Year ended. 31 st December 2014

Transcription

1 Report and Financial Statements Year ended 31 st December 2014

2 Report and financial statements for the year ended 31 December 2014 Contents Page: 1 Chairman's statement 4 Group strategic report 5 Report of the directors 7 Report of the independent auditors 9 Consolidated profit and loss account 10 Statement of recognised gains and losses 11 Consolidated balance sheet 12 Individual company balance sheet 13 Consolidated cash flow statement 14 Notes forming part of the financial statements Directors T C L Cary D E Horner P D Taylor-Toms M D Tocher M J Murphy J L A Cary J P Leighfield (Chairman) (Managing) (Finance) (Operations) (International Operations) (Non-executive) (Non-executive) Secretary and registered office P D Taylor-Toms, Virginia Villas, High Street, Hartley Wintney, Hampshire, RG27 8NW Company number Auditors Moore Stephens (Guildford) LLP, Priory House, Sydenham Road, Guildford, Surrey GU1 3RX

3 Chairman's statement In 2014 Getmapping achieved a record turnover for the second year in a row, primarily due to growth in Africa and the contract to maintain imagery of Great Britain for Central Government for the next three years through Defra. The business in Africa continues to expand and the acquisition of Promap CE Ltd in May 2014 has further increased both our capabilities and our market share in the region. In early 2015 Getmapping, in partnership with Bluesky International Limited, were also successful in securing a contract to be the sole external contractor for the acquisition of the Ordnance Survey s own imagery layer. As a result, our immediate future is relatively secure and we will use this as a base on which to grow our African survey and UK solutions services. Whilst turnover continues to grow, the fall in profits is a reflection of a difficult UK flying season in 2014 and the fact that it is getting harder to sell photography as a product as there is a growing expectation that photography should be available free of charge. In addition, the Ordnance Survey continues to threaten Getmapping s long term future in the UK by unfairly (in our view) cross-subsidising its commercial activities from its publicly-funded mapping budgets. Financial results The financial highlights (with variances compared with 2013) were: Turnover up 18% to 5,562,000 (2013-4,704,000); Turnover in Africa up 41% to 1,144,000 ( ,000) Gross profit up 13% to 4,149,000 (2013-3,654,000); After tax profit for year down 16% to 541,000 ( ,000); Year-end cash up 52% to 1,064,000 ( ,000). In 2015 we will seek permission from the Courts to cancel Getmapping s share premium account, which will in effect write off our accumulated historic losses and allow us to be able to pay dividends and/or to make an offer to buy back some of our own shares from future profits. UK Business and Ordnance Survey (OS) Getmapping is now the largest commercial provider of aerial photography in the UK market. We own the IPR in the only commercial fully-maintained photographic survey of the whole of Great Britain, (we own the IPR in Scotland on our own and share the IPR in the photography of England and Wales with Bluesky International Ltd). The photographic survey is underwritten by multi-year contracts from the Scottish Executive and DEFRA (the latter of which we won in partnership with Bluesky). Getmapping and Bluesky also license the photography to a large number of Local Authorities and commercial markets (such as property, insurance and transport). Thus we continue to support the original aim of the company, which was to own a maintained survey of the whole of Britain and make it available at affordable prices to all users by licensing it efficiently across all the available markets. To help build the market we have also developed a range of web-based services which allow users to access and analyse the photography in parallel which other geographic information (such as maps, flood data and Natural England data). Under normal circumstances Getmapping ought to be able to expand its UK business from this position of strength by extending the range of its data and services. However internet portals such as Google and Microsoft pose a constant risk, and the Ordnance Survey continues to threaten Getmapping s future in the UK by leveraging its dominant position as the monopoly provider of maps to the Public Sector to expand the scope of its commercial activities. (See note on competitive environment). However, despite the threat from Ordnance 1

