704
Disposals (23)
Depreciation, amortisation and other movements (1,370)
Closing net book value at 30 September 2007 (Unaudited) 23,427
Six months ended 30 September 2006
Opening net book amount at 1 April 2006 27,644
Additions 620
Disposals (18)
Depreciation, amortisation and other movements (2,086)
Closing net book value at 30 September 2006 (Unaudited) 26,160
Year ended 31 March 2007
Opening net book amount at 1 April 2006 27,644
Additions 1,641
Disposals (52)
Depreciation, amortisation, impairment and other movements (5,117)
Closing net book value at 31 March 2007 (Audited) 24,116
6. Share capital
On 18 May 2007, the Company completed the placing of 40,000,000 Ordinary shares
for 20p each raising #7.4m net of expenses.
On 20 April 2006, the Company issued 7,340,000 ordinary shares for 81.5p each
raising #5.8m net of expenses
Number of Shares Ordinary Shares Share premium
(thousands) #'000's #'000's Total
Capital
Opening balance 1 April 2007 80,756 4,037 70,336 74,373
Allotted on placing 40,000 2,000 5,395 7,395
Balance at 30 September 2007 120,756 6,037 75,731 81,768
Number of Ordinary Share
Shares Shares premium
(thousands) #'000's #'000's Total
Capital
Opening balance 1 April 2006 73,416 3,670 64,861 68,531
Allotted on placing 7,340 367 5,475 5,842
Balance at 30 September 2006 80,756 4,037 70,336 74,373
Number of Ordinary Share
Shares Shares premium
(thousands) #'000's #'000's Total
Capital
Opening balance 1 April 2006 73,416 3,670 64,861 68,531
Allotted on placing 7,340 367 5,475 5,842
Balance at 31 March 2007 80,756 4,037 70,336 74,373
7. Analysis of net debt
Inception Foreign
At 31 March Cash of finance exchange At 30 Sept
2007 flow leases gain/(loss) 2007
#'000 #'000 #'000 #'000 #'000
Cash at bank and in hand 347 417 - (44) 720
Overdrafts (6,086) 1,364 - 99 (4,623)
(5,739) 1,781 - 55 (3,903)
Debt due within one year (493) 23 - 1 (469)
Debt due after one year (3,935) 229 - - (3,706)
Finance leases due within (406) (5) (6) (1) (418)
one year
Finance leases due after (461) 194 (12) - (279)
one year
Net debt (11,034) 2,222 (18) 55 (8,775)
At 31 March Cash flow Inception Inception Foreign At
of bank offinance exchange 30 Sept
2006 loans leases gain/(loss) 2006
#'000 #'000 #'000 #'000 #'000 #'000
Cash at bank and in hand 743 247 (44) 946
Overdrafts (4,304) 1,173 - - 199 (2,932)
(3,561) 1,420 - - 155 (1,986)
Debt due within one year (315) 274 (460) 8 (493)
Debt due after one year (2,637) 2,524 (4,140) 60 (4,193)
Finance leases due within one year (1,108) 512 - (8) 5 (599)
Finance leases due after one year (688) 73 (15) 2 (628)
Net debt (8,309) 4,803 (4,600) (23) 230 (7,899)
Inception Inception Foreign At
At 31 March Cash of bank offinance exchange 31 March
2006 flow loans leases gain/(loss) 2007
#'000 #'000 #'000 #'000 #'000 #'000
Cash at bank and in hand 743 (332) - - (64) 347
Overdrafts (4,304) (2,104) - - 322 (6,086)
(3,561) (2,436) - - 258 (5,739)
Debt due within one year (315) 290 (460) (8) (493)
Debt due after one year (2,637) 2,902 (4,140) (60) (3,935)
Finance leases due within one year (1,108) 703 - (10) 9 (406)
Finance leases due after one year (688) 245 (20) 2 (461)
Net debt (8,309) 1,704 (4,600) (30) 201 (11,034)
8. Related party transactions
As part of the placing on 18 May 2007, the Company's largest shareholder,
Amvescap Plc, who held 29% of the issued share capital at the time of the
placing, subscribed for 11,745,000 shares, equivalent to #2,349,000 at the issue
price maintaining their 29% shareholding.
