Kewill plc ("Kewill", the "Company" or the "Group"), the provider of software and solutions that simplify global trade and logistics, announces its preliminary results for the year ended 31 March 2010.
HIGHLIGHTS
|
Year ended |
Year ended |
Growth |
Revenue |
£56.3m |
£53.3m |
6 |
Recurring revenue as % of total(1) |
62% |
59% |
|
Adjusted operating profit(2) |
£8.8m |
£7.9m |
11 |
Operating profit |
£2.6m |
£2.0m |
30 |
Adjusted operating profit margin(2) |
15.6% |
14.9% |
|
Operating profit margin |
4.7% |
3.7% |
|
Adjusted EBITDA(2) |
£9.9m |
£9.1m |
9 |
Adjusted EPS(3) |
10.9p |
9.3p |
17 |
Adjusted diluted EPS(3) |
10.5p |
9.1p |
15 |
EPS |
4.1p |
1.9p |
116 |
Full year dividend |
1.10p |
1.00p |
10 |
(1) Defined as annually contracted revenue (Software as a Service, hosting and maintenance).
(2) Before amortisation of intangibles of £5.9 million (2008/09: £5.6 million) and share based payment charges of £0.3 million (2008/09 £0.4 million) as set out in the consolidated income statement as the Directors regard this as providing additional useful information on trends in underlying performance.
(3) Adjusted to exclude
amortisation of intangible assets and the notional interest and exchange
differences on contingent consideration.
Paul Nichols, Chief Executive Officer commented:
"I am delighted to report a strong performance for the year, in what continued to be a very challenging economic environment. Our recurring revenue grew to 62% of total revenues and we increased Group profit by 11%. We secured contract wins with global businesses in all market sectors and successfully cross-sold products into new regions. In parallel, we enhanced the product set, implemented major rollouts with large customers and signed early customers on Kewill CustomsXchange.
Looking forward, Kewill is well positioned to help customers globally. The complexity of global trade is increasing and businesses are trying to balance multiple priorities including sourcing, customs, transportation, storage and finance. Compliance with additional legislation and regulation is adding to that complexity. Kewill's market-leading solutions simplify these processes and generate a significant return on investment for customers. As we roll-out new and established products across regions, we are building a platform to benefit from the forecast increases in global trade."
Kewill plc
Paul Nichols, Chief Executive Officer
Karen Bach, Chief Financial Officer
Tel: 01483 406080
Financial Dynamics
Edward Bridges/James Macey White/Nicola
Biles
Tel: 020 7831 3113
Global businesses face ever increasing complexity across their supply chains including decisions on sourcing, customs, compliance, transportation, storage, finance, visibility and connectivity. Inefficiency in any of these areas will lead to supply chain delays and result in increased costs. Kewill has a suite of software solutions that significantly simplify the management of the most complex global supply chains for enterprises and logistics service providers.
With over 37 years experience in global trade management and logistics, and over 600 employees worldwide, Kewill is a long-time innovator of solutions for manufacturers, distributors, retailers, freight forwarders, transport companies, customs brokers, 3PL's and 4PL's, as well as other related institutions involved in financing and underwriting global trade such as banks and insurance providers.
Kewill's solutions are in daily use by more than 40,000 users worldwide and our global customer base, which entrusts us with the management of their supply networks, includes divisions of 3M, Bayer, Caterpillar, DHL, FedEx, Ford, General Electric, General Motors, Heineken UK, H.J. Heinz, Kimberley-Clark, Kraft, Levi Strauss, Mazda, Nestlé, Nike, Palm, Procter & Gamble, Smith & Nephew, Sony, TNT, Unilever, UPS, Vodafone, Yamaha, Xerox.
