TIDMNASA
RNS Number : 0300O
Nasstar PLC
30 September 2019
Nasstar plc
Interim results for the 6 months ended 30 June 2019
Nasstar plc ("Nasstar", the "Company" or the "Group"; stock
code: NASA), a provider of hosted managed and cloud computing
services, announces its unaudited interim results for the 6 months
ended 30 June 2019.
Financial Highlights
-- Revenue up 2% compared to the same period last year to GBP12.8m (H1 2018: GBP12.5m)
-- 90% of H1 2019 revenue generated from contracted recurring services (H1 2018: 91%)
-- EBITDA* in line compared to the same period last year
GBP2.8m* (H1 2018: GBP2.8m), however up 19% on H2 2018 (H2 2018:
GBP2.4m)
-- Adjusted EBITDA** in line compared to same period last year
GBP3.0m** (H1 2018: GBP3.0m), however up 17% on H2 2018 (H2 2018:
GBP2.6m)
-- Adjusted EBITDA** margin of 24% (2018: 22%)
-- Operating profit for the period was GBP0.5m (H1 2018: loss GBP0.3m)
-- Adjusted Profit Before Tax*** in line compared to same period
last year GBP1.8m (H1 2018: GBP1.8m), however up 38% on H2 2018 (H2
2018: GBP1.3m)
-- Net cash+ position improved to GBP2.4m (H1 2018: GBP1m)
-- Adjusted earnings*** per share 0.3p for 6 months to 30 June 2019 (H1 2018: 0.3p)
-- Basic profit per share 0.1p for 6 months to 30 June 2019 (H1 2018 loss (0.1p))
*Comprising earnings adjusted for interest, taxation,
depreciation, profit on sale of fixed assets and amortisation
**comprising earnings adjusted for interest, taxation,
depreciation, profit on sale of fixed assets, amortisation, share
based payments and exceptional items (being costs in relation to
reorganisation and data centre closure)
***adjusted for amortisation of acquired intangibles, share
based payments and exceptional items
+comprising cash less interest-bearing bank loans and
borrowings
Operational Highlights
-- The final year of the "Nasstar 10-19" integration strategy
has seen the final stages of the Data Centre (DC) consolidation
strategy near completion in H1 with all live private cloud
platforms now being delivered from two primary DCs.
-- The remaining priority focus of "Nasstar 10-19" centres
around internal system consolidation and process automation. This
has seen the delivery of an upgraded Dynamic NAV platform (finance)
whilst the roll out of the new central IT service management system
(Cherwell) has continued, completion of the initial roll out is
expected in H2.
-- Internal systems automation, powered by Cherwell, offers an
opportunity to deliver further efficiencies, with work stream
automation to continue into 2020 and beyond.
-- The new Head of PMO (project management office) appointed in
October 2018, has focused heavily on project and process
improvement for complex and large-scale technical deliveries,
improving management information, resource management, project
scheduling and delivery efficiency.
-- The implementation of the previously announced three-year
contract with a top 50 UK law firm has been an important work
stream for the project and technical teams. Monthly revenues from
this contract will begin to be recognised in H2 though full
deployment will stretch into H1 2020.
-- Nasstar continue to develop and invest in their talent
management programme designed to help attract and retain talent in
the continuing hyper competitive technical employment market.
Nigel Redwood, Chief Executive Officer of Nasstar,
commented:
"It is very pleasing to see the "Nasstar 10-19" programme come
to fruition, delivering a more unified and streamlined Nasstar.
With this nearing its conclusion we now enter a new period for the
Group for which we are currently formulating strategic priorities;
we look forward to providing more detail in due course.
Our central ITSM system, Cherwell, provides an opportunity to
invest in further automation that will not only deliver
efficiencies but drive further improvements in the consistency of
our operating teams, delivering a continually improving support
experience to the customer.
It was pleasing to see gross profit margins recover to 65% in
the period, up from 63% in H2 2018, thanks to the mitigating
strategies that we started to implement at the end of 2018.
We have seen decision timelines for both new business and
current customer projects extended as a result of the continued
political and economic uncertainties caused by BREXIT, notably from
Q2 onwards so our focus on mitigation strategies is constant.
Despite these challenges Nasstar continues to trade well,
delivering another six months of solid performance."
