Interim Results
26 Febrero 2003 - 8:30AM
UK Regulatory
RNS Number:0143I
Invox PLC
26 February 2003
Invox plc ("Invox" or "the Company")
Interim results for the six months ended 31 December 2002
Highlights
* Pre-tax profit of #3.1million before goodwill amortisation
* Earnings per share 0.14p before goodwill amortisation
* Interim dividend increased by 33 per cent to 0.04p
* Current trading remains good
Chairman's statement
I am pleased to report that Invox continued to produce good profits and cash
generation in the half-year to 31 December 2002. Shareholders will participate
in this success through an increase in the interim dividend.
In the six months to 31 December 2002 Invox made profits of #3.1 million before
tax and amortization of goodwill. This compares with a profit of #1.9 million
for the nine months to 31 December 2001, although that period included only four
months' trading of TPC Telecoms Limited, which was acquired in August 2001.
Earnings per share before amortization for the six months amounted to 0.14p
(2001: 0.09p) on a fully diluted basis). The Directors are therefore pleased to
announce an increased interim dividend of 0.04p per share (2001: 0.03p). Trading
remains good.
We are continuing to review possible projects overseas. Success in other
European Union countries will depend on the regulatory environment as it does in
the UK, and the Board remains keen to broaden the Group's trading activities. We
have reviewed a number of possible acquisitions, but to date none has been
compelling enough to put to shareholders. In the absence of any significant
transaction, the Board's view is that a large part of the strong cash flow
generated from our business should be distributed to shareholders in the form of
dividends.
Shareholders will be kept fully informed of any major developments. Otherwise
our next communication with shareholders will be when we announce results for
the year ending 30 June 2003.
Dividends
An interim dividend of 0.04p will be paid on 6th April 2003 to shareholders on
the register at close of business on 14th March 2003.
Shareholdings
The Board is aware that the very high percentage of the Company's shares held by
directors and employees (currently 90 per cent) has hitherto had the effect of
reducing the liquidity of the shares on the Alternative Investment Market. It is
therefore likely that the directors will seek to place a proportion of their
holdings with institutional investors immediately after the announcement of
these interim results.
Stephen Hargrave
Chairman
26th February 2003
Consolidated profit and loss account
Unaudited Unaudited
accounts for the accounts for the 9
6 months ended months ended
31 Dec 2002 31 Dec 2001
#'000 #'000
Turnover 9,387 6,448
Cost of sales (5,870) (4,062)
Gross profit 3,517 2,386
Net operating expenses (909) (809)
Including amortisation of goodwill amounting to (489) (327)
Operating profit 2,608 1,577
Net interest receivable 9 63
Profit on ordinary activities before taxation 2,617 1,640
Taxation on profit on ordinary activities (871) (590)
Profit on ordinary activities after taxation 1,746 1,050
Dividends (642) (437)
Retained profit for the period 1,104 613
Earnings per share 0.11p 0.12p
Earnings per share fully diluted
0.11p 0.07p
Earnings per share fully diluted but excluding
amortisation of goodwill 0.14p 0.09p
Consolidated balance sheet
Unaudited Unaudited
accounts accounts
31 Dec 2002 31 Dec 2001
#'000 #'000
Fixed assets
Intangible assets 14,901 14,375
Tangible assets 23 64
14,924 14,439
Current assets
Stock 40 46
Debtors 138 264
Cash at bank and in hand 8,218 5,899
8,396 6,290
Creditors: amount falling due within one year (4,690) (4,405)
Series A loan stock redeemable Oct 2002 - Oct 2011 (2,490) (2,500)
Series B loan stock redeemable Oct 2002 - Oct 2011 (203) (203)
Net current assets/(liabilities) 1,013 (899)
Total assets less current liabilities 15,937 13,540
Creditors: amounts falling due after more than one year
Series B loan stock redeemable Oct 2003 - Oct 2011 (203) (407)
Net assets 15,734 13,133
Capital and reserves
Called up share capital 8,778 7,278
Share premium account 1,004 1,004
Merger reserve 4,779 5,129
Profit and loss account 1,173 (278)
Shareholders' funds 15,734 13,133
Consolidated cashflow statement
Unaudited Unaudited
accounts for accounts for
the 6 months the 9 months
ended ended
31 Dec 2002 31 Dec 2001
#'000 #'000
Net cash inflow from operating activities 3,502 2,335
Returns on investments and servicing of finance
Interest received 9 63
Taxation (155) -
Capital expenditure and financial investment
Payments to acquire tangible fixed assets - -
Net cash arising on the acquisition of TPC Telecoms Limited - 1,371
Net cash inflow before financing 3,356 3,769
Financing
Loan note repayments (213) -
Increase in cash in the period 3,143 3,769
Net cash at the beginning of the period 5,075 2,130
Increase in cash in the period 3,143 3,769
Net cash at the end of the period 8,218 5,899
Reconciliation of operating profit to net cashflow from operating activities
Unaudited Unaudited
accounts for the accounts for the
the 6 months the 9 months
period ended period ended
31 Dec 2002 31 Dec 2001
#'000 #'000
Operating profit 2,608 1,577
Depreciation and amortisation 509 356
Decrease in stocks 25 124
Decrease / (Increase) in debtors 492 (640)
(Decrease) / Increase in creditors (132) 342
Net cash inflow from operating activities 3,502 2,335
Notes to the financial statements
1. Basis of preparation
The consolidated interim financial statements are unaudited and do not
constitute accounts within the meaning of section 240 of the Companies Act
1985. The interim results have been prepared under the historical cost
convention., in accordance with applicable accounting standards and on the
same basis as the group statutory accounts for the period ended 30 June
2002.
2. Acquisition of TPC Telecoms Limited
Following an ordinary resolution at the Extraordinary General Meeting on 30
August 2002, TPC Telecoms Limited ("TPC") was acquired at an initial cost of
(including fees) #15.2 million satisfied through a combination of cash, loan
notes and the issue of Ordinary Shares as fully paid at 1p per share.
Additional consideration was due if the profits before tax of TPC for the
financial year ending 30 June 2002 ("PBT") reached certain targets.
Ultimately additional consideration of #1.5 million became payable, and was
satisfied in full by the allotment of further Ordinary Shares as fully paid
at 1p per share.
3. Profit per share
For the period to 31 December 2002, the basic profit per share and the fully
diluted profit per share have been calculated on the profit for the period
and on the weighted average number of shares in issue during the period
(including the additional consideration shares discussed in note 2. above),
being 1,605 million ordinary shares. The profit per share excluding goodwill
amortisation is the same calculation but adjusted to add back the #489,000
of goodwill amortised in the period.
For the period to 31 December 2001, the basic loss per share has been
calculated on the loss for the period and on the weighted average number of
shares in issue during the period, being 873 million ordinary shares.
For the period to 31 December 2001, the fully diluted profit per share has
been calculated on the profit for the period and on the fully diluted
weighted average number of shares in issue (to include the additional
consideration shares) during the period, being 1,605 million ordinary
shares. The profit per share excluding goodwill amortisation is the same
calculation but adjusted to add back the #327,000 of goodwill amortised in
the period
4. Copies of Interim Report
The Interim Report will be sent by post to all registered shareholders. Copies
of the Interim Report are available from the Company Secretary at the Company's
Registered Office.
Enquiries:
Stephen Hargrave, Chairman, Invox plc 0207 242 0735
Jerry Reidy, Finance Director, Invox plc 0121 214 9900
Mark Percy, Seymour Pierce Limited 0207 648 8700
This information is provided by RNS
The company news service from the London Stock Exchange
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