Latest Results
Half-Yearly Report for the six months ended 30 June 2011
MCB Finance Group plc (AIM: MCRB.L) ("MCB", the "Group" or the “Company”), the consumer finance company providing flexible credit solutions to retail customers in Finland, Estonia, Latvia and Lithuania, today announces its results for the six months ended 30 June 2011.
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Operational and financial highlights
- Strong lending volume growth in all markets - 59% year-on-year lending volume growth
- Pre-tax profit increased to €1.60m to (1H 2010: €0.07m) as a result of strong revenue growth, lower impairment and write-backs of aged receivables
- Revenue growth ahead 43% to €7.97m (1H 2010: €5.59m)
- Impairment reduced to 14% of revenue (1H 2010: 29%)
- Strong initial results from re-launch of Latvian lending operations
- Positive outlook for full year as Company enters seasonally strong second half
Rami Ryhanen, CEO, said:
“The Group has delivered strong lending volume growth as a result of the increased marketing activities begun in the second half of 2010, resulting in significant increase in profitability in all markets. We expect this trend to be sustained going forward as we continue developing the business.
Business overview
For the six month period to 30 June 2011 the Group delivered strong lending volume growth as a result of the increased marketing activities begun in the second half of 2010. The resulting higher revenue has led to a significant increase in profitability in all markets. Credit performance has remained strong, reflecting the Group’s continued cautious approach to credit during the period, but also significant write-backs as a result of the strong collection performance of aged receivables written off in earlier accounting periods. During the period MCB Finance has continued to develop its product and service offering, further strengthening its position in each of its markets.
Loans are primarily offered online through the Company’s Credit24-branded websites in Estonia, Finland, Lithuania and Latvia (e.g. www.credit24.fi). Loans can also be accessed through certain distribution partners in the Baltic countries.
OPERATIONAL REVIEW
For the six month period to 30 June 2011 the Group delivered strong lending volume growth as a result of the increased marketing activities begun in the second half of 2010. The resulting higher revenue has led to an increase in profitability in all markets. Credit performance has remained strong, reflecting the Group's continued cautious approach to credit during the period, but also significant write-backs as a result of the strong collection performance of aged receivables written off in earlier accounting periods. During the period MCB Finance has continued to develop its product and service offering, further strengthening its position in each of its markets.
Economic environment
Economic conditions in all four markets in which the Group operates have continued to improve, with GDP growth rates significantly above EU averages. Unemployment remains high in all markets, however, at between 13% and 16% in the Baltic countries (as of March 2011), and approximately 7.9% in Finland (as of June 2011). There is strong evidence these rates have come down further in the Baltics, for example in Estonia where the percentage of the working population registered for state unemployment insurance has reduced from 10.2% in March to 7.7% in July 2011.
GDP Growth
| 2009 | 2010 | 2011F | 2012F | |
| Finland | -8.2% | 3.6% | 3.7% | 2.6% |
| Estonia | -13.9% | 3.1% | 4.9% | 4.0% |
| Latvia | -18.0% | 0.3% | 3.3% | 4.0% |
| Lithuania | -14.7% | 1.3% | 5.0% | 4.7% |
Source: Eurostat 30/7/2011
While economic conditions have been positive, there is a risk that our markets will be impacted by the difficulties faced by the more established economies in Europe. We continue actively to monitor economic conditions, are maintaining a cautious approach in our lending criteria and will make further adjustments to the business as necessary.
Lending volumes
The Group extended a total of €25.9m in loan principal during the period, up by 59% from €16.2m during the same period last year, and up by 31% from €19.8m lent in the second half of 2010. The growth in lending volumes has been driven by the Group’s continued active marketing approach in all countries, continued improvements to our product range and stable economic conditions.
All markets delivered strong year-on-year lending volume growth, with Finland growing 34% between the first half of 2010 and the first half of 2011, Estonia growing 37%, Lithuania growing 91% and Latvia growing 1,340%. The growth in Latvia reflects the very low lending volumes in this market during early 2010 until we re-launched operations there in October 2010.