For further information, please contact:
Nasstar plc +44 (0) 1952 225 000
Nigel Redwood, Chief Executive Officer
Niki Redwood, Finance Director
finnCap Limited (Nominated Adviser & Broker) +44 (0) 20 7220 0500
Julian Blunt, James Thompson (Corporate Finance)
Alice Lane (Corporate Broking)
Chairman's Statement
As previously announced, I am stepping down as Chairman on the
23(rd) October 2019 and I am very pleased that the final five years
of my tenure has seen Nasstar develop into one of the leading
players in the hosted managed and cloud computing marketplace. We
have really embraced the technical developments in both the private
and public cloud space and this, combined with our vertical market
focus, has seen the business go from strength to strength in recent
years. I have every confidence that Nick Bate, as new chairman,
will help build on the foundations that have been laid and I wish
him and the rest of the management team, including Ben Marnham who
joins the Board next month, all the very best for the future.
The timing of my departure coincides with the conclusion of our
three-year integration strategy "Nasstar 10-19". The strategy has
seen the business focusing on ensuring we have the right leadership
team running the business with one team for each function, that we
have consolidated our technical footprint and service portfolio,
invested in our talent management, whilst focusing on efficiencies
with backend systems and automation. Our customer strategy and
security at the heart of all we do have been underpinning pillars
throughout the integration.
I am pleased to report that in H1 our key KPI's were in line
with our expectations with continued focus on contracted recurring
revenues being at the heart of our financial stability. The
achievement of our H1 KPI's despite the very challenging political
and technical landscape coupled with the pressure we see in wage
inflation caused from the strong labour market is testament to the
"Nasstar 10-19" strategy.
Work in progress (WIP), being orders signed but not yet
delivered (or recognised in revenue), continues to keep the project
team busy with in excess of GBP150,000 monthly recurring revenue in
WIP at the end of June 2019. This continues to demonstrate the
strong visibility of earnings of the Nasstar model.
As expected, the Group is for the first time reporting a
statutory profit for the period which is as a result of the
reduction in the amortisation of customer intangibles that were
recognised on the acquisitions to date. Our integration strategy
has structured the business to be able to more effectively
recognise revenue and cost synergies from any potential acquisition
and therefore the board do continue to be alert to any
opportunities to augment organic growth through selective
acquisitions.
As a business we are very alert to the range of exit
possibilities that the BREXIT process could deliver, and we
continue to monitor the increased risk and uncertainty closely. It
is very encouraging that in H1 we have been able to meet profit
KPI's in these circumstances despite the increased hesitancy we are
witnessing in the sales process.
On this my final Chairman's Statement I would like to thank the
Board, management team and every member of the organisation for
their hard work, dedication and commitment over the years.
Lord Daresbury
Chairman
Strategy execution during H1 2019
In summary the three year "Nasstar 10-19" programme focused on
the following objectives:-
-- Implementing and embedding the right leadership team and
organisational structure with a single team philosophy for each
function across the entire Group. Delivering a clear focus on
embedding the right management structure acting on the right
management information and KPI's.
-- The consolidation of the technical platforms and the
development of a new platform based on the best available hybrid
technologies, with the goal of facilitating full technical
consolidation of all customer live systems across the Group into
two primary private cloud datacentres integrated with Microsoft's
public cloud offering Azure.
-- To embed further the Nasstar security-centric culture,
placing "security at the heart" of all processes and
technologies.
-- To attract and retain the best talent in the industry. We
recognised that the management of talent is a significant
contributor to the success and health of the business. The
competitive landscape for attracting technical skills is more
challenging than ever and, as a result, we invested into our
training and development strategy, health and wellbeing strategy,
employee engagement techniques and apprenticeship programmes.
-- To develop a single unified service offering and product
catalogue. We have invested into our product strategy and service
acceptance processes to ensure that innovation continues to be at
the heart of our service capability, ensuring that our strategic
product direction is well mapped in what is a very fast-moving
sector.
-- To deliver greater backend efficiencies and consistency in
process. We have invested in automation and systems integration
across the business, from finance through to project and support
systems.
-- To continue to focus on vertical markets, defining deeper and
more selective criteria upon which to target customers. To
standardise account management processes in order to minimise the
risk of customer churn.