4 Chairman's statement (continued) Survey, we hope to be able to maintain our leading position in the UK market, and to grow our business by offering a wider range of products and services. In particular we are now offering a street-level photographic service called Street Layer which is similar to Google StreetView, except that the data can be used to measure the exact position of assets in three dimensions. We are also continuing to develop our web-based services and offer them to new sectors of the market. Africa Getmapping acquired Geosense Ltd in 2011 so that the GeoInformation market in Africa could be developed as a second main theatre of growth for the company. In 2013, sales in Africa increased by 86% to 811,000, and in 2014 sales in Africa grew by a further 41% to 1.14m. Getmapping now operates two height-mapping LiDAR instruments in Africa, and we work in several Southern African countries, mostly in the mining, utility and government sectors. Sales in Africa now amount to just over 20% of the business of Getmapping, and our expectation is that Africa will overtake the UK as the largest part of the business within the next few years. There are several benefits of Africa as a market for Getmapping. First, Africa is large, poorly-mapped and rapidly-developing. This means that there is a huge potential for bespoke aerial survey work for professional sectors such as mining, infrastructure and utilities. Second, Africa is large and sparsely populated and this means there is less risk of the internet mapping companies (Google, Microsoft and Apple) competing in the African market with high quality general-purpose mapping and photography products of their own. Getmapping is already amongst the largest aerial survey companies based in Africa and our strategy is to grow in the region organically as well as by the judicious acquisition of small specialist survey companies operating in complementary markets/territories. We acquired Promap in 2014 to expand our LiDAR capabilities and to provide us with a ground survey division. Promap has contributed to the growth of the business in Africa in 2014, and although it made a small loss in its first year, it has positioned us well for developing further new business in Angola and Zambia. Getmapping Web Services Getmapping s web services continue to improve, and sales are growing steadily. However the volume of business in the UK is still too small to be profitable and we have not yet started to introduce the services to the African market, although some exploratory meetings have established that there is potential. In 2015 we have embarked on an initiative to introduce the web services to new sectors of the commercial market instead of concentrating mainly on Local Government. It is expected that this initiative will result in an acceleration of sales and that the division will become profitable by the end of Aerogrid We have decided to wind up our joint venture company (AeroGrid Limited) after the sudden and unexpected death of its founder and General Manager Miles Taylor in June 2014 from a heart attack. AeroGrid demonstrated the potential for collecting and re-selling third party imagery on a global scale, but it suffered from incomplete and inconsistent coverage and without the passion and encyclopaedic knowledge of Miles we felt that the company was unlikely to prosper. However, Getmapping continues to explore the possibility of offering a global imagery service underpinned by consistent satellite imagery coverage. 2

5 Chairman's statement (continued) Outlook The outlook for Getmapping is positive for the next few years while our UK business is underpinned by our multi-year contracts for Defra, the Scottish Executive and Ordnance Survey, and our African business continues to grow rapidly. However the longer term outlook in the UK is at risk from the ambitions of Ordnance Survey, and the company cannot rely on being able to maintain a national aerial survey of Great Britain in the long term. We will therefore continue to reduce our dependence on national-scale UK aerial photography by developing business in new areas such as web services and in survey work in Africa, and we are making good progress towards this goal. Competitive Environment In 2014 OS took three crucial steps to increase its power over the rest of the British GeoInformation industry. First OS abandoned the central undertaking in its 2004 Framework Document which defines the role of the National Mapping Agency as follows: OS concentrates on the collection, management and provision of nationally consistent data and national map series. It encourages partners to add value to OS data and develop applications and value-added products and services that meet a wide range of end-user requirements. Instead OS has decided to compete head-on with its 300-odd partners by providing value-added solutions in addition to our range of products and services (OS Partner Presentation Feb 2014). Second, OS has become a GovCo (a wholly-government-owned company) so that it will be better placed to act at pace in rapidly changing markets and remain at the heart of the global geospatial industry (OS press release Jan 2015). Third, OS has decided to spend public money to procure its own aerial photography of the whole of Great Britain even though aerial photography is not part of OS s Public Task and OS could have saved millions of pounds by licensing nationalscale photography from Getmapping and Bluesky which has already been commissioned by Defra and the Scottish Executive at public expense. Taken together, these three steps constitute a serious threat to Getmapping s future growth in the UK market. We are engaged in a series of energetic and high-profile activities to try to change OS s behaviour (including a complaint to the European Union Competition Directorate which is still being investigated), and we hope that perhaps the new Conservative government will want to prevent a publicly-owned monopoly company from damaging British industry through unfair competition. Tristram Cary Chairman 28 th May