Loan principal issued
| change vs. | |||||
| (€ thousands) | 1H 2011 | 1H 2010 | 2H 2010 | 1H 2010 | 2010 |
| Finland | 12,976 | 34% | 11,656 | 9,662 | 21,319 |
| Estonia | 3,533 | 37% | 2,972 | 2,576 | 5,548 |
| Lithuania | 7,397 | 91% | 4,786 | 3,866 | 8,652 |
| Latvia | 2,001 | 1,340% | 387 | 139 | 527 |
| Group | 25,907 | 59% | 19,801 | 16,244 | 36,045 |
Credit quality
The credit quality of MCB’s ongoing lending operations has remained strong. Provisions for impairment related to our continuing lending operations represented 23% of revenue during the period, in line with our expectations. Looking forward, we expect impairment from our current lending activities to remain at similar levels as a percentage of revenue.
In addition, we have continued to see strong recoveries from aged receivables over two years in arrears, for which the Company maintains active monitoring and collection. Since these aged receivables are fully written off from the Company’s balance sheet, any collection from these pools results in write-backs to the Company’s income statement, in the form of a credit to impairment. During the period, write-backs from collection of aged receivables totalled €0.71m, primarily from the Baltics, a significant increase over prior periods, reflecting meaningful operational improvements to our collection activities as well as stronger economic conditions.
As a result, impairment as a percentage of revenue was €1.12m during the period, or 14% of revenue, down from 29% of revenue during the first half of 2010 and 19% during the second half of 2010. Details of the Group’s impairment are provided below:
Impairment
(€ thousands) |
1H 2011 | 1H 2010 | 2010 |
| Provisions for impairment of trade receivables | 1,829 | 1,553 | 3,238 |
| as % of revenue | 23.0% | 27.8% | 27.5% |
| Net credit write-backs | 711 | -81 | 434 |
| Net impairment charged to statement of comprehensive income | 1,118 | 1,634 | 2,805 |
| as % of revenue | 14.0% | 29.2% | 23.8% |
Net credit write-backs in the first half by country were as follows: Finland €4,851 (H1 2010: -€93,010), Estonia
€298,925 (H1 2010: -€10,376), Lithuania €134,988 (H1 2010: €23,646) and Latvia €272,667 (H1 2010: -€1,295)
The trend in credit write-backs is a result of the Company’s conservative receivables write-off policies and sustained improvements to collection processes, and has been supported by a return to more stable economic conditions. We expect write-backs to continue impacting our accounts positively going forward, however at a lower level. Going forward we may consider a change to our write-off policies to reflect the stronger sustained collection of aged receivables. Such a change in policy would lead to reduced provisions for impairment related to our continuing lending operations. We will review this at the time of our full year results.
Other developments
During the period we have continued to improve our product offering and customer service, including further extensions to our product range, improvements to customer care self-service functionality in all markets, and the launch of our partnership with Latvian Post, among other initiatives. While most lending is handled through the Company’s Credit24 branded websites in each market, customers now also have access to loans through over 80 offices of the Latvian Post in Latvia, and over Maxima retail stores across Lithuania, Latvia and Estonia.
The Company’s brand, Credit24, remains one of the most recognised in our markets based on a visible media presence, broad product selection, competitive loan offerings, excellent customer service, and an overall reputation as a transparent and trustworthy provider of financial services.
Financial performance
Revenue for the six months ended 30 June 2011 grew 43% to €7.97m (1H 2010: €5.59m), driven by the significantly higher lending volumes experienced during the period. We expect this trend to continue going forward.
Net impairment totalled €1.12m for the period, or 14% of revenue (1H 2010: €1.63m or 29% of revenue), reflecting continued strong credit performance and significant write-backs from collection of aged receivables.
Direct operating expenses are costs which are directly related to the Group’s lending operations, including loan processing, monitoring and collections. These were €1.37m during the period (1H 2010: €1.01m), reflecting higher loan volumes, however balanced by lower costs per loan as a result of operational improvements. Administrative expenses include overhead, marketing and other expenses related to the Group’s business. Proforma administrative expenses were €3.43m for the period (1H 2010: 2.48m), primarily as a result of higher levels of marketing started 2H 2010 to support lending volume growth. Net interest expenses were €0.45m (1H 2010: €0.40m).