Kewill's performance was strong in the year to March 2010, despite the very challenging trading environment and extended sales cycles. The continued investment in our global product set and increased focus on sales and marketing has improved Kewill's competitive position. Subsequently, the business has secured some significant contract wins with new and existing customers across the globe including Nokia, NYK Logistics, Steinweg, Lockheed Martin and Damco. In addition, Heinz became an important customer of Kewill CustomsXchange and demonstrates the value of our strategic offering for global customs filing. Many of these deals were won in direct competition with global ERP providers and act as proof points of the functional depth of our best-in-breed solutions and the domain skills of our people. Overall, the performance of the Group this year reflects its strong position at the forefront of the Global Trade and Logistics software and services market.
Revenue for the year grew 6% to £56.3 million (2008/09 £53.3 million) and in constant currency terms was broadly flat reflecting a solid performance in tough economic conditions. Importantly, recurring revenue from Software as a Service (SaaS), hosting and maintenance increased 11% to £34.8 million (2008/09 £31.3 million) and now represents 62% of total revenue. As a result of actions taken early in 2009 to reduce Kewill's cost base, adjusted operating profit increased by £0.9 million to £8.8 million (2008/09 £7.9 million). This was the sixth consecutive year of adjusted operating profit growth. Strong net cash flow from operating activities (pre-tax) of £11.8 million (2008/09 £6.1 million) continued Kewill's excellent track record of cash generation. The Group successfully raised £7.2 million (net) earlier in the year. The combination of strong cash flow and the successful fundraising meant the net cash at the end of the year was £17.0 million (2008/09: £4.0 million).
In November 2009, Kewill raised £7.2 million via a share placing to fund strategic acquisition opportunities. Since then, Kewill has continued to actively identify and review a number of acquisition opportunities. The Board was pleased to announce the first such strategic acquisition on 14 June 2010 with the purchase of Minihouse, a Benelux-based software group specialising in the provision of IT software that helps businesses automate customs compliance across Europe. Minihouse was one of the first European software providers to adopt a SaaS delivery model for customs solutions. This has resulted in Minihouse developing a strong recurring revenue base and consistent growth since its foundation in 1998. Minihouse's products complement the strong customs software presence already held by Kewill in the US, Germany, Singapore and through our partners with many other key trading hubs worldwide.
The initial consideration for the acquisition was €6.0 million (£5.0 million) in cash. An additional cash consideration is expected to be between €3.0 million and €6.0 million (£2.5 million and £5.0 million) dependent on growth in revenues until 30 June 2013. This acquisition is expected to be earnings enhancing within the first twelve months.
Kewill continues to pursue additional strategic acquisition opportunities to complement and enhance the current organic growth strategy.
Subject to approval by shareholders at the Annual General Meeting to be held on 28 July 2010, the Directors recommend a final dividend of 0.75 pence per share (2008/09 0.70 pence). If approved, the dividend will be payable on 27 August 2010 to shareholders on the register at the close of business on 23 July 2010 and means the Company will pay an increased total dividend for the year of 1.1 pence (2008/09 1.0 pence).
During the year there were a number of changes to the Board. In August 2009, Karen Bach was appointed as Chief Financial Officer replacing Guy Millward. In February, I became Acting Non-Executive Chairman following Andy Roberts' decision to stand down as Chairman and take up a full time CEO role at the Innovation Group Plc. Andy has served as a Non-Executive Director since 1997 and will continue to do so for the foreseeable future.
The Company announced on 14 May 2010 that it had received a preliminary approach at an indicative price of 130 pence per share. Talks are continuing and the Company will announce further updates as appropriate. Shareholders should be aware that there is no certainty that an offer will be made.
Richard Gawthorne
Acting Non-Executive Chairman
18 June 2010
Revenue for the year increased by 6% to £56.3 million (2008/9 £53.3 million). On a constant currency basis(1), revenue grew by 1%. Recurring revenue(2) from Software as a Service (SaaS), hosting and maintenance increased 11% to £34.8 million (2008/09 £31.3 million) and now represents 62% of total revenue. License revenue for the Group fell by 16% as a result of slower decision making by customers.