6 Group strategic report for the year ended 31 December 2014 The Company faced another challenging year with increased levels of competition in some areas and a number of agreements being scheduled for review. Poor weather and a drop in demand for aerial photography off the shelf were the primary factors behind the decreased profit from operations, although growth in Africa and the securing of the Defra contract produced increased levels of turnover. The key financial results show a profit of 541,000 compared to 641,000 in A significant contributing factor to this decrease was the increased competition in the UK market, as Africa actually increased its profitability. The company continues to manage its underlying costs whilst maintaining operational efficiency and it is noted that a significant cost continues to be the depreciation charge approximating to one third of total overhead costs in both 2014 and The company continues to benefit from the ability to offset brought forward losses for tax purposes resulting in no reduction in the reported profit as a consequence of taxation. Despite a financially challenging year, investment in growth continues to be made from a position of relative financial strength. At the end of 2014 net assets are 3.45 million compared to 3.0 million at the end of The directors continue to focus on revenue growth, controlling costs and balance sheet management to ensure the financial base of the group remains strong for shareholders. The long term aim of the group is to continue to grow revenues and profits through retaining and increasing the efficiency of its existing operations and by expanding internationally. The main challenges are most evident in the domestic UK market with the anticipated changes in the competitive environment. The board recognise that in order to grow, the company needs to be able to compete in terms of markets, products and service and this will require ongoing investment in the infrastructure to facilitate long term growth and financial sustainability. Risks and uncertainties In addition to the operating risks identified in the Chairman's Statement, the board are active in managing the financial risks consequent on the business activities. The principal financial risks are those of credit risk, foreign currency risk and interest rate risk. The group uses financial instruments as appropriate to facilitate the group s ordinary trade activities, namely cash, trade payables and receivables. The group does not use financial derivatives in its management of these risks. Details of the use of financial instruments by the group are set out in the notes to the financial statements. Going concern The directors have a reasonable expectation that the company has adequate resources to continue operations for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details are given in the notes to the financial statements. On Behalf of the Board P D Taylor-Toms 28 th May

7 Report of the directors for the year ended 31 December 2014 The directors present their report together with the audited consolidated financial statements for the year ended 31 December Principal activities, trading review and future developments The principal activity of the group is the production and sale of aerial photography and related data. The directors' report should be read in conjunction with the Chairman's Statement and the Strategic Review, which together, summarise the group's operations during the year, the key performance indicators, the principal risks to the business, and future plans. Capitalisation policy Development costs relating to flying, photography, geo-correction, processing and delivery systems are capitalised as tangible fixed assets. All other development costs have been written off to the profit and loss account. Employee Involvement The directors are well aware of the importance of good employee relations and the contribution the staff make to the group. The policy is to attract and retain good quality staff so that the group remains at the forefront of technical development in the acquisition of photographic data and its delivery on line. Members of staff are kept aware of the Board s plans and are encouraged to put forward ideas for improving the business. Directors The directors of the company who served during the year and their interests in the ordinary share capital of the company at 31 December 2014 were: Ordinary shares of 0.3p each T C L Cary 4,080,533 4,080,533 D E Horner 1,800,000 1,800,000 M D Tocher 1,800,000 1,800,000 M J Murphy 1,800,000 1,800,000 J L A Cary 309, ,955 J P Leighfield - - P D Taylor-Toms 2,778 - Share Options at 31 December Directors Scheme Exercise Period Exercise Price (p) J P Leighfield Approved 50,000 50,000 10/02/09 09/02/ D E Horner Approved 500, ,000 12/02/11 11/02/ M D Tocher Approved 400, ,000 12/02/11 11/02/ M J Murphy Approved 400, ,000 12/02/11 11/02/ P D Taylor-Toms Approved 75, ,000 31/03/11 30/03/

8 Report of the directors for the year ended 31 December 2014 (Continued) Statement of Directors Responsibilities The directors are responsible for preparing the Directors Report and the consolidated financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare consolidated financial statements for each financial year. Under that law the directors have elected to prepare the consolidated financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Standards and applicable law). Under company law the directors must not approve the consolidated financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these consolidated financial statements, the directors are required to: select suitable accounting policies and then apply them consistently; make judgements and accounting estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company s and group s transactions and disclose with reasonable accuracy at any time the financial position of the company and group and enable them to ensure that the consolidated financial statements comply with the Companies Act They are also responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Provision of information to auditors Each of the persons who are directors at the time when this Directors Report is approved has confirmed that: so far as that director is aware, there is no relevant audit information of which the company and its auditor are unaware, and that director has taken all the steps that ought to be taken as a director in order to be aware of any information needed by the company and its auditors in connection with preparing their report and to establish that the company and its auditors are aware of that information. By order of the Board P D Taylor-Toms Company Secretary 28 th May