Group EBIT for the period was €2.05m, up from €0.47m during the same period last year. Proforma pre-tax profit for the period was €1.60m (1H 2010: €0.07m, 2H 2010: €0.50m), which is ahead of expectations and reflects the significant growth in lending volumes and revenue. Proforma net profit for the period was €1.26m (1H 2010: net loss: -€0.14m). The proforma figures above exclude non-cash reserves arising on employee share options. These totalled €0.02m during the period.
The profitability of each of the Group’s markets has grown significantly, and all markets contributed positively to Group results. During the period the pre-tax profit of MCB’s Finnish country operations grew by 109% to €1.23m (1H 2010: €0.59m), Estonia grew by 132% to €0.54m (1H 2010: €0.23m), Latvia produced a profit of €0.10m (1H 2010: loss of -€0.006m), and Lithuania’s pre-tax profit grew by 217% to €0.85m (1H 2010: €0.27m).
Central costs, which include Group management, financial and credit control, and systems development and maintenance, among others, remained stable at €1.12m for the period (1H 2010: €1.01m), demonstrating the operational leverage available from the Group’s central organisation.
Net revenue (defined as revenue less impairment) as a percentage of average net customer loan receivables outstanding, remained at 93% (1H 2010: 69%, 2H 2010: 93%), supported by continued high lending margins and low impairment levels.
Summary financials
| change vs. | |||||
| (€ thousands) | 1H 2011 | 1H 2010 | 2H 2010 | 1H 2010 | 2010 |
| Principal lent | 25,907 | 59% | 19,801 | 16,244 | 36,045 |
| Revenue | 7,968 | 43% | 6,194 | 5,589 | 11,783 |
| Impairment | -1,118 | -32% | -1,171 | -1,634 | -2,805 |
| Direct operating expenses | -1,371 | 36% | -1,162 | -1,011 | -2,173 |
| Proforma Administrative expenses | -3,429 | 39% | -3,028 | -2,475 | -5,503 |
| EBIT | 2,050 | 337% | 833 | 469 | 1,302 |
| Net interest expenses | -454 | 15% | -330 | -395 | -725 |
| Proforma EBT | 1,596 | 2057% | 503 | 74 | 577 |
| Proforma net income (loss) | 1,259 | n/a | 369 | -135 | 234 |
| Net customer loan receivables 1 | 16,312 | 53% | 12,052 | 10,634 | 12,052 |
| Average net customer receivables | 14,740 | 28% | 10,842 | 11,487 | 11,165 |
| Borrowings | 8,700 | 85% | 5,200 | 4,700 | 5,200 |
| Total equity | 8,960 | 22% | 7,700 | 7,332 | 7,700 |
| Key metrics: | |||||
| Revenue as % of avg. net receivables 2 | 108% | 114% | 97% | 106% | |
| Net revenue as % of net receivables 3 | 93% | 93% | 69% | 80% | |
| Impairment as % of revenue | 14% | 19% | 29% | 24% | |
| Debt / equity | 97% | 68% | 64% | 68% | |
| Debt / net receivables | 53% | 43% | 44% | 43% | |
| (1) Amounts receivables from customers, net of impairment | |||||
| (2) Annualised | |||||
| (3) Revenue less impairment as % of avg. loan receivables. Annualised. | |||||
Taxation
The Company accrued a €0.34m tax liability for the period from its Finnish and Lithuanian operations. No corporate tax is payable in Estonia and the Group’s Latvian operations benefit from tax losses carried forward.
Balance sheet
At the end of the period net customer loan receivables totalled €16.31m (net of impairment), up from €10.63m at the end of 1H 2010 and €12.05m at the end of 2H 2010, as a result of higher lending volumes.
Debt outstanding was €8.70m, up from €5.2m at the end of 2010 as we continue to draw from the Company’s €12m credit facility as required to support lending volume growth. The Company’s debt to equity ratio was 97%, up from 68% at the end of 2010. The Company remains conservatively capitalised with only 53% of net loan receivables outstanding financed by debt. Cash was €2.13m at the end of the period.