As part of the Group's restructuring in the year, the former Chief Executive,
Nigel Street, resigned. His compensation for loss of office was #299,000, which
has been included as part of the rationalisation costs in the Income Statement.
9. Losses per Ordinary share
Basic losses per share are calculated by dividing losses for the financial
period by the weighted average number of Ordinary shares in issue during the six
months ended 30 September 2007.
There is no dilution of losses per share in the six months ended 30 September
2007 or in the previous periods.
At 30 September 2007
Weighted
average Losses
Losses number of shares Per share
(Unaudited) (Unaudited) (Unaudited)
#'000 '000 pence
Losses per share (5,670) 110,264 (5.14)
At 30 September 2006
Weighted
average
number of
shares Losses
Losses (Unaudited) Per share
(Unaudited) '000 (Unaudited)
#'000 pence
Losses per share (6,050) 79,954 (7.57)
At 31 March 2007
Weighted
average
number of
shares Losses
Losses (Audited) Per share
(Audited) '000 (Audited)
#'000 pence
Losses per share (15,353) 80,354 (19.11)
10. Provision for liabilities and charges
Rationalisation
Provision
#'000
Provision at 1 April 2006 and 30 September 2006 -
Additional provision in period 1,319
Opening provision at 1 April 2007 1,319
Additional provision in period 332
Utilised during the period (658)
Closing provision at 30 September 2007 993
The rationalisation provision relates to the costs incurred to discontinue
certain legacy activities and simplify the Group's operational structure.
Statement of directors' responsibilities
The Directors confirm that this condensed set of financial statements has been
prepared in accordance with IAS 34 as adopted by the European Union, and that
the interim management report herein includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8.
The Board of Directors of Plasmon Plc at 28 November 2007 is as follows:
* Steven Murphy, Chief Executive. Appointed November 2007
* Rod Powell, Chairman. Appointed November 2007 as Chairman,
Director May 2007.
* Timothy Arthur, Finance Director. Appointed September 1994.
* David Best, Non-Executive Director. Appointed July 2006.
* Christopher McFadden, Non-Executive Director. Appointed July 2001.
* Mathew Peacock, Non-Executive Director. Appointed May 2007.
On 13 November 2007, Rod Powell who previously held the position of Interim
Chief Executive succeeded Jeffrey Hewitt as Chairman of the Group, who resigned
on the same day. Steven Murphy was appointed to the Board as Chief Executive on
the same day.
By order of the board
Timothy Arthur
Finance Director
Independent review report to Plasmon plc
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
September 2007, which comprises the consolidated half-year balance sheet,
consolidated half-year income statement, consolidated half-year statement of
changes in equity, consolidated half-year cash flow statement and related notes.
We have read the other information contained in the half-yearly financial report
and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
As disclosed in note 2, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, "Interim Financial Reporting", as adopted by the European Union.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review. This report, including the conclusion, has been prepared for and only
for the company for the purpose of the Disclosure and Transparency Rules of the
Financial Services Authority and for no other purpose. We do not, in producing
this report, accept or assume responsibility for any other purpose or to any
other person to whom this report is shown or into whose hands it may come save
where expressly agreed by our prior consent in writing.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 30 September 2007 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
PricewaterhouseCoopers LLP Chartered Accountants
Cambridge
28 November 2007
Notes:
(a) The maintenance and integrity of the Plasmon plc website is the
responsibility of the directors; the work carried out by the auditors does not
involve consideration of these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the financial
statements since they were initially presented on the website.
(b) Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation in other
jurisdictions
This information is provided by RNS
The company news service from the London Stock Exchange
END
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