9 Report of the independent auditors To the shareholders of Getmapping plc We have audited the consolidated financial statements of Getmapping plc for the year ended 31 December 2014 which are set out on pages 9 to 31. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the company s members, as a body, in accordance with Chapter 3 of part 16 of the Companies Act Our audit work has been undertaken so that we might state to the company s members those matters we are required to state to them in an auditor s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company s members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of directors and auditors As explained more fully in the Directors Responsibilities Statement set out on page 6, the directors are responsible for the preparation of the consolidated financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Boards (APB s) Ethical Standards for Auditors. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the consolidated financial statements sufficient to give reasonable assurance that the consolidated financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company s and group s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the consolidated financial statements. Opinion on financial statements In our opinion the financial statements: give a true and fair view of the state of the company and group s affairs as at 31 December 2014 and of its group s profit for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Chairman s Statement, Strategic Report and Directors Report for the financial year for which the consolidated financial statements are prepared is consistent with the consolidated financial statements. 7

10 Report of the independent auditors (Continued) Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the consolidated financial statements are not in agreement with the accounting records and returns; or certain disclosures of directors remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit. Christopher Goodwin (Senior Statutory Auditor) for and on behalf of Moore Stephens (Guildford) LLP (Chartered Accountants and Statutory Auditors) Priory House, Pilgrims Court, Sydenham Road, Guildford, GU1 3RX 29 th May

11 Consolidated profit and loss account for the year ended 31 December 2014 Note Turnover 2 Continuing operations 5,351 4,704 Acquired operations 211-5,562 4,704 Cost of sales 3 (1,413) (1,050) Gross profit 4,149 3,654 Administration expenses 3 (3,567) (3,055) Operating profit Continuing operations Acquired operations (60) Income from interests in joint ventures Interest receivable 3 1 Finance lease interest payable (66) (24) Profit on ordinary activities before taxation Taxation Profit on ordinary activities after taxation Earnings per share - basic p 1.86p Earnings per share - diluted p 1.76p The turnover and operating profit derive from continuing and acquired operations. None of the company s activities were discontinued during the period under review. The notes on pages 14 to 31 form part of these consolidated financial statements. 9

12 Statement of recognised gains and losses for the year ended 31 December Profit for the financial year Currency translation differences arising on consolidation of overseas entities (26) - Alignment of accounting policies on consolidation (66) - Total gains and losses recognised since last Annual Report Note of historical cost profit and loss Reported profit on ordinary activities before taxation Realisation of revaluation gains of previous years Historical cost profit on ordinary activities before taxation and historical cost profit retained

13 (Company Number ) Consolidated balance sheet at 31 December 2014 Note '000 '000 '000 '000 Fixed assets Tangible assets 10 3,418 3,215 Intangible assets Investments ,536 3,216 Current assets Stock and work in progress Debtors ,017 Cash at bank and in hand 1, ,829 1,729 Creditors: amounts falling due within one year 16 1,354 1,594 Net current assets Total assets less current liabilities 4,011 3,351 Creditors: amounts falling due after more than one year ,453 2,999 Capital and reserves Called up share capital Share premium 21 12,595 12,591 Revaluation Reserve Profit and loss account 21 (9,246) (9,899) Shareholders' funds 28 3,453 2,999 The consolidated financial statements were approved by the Board and authorised for issue on 28 th May 2015 P D Taylor-Toms Finance Director The notes on pages 14 to 31 form part of these consolidated financial statements. 11

14 (Company Number ) Company balance sheet at 31 December 2014 Note '000 '000 '000 '000 Fixed assets Tangible assets 12 3,235 3,215 Investments ,352 3,216 Current assets Stock and work in progress Debtors ,017 Cash at bank and in hand 1, ,748 1,729 Creditors: amounts falling due within one year 16 1,190 1,594 Net current assets Total assets less current liabilities 3,910 3,351 Creditors: amounts falling due after more than one year ,486 2,999 Capital and reserves Called up share capital Share premium 21 12,595 12,591 Revaluation Reserve Profit and loss account 21 (9,213) (9,899) Shareholders' funds 28 3,486 2,999 The consolidated financial statements were approved by the Board and authorised for issue on 28 th May 2015 P D Taylor-Toms Finance Director The notes on pages 14 to 31 form part of these consolidated financial statements. 12

15 Consolidated cash flow statement for the year ended 31 December 2014 Note '000 '000 '000 '000 Net cash inflow from operating activities 25 1,478 1,417 Income received from joint ventures Returns on investments and servicing of finance Interest received 3 1 Finance lease interest paid (66) (24) Net cash outflow from returns on investments and servicing of finance (63) (23) Capital expenditure and financial investment Purchase of fixed assets (951) (1,050) Receipts from sale of fixed assets Purchase of subsidiary undertaking (117) - Cash acquired with subsidiary 18 - Net cash outflow from capital expenditure and financial investment (939) (988) Cash inflow before financing Financing Capital element of finance leases repaid (141) (133) Proceeds on issue of shares 5 - Net cash outflow from financing (136) (133) Increase in cash in the year The notes on pages 14 to 31 form part of these consolidated financial statements. 13