Revenue Europe
2009/10 £33.4 million, 2008/09 £31.1
million
Europe revenue increased by 7% to £33.4
million. On a constant currency basis Europe revenue increased by
3% driven primarily by increased demand for SaaS customs and compliance
products in Germany and the delivery of several key customer contracts
that were signed in the first half such as Nokia and Heineken UK.
On an as reported basis, recurring revenue increased by 14%
(constant currency 10%) and now represents 65% of segment revenue.
Revenue Americas
2009/10 £20.0 million, 2008/09 £19.9
million
Americas revenue increased slightly
compared to the prior year to £20.0 million. On a constant
currency basis Americas revenue decreased by 6% following a slow down of
license sales. The Americas also saw a decrease in maintenance
revenue, but this was mostly offset by an increase in revenues from
hosted services. On an as reported basis, recurring revenue
increased by 6% (constant currency 1% decrease) and now represents 60%
of segment revenue.
Revenue Asia
2009/10 £2.9 million, 2008/09 £2.2
million
Asia revenue increased by 33% to £2.9
million. On a constant currency basis Asia revenue increased by 24%
primarily driven by the delivery of Kewill Forwarding to NYK
logistics. On an as reported basis, recurring revenue increased by
20% (constant currency 12%) and now represents 36% of segment
revenue.
Adjusted operating profit(3)
Adjusted operating profit increased by £0.9 million (11%) to £8.8 million. On a constant currency basis, adjusted operating profit increased by £0.4 million to £8.3 million. Despite tough trading conditions restricting sales growth, Kewill's adjusted operating profit margin grew by 1% as a result of strong cost control, particularly in the US, and revenue growth in Europe. For the year, adjusted operating profit represented 16% (2008/09: 15%) of Group revenue.
Adjusted EBITDA(3)
Adjusted EBITDA increased by £0.8 million (9%) to £9.9 million. On a constant currency basis, adjusted EBITDA increased by £0.2 million to £9.3 million. The growth in adjusted EBITDA was driven by the growth in adjusted operating profit. For the year, adjusted EBITDA represented 18% (2008/09: 17%) of Group revenue.
Profit before tax
Profit before tax increased by £1.2 million to £2.6 million. Net finance costs decreased by £0.5 million as Kewill held net cash throughout the year. Finance costs in 2009/10 relate primarily to fees payable on the undrawn £5.0 million revolving credit facility and £3.0 million overdraft. Amortisation of intangible assets has increased by £0.3 million due to the impact of foreign exchange movements. On a constant currency basis, profit before tax increased by £1.0 million.
(1) Calculated by translating current year figures using prior year exchange rates.
(2) Defined as annually contracted revenue (Software as a Service, hosting and maintenance).
(3) Before
amortisation of intangibles of £5.9 million (2008/09: £5.6 million) and
share based payment charges of £0.3 million (2008/09 £0.4 million) as
set out in the consolidated income statement as the Directors regard
this as providing additional useful information on trends in underlying
performance.
Net cash generated from operating activities (pre-tax) was strong at £11.8 million (2008/09: £6.1 million) and benefited from an inflow of £1.9 million (2008/09: outflow of £3.0 million) in respect of reduced working capital. The net cash inflow in the year was £12.8 million after £1.1 million of capital expenditure (2008/09: £1.6 million), £2.9 million paid in respect of previous acquisitions (2008/09: £8.6 million) and £0.9 million paid as dividends to shareholders (2008/09 £0.6 million). Equity funding raised £7.2 million (net) in November 2009 and this, combined with the strong cashflow generation, resulted in an improvement in the net cash position at the year-end to £17.0 million (2008/09 £4.0 million).
Kewill aims to be the leading provider of global trade and logistics solutions for enterprises, shippers and Logistics Service Providers (LSPs) of all sizes. To achieve this goal, Kewill is investing in market-leading products both organically and by acquisition and focusing on product innovation to enhance Software as a Service (SaaS) capability. SaaS provides customers with innovative and efficient solutions with strong returns on investment whilst Kewill benefits from a recurring revenue stream. Operationally, acquisitions bring the opportunity for cross-selling and integration benefits.