-- To increase customer on boarding speed and project
throughput, to invest in automation and improve processes and
technical capabilities in our delivery teams in order to further
decrease the on boarding time for clients, enabling the business to
win contracts of increased complexity and size.
H1 2019 activities in respect of the above priorities have
included:-
-- Live services migrated away from the final two private cloud
data centres planned for closure, with all live private cloud
platforms now delivered from two primary data centres.
-- The delivery of a Dynamics NAV upgrade providing the finance
team with the latest functionality and management information
reporting capabilities.
-- The continued development and roll out of Cherwell, our new
ITSM solution. Cherwell incorporates knowledge management
functionality, designed to improve customer service and maximise
economies of scale.
-- The roll out of a new Mitel call centre solution, opening up
the possibility for further automation and integration with
Cherwell, designed to improve the end user experience when calling
support.
-- As part of the focus on project and process improvement for
complex and large-scale technical deliveries, improving management
information, resource management and project scheduling the new
Head of PMO has:-
o Introduced a new PMO career and competency framework
o Separated the team that implements large scale complex
projects from the team that delivers small agile change for current
clients
o Introduced new working methods, designed around clearly
defined delineation of responsibility and accountability
("RASCI")
o Implemented a new project delivery lifecycle
o Implemented new resource planning capability, delivering
longer term resource forecasting and capacity management
o Introduced new governance and reporting
-- Completed the R&D and selection of Nasstar's new cyber
protective monitoring partner. This has seen Nasstar begin to
implement a service from CrowdStrike, a new protective monitoring
and machine learning technology called Falcon Overwatch. This is a
completely new next generation anti-virus (AV), Malware and
monitoring platform which does not rely on pattern matching and
file scanning, but focusses more upon threat and intent, looking at
patterns of activity as well as what specific applications are
actually doing. Falcon Overwatch provides Nasstar with a team
working 24/7 to proactively identify attacks. The partnership with
CrowdStrike enhances Nasstar's in-house security resources to
pinpoint malicious activities at the earliest possible stage.
Outlook
With the last six months of the final year of our integration
strategy ahead, the remaining priority focus is centred on internal
system consolidation and process automation. The roll out of the
new ITSM system, Cherwell, has further opened up opportunities to
deliver greater efficiencies with automated workstreams and we
expect the automation work to continue beyond the "Nasstar 10-19"
programme.
We have already began formulating the strategy for 2020 and
beyond and do so from a strong and secure financial base, with a
high level of contracted recurring revenue and a healthy cash
position.
The foundation to the strategy moving forward will be to
maximise the opportunity provided by our public and private cloud
hybrid model, tailored to create vertically focused solutions,
targeted at specific vertical markets. We will build further on the
capability that the "Nasstar 10-19" programme has given the
operating teams in delivering larger and more complex fully managed
projects.
The Board remains cognisant to the threats that the continued
protracted BREXIT process is having on the economy, and we have
seen decision timelines in both new business and current customer
projects extend as a result of the continued political and economic
uncertainties. In the face of such uncertainty businesses are
understandably scrutinising their larger investment decisions more
closely which has extended sales cycles.
Despite these challenges Nasstar continues to trade well. We
have delivered another six months of solid performance and we
progress through the second half with a pipeline of work in
progress which will in time add to our recurring revenue base,
which puts us on solid foundations for the delivery of full year
management expectations
Nigel Redwood
Chief Executive Officer
Financial Review
The directors regularly review monthly revenue and operating
costs to ensure that sufficient cash resources are available for
the continued development and support of its service. Primary KPIs
at the period end were as follows:
6 mths to 6 mths 12 mths
30 June to to
19 30 June 31 Dec
GBP'000 18 18
GBP'000 GBP'000
Total revenue 12,792 12,493 25,667
Recurring revenue 11,524 11,362 23,426
Recurring % of total reported revenue 90% 91% 91%
Monthly recurring revenue at end
of period 1,988 1,914 1,980
Operating costs, including cost of
sales 10,894 10,546 22,299
Gross profit percentage 65% 67% 65%
EBITDA* 2,835 2,841 5,217
Adjusted EBITDA** 3,012 3,005 5,571
EBITDA* % of revenues 22% 23% 20%
Adjusted EBITDA** % of revenues 24% 24% 22%
Operating Profit/(Loss) 492 (330) (1,196)
Profit/(Loss) before tax 412 (447) (1,413)
Adjusted Profit before tax*** 1,818 1,830 3,151
Current assets (excluding cash) 4,628 4,371 4,243
Current liabilities 8,348 8,997 9,171
Cash and cash equivalents 4,321 4,282 3,811
Profit/(Loss) per share 0.1p (0.1p) (0.17p)
Adjusted earnings per share*** 0.27p 0.26p 0.50p
Diluted earnings per share 0.1p N/A N/A
Diluted adjusted earnings per share 0.26p 0.24p 0.46p
See "Alternative Performance Measures" for descriptions of
performance measures presented above.