16 Notes forming part of the consolidated financial statements for the year ended 31 December Accounting policies The consolidated financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards. The following principal accounting policies have been applied: Basis of Consolidation The results of acquired operations are consolidated from the date of acquisition or to date of disposal. Transactions and balances between group entities are eliminated on consolidation. Going Concern The directors have reviewed the forecasts and future revenue streams and considered the management of associated costs for the foreseeable future. In undertaking this review, specific regard has been given to factors affecting income and expenditure in the light of the current economic climate. The group s revenue streams are dependent upon continued access to data owned by third parties and the ability to increase the geographical coverage of the mapping data. The directors have also recognised the costs associated with the commitment to invest in the data asset and have considered the risks associated therewith. Detailed forecasts have been prepared including an assessment of the funding required to meet the forecasts. Having completed their review, the directors continue to adopt the going concern basis in preparing the consolidated financial statements. These consolidated financial statements do not reflect any adjustments to the figures which would be necessary if the forecast performance is not achieved. Turnover Turnover represents sales to outside customers at invoiced amounts less value added tax. Turnover is recognised as the group earns the right to consideration, which is generally on delivery. Where contracts are entered into for the provision by other data owners of aerial photography over a period, income is recognised as the group earns its entitlement to commission. Fixed assets and depreciation Costs relating to flying, photography, geo-correction, processing and delivery systems are capitalised as tangible fixed assets. Website development costs have been capitalised as tangible fixed assets where they relate to an enduring asset, and are expected to generate future revenues in excess of costs of developing the website. Website planning and maintenance costs are charged to the profit and loss account when they are incurred. Depreciation is provided to write off the cost, less estimated residual values, of all fixed assets over their expected useful lives. It is calculated at the following rates: Aerial photography/digital imaging Website Plant, machinery and equipment Fixtures and fittings - 10 years on a straight line basis or 25% reducing balance - 10 years on a straight line basis years on a straight line basis - 3 years on a straight line basis 14

17 Notes forming part of the consolidated financial statements for the year ended 31 December 2014 (Continued) 1 Accounting policies (Continued) Investments Investments in subsidiaries are carried at cost and adjusted where there is a perceived permanent diminution in value. An entity is treated as a joint venture where the group holds a long term interest and shares control under a contractual agreement. The company s joint venture vehicles are limited liability partnerships (LLP). The group is entitled to share in the profits from the LLP. The investment in each LLP is adjusted where the group s share of the net assets is reported below cost. Impairment of fixed assets Impairment reviews are undertaken where conditions exist which indicate an impairment. The impairment is assessed by comparison of the carrying value of the asset against the higher of realisable value and value in use. Goodwill Goodwill represents the excess of the fair value of the consideration given over the fair value of the net assets acquired for a business combination. The group assesses the useful economic life of goodwill arising on consolidation of group entities and amortises amounts relating to each transaction over periods where the benefits are expected to be realised. Intangible fixed assets amortisation policy Intangible fixed assets (including purchased goodwill and patents) are amortised at rates calculated to write off the assets on a straight basis over their estimated useful economic lives, not to exceed ten years. Impairment of intangible assets is reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable. Share based payments When share options are awarded to employees, the fair value of the options at the date of grant is charged to the income statement over the vesting period. Finance Leases Where the group enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease. The asset is recorded in the balance sheet as a tangible fixed asset and is depreciated in accordance with the above depreciation policy. Future instalments under such leases, net of finance charges, are included with creditors. Rentals payable are apportioned between the finance element, which is charged to the profit and loss account to produce a constant rate of charge on the balance of capital repayments outstanding, and the capital element which reduces the outstanding obligation for future instalments. Operating leases Annual rentals under operating leases are charged to the profit and loss account on a straight-line basis over the lease term. 15