Regulatory environment
As expected, in April Lithuania imposed rules which limit to 250% the annual percentage rate allowed on loans to consumers. While we consider APR is an inappropriate metric from which to benchmark short-term loans, the large majority of our product range in Lithuania already met these criteria. The Company adjusted some of its terms in response to the new legislation, resulting in slightly lower lending margins in some product categories. These changes however further improved the competitiveness of the Company’s products in the Lithuanian market, supporting lending volume growth.
Outside of Lithuania there have been few material changes to the regulatory environment. As expected Latvia has now introduced registration requirements for non-bank lenders, similar to those already in place and followed by the Company in Finland, Estonia and Lithuania. We engage with consumer-regulatory bodies regularly and remain confident of our ability to comply fully with our obligations in this regard.
Current trading and outlook
The Group’s strong results reflect the robustness of its business model and the actions taken since last year to resume growth. We expect the higher lending volumes and revenue achieved in the first half of the year to continue into the seasonally strong second half of the year, with limited changes to the Group’s cost structure. As a result, we expect the Group’s improved financial performance to be continued into the second half of the year, and we expect full year net profit to be ahead of market expectations.
Our strategy remains to focus on the profitable growth of our current markets, and the expansion into new markets as the opportunity arises. As announced previously, the Company is carefully evaluating several markets with the intention to enter one additional market by the end of 2011.
REVIEW OF COUNTRY OPERATIONS
The Group is currently active in Finland, Estonia, Latvia and Lithuania. Together the Group’s operations in these markets contributed €2.72m in pre-tax profits during the period, up from €1.08m in 1H 2010 and €1.68m in 2H 2010.
At the same time Group central costs remained relatively stable at €1.12m during the period (1H 2010: €1.01m, 2H 2010: €1.18m). MCB’s central organisation, based in Tallinn and Helsinki, comprises its senior management, credit and financial control, technology development, and other Group costs. Central costs are relatively fixed and are not expected to change significantly as we achieve growth in lending volume or expand into new markets, giving the Group significant operational leverage. This is a key advantage of our business model.
Profit before tax
(€ thousands) |
H1 2011 | H1 2010 | change | 2010 |
| Finland | 1,234 | 591 | 109% | 1,966 |
| Estonia | 536 | 231 | 132% | 507 |
| Latvia | 101 | -6 | n/a | -421 |
| Lithuania | 847 | 267 | 217% | 711 |
| Total established markets | 2,718 | 1,083 | 151% | 2,763 |
| Central costs | -1,122 | -1,009 | 11% | -2,186 |
| Group profit before taxation | 1,596 | 74 | 2,057% | 577 |
Finland
Finland is MCB Finance’s largest market, accounting for 50% of lending volumes. Principal lent during the period totalled €12.98m up 34% from €9.66m during the same period last year, and up 11% from €11.66m during the second half of 2010.
Country EBT improved to €1.23m, up 109% from €0.59m in 1H 2010, primarily as a result of significant revenue growth. Impairment was 24.6% of revenue. The increase in direct and administrative costs reflect primarily the higher marketing spending started during 2H 2010, which will continue to support lending volumes going forward.
Finland
(€ thousands) |
1H 2011 | 1H 2010 | change | 2010 | |
| Loan principal issued | 12,976 | 9,662 | 34% | 21,319 | |
| Net customer receivables | 7,369 | 5,415 | 36% | 6,286 | |
| Revenue | 3,476 | 2,544 | 37% | 5,503 | |
| Impairment1 | -854 | -842 | 1% | -1,206 | |
| as % of revenue | 24.6% | 33.1% | 21.9% | ||
| Direct and admin costs | -1,203 | -933 | 29% | -2,008 | |
| EBIT | 1,419 | 768 | 85% | 2,289 | |
| Finance costs | -185 | -177 | 4% | -323 | |
| Profit before tax | 1,234 | 591 | 109% | 1,966 | |
| as % of revenue | 35.5% | 23.2% | 35.7% |
1 Includes credit write-backs of €4,851 (H1 2010: -€93,010)
Credit24 remains one of the leading non-standard lenders in Finland, with a strong and positive marketing message, one of the widest product offerings in the market and excellent customer service.