Strategic successes in the year included: new product launches, enhanced functionality, cross-selling of products and solutions, cost management and an 11% increase of recurring revenue. Cross-selling successes included Kewill Forwarding, now globally deployed by customers in Europe and the Americas having been acquired via IPACS in Asia in 2007. New solutions delivered as SaaS included Kewill CustomsXchange and Air Cargo Pool. Cost management in the year included the consolidation of management teams resulting in significant cost reductions, particularly in the Americas.
The strategic acquisition of Minihouse in June 2010 enhanced our European customs compliance offering with SaaS delivered solutions that deliver strong recurring revenue.
The Kewill Global Trade and Logistics suite enables operational efficiencies in complex global supply chains. Customers benefit from improved speed of execution and service levels to their customers and thereby generate a fast return on investment from reduced operational costs, inventory, customs duties, compliance fines and service penalties.
Throughout the year, we secured significant contracts with new and existing customers and enhanced solutions in four focus areas:
Kewill's solutions in this market simplify compliance and declarations related to imports and exports. During the year, legislation changes led to increased adoption of our solutions, particularly in Europe and the Americas.
In Europe, electronic export declarations became mandatory in July 2009 resulting in increased use of our systems. Kewill Customs revenues in Germany particularly benefitted from this new legislation where transaction volumes increased on the Air Cargo Pool (ACP) system following its launch in May 2009. ACP allows truck drivers to register upon arrival at the airport through a Kewill ACP terminal, confirming customs approval for the goods to be exported. This automated on-site process can significantly increase speed of delivery for LSPs. As of June 2010, more than 150 airlines have signed up to ACP in over 14 airports across Germany and the system now processes approximately 50,000 export shipments per month.
Our Kewill CustomsXchange solution progressed solidly in Europe during the year both with new partners and by gaining Heinz as an early customer. CustomsXchange simplifies import and export declarations across multiple countries via one single interface. Businesses trading in multiple countries often have multiple solutions resulting in extra complexity and significant overheads. The potential synergies of using a single solution are substantial.
In the Americas, new customers connected to our SaaS enabled Export Compliance System (ECS), which automates the mandated US government screening for restricted parties, embargoed countries and export licenses. In the year we increased the number of countries covered in the screening by nine to twenty six and will continue to widen the geographic coverage of ECS during 2010/11.
On 14 June 2010, Kewill announced the acquisition of Minihouse, a provider of SaaS customs solutions for the Netherlands, Belgium and Luxembourg. Minihouse services a customer base comprising of both LSPs and enterprise shippers with complex supply chains. The acquisition strengthens our position as a dominant player in this market. Compliance solutions are a key strength and market differentiator for Kewill and we believe this sector is a good opportunity for future growth.
Kewill provides solutions for a wide spectrum of logistics requirements and we enhanced functionality of all key offerings throughout the year. Our continued investment in software and people with expertise in these markets led to continued success around the globe. Our Logistics solutions include global freight forwarding, transportation management, warehousing and multi-carrier parcel shipping.
Kewill's solution for global freight forwarders was enhanced during the year with Kewill Forwarding version 3.0 released in February 2010. This latest version provides process efficiencies, extra control mechanisms and additional multi-country capabilities and our customers, including NYK Logistics, have benefited from these enhancements.
The Kewill Transport solution was enhanced this year to extend functionality and expand geographical coverage, particularly for Asia. More recently, a Quick Start version of Kewill Transport has been developed for launch this year in Europe. Quick Start is a pre-configured hosted solution deployed rapidly and cost effectively for smaller customers.
Kewill's leadership position in the US parcel shipping market was enhanced this year with the launch of Flagship version 4.0 in January 2010. Flagship version 4.0 delivers enhanced functionality including broader European carrier coverage and competitive options for users of the United States Postal System (USPS) on a single scalable platform.