Revenue for the period was GBP12.8m representing year on year
growth of 2.4%. Gross margin reduced from 67% in H1 last year to
65% , as noted in our annual report gross margin experienced
pressure particularly during the second half of 2018 primarily due
to increased licence costs and the continued pressure on exchange
rates.
Recurring Revenue
Recurring revenue is monthly revenue generated from long term
contracts, initial terms being three to five years in length.
Nasstar's recurring revenue is predominantly generated from complex
managed services where Nasstar deliver a customer's entire
application portfolio and data from a private and/or public cloud
solution. Nasstar generates additional recurring revenues from
these contracts by upselling add on services such as managed
networks, hosted telephony and support services. These additional
services are very rarely sold without the complex managed hosting
element and therefore the vast majority of Nasstar recurring
revenue is generated from its complex managed hosted solutions.
Reported profit before tax was GBP0.4m after exceptional
expenses of GBP128,000 which were largely costs in relation to the
closure of two data centres and the continued data centre
rationalisation programme. H1 2019 sees the delivery of operating
profit for the first time, as Nasstar has historically reported
operating losses.
In addition, GBP1.2m of amortisation of customer contracts has
been charged to the Consolidated Statement of Profit and Loss in
respect of acquired customer contract intangible assets.
Fixed asset additions for the period were GBP1m. This was
primarily servers and storage area network infrastructure to
provide a platform for future growth and technology consolidation,
together with investment needed in fixed assets on the new signing
of customer contracts. Depreciation remained consistent with prior
period, at 9% of sales.
Alternative Performance Measures
6 mths to 6 mths to 12 mths
30 June 30 June to
19 18 31 Dec
GBP'000 GBP'000 18
GBP'000
Profit/(Loss) before tax 412 (447) (1,413)
Amortisation of acquired intangibles 1,229 2,113 4,210
Share based payments 49 16 89
Exceptional items 128 148 265
---------- ---------- ---------
Adjusted Profit before tax*** 1,818 1,830 3,151
========== ========== =========
Operating Profit/(Loss) 492 (330) (1,196)
Depreciation and amortisation 2,345 3,190 6,431
Profit on sale of fixed assets (2) (19) (18)
---------- ---------- ---------
EBITDA* 2,835 2,841 5,217
Share based payments 49 16 89
Exceptional items 128 148 265
---------- ---------- ---------
Adjusted EBITDA** 3,012 3,005 5,571
========== ========== =========
Cash and cash equivalents 4,321 4,282 3,811
Interest bearing bank debt (1,911) (3,236) (2,258)
---------- ---------- ---------
Net Cash 2,410 1,046 1,553
========== ========== =========
Revenue from managed services
- Recurring revenue 11,524 11,362 23,426
Consultancy services 598 547 907
Adhoc sales of hardware, software
and other recharges 670 584 1,334
---------- ---------- ---------
Total Revenue 12,792 12,493 25,667
========== ========== =========
Adjusted earnings per share were 0.27p*** (2018:0.26p***) with a
statutory profit/(loss) per share recorded of 0.1p (2018:0.1p loss)
as a result of the exceptional items and amortisation charges.