Estonia
Principal lent in Estonia totalled €3.53m up 37% from €2.58m during the same period last year, and up 19% from €2.97m during the second half of 2010.
Country EBT grew 132% to €0.54m, up from €0.23m in 1H 2010, partially due to higher revenues but also the significant impact of credit write-backs from the collection of aged receivables. These totalled €0.30m during the period, reducing net impairment as a percentage of revenue to 1%. The increase in direct and administrative costs reflects primarily the higher marketing spending started late 2010.
Estonia
(€ thousands) |
1H 2011 | 1H 2010 | change | 2010 | |
| Loan principal issued | 3,533 | 2,576 | 37% | 5,548 | |
| Net customer receivables | 2,608 | 1,520 | 72% | 1,884 | |
| Revenue | 1,469 | 1,196 | 23% | 2,336 | |
| Impairment1 | -16 | -319 | -95% | -470 | |
| as % of revenue | 1.1% | 26.7% | 20.1% | ||
| Direct and admin costs | -833 | -579 | 44% | -1,241 | |
| EBIT | 620 | 297 | 109% | 625 | |
| Finance costs | -84 | -66 | 27% | -118 | |
| Profit before tax | 536 | 231 | 132% | 507 | |
| as % of revenue | 36.5% | 19.3% | 21.7% |
1 Includes credit write-backs of €298,925 (H1 2010: -€10,376)
In Estonia Credit24 retains a strong position as one of the two largest participants in a competitive market.
Latvia
Principal lent in Latvia grew to €2.00m, up from €0.14m during the same period last year and €0.39m during the second half of 2010 as a result of the successful re-launch of our lending activities in this market starting October 2010. Revenue for the period grew to €0.55m, up from €0.23m during the second half of 2010.
Latvia returned to profitability for the first time since 2009 as a result of the higher revenue, as well as large write-backs from collection totalling €0.27m during the period. The size of the write-backs reflects the continued success of our collection activities, which we expect will continue to benefit the Group as we progress. The increase in direct and administrative costs is primarily due to increased marketing activities supporting the re-launch and growth in lending volumes.
Latvia
(€ thousands) |
1H 2011 | 1H 2010 | change | 2010 | |
| Loan principal issued | 2,001 | 139 | 1,338% | 527 | |
| Net customer receivables | 1,042 | 819 | 27% | 268 | |
| Revenue | 552 | 338 | 64% | 569 | |
| Impairment1 | 129 | -96 | -235% | -436 | |
| as % of revenue | -23.4% | 28.3% | 76.5% | ||
| Direct and admin costs | -548 | -213 | 157% | -498 | |
| EBIT | 133 | 29 | 361% | -364 | |
| Finance costs | -32 | -35 | -8% | -57 | |
| Profit before tax | 101 | -6 | n/a | -421 | |
| as % of revenue | 18.3% | -1.8% | -74.0% |
1 Includes credit write-backs of €272,667 (H1 2010: -€1,295)
Following the local re-launch, Credit24 is now again one of the largest non-standard lenders in the Latvian market. In addition to our main online channel at www.credit24.com, Credit24 loans are also available through over 80 offices of the Latvian Post as well as 19 of Maxima’s largest retail stores.
Lithuania
Lithuania saw the largest absolute increase in lending volumes during the period, driven by active marketing, improved product selection and a stable and growing economic environment. Principal lent was €7.40m up 91% from €3.87m during the same period last year, and up 55% from €4.79m during the second half of 2010.
Country EBT grew 217% to €0.85m, up from €0.27m in 1H 2010, driven by higher revenue and the impact of credit write-backs which totalled €0.14m during the period. The increase in direct and administrative costs reflects the higher levels of marketing activities supporting the growth in lending volume.