18 Notes forming part of the consolidated financial statements for the year ended 31 December 2014 (Continued) 1 Accounting policies (Continued) Foreign currency Foreign currency transactions are translated at the rate ruling when they occurred. Monetary assets and liabilities denominated in foreign currencies are translated at the year end rates, the exchange differences arising being taken to the profit and loss account. This includes the translation of amounts reported by group entities where originally denominated in foreign currencies, subject to application of the specific accounting provisions. Deferred taxation Deferred tax is recognised in respect of all timing differences that have originated, but not reversed, by the balance sheet date except for deferred tax assets which are only recognised to the extent that the group anticipates making sufficient taxable profits in the future to absorb the reversal of the underlying timing differences. Deferred tax liabilities and assets are calculated on the basis of the rate at which timing differences are anticipated to reverse and are not discounted. Pensions Payments are made to defined contribution schemes of individual employees, and amounts are charged to the profit and loss account when payable. 2 Turnover, profit and net assets Turnover Group Group '000 '000 By destination: United Kingdom 3,608 3,111 South Africa 1, Rest of World ,562 4,704 All the turnover, profit and net assets are derived from aerial photography and digital imaging sales to external parties. Turnover identified as South Africa above originates from the group s activities in that continent. No analysis of profit or net assets by origin is provided on the basis that this information is not considered to be significant. 16

19 Notes forming part of the consolidated financial statements for the year ended 31 December 2014 (Continued) 3 Acquired operations The analysis of costs between continuing and acquired operations is as follows: Continuing Acquired Total 2014 Total 2013 Cost of sales 1, ,413 1,050 Administrative expenses 3, ,567 3,055 4 Operating profit This is arrived at after charging: Group Group '000 '000 Depreciation owned assets assets held under finance leases Auditors' remuneration statutory audit taxation services 4 3 Operating lease rentals land & buildings (Profit)/loss on foreign exchange (53) 51 Loss/(Profit) on sale of fixed assets 8 (2) 5 Employees Group Group '000 '000 Staff costs consist of: Wages and salaries 1,714 1,439 Social security costs Other pension costs ,906 1,621 The average monthly number of employees (including executive directors) during the year was as follows: Number Number Technical 6 6 Sales and administration South Africa production

20 Notes forming part of the consolidated financial statements for the year ended 31 December 2014 (Continued) 6 Directors' emoluments Group Group '000 '000 Directors' emoluments consist of: Fees and other emoluments Amounts paid to personal pension schemes Emoluments of the highest paid director Fees and other emoluments Amounts paid to personal pension schemes There were 5 directors (2013-5) for whom amounts were paid into a private defined contribution pension scheme. Included within fees is 2,500 (2013-2,500) paid to third parties to make available the services of directors. Details of directors' share options are set out on page 5. During the year one director exercised options over 25,000 ordinary shares. None of the directors exercised share options during the previous year. 7 Taxation on profit from ordinary activities There is no tax charge for either the current or prior year. The factors affecting the tax charge for the year are explained below: Group Group Profit per financial statements Profit on ordinary activities at the standard rate of UK corporation tax of 20% ( %) Expenses not deductible and income not assessable for tax purposes (14) (13) Depreciation less than capital allowances (14) (7) Utilisation of losses brought forward (80) (108) Tax charge for the year

21 Notes forming part of the consolidated financial statements for the year ended 31 December 2014 (Continued) 7 Taxation on profit from ordinary activities (continued) Deferred taxation The group has tax losses of approximately 7.2m ( m) available for offset against future taxable profits. As the recoverability of the amount in the foreseeable future is uncertain, the potential deferred tax asset has not been recognised. 8 Earnings per share The basic earnings per share has been calculated using the consolidated profit for the period divided by the weighted average number of shares in issue during the year, before taking account of shares under option, of 34,507,585 ( ,420,877). The diluted earnings per share has been calculated using the weighted average number of shares in issue during the year, after taking account of shares under option. The weighted average was 36,551,767 ( ,321,945), based upon shares in issue of 34,641,945 ( ,420,877) plus shares under option of 2,044,182 (2013 1,901,068). 9 Holding Company Profit and Loss As permitted by section 408 of Companies Act 2006, the holding company has not presented its own profit and loss account. The profit dealt with in the individual company financial statements is 482,000 ( ,000). 19

22 Notes forming part of the consolidated financial statements for the year ended 31 December 2014 (Continued) 10 Tangible fixed assets: Group Aerial Photography / digital imaging Website Domesday Book processing costs Plant, Machinery and equipment Fixtures and Fittings Cost At 1 January , , ,058 Additions ,511 Disposals (622) (2) (624) At 31 December , , ,945 Depreciation At 1 January , , ,843 Charge for year ,152 Disposals (466) (2) (468) At 31 December , , ,527 Total Net book value At 31 December , , ,418 At 31 December , ,419-3,215 20