Kewill has a market leading position with Kewill Reverse Logistics, which is a SaaS enabled solution that manages the return and repair of faulty, broken or unwanted goods. Most of our customers for this offering are in the high technology and telecoms sector supplying mobile phones, hand-held devices such as PDAs, PCs, servers and computer peripherals.
Up until now, many businesses have focused on supply chain improvements for the sale and outbound shipment of goods, but have neglected the value that can be generated from the return and repair process. Our solution helps these customers to drive cost reductions through better process management and the avoidance of costly penalties if contracted service levels are not achieved. This is an important growth opportunity for Kewill, as illustrated in the year by the global Nokia contract signed in August 2009.
In February 2010, we began marketing our Reverse Logistics solution in the Americas, initially targeting high technology manufacturers. In the future, we see additional opportunities with other manufacturers and in retail. In the coming year we will also be taking the solution to market in Europe and Asia.
Business integration, principally Electronic Data Interchange (EDI), is one of Kewill's most established products. During the year it again generated strong recurring revenues for us in the UK.
Our network solutions continued to connect multiple retailers with their suppliers (Kewill RetailXchange) and insurance companies with their brokers (Kewill InsuranceXchange). These solutions connect the businesses in the market thereby providing important visibility of items such as orders, shipments and documents.
Kewill offers two solutions to connect customers into their base of suppliers: traditional Value Added Networks (VAN) and new web-based systems. These offerings provide customers with a simple, cost effective and one-stop solution. In the year, we signed a partnership with Nubridges to increase the choice of VAN suppliers for our customers.
Visibility tools, providing timely and accurate information, are key to customers driving performance improvement. Each of our solutions delivers visibility through reports, alerts and events to the appropriate system users. Kewill Vision has been developed throughout this year and delivered into the market with an early adopter customer to provide complete visibility on their inter-company document transfer process. Vision will be further enhanced to address the growing need to provide visibility for all our customers across all Kewill solutions. The demand for Kewill Vision will grow as we continue to generate more cross-selling opportunities.
During the year, we secured key contract wins with our products and continued with many successful deliveries of our customers' implementations.
In March 2010, we secured a contract with Heinz to deploy the newly launched CustomsXchange solution to its European operations, enabling simpler and more cost effective processing of export declarations across multiple countries.
At the same time, we completed the first phase of our global implementation of Kewill Forwarding for Damco Logistics by connecting Damco's UK and Thailand operations. During the year, we also secured the commitment for a phased roll-out across the Damco global network.
In the UK, we enjoyed a number of new successes over the year and maintained our strong recurring revenue stream despite the tough trading conditions. Successes included new EDI orders in October 2009 for Heineken UK and in March 2010 for SABMiller with Kewill MessageBroker and Kewill RetailXchange.
In Germany, demand for our SaaS compliance products increased in response to new EU legislation and our improved product offer, following the development of the new ACP solution. In the year we completed the development and certification of the Excise Movement Control System (EMCS) module for Kewill Zabis. EMCS will need to be implemented by all manufacturers, distributors and their LSPs, who deal in dutiable goods such as alcohol and tobacco products. The new legislation replaces manual processes with electronic filing of information at departure and arrival points in the EU prior to final calculation and payment of duties. We are adding EMCS functionality into our other European customs applications, while developing a network of partners for Kewill CustomsXchange. European countries will fully deploy EMCS by 1 January 2011.
In Benelux, our current main offerings are Kewill Transport and Kewill Warehouse, which have historically been sold on a perpetual license and services business model. During the year, we were pleased to secure an important project for a new warehousing system with C.Steinweg Handelsveem, the Dutch logistics provider. Professional services revenues were impacted in the first half of the year with some customers responding to the global recession by delaying certain projects. However, progress was made in the second half and we achieved some small project wins. We were delighted that our domain expertise in the Netherlands was recognised in the year with the award of "Best Oracle Partner".