Lithuania
(€ thousands) |
1H 2011 | 1H 2010 | change | 2010 | |
| Loan principal issued | 7,397 | 3,866 | 91% | 8,652 | |
| Net customer receivables | 5,293 | 2,880 | 84% | 3,614 | |
| Revenue | 2,472 | 1,513 | 63% | 3,375 | |
| Impairment1 | -377 | -377 | 0% | -694 | |
| as % of revenue | 15.2% | 24.9% | 20.6% | ||
| Direct and admin costs | -1,095 | -751 | 46% | -1,743 | |
| EBIT | 1,000 | 384 | 160% | 938 | |
| Finance costs | -153 | -117 | 30% | -227 | |
| Profit before tax | 847 | 267 | 217% | 711 | |
| as % of revenue | 34.3% | 17.7% | 21.1% |
1 Includes credit write-backs of €134,988 (H1 2010: €23,646)
Credit24 now has a very strong position in the Lithuanian market, and we expect continued growth going forward.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 6 months ending 30 June 2011
| 6 months to 30 June | 6 months to 30 June | Year to 31 December | ||
| 2011 | 2010 | 2010 | ||
| (unaudited) | (unaudited) | (audited) | ||
| Note | € | € | € | |
| Revenue | 7,968,459) | 5,589,463) | 11,782,697) | |
| Impairment | (1,117,960) | (1,634,079) | (2,804,762) | |
| Direct operating expenses | (1,371,436) | (1,010,679) | (2,172,928) | |
| Administrative expenses | (3,447,847) | (2,493,029) | (5,546,459) | |
| Operating profit | 2,031,216) | 451,676) | 1,258,548) | |
| Interest receivable | 529) | 1,495 | 2,270) | |
| Interest payable | (454,312) | (396,956) | (727,001) | |
| Profit before tax | 1,577,433) | 56,215) | 533,817) | |
| Taxation | 3 | (337,089) | (209,225) | (343,271) |
| PROFIT/(LOSS) FOR THE PERIOD | 1,240,344) | (153,010) | 190,546) | |
| Other comprehensive income | - | - | - | |
| TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT | 1,240,344) | (153,010) | 190,546) | |
| Proforma Profit/(loss) calculation | ||||
| Profit before tax | 1,577,433) | 56,215) | 533,817) | |
| Cost of employee share options | 18,925) | 18,084) | 43,144) | |
| Proforma profit before taxation | 1,596,358) | 74,299) | 576,961) | |
| Taxation | (337,089) | (209,225) | (343,271) | |
| Proforma profit/(loss) after taxation | 1,259,269) | (134,926) | 233,690) | |
| 2011 | 2010 | 2010 | ||
| € | € | € | ||
| Basic earnings/(loss) per share | 4 | 0.0713 | (0.0088) | 0.0110 |
| Diluted earnings/(loss) per share | 4 | 0.0713 | (0.0088) | 0.0109 |
All of the activities of the Group during the period are classed as continuing.
The accompanying notes form an integral part of these interim financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2011
| 30 June | 30 June | 31 December | ||
| 2011 (unaudited) |
2010 (unaudited) |
2010 (audited) |
||
| Note | € | € | € | |
| ASSETS | ||||
| Non-current assets | ||||
| Goodwill | 737,723 | 737,723 | 737,723 | |
| Intangible assets | 61,402 | 56,579 | 73,444 | |
| Property, plant and equipment | 41,077 | 34,717 | 33,124 | |
| Deferred tax asset | 87,523 | - | 82,291 | |
| Trade and other receivables | 5 | 871,667 | 80,118 | 391,574 |
| Total non-current assets | 1,799,392 | 909,137 | 1,318,156 | |
| Current assets | ||||
| Trade and other receivables | 5 | 15,781,412 | 10,803,295 | 11,876,009 |
| Cash and cash equivalents | 2,131,803 | 2,420,857 | 1,949,878 | |
| Total current assets | 17,913,215 | 13,224,152 | 13,825,887 | |
| Total assets | 19,712,607 | 14,133,289 | 15,144,043 | |
| EQUITY AND LIABILITIES | ||||
| Equity | ||||
| Issued share capital | 6 | 2,542,460 | 2,542,460 | 2,542,460 |
| Share premium account | 8,453,870 | 8,453,870 | 8,453,870 | |
| Other reserves | 509,009 | 531,368 | 556,428 | |
| Retained earnings | (2,545,576) | (4,195,820) |
(3,852,264) |
|
| Total equity | 8,959,763 | 7,331,878 | 7,700,494 | |
| Current liabilities | ||||
| Trade and other payables | 7 | 904,110 | 702,352 | 973,086 |
| Current income tax liabilities | 397,960 | 457,461 | 210,108 | |
| Deferred revenue | 750,774 | 941,598 | 1,060,355 | |
| Short-term borrowings | 8 | 8,700,000 | 4,700,000 | 5,200,000 |
| Total current liabilities | 10,752,844 | 6,801,411 | 7,443,549 | |
| Total equity and liabilities | 19,712,607 | 14,133,289 | 15,144,043 | |
The accompanying notes form an integral part of these interim financial statements.
