Interim Results for the 6 months ended 31 December 2007
Ekay announces its Interim Results for the six month period ended 31 December 2007.
| Independent review report Consolidated income statement Consolidated balance sheet Statement of changes in equity Consolidated cash flow statement Notes |
Highlights of the Interim Results:
- Acquisition of WFCA Integrated providing step change for the Group with the opportunity to realise significant cost savings via the consolidation of all domestic operations into a single head office at Tunbridge Wells.
- Gross profit increased by 56.6% to £3.452m (2006: £2.203m)
- Gross Margin increased by 73% to 7.8% of revenue (2006 4.5%)
- Profit before tax and exceptional items of £91,000 compared to a £215,000 loss in 2006
14 March 2008
Independent review report to EKAY Plc
Introduction
We have been engaged by the company to review the financial information for the six months ended 31 December 2007 which comprises the Consolidated Income Statement, Consolidated Balance Sheet, Consolidated Cash Flow Statement, Consolidated Statement of Changes in Equity and the related notes. We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information.
This report is made solely to the company in accordance with guidance contained in ISRE 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our work, for this report, or for the conclusions we have formed.
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 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. This interim 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.
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 31 December 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.
Shipleys LLP
Chartered Accountants
10 Orange Street
London WC2H 7DQ
Consolidated income statement
for the 6 months ended 31 December 2007
| 6 months to 31 December 2007 | 6 months to 31 December 2007 | 6 months to 31 December 2007 |
6 months to 31 December 2006 |
Year ended 30 June 2007 |
|
| Unaudited before Exceptional items |
Unaudited Exceptional items |
Unaudited Total |
Unaudited Total |
Audited Total |
|
| £ | £ | £ | £ | £ | |
| Revenue | 23,131,776 | - | 23,131,776 | 17,751,312 | 49,315,319 |
| Direct costs | (21,233,441) | - | (21,233,441) | (16,698,431) | (47,112,392) |
| Gross profit | 1,898,335 | - | 1,898,335 | 1,052,881 | 2,202,927 |
| Other operating income | 4,350 | - | 4,350 | 4,350 | 111,841 |
| Operating costs before share option charge | (1,689,062) | - | (1,689,062) | (1,022,189) | (2,785,966) |
| APS Mortgages writeback | - | 115,000 | 115,000 | - | (1,884,796) |
| Share option charge | (43,988) | - | (43,988) | (74,000) | (151,385) |
| Total operating costs | (1,733,050) | 115,000 | (1,618,050) | (1,096,189) | (4,822,147) |
| Depreciation | (57,202) | - | (57,202) | (35,111) | (93,497) |
| Total operating profit / (loss) | 112,433 | 115,000 | 227,433 | (74,069) | (2,600,876) |
| Interest income | 26,500 | - | 26,500 | 173,292 | 67,699 |
| Profit/(loss) before taxation | 138,934 | 115,000 | 253,934 | 99,223 | (2,533,177) |
| Income tax (expense) / credit | (41,590) | (34,500) | (76,090) | (29,457) | 752,653 |
| Profit/(loss) for the year attributable to equity holders of the parent | 97,344 | 80,500 | 177,844 | 69,766 | (1,780,524) |
| Earnings per share | |||||
| Basic earnings/(loss) per share | 24p | 0.45p | 0.19p | (4.64p) | |
| Diluted earnings/(loss) per share | 23p | 0.44p | 0.18p | (4.64p) |
Consolidated balance sheet
As at 31 December 2007
| As at 31 Dec 07 Unaudited |
As at 31 Dec 06 Unaudited |
As at 30 June 07 Audited |
|
| £ | £ | £ | |
| Assets Non-current assets |
|||
| Property, plant and equipment | 443,132 | 465,321 | 443,715 |
| Goodwill | 2,399,815 | 2,249,692 | 2,386,462 |
| ------------- | ------------- | ------------- | |
| 2,842,948 | 2,715,013 | 2,830,177 | |
| ------------- | ------------- | ------------- | |
| Current Assets | |||
| Trade and other receivables | 3,329,345 | 4,311,429 | 3,378,921 |
| Cash and short term deposits | 397,997 | 1,393,781 | 1,843,985 |
| ------------- | ------------- | ------------- | |
| 3,727,342 | 5,705,210 | 5,222,907 | |
| ------------- | ------------- | ------------- | |
| Total assets | 6,570,290 | 8,420,223 | 8,053,084 |
| ------------- | ------------- | ------------- | |
| Equity and liabilities | |||
| Equity attributable to equity holders of the parent | |||
| Share capital | 391,309 | 391,309 | 391,309 |
| Share premium | 718,579 | 718,579 | 718,579 |
| Retained earnings | (719,975) | 874,491 | (941,807) |
| ------------- | ------------- | ------------- | |
| 389,913 | 1,984,379 | 168,081 | |
| ------------- | ------------- | ------------- | |
| Current liabilities | |||
| Trade and other payables | 6,153,610 | 6,047,437 | 7,862,990 |
| Corporate income tax payable | 20,875 | 388,407 | 22,013 |
| ------------- | ------------- | ------------- | |
| Total liabilities | 6,174,485 | 6,435,844 | 7,885,003 |
| ------------- | ------------- | ------------- | |
| Total equity and liabilities | 6,564,398 | 8,420,223 | 8,053,084 |
| ------------- | ------------- | ------------- |
Statement of changes in equity
for the 6 months ended 31 December 2007
| Group | Share Capital | Share Premium | Retained Earnings | Total |
| £ | £ | £ | £ | |
| Balance as at 1st July 2007 as above | 391,309 | 718,579 | (941,807) | 168,081 |
| Credit on charge for share options | - | - | 43,988 | 43,988 |
| Profit for the 6 months to Dec 2007 | - | - | 177,844 | 177,844 |
| ------------- | ------------- | ------------- | ------------- | |
| Total recognised income and expense for the year | 391,309 | 718,579 | (719,975) | 389,913 |
| Dividend paid | - | - | - | - |
| Issue of share capital for investment | - | - | - | - |
| Issue cost | - | - | - | - |
| ------------- | ------------- | ------------- | ------------- | |
| 391,309 | 718,579 | (719,975) | 389,913 | |
| ------------- | ------------- | ------------- | ------------- |
Consolidated cash flow statements
for the 6 months ended 31 December 2007
| 6 months ended 31 Dec 07 Unaudited |
6 months ended 31 Dec 06 Unaudited |
12 months ended 30 June 07 Audited |
|
| Cash inflow / (loss) from operating activities | |||
| Profit / (loss) from operations | 227,434 | (74,069) | (2,600,876) |
| Share option charge for the year | 43,988 | 74,000 | 151,385 |
| Depreciation of property, plant and equipment | 57,202 | 42,056 | 93,497 |
| ------------- | ------------- | ------------- | |
| Operating cash flows before movement in working capital | 328,623 | 41,987 | (2,355,994) |
| Decrease / (increase) in receivables | (432,223) | 2,046,256 | 1,875,551 |
| Increase / (decrease) in payables | (1,696,320) | (905,050) | 2,079,898 |
| ------------- | ------------- | ------------- | |
| Cash generated from operations | (1,799,919) | 1,183,193 | 1,599,455 |
| Income tax paid | - | - | (200) |
| ------------- | ------------- | ------------- | |
| Net cash from / (used in) operating activities | (1,799,919) | 1,183,193 | 1,599,255 |
| ------------- | ------------- | ------------- | |
| Cash inflow / (outflow) from investing activities | |||
| Interest received | 26,500 | 73,857 | 65,036 |
| Investments | (13,353) | (1,522,181) | (1,510,860) |
| Disposal of fixed assets | - | - | - |
| Acquisition of fixed assets | (56,616) | (192) | (28,770) |
| ------------- | ------------- | ------------- | |
| Net cash used in investment activities | (43,469) | (1,448,516) | (1,474,594) |
| ------------- | ------------- | ------------- | |
| Cash inflow / (outflow) from financing activities | |||
| Net increase / (decrease) in borrowings | - | - | - |
| Proceeds from issues of shares | - | 738,000 | 738,000 |
| Cost of share issue | - | - | - |
| Dividends paid | - | - | (117,393) |
| ------------- | ------------- | ------------- | |
| Net cash from / (used in) financing activities | - | 738,000 | 620,607 |
| Net increase / (decrease) in cash and cash equivalents | (1,843,388) | 472,677 | 745,268 |
| Cash and cash equivalents at 1 July 2007 | 1,666,372 | 921,104 | 921,104 |
| ------------- | ------------- | ------------- | |
| Cash and cash equivalents at 31 December 2007 | (177,016) | 1,393,781 | 1,666,372 |
| ------------- | ------------- | ------------- | |
Notes
Notes to the financial results can be found in the PDF download