Adjusted earnings per share has been calculated as follows:
6 mths 6 mths to 12 mths
to 30 June to
30 June 18 31 Dec
19 GBP'000 18
GBP'000 GBP'000
GBP000 GBP000 GBP000
Profit/(Loss) for the period 384 (404) (984)
Amortisation of acquired intangibles
net of tax impact 1,020 1,754 3,494
Share based payments 49 16 89
Exceptional items 128 148 265
------------ ------------ ------------
Adjusted earnings 1,581 1,514 2,864
============ ============ ============
Weighted average number of shares 575,012,743 574,262,743 574,359,318
Adjusted earnings per share 0.27p 0.26p 0.50p
In order to provide useful information about the Group's
performance and to present information in a way that reflects how
the Directors monitor and measure the performance of the Group, the
Directors believe it is appropriate to present the results of the
Group using selected alternative performance measures.
The following provides an indication of the purpose and
definition of each of the alternative performance measures
presented, together with an appropriate reference to IFRS measures
presented in the IFRS financial statements, where applicable.
Adjusted profit before tax is shown as an alternative
performance measure to present the underlying trading performance.
The calculation excludes the impact of the non-cash items of
amortisation of customer contracts and share based payments as well
as eliminating one off exceptional items from the trading
performance.
Monthly recurring revenue at each month end represents the
monthly revenue contracted to clients under managed service
contracts which reflects revenue contracted but not yet delivered.
Monthly revenue from these contracts is recognised on a
straight-line basis over the life of the contract. Monthly
recurring revenue at the year-end gives an indication of the
revenue likely to be recognised from these contracts in future
months.
Recurring percentage of total reported revenue is the total
revenue recognised in the period from recurring revenue contracts
as a percentage of total revenue.
Net debt is calculated in these interim results as cash less
interest-bearing bank loans and borrowings, excluding IFRS 16 lease
liabilities for the purposes of comparison to prior periods.
* Comprising earnings adjusted for interest, taxation,
depreciation, profit on sale of fixed assets and amortisation.
**Comprising earnings adjusted for interest, taxation,
depreciation, profit on sale of fixed assets, amortisation, share
based payments and exceptional items (being costs in relation to
acquisitions during the year, reorganisation costs, share
repurchase costs and provisions).
***Adjusted for amortisation of acquired intangibles, share
based payments and exceptional items.
Niki Redwood
Finance Director
30 September 2019
Condensed consolidated statement of Profit and Loss and other
Comprehensive Income
Note 6 mths to 6mths to 12 mths
30 Jun 19 30 Jun to 31 Dec
Unaudited 18 Unaudited 18 Audited
GBP000 GBP000 GBP000
Revenue 12,792 12,493 25,667
Cost of sales (4,493) (4,150) (9,063)
Gross profit 8,299 8,343 16,604
Administrative expenses (7,807) (8,673) (17,800)
--------------------------------------------- ------- ---------- ------------- -----------
Share based payments (49) (16) (89)
Amortisation of customer intangibles (1,229) (2,113) (4,210)
Other administrative expenses (6,401) (6,396) (13,236)
---------- ------------- -----------
Administrative expenses before exceptional
items (7,679) (8,525) (17,535)
Operating profit/(loss) before exceptional
items 620 (182) (931)
Exceptional items 3 (128) (148) (265)
Operating profit/(loss) 492 (330) (1,196)
Financial income - - -
Financial expenses (80) (117) (217)
Profit/(loss) before tax 412 (447) (1,413)
Taxation 4 (28) 43 429
Profit/(Loss) for the period and total
comprehensive income for the period,
attributable to shareholders 384 (404) (984)
========== ============= ===========
Profit/(loss) per share: 6
Basic 0.1p (0.1p) (0.2p)
Diluted 0.1p n/a n/a
Condensed Consolidated Statement of Financial Position
at 30 June 2019
6 mths to 6mths to 12 mths
30 Jun 19 30 Jun 18 to 31 Dec
Unaudited Unaudited 18 Audited
Non-current assets and liabilities GBP000 GBP000 GBP000
Goodwill 15,421 15,421 15,421
Intangible assets 4,269 7,526 5,392
Plant and equipment 5,010 5,452 5,584
Right of Use assets 1,323 1,081 992
Trade and other receivables 774 486 575
----------- ----------- ------------
26,797 29,966 27,964
Current assets
Inventories 86 119 71
Trade and other receivables 4,539 4,252 4,172
Cash and cash equivalents 4,321 4,282 3,811
Other financial assets 3 - -
8,949 8,653 8,054
Total assets 35,746 38,619 36,018