23 Notes forming part of the consolidated financial statements for the year ended 31 December 2014 (Continued) 10 Tangible fixed assets: Group (continued) The net book value of, and depreciation charge for the year, on tangible fixed assets held under finance leases was as follows. Net book Value Plant, Machinery & Equipment Depreciation Plant, Machinery & Equipment Intangible fixed assets Goodwill 000 Cost At 1 January Additions 124 Disposals - At 31 December Amortisation At 1 January Charge for year 7 Disposals - At 31 December Net book value At 31 December At 31 December

24 Notes forming part of the consolidated financial statements for the year ended 31 December 2014 (Continued) 12 Tangible fixed assets: Company Aerial Photography / digital imaging Website Domesday Book processing costs Plant, Machinery and equipment Fixtures and Fittings Cost At 1 January , , ,058 Additions ,272 Disposals (621) (2) (623) At 31 December , , ,707 Depreciation At 1 January , , ,843 Charge for year ,097 Disposals (466) (2) (468) At 31 December , , ,471 Total Net book value At 31 December , , ,235 At 31 December , ,419-3,215 22

25 Notes forming part of the consolidated financial statements for the year ended 31 December 2014 (Continued) 13 Investments Company and Group Company Company Group and Group Investments Loans Cost At 1 January Additions Transfers At 31 December Provisions At 1 January Provisions At 31 December Net Book Value Name Country of incorporation 23 Proportion of held rights Nature of business Subsidiaries Geosense Limited England & Wales 100% Not trading Promap Civil Engineering South Africa 100% Aerial Photography Surveys (pty) Limited Joint ventures Digital Millennium Map LLP United Kingdom 50% Aerial Photography Associates Aerogrid Limited United Kingdom 33% Aerial Photography The following information is based on the unaudited accounts to 31 December 2014 for each of the investments named above. Digital Millennium Aerogrid Limited Map LLP Turnover Operating Costs (1) 49 Profit for period 61 - Current assets Current liabilities (11) (20) Long term liabilities - (15) Net Assets 5 - The financial information detailed above represents the pro-rata amounts attributable to the investment by Getmapping plc. The loans advanced representing monies in addition to venture partner capital contributions are repayable in preference to venture partner capital.

26 Notes forming part of the consolidated financial statements for the year ended 31 December 2014 (Continued) 14 Acquired Operations With effect from 1 st June 2014, the company acquired the entire issued share capital of Promap Civil Engineering Surveys (pty) Ltd, a company incorporated in South Africa. Details of the acquisition are as below. Per Accounts Revaluations Net Fixed Assets Debtors and Other Assets Cash at bank Current Liabilities (324) - (324) Net Liabilities (8) 1 (7) Consideration (cash) (117) - (117) Goodwill (125) 1 (124) The equivalent performance of the acquired entity for the latest period of accounts being the year to 28 th February 2014 reported a loss of 107,000 and net liabilities of 1,000. Since acquisition, the subsidiary utilised 42,000 of cash resources within its operations. 15 Debtors Group Company '000 '000 Trade debtors Other debtors Prepayments and accrued income , , Creditors: amounts falling due within one year Group Company '000 '000 Trade creditors Obligations under finance lease contracts Taxation and social security Loans Other creditors Accruals and deferred income 633 1, ,137 1,354 1,594 1,190 1,594 The obligations under finance lease contracts are secured on the assets which they finance. 24

27 Notes forming part of the consolidated financial statements for the year ended 31 December 2014 (Continued) 17 Creditors: amounts falling due after more than one year Group Company '000 '000 Obligations under finance lease contracts Loans The obligations under finance lease contracts are secured on the assets which they finance. 18 Maturity of debt Group Company '000 '000 In one year or less, or on demand In more than one year, but not more than two years In more than two years, but not more than five years Financial instruments Financial instruments are used that are necessary to facilitate the group s ordinary trade activities, namely cash, trade payables and receivables; the resultant risks are credit risk, foreign currency risk and interest rate risk. The group does not use financial derivatives in its management of these risks. Credit risk The group s policy in respect of credit risk is to require appropriate credit checks on potential customers before sales are made. At the balance sheet date the group had the following trade debtors: 25 Group Company '000 '000 Trade debtors

28 Notes forming part of the consolidated financial statements for the year ended 31 December 2014 (Continued) 19 Financial instruments (continued) Foreign currencies There are a small number of routine trading contracts with customers and suppliers in US dollars, South African rand and euros. Payments and receipts are made through bank accounts denominated in the currency of the contract: therefore balances held in any foreign currency are to facilitate day to day transactions. The group mitigates exposure to movements in exchange rates by transferring funds into the sterling accounts on a timely basis. Financial assets With a functional currency of sterling, there are the following currency net assets: Currency: US dollars: Group Company '000 '000 Trade debtors Cash Net assets Currency: Euros: Trade Debtors Cash Net assets Currency: South African rand: Trade debtors Cash Net assets Interest rates Cash balances are held in short-term deposit accounts, repayable on demand: these attract interest rates which fluctuate in relation to movements in bank base rate. This maintains liquidity and does not commit the group to long-term deposits at fixed rates of interest. 26

29 Notes forming part of the consolidated financial statements for the year ended 31 December 2014 (Continued) 19 Financial instruments (continued) Financial assets: cash at bank Group Company '000 '000 Sterling US dollars Euros South African rand , , Financial liabilities With a functional currency of sterling, there are the following currency net liabilities: Group Company '000 '000 Currency: South African rand: Trade Creditors Currency: US Dollars: Trade Creditors Currency: Euros: Trade Creditors Net liabilities Share capital Nominal value Number in pence '000 Allotted, called up and fully paid - ordinary shares As at 1 January ,420, As at 31 December ,641,

30 Notes forming part of the consolidated financial statements for the year ended 31 December 2014 (Continued) 20 Share capital (continued) Share options Employee approved share option schemes Date of Grant Number of shares Period of option Exercise Price ,000 2 to 10 years 6.5p ,000 0 to 10 years 3p ,000 0 to 5 years 10p ,000 0 to 4 years 8p ,000 0 to 10 years 3p ,000 0 to 10 years 4.5p Share options A reconciliation of the movement in share options is as follows: Number Weighted Average Exercise Price Brought forward 1 January ,901, p Granted 400, p Exercised 221, p Lapsed - - Carried forward 31 December ,080, p 400,000 options were granted during the year. 221,068 options were exercised during the year. The weighted average remaining contractual life of options outstanding at the year end was 4.37 years. No charge has been made to the profit and loss account in respect of the options in issue as their value was not material at date of grant or at the year end. 28

31 Notes forming part of the consolidated financial statements for the year ended 31 December 2014 (Continued) 21 Reserves Group Revaluation Share Profit and Reserve Premium loss account At 1 January ,591 (9,899) Profit for the year Consolidation adjustments - - (92) Realisation on asset sale (204) Arising on issue of shares At 31 December ,595 (9,246) Company Revaluation Share Profit and Reserve Premium loss account At 1 January ,591 (9,899) Profit for the year Realisation on asset sale (204) Arising on issue of shares At 31 December ,595 (9,213) 22 Pension Commitments The pension charge for the year amounted to 81,180 ( ,059). The amount of outstanding contributions at the end of the year was 5,303 (2013-5,327). 23 Commitments under operating leases As at 31 December 2014, the group had annual commitments under non-cancellable operating leases as set out below: Land and Land and buildings Other buildings Other '000 '000 '000 '000 Operating leases which expire: Within one year In one to two years In two to five years

32 Notes forming part of the consolidated financial statements for the year ended 31 December 2014 (Continued) 24 Related party transactions During the year the group made sales and recharged expenses of 7,625 ( ,200) to Aerogrid Limited, a company in which Getmapping plc has a 33.3% shareholding. At the year end the group was owed 7,625 ( ,848) by Aerogrid Limited in respect of these sales. At the year end the group was owed 15,900 ( ,900) by Aerogrid Limited in respect of a loan. The group also made purchases of nil (2013-2,025) from Aerogrid Limited during the year. The group also incurred costs of 50,164 ( ,442) for the use of data owned by Digital Millenium Map LLP, a joint venture entity of which Getmapping plc has a 50% interest. 25 Reconciliation of operating profit to net cash inflow from operating activities '000 '000 Operating profit Depreciation and impairment 1, Amounts relating to realignment of depreciation policies (37) - Amortisation of goodwill 7 - Loss/(Profit) on disposal of assets 8 (2) (Increase) / Decrease in work in progress (26) 9 Decrease / (Increase) in debtors 352 (272) Increase / (Decrease) in creditors (550) 177 Other non-cash adjustments (10) - Net cash inflow from operating activities 1,478 1, Reconciliation of net cash flow to movement in net funds '000 '000 Increase in cash in the year Finance lease capital repayments New finance lease agreements (333) (538) Loan arising on first time consolidation (145) - Net funds at start of the year Net funds at end of the year