CONSOLIDATED STATEMENT OF CASHFLOWS
For the six months to 30 June 2011
| Note | 6 months to 30 June 2011 (unaudited) |
6 months to 30 June 2010 (unaudited) |
Year to 31 December 2010 (audited) |
|
| € | € | € | ||
| Cash flow (used in)/generated from operating activities | ||||
| Cash (used in) generated from operations | 9 | (3,166,889) | 2,131,451 | 1,768,553 |
| Income tax paid | (127,562) | (119,257) | (684,398) | |
| Net cash (used in)/generated from operating activities | (3,294,451) | 2,012,194 | 1,084,155 | |
| Cash flow from investing activities | ||||
| Purchase of property, plant and equipment | (21,300) | (1,276) | (15,333) | |
Purchase of intangible assets |
|
(4,093) | (44,538) | (73,421) |
Disposal of property, plant and equipment |
|
1,769 | - | - |
| Net cash used in investing activities | (23,624) | (45,814) | (88,754) | |
| Cash flow from financing activities | ||||
| Net increase/(decrease) in borrowing | 3,500,000 | (1,760,000) | (1,260,000) | |
| Net cash generated from/(used in) financing activities | 3,500,000 | (1,760,000) | (1,260,000) | |
| Increase/(decrease) in cash and cash equivalents | 181,925 | 206,380 | (264,599) | |
Opening cash and cash equivalents |
|
1,949,878 | 2,214,477 | 2,214,477 |
Closing cash and cash equivalents |
|
2,131,803 | 2,420,857 | 1,949,878 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| Share capital | Share premium | Other reserves | Retained earnings | Total | |
| € | € | € | € | € | |
| Balance at 1 January 2010 | 2,542,460 | 8,453,870 | 513,284) | (4,042,810) | 7,466,804 |
| Comprehensive income | |||||
| Profit for the financial period | - | - | - | 190,546) | 190,546 |
| Other comprehensive income | |||||
| Arising on employee share options | - | - | 43,144) | - | 43,144 |
| Balance at 31 December 2010 | 2,542,460 | 8,453,870 | 556,428) | (3,852,264) | 7,700,494 |
| Comprehensive income | |||||
| Profit for the financial period | - | - | - | 1,240,344) | 1,240,344 |
| Other comprehensive income | |||||
| Arising on employee share options in issue | - | - | 18,925) | - | 18,925 |
| Arising on employee share options lapsed during the period | - | - | (66,344) | 66,344) | - |
| Balance at 30 June 2011 | 2,542,460 | 8,453,870 | 509,009) | (2,545,576) | 8,959,763 |
Share capital relates to the nominal value of shares issued.
Share premium relates to the amounts subscribed for share capital in excess of the nominal value of the shares.
The equity-settled employee benefits reserve (“other reserves”) arises on the grant of share options to employees under the employee share option plan.
Retained earnings relates to cumulative profits and losses recognised in the statement of comprehensive income.
The accompanying notes form an integral part of these interim financial statements.
Notes
The full results including the notes to the financial statements are available in the PDF Download.