Non-current liabilities
Interest-bearing bank loans 623 1,881 -
Deferred taxation 459 927 600
Lease Liabilities 963 863 793
Trade and other payables 547 617 563
2,592 4,288 1,956
Current liabilities
Interest-bearing bank loans 1,288 1,355 2,258
Trade and other payables 6,713 7,261 6,657
Lease liabilities 347 369 256
Provisions - 12 -
8,348 8,997 9,171
Total liabilities 10,940 13,285 11,127
Net assets 24,806 25,334 24,891
Equity attributable to equity
holders of the parent
Share capital 5,750 5,743 5,750
Other reserves 19,056 19,591 19,141
Total equity 24,806 25,334 24,891
Condensed Consolidated Statement of Changes in Equity
Merger Capital
Share Share reserve Redemption Retained Total
capital premium reserve deficit equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 1 January 2018 5,743 22,409 6,016 52 (8,126) 26,094
Adjustment on initial application
of IFRS 9 - - - - (27) (27)
-------- -------- -------- ----------- -------- -------
Comprehensive income
Loss for the period recognised
in profit and loss - - - - (404) (404)
-------- -------- -------- ----------- -------- -------
Total comprehensive income
for the period - - - - (404) (404)
Share based payment recognised
in equity - - - - 16 16
Dividend - - - - (345) (345)
-------- -------- -------- ----------- -------- -------
At 30 June 2018 5,743 22,409 6,016 52 (8,886) 25,334
Comprehensive income
Loss for the period recognised
in profit and loss - - - - (580) (580)
-------- -------- -------- ----------- -------- -------
Total comprehensive income
for the period - - - - (580) (580)
Share based payment recognised
in equity - - - - 73 73
Shares issued in the period 7 57 - - - 64
-------- -------- -------- ----------- -------- -------
At 31 December 2018 5,750 22,466 6,016 52 (9,393) 24,891
Comprehensive income
Profit for the period recognised
in profit and loss - - - - 384 384
-------- -------- -------- ----------- -------- -------
Total comprehensive income
for the period - - - - 384 384
Share based payment recognised
in equity - - - - 49 49
Dividend - - - (518) (518)
-------- -------- -------- ----------- -------- -------
5,750 22,466 6,016 52 (9,478) 24,806
At 30 June 2019
======== ======== ======== =========== ======== =======
Condensed Consolidated Statement of Cash Flows
6 mths to 30 Jun 19 6mths to 30 Jun 18 12 mths to 31 Dec 18
Unaudited Unaudited Audited
Cash flows from operating
activities
Profit/(loss) for the
period 384 (404) (984)
Adjustments for:
Net finance charges 80 117 217
Taxation 28 (43) (429)
Depreciation and
amortisation 2,345 3,190 6,431
Profit on sale of fixed
assets (2) (19) (18)
Share based payments 49 16 89
Corporation tax
refunds/(payments) 180 (21) (504)
Net cash flow from
operating activities
before changes in working
capital 3,064 2,836 4,802
Increase in inventories (15) (51) (3)
Increase in trade and other
receivables (569) (724) (733)
Decrease in trade and other
payables (828) (314) (51)
Decrease in provisions - - (46)
Net cash from operating
activities 1,652 1,747 3,969
---------------------------- ---------------------------- ----------------------------
Cash flows from investing
activities
Acquisition of intangible
assets (227) (281) (347)
Acquisition of property,
plant and equipment (219) (1,318) (2,389)
Proceeds on sale of fixed
assets 3 19 31
Net cash from investing
activities (443) (1,580) (2,705)
---------------------------- ---------------------------- ----------------------------
Cash flows from financing
activities
Repayment of bank loan (359) (677) (1,674)
Interest paid (67) (71) (179)
Repayment of lease
liabilities (273) (238) (420)
Issue of ordinary shares - - 64
Dividend paid - - (345)
Net cash from financing
activities (699) (986) (2,554)
---------------------------- ---------------------------- ----------------------------
Net increase/(decrease) in
cash and cash equivalents 510 (819) (1,290)
Cash and cash equivalents
the beginning of the
period 3,811 5,101 5,101
Cash and cash equivalents
at the end of the period 4,321 4,282 3,811
============================ ============================ ============================
Notes to the interim statement
1. Corporate information
Nasstar plc ("the Company") is a company incorporated in England
and Wales and quoted on the London Stock Exchange's Alternative
Investment Market (NASA). Further copies of these results will be
available at the Company's registered office: Datapoint House, 400
Queensway Business Park, Queensway, Telford, Shropshire, TF1 7UL or
on the Company website at www.nasstar.com. These consolidated
interim financial statements were approved by the Board of
Directors on 27 September 2019 at 1700.
2. Basis of preparation
These condensed interim financial statements of the Company and
its subsidiaries ("the Group") for the 6 months ended 30 June 2019
have been prepared using accounting policies consistent with
International Financial Reporting Standards (IFRSs) as adopted by
the European Union.
These consolidated interim financial statements of the Group are
for the six months ended 30 June 2019. The comparative figures for
the 12-month period ended 31 December 2018 are derived from the
Group's statutory accounts for that financial period. Those
statutory accounts have been reported on by the Group's auditors
and delivered to the Registrar of Companies. The report of the
auditor was (i) unmodified, (ii) did not include a reference to any
matters to which the auditor drew attention by way of emphasis
without modifying its report and (iii) did not contain a statement
under Section 498 of the Companies Act 2006.
The condensed consolidated interim financial statements do not
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 December 2018.
The condensed consolidated interim financial statements for the
six months to 30 June 2019 have not been audited or reviewed by an
auditor pursuant to the Auditing Practices Board guidance on Review
of Interim Financial Information.
The condensed consolidated interim financial statements for the
six months to 30 June 2019 have been prepared on the basis of the
accounting policies expected to be adopted for the year ending 31
December 2019. These accounting policies are drawn up in accordance
with International Financial Reporting Standards, International
Accounting Standards (IASs) and International Financial Reporting
Interpretations Committee (IFRIC) interpretations (collectively
IFRSs) as adopted for use in the European Union.
AIM-listed companies are not required to comply with IAS 34
'Interim Financial Reporting' and accordingly the Company has taken
advantage of this exemption.
Forward-looking statements:
This report may contain certain statements about the future
outlook for Nasstar plc. Although the directors believe their
expectations are based on reasonable assumptions, any statements
about future outlook may be influenced by factors that could cause
actual outcomes and results to be materially different.
3. Exceptional items
The following items are considered significant by virtue of
their size and nature and therefore have been recognised as
exceptional items during the period
6 mths to 30 Jun 19 6 mths to 30 Jun 18 12 mths to 31 Dec 18
Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000
"Nasstar 10-19"
organisational
re-structure 30 50 49
"Nasstar 10-19" data centre
consolidation & office
closure 98 98 187
Provision for onerous lease - - 29
128 148 265
============================ ============================ ============================
4. Taxation
The income tax charge for the period is based on the estimated
rate of corporation tax that is likely to be effective for the year
to 31 December 2019.
5. Dividends
A final dividend of 0.09p in respect of 2018 was paid on 5 July
2019 to shareholders on the register at the close of business on 24
May 2019.
6. Earnings per share
Profit per share:
Basic 0.1p
Diluted 0.1p
The calculation of the basic profit/(loss) per share for the six
months ended 30 June 2019 is based upon the following.
6 mths 6 mths 12 mths
to 30 Jun to 30 to 31 Dec
19 Unaudited Jun 18 18 Unaudited
Unaudited
Weighted average no. of shares in issue 575,012,743 574,262,743 574,359,318
Profit/(loss) attributable to shareholders GBP384,000 (GBP404,000) (GBP984,000)
of the parent
Profit/(loss) per 1p ordinary share 0.1p (0.1p) (0.2p)
Diluted profit per share 0.1p - -
The diluted loss per share for all periods where a loss is
reported is the same as the basic loss per share as the losses have
an anti-dilutive effect.
7. Availability of audited and interim accounts
Copies of the 2018 audited accounts are available on the
Company's website
(http://www.nasstar.com/investors/financial-reports) for the
purposes of AIM rule 26. Further copies of these interim results
will be available at the Company's registered office: Datapoint
House, 400 Queensway Business Park, Queensway, Telford, Shropshire,
TF1 7UL or on the Company website at www.nasstar.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR GMGZLVNKGLZM
(END) Dow Jones Newswires
September 30, 2019 02:00 ET (06:00 GMT)
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