In early 2009, as part of the One Kewill programme, we completed the consolidation of our American businesses and now operate with a single management team from one location. The consolidation improved the coordination of product development and marketing programmes and realised significant cost synergies.
Our key solutions in the Americas are logistics (parcel shipping), compliance solutions and, more recently, global freight forwarding. Reverse Logistics was brought to market in February 2010.
In the logistics sector, the strategic partnership with Oracle signed in September 2008 brought four new Flagship contracts: Lockheed Martin Aero, Beckman Coulter, Cisco, and NEXCOM (US Navy agency). These customers use Flagship to manage parcel shipping in conjunction with other Oracle applications and have extended use to inbound parcel cost management (to ensure suppliers deliver at least cost while meeting lead times). In parallel, we continued to deploy Kewill Flagship across Purolator's 5,000 customers, with over 3,750 installations now completed.
In the compliance sector, we secured a contract with Leviton for Kewill SPEX, our export documentation solution. This initial contract was augmented by follow on orders for our customs brokerage and export compliance solutions, further illustrating our ability to cross-sell products as a result of building successful customer relationships. New business wins for Kewill CargoPoint, an additional customs brokerage solution, included four mid-size customs brokers including W.J. Byrnes and Marine Services International.
In the freight forwarding sector, we completed the roll out of Kewill Forwarding for Crane Worldwide Logistics (CWL) together with the integration to Sage ACCPAC financials. CWL now operates Kewill Forwarding in 14 countries.
In Asia we saw significant growth primarily driven by Kewill Forwarding and Kewill Transport contracts. In addition, this strong growth in Asia was augmented by demand from current customers, who used the Singapore government's fiscal stimulus program to upgrade their existing systems to Kewill Forwarding.
Successes in the year included new orders for Kewill Forwarding from NYK Logistics and new customers with Global Container Freight and Infiniti Marine. In April 2010, the first Kewill Forwarding site for NYK Logistics went live in Bangladesh and was followed by sites in the Philippines, Vietnam and Korea. This pan Asian and American implementation project will continue throughout 2010.
Upgrade orders to Kewill Forwarding included Skyleader, Transpeed, Pentagon Freight Services and Union Air Freight. Repeat business was secured from existing customers including DHL, Toll Group and CH Robinson in China, Skyleader and Leschaco in Thailand and Atlantic Forwarding across Asia Pacific.
Kewill Transport was introduced into our Asian market in 2009/10 as part of the One Kewill program. Contract wins included new and existing customers such as Keppel Logistics and DHL. In December 2009 we secured a contract with Havi Freight Management for an integrated Kewill Transport and Forwarding solution. This contract is another example of success in our cross-selling program.
In challenging economic conditions, our people have been central to Kewill's strong performance. The domain expertise that is intrinsic in all areas of our business is continually recognised by our customers and prospects and stands us apart from competitors. I would like to thank all our employees for their ongoing dedication to customer service and development of our solutions. These qualities and values are essential as we continue to develop, improve and grow our business around the globe in the coming years.
Continued successes in the market, cross-selling wins, the integration of previous acquisitions and cost control have led to a strong performance in what was a challenging economic environment. We believe this tough economic environment will continue in the short term and we will continue to balance the pursuit of growth opportunities whilst carefully managing our cost base.
The key drivers for future growth for Kewill are the continued globalisation of trade, the increasing recognition of the cost benefits to be gained from modern transport and logistics technology and the ever increasing legislation and compliance requirements mandated by regulatory authorities. As supply chains become more complex, the need for simplification and automation increases. Our existing solutions simplify the supply chain for customers and generate significant returns on investment. We look to augment these solutions organically and with strategic acquisitions in our key markets.
The pipeline remains solid despite slower sales cycles and the challenging economic environment. Our management team believes we are strongly positioned to become the leading provider of Global Trade and Logistics solutions for enterprises, shippers and Logistics Service Providers of all sizes.
