COMPANY ANNOUNCEMENT. Crimsonwing plc (the Company ) Approval of Interim Consolidated Financial Statements

Transcription

1 Lignum House, Aldo Moro Road, Marsa, MRS 9065, Malta T: F: E: COMPANY ANNOUNCEMENT Crimsonwing plc (the Company ) Approval of Interim Consolidated Financial Statements Date of Announcement 27 November 2014 Reference 71/2014 Listing Rule LR This is a Company announcement being made by the Company in compliance with Chapter 5 of the Listing rules: Quote The directors approved the Interim Consolidated Financial Statements for the financial period ending 30 th September The Interim Consolidated Financial Statements are available for viewing on the Company s website, at the Registered Office of the Company and are herewith attached. Unquote Signed: Louis de Gabriele Company Secretary Crimsonwing PLC Registered in Malta: C42234

2 Interim Financial Report & Directors Commentary Crimsonwing plc 30 September 2014 pg. 1

3 Table of Contents Directors Commentary 3-4 Statement pursuant to Listing Rule issued by the Listing Authority.. 5 Condensed consolidated statement of profit and loss and other comprehensive income.. 6 Consolidated statement of financial position. 7 Condensed consolidated statement of changes in equity. 8-9 Condensed consolidated statement of cash flows Notes to the interim condensed consolidated financial statements pg. 2

4 Directors Commentary Interim condensed consolidated financial statements 30 September 2014 Performance review Overview Crimsonwing enjoyed a good first half sales performance with revenues up 9% on the same period last year to 10,737,379 (2013: 9,860,961). This meant that again we achieved our highest first half revenues. Sales in two units were particularly strong. The UK grew revenues by 16% to 5,497,038 (2013: 4,753,989) and Malta also grew 16% to 4,570,055 (2013: 3,935,965). Overall the Group is seeing strong demand for its Microsoft Dynamics solutions and in line with the increased revenues there was extra investment needed to activate additional consultancy resources for the large programmes of work coming on stream in the second half of the year. We now have a number of international and indeed global programmes involving Dynamics solutions which will require us to strengthen our programme and change management capabilities in the months ahead. Our ecommerce units have had a steady first half. We undertook our first joint Magento project with ebay Enterprise and we scored new wins on the Intershop platform in The Netherlands. We have invested in the first half in both business development in the UK and the Netherlands and in the building of two solutions (owned intellectual property). These are an omnichannel solution (Magento platform) and a Mobile enabling solution for webstores which will launch in early Crimsonwing administration costs increased in line with revenues by 9% to 2,632,317 (2013: 2,416,853). EBITDA achieved was 1,099,663 (2013: 1,156,584). Profit after tax was very similar to last year being 605,740 (2013: 608,644). The revenues, EBITDA and net profit achievements were on budget plan for the first half year. In the first half we have been heavily involved in some Dynamics solution designs for several global programmes. We then have to invest in additional resources in the second quarter to be ready for these solutions to move into their larger build phases in our second half year. Hence we are expecting a stronger second half. pg. 3

5 Directors Commentary (continued) Interim condensed consolidated financial statements 30 September 2014 Sector Reporting Crimsonwing UK Overall revenues in the UK increased by 16% to 5,497,038 (2013: 4,753,989). Dynamics was again the best performing unit and we secured some very exciting international projects. We launched three new ecommerce sites under the global programme with Mothercare, and made very good progress on our omnichannel solution build which we demonstrated at the ecommerce Expo at Olympia. Crimsonwing NL (including Promentum) The Netherlands has had a challenging and hard-working first half, although it did achieve its budgets, and remains on track for a good full year. Going into the year we have had to provide extra support to a client launching on a Dynamics and ecommerce platform combined. This has impacted our ability to free up some of our resources on new work. The pipeline of work across all units is strong, and we have particularly good opportunities in our Dynamics for Membership vertical. We ran solution events both in The Netherlands and the UK and sold some important new licences in the first half. Crimsonwing Malta Malta had a very good first half with revenues increasing 16% to 4,570,055 (2013: 3,935,965). EBITDA increased to 656,948 (2013: 290,831). Our Malta operation is very active both in the local market and in support of our UK and Dutch operations. Again our Dynamics practice has been growing rapidly to support the demand and in recognition of this Stephen Abela, our Head of Dynamics in Malta, was appointed Director. Our solution centre in Malta is also the hub of our solution product development and builds both our Dynamics for Membership solution and our mobile enabling solution (which is an R&D project). Solution intellectual property (IP) is an important strategic initiative for us as it will improve our margins, allow repeatable deployments, and capture annuity support revenues. Summary The Directors are pleased with the overall progress of the first half which is on budget plan. We are now engaged on several international solution builds which will underpin and drive our performance forward in the second half. pg. 4

6 Statement pursuant to Listing Rule issued by the Listing Authority Interim financial statements 30 September 2014 We confirm that to the best of our knowledge: The condensed interim financial information gives a true and fair view of the financial position of the company as at 30 September 2014, and of its financial performance and its cash flows for the period then ended and conform with the requirements of the accounting standards adopted for use in the EU for interim financial statements, including IAS 34: Interim Financial Reporting; and The interim Directors Report includes a fair review of the information provided as required in terms of Listing Rules 5.81 to James Bonello Director David Walsh Director pg. 5

7 Crimsonwing Plc Condensed consolidated statement of profit and loss and other comprehensive income Period ended 30 September months to 6 months to Sep-14 Sep-13 (unaudited) (unaudited) Eur Eur Revenue 10,737,379 9,860,961 Direct costs (7,005,399) (6,287,524) Gross profit 3,731,980 3,573,437 Administrative expenses excluding depreciation and amortisation (2,632,317) (2,416,853) EBITDA 1,099,663 1,156,584 Other administrative expenses Amortisation and depreciation (361,710) (334,179) Results from operating activities 737, ,405 Finance income Finance expenses (54,530) (52,325) Net finance expense (53,718) (52,040) Profit before income tax 684, ,365 Income tax expense (78,495) (161,721) Profit for the period 605, ,644 Other comprehensive income Items that may be classified subsequently to profit or loss Exchange differences arising on translation of foreign operations 53,740 (740) Total comprehensive income for the period 659, ,904 ================ ================ Profit for the period attributable to: Non-controlling interest - - Equity holders of the parent 605, ,644 ================ ================ Total comprehensive income attributable to: Equity holders of the parent 659, ,904 ================ ================ Earnings per share ================ ================ pg. 6

8 Crimsonwing Plc Consolidated statement of financial position Period ended 30 September 2014 Sep-14 Mar-14 (unaudited) (audited) Eur Eur ASSETS Intangibles 3,372,403 3,479,442 Plant and equipment 266, ,433 Deferred tax assets 531, ,055 Total non-current assets 4,171,233 4,184,930 Trade and other receivables 5,538,020 4,837,294 Cash and cash equivalents 744, ,930 Total current assets 6,282,590 5,334,224 Total assets 10,453,823 9,519,154 =================== ================ EQUITY Equity attributable to equity holders of the parent Share capital 2,960,436 2,958,248 Share premium 1,612,778 1,605,752 Other reserves (541,055) (594,802) Retained earnings 1,521, ,308 Total equity 5,553,207 4,884,506 LIABILITIES Current liabilities Trade and other payables 2,591,245 2,765,660 Income tax payable 142, ,215 Other financial liabilities 128, ,583 Bank borrowings 1,171, ,471 4,033,964 4,003,929 Non-current liabilities Other financial liabilities 294, ,572 Bank borrowings 524, ,129 Deferred tax liability 47,805 46, , ,719 Total liabilities 4,900,616 4,634,648 Total equity and liabilities 10,453,823 9,519,154 =================== ================ These accounts were approved by the Board on 24 th November 2014 pg. 7

9 Crimsonwing Plc Condensed consolidated statement of changes in equity Period ended 30 September 2014 Attributable to the holders of the parent Share Share Retained Other Reorganisation Translation Total capital premium earnings equity reserve reserve Equity Eur Eur Eur Eur Eur Eur Eur Balance at 31 March ,894,000 1,310,584 (217,136) (736,968) 186,219 (39,136) 3,397,563 Profit for the period - - 1,421, ,421,844 Other comprehensive income for the period (4,917) (4,917) Total comprehensive income for the period - - 1,421, (4,917) 1,416,927 Issue of share capital 64, , ,416 pg. 8

10 Crimsonwing Plc - Condensed consolidated statement of changes in equity (continued) Period ended 30 September 2014 Dividends paid - - (289,400) (289,400) Balance at 31 March ,958,248 1,605, ,308 (736,968) 186,219 (44,053) 4,884, Balance at 31 March ,958,248 1,605, ,308 (736,968) 186,219 (44,053) 4,884,506 - Profit for the period , ,740 Other comprehensive income for the period ,747 53, Total comprehensive income for the period ,740-53, ,487 Issue of share capital 2,188 7, , Balance at 30 September ,960,436 1,612,778 1,521,048 (736,968) 186,219 9,694 5,553,207 pg. 9

11 Crimsonwing plc - Condensed consolidated statement of cash flows Period ended 30 September months to 6 months to Sep-14 Sep-13 (unaudited) (unaudited) Eur Eur Cash flows from operating activities 117,466 78,387 Interest paid (54,530) (52,325) Income tax paid (168,964) (284,086) Net cash generated from operating activities (106,028) (258,024) Cash flows from investing activities Purchase of property and equipment (66,799) (106,093) Purchase of intangibles (160,085) (130,196) Interest received Net cash used in investing activities (226,072) (236,004) Cash flows from financing activities Proceeds from the issue of share capital 9,213 - Shareholders' loans (71,933) 36,623 Movement in other payables (11,572) (34,703) Proceeds/(repayment) of director s advances 77,749 (52,872) Proceeds from bank borrowings 303, ,091 Net cash from financing activities 307, ,139 Effect of exchange rate fluctuations on translation of cash flows of foreign operations 53,747 (740) Net movement in cash and cash equivalents 29, ,629 Cash and cash equivalents at the beginning of the period (323,632) (822,401) Cash and cash equivalents at the end of the period (294,599) (980,030) ================ ================ pg. 10

12 Crimsonwing plc Notes to the interim condensed consolidated financial statements 30 September Reporting entity Crimsonwing plc is a company registered and domiciled in Malta. The condensed consolidated interim financial statements as at and for the six months ended 30 September 2014 comprise the company and all its subsidiaries including Crimsonwing Ltd, Crimsonwing BV, Crimsonwing Promentum Holdings BV, VDA Informatiebeheersing BV and Crimsonwing (Malta) Ltd. 2. Basis of preparation These interim condensed consolidated financial statements for the six months ended 30 September 2014 have been extracted from the unaudited management accounts of the Group and have been prepared in accordance with International Financial Reporting Standard 34 Interim Financial Reporting and in terms of the Malta Financial Services Authority Listing Rules Chapter 5. The financial information has been extracted from the company s unaudited interim financial statements for six month period ended 30 September The comparative amounts reflect the position of the company as included in the audited financial statements as at 31 March 2014 and the unaudited results for the period ended 30 September Significant accounting policies The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group s annual financial statements for the year ended 31 March Segment information The Group s operating segments are organized into three geographical areas Malta, United Kingdom and Netherlands. The Group s Executive Board regularly reviews operating activity by geographical location. The Group s operating segments were determined by geographical locations because the Executive Board uses information on this basis in order to make decisions about resource allocation and assessing performance. pg. 11

13 Crimsonwing plc Notes to the interim condensed consolidated financial statements 30 September Segment information (continued) Measurement of segment assets, liabilities, income and expenses is based on the group s accounting policies. Segment income and expenses include transfers between segments. Shared costs are included in segment on the basis of the actual recharges made. The following is an analysis of the Group s revenue and results from continuing operations by reportable segment. The adjustments pertain to intercompany transactions eliminated on consolidation. The segment NL comprises Crimsonwing BV and VDA Informatibeheersing BV. Apr 14 Sep 14 Malta UK Netherlands Adjustments Total NL Promentum Eur Eur Eur Eur Eur Eur Revenue 4,570,055 5,497, ,363 3,083,427 (3,169,504) 10,737,379 Direct costs (3,124,654) (4,609,948) (679,409) (1,760,892) 3,169,504 (7,005,399) Gross Profit 1,445, ,090 76,954 1,322,535-3,731,980 pg. 12

14 Crimsonwing plc Notes to the interim condensed consolidated financial statements (continued) 30 September 2014 Administrative expenses (788,453) (765,513) (143,780) (934,571) - (2,632,317) EBITDA 656, ,577 (66,826) 387,964-1,099,663 Amortisation and depreciation (361,710) Results from operating activities 737,953 Net finance expense (53,718) Profit before income tax 684,235 Income tax expense (78,495) Profit for the period 605,740 pg. 13

15 Crimsonwing plc Notes to the interim condensed consolidated financial statements (continued) 30 September Segment information (continued) Apr 13 Sep 13 Malta UK Netherlands Adjustments Total NL Promentum Eur Eur Eur Eur Eur Eur Revenue 3,935,965 4,753,989 1,116,477 3,055,821 (3,001,291) 9,860,961 Direct costs (2,823,319) (3,856,861) (789,379) (1,819,256) 3,001,291 (6,287,524) Gross Profit 1,112, , ,098 1,236,565-3,573,437 Other income ,324 - (68,324) - Administrative expenses (821,815) (628,747) (168,598) (866,017) 68,324 (2,416,853) pg. 14

16 Crimsonwing plc Notes to the interim condensed consolidated financial statements (continued) 30 September 2014 EBITDA 290, , , ,548-1,156,584 Amortisation and depreciation (334,179) Results from operating activities 822,405 Net finance expense (52,040) Profit before income tax 770,365 Income tax expense (161,721) Profit for the period 608,644 pg. 15

17 Crimsonwing plc Notes to the interim condensed consolidated financial statements (continued) 30 September Fair values of financial assets and financial liabilities Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. For financial reporting measures, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows: - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; - Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and - Level 3 inputs are unobservable inputs for the asset or liability. For assets and liabilities that are recognised in the financial statements at fair value on a recurring basis, the Group and Company determine when transfers are deemed to have occurred between Levels in the hierarchy at the end of each reporting period. The reported carrying amounts at the respective balance sheet dates of the Group s and company s financial instruments, other than the investments in subsidiaries, are a reasonable approximation of their fair values in view of their short-term maturities. The fair values of non-current financial liabilities that are not measured at fair value are based on discounted cash flows and are determined not to be materially different from their carrying amounts either because of their short-term maturities or because the interest rate re-prices annually. Their carrying amounts therefore approximate their fair values and are deemed to be a Level 2 measurement. pg. 16