Paul Nichols
Chief Executive Officer
Karen Bach
Chief Financial Officer
18 June 2010
|
2010 |
2009 |
Revenue |
56,312 |
53,266 |
Operating expenses |
(53,693) |
(51,301) |
Operating profit |
2,619 |
1,965 |
Analysed as: |
|
|
Operating profit before amortisation of intangibles and share based payments |
8,790 |
7,920 |
Amortisation of intangibles |
(5,879) |
(5,554) |
Share based payments |
(292) |
(401) |
Operating profit |
2,619 |
1,965 |
Interest receivable on cash and short term deposits |
58 |
61 |
Finance costs |
(116) |
(606) |
Profit before taxation |
2,561 |
1,420 |
Taxation |
918 |
106 |
Profit for the year |
3,479 |
1,526 |
|
Basic earnings per share |
4.1p |
1.9p |
Diluted earnings per share |
4.0p |
1.8p |
|
2010 |
2009 |
Profit for the year |
3,479 |
1,526 |
| Other comprehensive income: | ||
Currency translation differences |
(933) |
8,734 |
Total comprehensive income for the period |
2,546 |
10,260 |
|
Share |
Share |
Merger |
Special |
Translation |
Retained |
Total |
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
At 1 April 2008 |
813 |
27,510 |
2,325 |
11,000 |
3,171 |
(9,110) |
35,709 |
Profit for the year |
- |
- |
- |
- |
- |
1,526 |
1,526 |
| Other comprehensive income for the year: | |||||||
Currency translation differences |
- |
- |
- |
- |
8,734 |
- |
8,734 |
Total comprehensive income for the year |
- |
- |
- |
- |
8,734 |
1,526 |
10,260 |
Employee share option schemes: |
|
|
|
|
|
|
|
- proceeds from shares issued |
- |
12 |
- |
- |
- |
- |
12 |
Shares issued in lieu of services provided |
- |
5 |
- |
- |
- |
- |
5 |
Dividend paid |
- |
- |
- |
- |
- |
(650) |
(650) |
Balance sheet reconstruction |
- |
- |
- |
(11,000) |
- |
11,000 |
- |
At 31 March 2009 |
813 |
27,527 |
2,325 |
- |
11,905 |
3,167 |
45,737 |
|
|
|
|
|
|
|
|
At 1 April 2009 |
813 |
27,527 |
2,325 |
- |
11,905 |
3,167 |
45,737 |
Profit for the year |
- |
- |
- |
- |
- |
3,479 |
3,479 |
Other comprehensive income for the year: Currency translation differences |
- |
- |
- |
- |
(933) |
- |
(933) |
Total comprehensive income for the year |
- |
- |
- |
- |
(933) |
3,479 |
|
Employee share option schemes: |
|
|
|
|
|
|
|
- proceeds from shares issued |
4 |
284 |
- |
- |
- |
- |
288 |
Shares issued |
81 |
- |
7,134 |
- |
- |
- |
7,215 |
Dividend paid |
- |
- |
- |
- |
- |
(883) |
(883) |
Transfer |
- |
- |
(7,134) |
- |
- |
7,134 |
- |
At 31 March 2010 |
898 |
27,811 |
2,325 |
- |
10,972 |
13,189 |
55,195 |
| Assets | 2010 £000 |
2009 £000 |
Non-current assets |
|
|
Goodwill |
33,893 |
34,550 |
Other intangible assets |
7,822 |
14,121 |
Property, plant and equipment |
2,626 |
2,593 |
Deferred tax assets |
3,412 |
2,148 |
|
47,813 |
53,412 |
|
|
|
Current assets |
|
|
Inventories |
80 |
181 |
Trade and other receivables |
10,282 |
11,963 |
Cash and cash equivalents |
16,950 |
3,983 |
|
27,312 |
16,127 |
Total assets |
75,125 |
69,539 |
|
|
|
| Liabilities | ||
Current Liabilities |
|
|
Trade and other payables |
16,242 |
16,554 |
Current tax liabilities |
1,420 |
1,339 |
Contingent consideration |
- |
2,938 |
Provisions |
478 |
20 |
18,140 |
20,851 |
|
Net current assets/(liabilities) |
9,172 |
(4,724) |
|
|
|
Non-current liabilities |
|
|
Deferred tax liabilities |
1,656 |
2,951 |
Provisions |
134 |
- |
|
1,790 |
2,951 |
Total liabilities |
19,930 |
23,802 |
|
|
|
Net assets |
55,195 |
45,737 |
|
|
|
Shareholders' equity |
|
|
Called up share capital |
898 |
813 |
Share premium account |
27,811 |
27,527 |
Merger reserve |
2,325 |
2,325 |
Cumulative translation reserve |
10,972 |
11,905 |
Retained earnings |
13,189 |
3,167 |
Total shareholders' equity |
55,195 |
45,737 |
|
2010 |
2009 |
Cash flows from operating activities |
|
|
Cash generated from operations |
11,789 |
6,075 |
Income tax paid |
(1,476) |
(2,322) |
Net cash generated from operating activities |
10,313 |
3,753 |
|
|
|
Cash flows from investing activities |
|
|
Acquisition of subsidiaries (net of cash acquired) |
(2,857) |
(8,607) |
Purchase of property, plant and equipment |
(1,131) |
(1,626) |
Net interest paid |
(108) |
(65) |
Net cash used in investing activities |
(4,096) |
(10,298) |
|
|
|
Cash flows from financing activities |
|
|
Net proceeds from issue of ordinary shares |
7,503 |
12 |
Dividends paid |
(883) |
(646) |
Net cash from/(used in) financing activities |
6,620 |
(634) |
|
|
|
Net increase /(decrease) in cash and cash equivalents |
12,837 |
(7,179) |
Cash and cash equivalents at the start of year |
3,983 |
9,980 |
Effect of exchange rates |
130 |
1,182 |
Cash and cash equivalents at the end of year |
16,950 |
3,983 |
|
|
|
Reconciliation of profit for the year to
cash generated from operations |
2010 |
2009 |
Profit for the year |
3,479 |
1,526 |
Taxation |
(918) |
(106) |
Depreciation charges |
1,086 |
1,177 |
Amortisation of intangible assets |
5,879 |
5,554 |
Loss on disposal of tangible fixed assets |
27 |
17 |
Interest receivable |
(58) |
(61) |
Interest payable |
116 |
606 |
Share based payments |
292 |
401 |
Decrease/(increase) in inventories |
100 |
(54) |
Decrease in trade and other receivables |
1,372 |
338 |
Increase/(decrease) in trade and other payables and provisions |
414 |
(3,323) |
Cash generated from operations |
11,789 |
6,075 |
The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 March 2010 or 2009, but is derived from those accounts. Statutory accounts for 2009 have been delivered to the Registrar of Companies and those for 2010 will be delivered following the Company's Annual General Meeting. The auditors have reported on those accounts; their reports were unqualified, did not draw attention to any matters by way of emphasis without qualifying their report and did not contain statements under s498(2) or (3) of the Companies Act 2006 or equivalent preceding legislation. Whilst the financial information included in this preliminary announcement has been computed in accordance with International Financial Reporting Standards (IFRSs) adopted by the European Union ("EU") and in accordance with the Group's IFRS accounting policies, this announcement does not itself contain sufficient information to comply with IFRSs. The same accounting policies and methods of computation are followed in the audited results for the year ended 31 March 2010. Kewill's accounting policies under IFRS are as reported in the annual financial statements for the year ended 31 March 2009, as published by the Company on 22 June 2009, except that in the year ended 31 March 2010, the Company has adopted the following new and revised Standards and Interpretations: