TIDMGOI
RNS Number : 1015O
GoIndustry-DoveBid PLC
13 September 2011
GoIndustry-DoveBid plc / Market: AIM / Epic: GOI / Sector:
Support Services
13 September 2011
GoIndustry-DoveBid plc ('the Company' or 'the Group')
Interim results
GoIndustry-DoveBid plc, the global provider of asset advisory,
disposition and valuations services, announces its interim results
for six months ended 30 June 2011.
Summary results
6 months ended 30 June
2011 2010
GBP'000 GBP'000
(unaudited) (unaudited)
Direct profit 11,887 13,848
Adjusted* (loss)/profit before taxation (1,405) 151
Other charges (note 8) (430) (560)
Loss before taxation (1,835) (409)
Adjusted* basic and diluted (loss)/earnings
per share (note 10) (15.6p) 0.5p
Loss per share basic and diluted (note 10) (20.0p) (5.2p)
*Adjusted (loss)/profit before tax is before amortisation of acquired
intangible assets, and share based payment charges (note 8).
Financial & Group highlights
-- Gross asset sales (GAS) of GBP58.1m (2010: GBP74m)
-- Online sales share of 86% (2010: 76%)
-- Direct Profit down 14% to GBP11.9m (2010: GBP13.8m)
-- Adjusted loss before tax* of GBP1.4m (2010: profit of
GBP151k)
-- Basic loss per share of 20.0p (2010: loss of 5.2p)
-- Adjusted loss per share* of 15.6p (2010: earnings of
0.5p)
-- Net debt of GBP4.2m (2010: net debt GBP0.9m)
*Adjusted (loss)/profit before tax and adjusted (loss)/earnings
per share, is before amortisation of acquired intangible assets,
and share based payment charges (note 8).
Interim Management Report
We are pleased to report on the Group's progress during the
period under review, as we gain traction as the global market
leader in the provision of industrial asset management, auction and
valuation services.
As a company we have asset, industry and market-leading
expertise, coupled with powerful eCommerce tools, to deliver
innovative solutions to help companies around the world optimise
asset utilisation, reduce CAPEX, and dispose of surplus assets and
value assets transparently and accurately. We have
thirty-sixoffices across twenty countries servicing the needs of
our multi-national blue-chip client base, which include
manufacturing corporations, financial institutions, insolvency
practitioners and asset based lenders.
For the six months to 30 June 2011 the Group delivered a Gross
Revenue of GBP16.2m (2010:GBP20m). As a result, Direct Profit, our
key measure of revenue, was GBP11.9m (2010: GBP13.8m), albeit at an
improved margin of 73.2% (2010: 69.2%) as the business continues
its transition to a better quality business model of higher margin,
multinational corporate accounts and away from the traditional
"one-off" auction business. Tight cost control remains a key focus
for the Group and resulted in administrative expenses of GBP13.1m,
being 3% below 2010.
The Group reported an Adjusted Operating Loss* of GBP1.3m (2010:
profit GBP0.3m) after the deduction of the net finance costs of
GBP0.1m (2010: GBP0.1m) and an Adjusted Loss before Tax* of GBP1.4m
(2010: profit GBP151k). For the six months ended 30 June 2011, the
Adjusted basic earnings per share was a loss of 15.6p per share
(2010: Adjusted earnings of 0.5p per share).
Trading review
As outlined in the AGM Statement published on 23 June 2011,
trading for the first half of 2011 was soft in North America. This
was primarily due to a reduced number of one-off plant closures, as
well as general economic uncertainty which caused many companies to
postpone major capital expenditure decisions and focus on
maximising productivity from their existing capital assets. The
current economic situation remains a significant factor behind this
conservative approach, making companies reluctant to buy new assets
or dispose of unused ones until they develop greater clarity
regarding future needs and trends. However, we do expect gradual
improvement in our North American performance over the remainder of
2011.
The trends experienced in North America underline the important
rationale behind our strategic shift of increasing the number of
corporate 'forward flow' agreementswith large companies for the
provision of industrial asset management, auction and valuation
services. These agreements, which typically are multi-year service
agreements with large global corporations, deliver significant
recurring revenues and give the Group greater visibility and
scalability over the medium term.
Indeed, the Group continues to make solid progress delivering on
this key strategic aim. It has signed 11 new global corporate
forward flow accounts in 2011 to date, taking our total number of
active forward flow accounts to 50. We are also in advanced
contract negotiations with 16 other multinational companies and
look forward to updating the market on these developments in due
course. These agreements should provide significant additional
revenues to the Group in the second half of 2011 and in subsequent
years. For example, the top 15 forward flow accounts averaged over
GBP500k each of fees during 2010. In addition, 90% of key account
contracts have been renewed; further evidence of the customer
satisfaction our service delivers. The Group continued its
investment in growing its sales and marketing capabilities, such as
the Go-Optimize(R) services suite, which helps large corporations
pro-actively manage their surplus assets. We believe it will be an
important contributor to future growth and it continues to be well
received in the market.
In the six months ended 30 June 2011, Direct Profit was
generated as follows:
GBP million 2011 2010 Change
Commission sales 9.1 10.2 (10.4%)
Professional services 2.4 2.0 21.1%
Other 0.4 1.6 (77.4%)
----- ----- --------
11.9 13.8 (14.0%)
----- ----- --------
* Adjusted (loss)/profit before tax and adjusted (loss)/earnings
per share, is before amortisation of acquired intangible assets and
share based payment charges (note 8).
The Direct Profit from Commission Sales from auction
transactions accounted for 76% of total Direct Profit, compared to
74% in 2010. The proportion of sales conducted online increased to
86% compared to 76% in 2010. This is in part due to the growing
popularity of the Group's Industry Exchanges, which are becoming a
recurring destination site for buyers and sellers of used
equipment. This is a strong endorsement which shows that
corporations are embracing the transparent and efficient online
method for obtaining the best value for resale equipment.
Professional services, comprised primarily of valuation fees,
accounted for 20% of total Direct Profit up from 14% in 2010, based
mostly on increased business with large global financial services
clients. Other Direct Profit, comprised primarily of principal
deals which are no longer regarded as a core activity as they
increase the Group's exposure to financing commitments and
fluctuations in asset values, declined from 11% to 3%.
As explained above, North America had a disappointing first half
with Direct Profit down GBP2.6m on 2010 to GBP5.1m. A key factor
was the reduction of Direct Profit from Principal deals, down
GBP1.2m to GBP0.3m. Commission Sales in North America experienced
weakness and were down GBP1.4m to GBP3.9m as large corporations had
fewer plant closures than in the prior period and they deferred
major capital expenditure decisions. Professional Services,
however, grew by 3% to GBP0.9m. As a consequence, North America
accounted for 43% of the Group Direct Profit, down from 56% in
2010.
Europe delivered a solid performance in the first six months.
Direct Profit was GBP4.7m, in line with 2010. In particular,
Professional Services grew by 22.3%, mostly due to greater demand
in the UK. Commission Sales were GBP3.5m, down 4.6% on 2010,
following the delay of two major auctions. However, improvements in
the overall mix of business led to a significant increase in the
European margin up from 59.9% in 2010 to 74.8% in 2011.
Asia had an excellent start to the year with a Direct Profit of
GBP2.0m, up 48.1% on last year. In particular, Korea won a
substantial contract to close 3 factories which helped increase the
Direct Profit on Commission Sales from GBP1.2m to GBP1.7m,
delivering a 43.0% increase over the prior period. In addition,
Professional Services grew by 139.9% from GBP0.1m to GBP0.3m
principally driven by companies requiring asset valuations due to
restructuring, liquidations and mergers.
The Group derives more than half of its revenues in US dollars,
so movements in the Sterling-US Dollar rate affect our reported
revenues. Given that the US dollar has weakened by 6% in the last
year against Sterling, the impact of exchange rates in the first
half of 2011, although not significant, has tended to understate
the reported revenues.
The Group continues to monitor its cash flow requirements and at
30 June 2011 the Group's net debt position was GBP4.2m (2010:
GBP0.9m). The main increase in net debt since the year end is due
in part to funding the trading activity of the first half, an
increase in net working capital of GBP4.2m (of which the reduction
in amounts due to clients were GBP3.5m), payments to the defined
benefit pension scheme of GBP0.4m and software development capital
expenditure of GBP0.4m.
In April 2011, the Group renewed and increased its main banking
facilities. The term loan of GBP1.1m was increased to GBP2.4m with
a maturity date of July 2014. Each of the Working Capital and the
Principal Deal facilities were increased from GBP2.2m to GBP3.4m
until April 2012. At June 2011 the combined headroom on the above
facilities was GBP4.9m.
Outlook
We continue to implement our strategy to position the business
for growth by providing global companies with the best surplus
asset management solutions available. Our success at signing
additional global corporations to our multiyear forward flow
contracts demonstrates that we are on target with this goal. These
new contracts, along with our existing base of global clients, will
increasingly bring greater revenues, improved visibility to our
revenue, and increase our cash flow. It will also enhance our
Industry Exchanges so that they become the trading platform of
choice. In addition, we expect to benefit from improved performance
from our existing products and services as momentum within our
markets gathers pace.
The company expects a strong second half, given a number of
large asset disposal programmes scheduled before year end. Despite
disappointing first half results, the final performance for the
year will depend upon the outcome of these programmes. The pace at
which new forward flow accounts are being signed gives the Board
confidence as to the opportunity for the Group's global online
business services and its prospects as a whole.
Jack G Reinelt
Chief Executive Officer
13 September 2011
Interim condensed consolidated income statement
Six months ended 30 Six months ended 30
Unaudited June 2011 June 2010
Before Before
exceptional Other exceptional Other
items and charges items and charges
other (note other (note
Note charges 8) Total charges 8) Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 16,236 - 16,236 20,006 - 20,006
Cost of sales (4,349) - (6,158) (6,158) - (6,158)
Direct profit 11,887 - 13,848 13,848 - 13,848
Administrative
expenses (13,150) (430) (13,580) (13,558) (560) (14,118)
Operating
(loss)/profit (1,263) (430) (1,693) 290 (560) (270)
Finance costs
Interest income 22 - 22 42 - 42
Finance expense (164) - (164) (181) - (181)
Net finance
expense (142) - (142) (139) - (139)
(Loss)/profit
before income
tax (1,405) (43) (1,835) 151 (560) (409)
Income tax
charge 9 (95) (99)
Loss for the
period (1,930) (508)
Loss
attributable
to:
Equity holders of the Company (1,960) (507)
Non-controlling
interests 30 (1)
(1,930) (508)
Loss per share attributable to equity holders of the Company
during the period
(expressed in pence per share)
2011 2010
Basic and diluted 10 (20.0p) (5.2p)
Interim condensed consolidated statement of comprehensive
income
6 months ended 30
June
Unaudited 2011 2010
GBP'000 GBP'000
Loss for the period (1,930) (508)
---------------------------------------------- -------- -----------
Other comprehensive income
Exchange losses on translation of
foreign subsidiaries (2,639) (188)
---------------------------------------------- -------- -----------
Other comprehensive income for the
period, net of tax (2,639) (188)
---------------------------------------------- -------- -----------
Total comprehensive income for the
period (4,569) (696)
---------------------------------------------- -------- -----------
Total comprehensive income attributable
to:
Equity holders of the Company (4,599) (695)
Non-controlling interests 30 (1)
---------------------------------------------- -------- -----------
(4,569) (696)
--------------------------------------------- -------- -----------
Interim condensed consolidated statement of financial position
As at
As at 30 June 31 December
2011 2010 2010
Note GBP'000 GBP'000 GBP'000
(unaudited) (unaudited) (audited)
Non-current assets
Property, plant and
equipment 11 315 457 350
Intangible assets 12 31,242 32,552 32,178
Deferred tax asset 18 312 - 327
31,869 33,009 32,855
Current assets
Inventories 13 990 1,180 334
Trade and other receivables 14 6,061 6,748 5,515
Cash and cash equivalents 15 9,667 17,133 15,920
16,718 25,061 21,769
Total assets 48,587 58,070 54,624
Current liabilities
Trade and other payables 16 18,270 22,931 21,422
Borrowings and loans 17 3,269 2,849 2,053
21,539 25,780 23,475
Non-current liabilities
Trade and other payables 16 - - 10
Borrowings and loans 17 1,965 2,151 1,162
Retirement benefit
obligations 2,940 4,239 3,358
4,905 6,390 4,530
Total liabilities 26,444 32,170 28,005
Net assets 22,143 25,900 26,619
Equity
Share capital 19 98 9,799 9,745
Share premium 19 22,983 22,983 22,495
Capital redemption reserve 28,609 18,908 18,908
Other reserves 51,732 54,292 54,327
Accumulated losses (81,468) (80,343) (79,836)
Capital and reserves
attributable to owners of
the parent 21,954 25,639 26,460
Non-controlling interests 189 261 159
Total equity 22,143 25,900 26,619
The financial statements were approved by the board of directors
and authorised for issue on 13 September 2010.
They were signed on its
behalf by :
Jack Reinelt Leslie-Ann
Reed
Chief Executive Officer Chief Financial Officer
Registered in England No.
5381812
Interim condensed consolidated statement of changes in equity
Capital Shares Share Foreign
Share Share redemption to be Acquisition options currency Accumulated Non-controlling TOTAL
capital premium reserve issued reserve reserve reserve losses TOTAL interest Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January
2010
(audited) 9,745 22,495 18,908 542 47,649 1,572 5,106 (79,836) 26,181 262 26,443
Comprehensive
income:
Loss for the
period - - - - - - - (507) (507) (1) (508)
Other
comprehensive
income:
Exchange
losses on
translation
of foreign
subsidiaries - - - - - - (188) - (188) - (188)
Total
comprehensive
income: - - - - - - (188) (507) (695) (1) (696)
Transactions
with owners:
Issue of
deferred
share
consideration 54 488 - (542) - - - - - - -
Share based
payments - - - - - 153 - - 153 - 153
Total
transactions
with owners: 54 488 - (542) - 153 - - 153 - 153
At 30 June 2010
(unaudited) 9,799 23,983 18,908 - 47,649 1,725 4,918 (80,343) 25,639 261 25,900
Comprehensive
income:
Profit/(loss)
for the
period - - - - - - - 148 148 (102) 46
Other
comprehensive
income:
Actuarial loss
on defined
benefit
pension
scheme - - - - - - - 687 687 - 687
Exchange
losses on
translation
of foreign
subsidiaries - - - - - - (47) - (47) - (47)
Total
comprehensive
income: - - - - - - (47) 835 788 (102) 686
Transactions
with owners:
Cancellation
of redeemable
deferred
shares held (9,701) - 9,701 - - - - - - - -
Share based
payments - - - - - 33 - - 33 - 33
Total
transactions
with owners: (9,701) - 9,701 - - 33 - - 33 - 33
At 1 January
2011
(audited) 98 22,983 28,609 - 47,649 1,758 4,871 (79,508) 26,460 159 26,619
Comprehensive
income:
Loss for the
period - - - - - - - (1,960) (1,960) 30 (1,930)
Other
comprehensive
income:
Currency
translation
differences - - - - - - (2,639) - (2,639) - (2,639)
Total
comprehensive
income: - - - - - - (2,639) (1,960) (4,599) 30 (4,569)
Transactions
with owners:
Share based
payments - - - - - 93 - - 93 - 93
Total
transactions
with owners: - - - - - 93 - - 93 - 93
At 30 June 2010
(unaudited) 98 22,983 28,609 - 47,649 1,851 2,232 (81,468) 21,954 189 22,143
Interim condensed consolidated statement of cash flows
Year
6 months ended 30 ended
June 31 December
2011 2010 2010
Note GBP'000 GBP'000 GBP'000
Cash flows from operating
activities (Unaudited) (Unaudited) (Audited)
Cash used in operations 20 (5,514) (4,387) (3,350)
Interest paid (235) (181) (354)
Income tax paid (68) (99) (31)
Interest received 22 42 82
------------ ------------ -------------
Net cash used in from
operating activities (5,795) (4,625) (3,853)
Cash flows from investing
activities
Purchases of property,
plant and equipment 11 (85) (43) (64)
Purchases of intangible
assets 12 (350) (138) (615)
Proceeds from sale of
property, plant and
equipment 6 489 542
Proceeds from sale of
Indian Joint Venture 124 - -
Net cash (used in)
/generated from investing
activities (305) 308 (137)
Cash flows from financing
activities
Increase / (decrease) in
borrowings 2,098 635 (1,150)
Net cash generated from /
(used in) financing
activities 2,098 635 (1,150)
Net decrease in cash and
cash equivalents (4,002) (3,682) (5,140)
Cash and cash equivalents
at the beginning of the
period 15,920 20,751 20,751
Effect of foreign exchange
rate changes (2,251) 64 309
Cash and cash equivalents
at the end of the period 15 9,667 17,133 15,920
Notes to the interim condensed consolidated financial
information
1. General information
GoIndustry-DoveBid plc ('the company') and its subsidiaries
(together 'the Group') is the global market leader in the provision
of asset management, auction and valuation services relating to
industrial equipment.
The Group has offices in locations across Europe, North America,
and Asia.
The company is a public limited company incorporated and
domiciled in the United Kingdom. The address of its registered
office is 1-6 Lombard Street, London, EC3V 9JU.
The company is listed on the Alternative Investment Market (AIM)
of the London Stock Exchange (GOI).
2. Basis of preparation
This unaudited condensed consolidated interim financial
information is for the six months ended 30 June 2011. The
information has been prepared in accordance with recognition and
measurement principles of International Financial Reporting
Standards (IFRS) as adopted by the European Union. This report
should be read in conjunction with the annual financial statements
for the year ended 31 December 2010, which have been prepared in
accordance with International Financial Reporting Standards (IFRS)
as adopted by the European Union and International Financial
Reporting Interpretations Committee ('IFRIC') Interpretations and
the Companies Act 2006, as applicable to companies reporting under
IFRS.
The financial information in this interim announcement does not
constitute statutory financial statements within the meaning of
Section 434 of the Companies Act 2006. The unaudited interim
financial information was approved by the Board on 13 September
2011.
The statutory accounts of GoIndustry-DoveBid plc for the year
ended 31 December 2010 have been reported on by the Company's
auditor, Baker Tilly UK Audit LLP, and have been delivered to the
Registrar of Companies. The report of the auditor was unqualified
and did not contain statements under Section 498(2) or 498(3) of
the Companies Act 2006.
3. Accounting policies
The accounting policies applied in this condensed consolidated
interim financial information are consistent with those of the
annual financial statements for the year ended 31 December 2010, as
described in those annual financial statements.
Exceptional items are disclosed and described separately in the
financial statements where it is necessary to do so to provide
further understanding of the financial performance of the Group.
They are material items of income or expense that have been shown
separately due to the significance of their nature or amount.
Taxes on income in the interim periods are accrued using the tax
rate that would be applicable to expected total annual profit or
loss.
4. Estimates
The preparation of interim financial information requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual
results may differ from these estimates.
In preparing these condensed consolidated interim financial
information, the significant judgements made by management in
applying the Group's accounting policies and the key sources of
estimation uncertainty were the same as those that applied to the
consolidated financial statements for the year ended 31 December
2010, with the exception of changes in estimates that are required
in determining the provision for income taxes and disclosure of
exceptional items.
5. Financial risk management
The Group's principal risks and uncertainties remain as stated
on pages 33-36 of the notes to the consolidated financial
statements for the year ended 31 December 2010.
6. Seasonality of operations
The primary business of the Group is the provision of services
associated with the valuation and sale by auction of used
industrial equipment. No significant seasonality occurs in the
Group's activities.
7. Segmental analysis
Management has determined the operating segments based on the
reports reviewed by the Board, acting as the strategic steering
committee that are used to make strategic decisions.
The Board considers the business both from a geographical and a
revenue stream perspective. Geographically, management considers
the performance in Europe, North America and Asia Pacific
("APAC").
The reportable operating segments derive their revenue from
commissions and billable expenses arising from auctions, fees from
valuations and other professional services and commissions and
billable expenses arising from principal deals, of both buy and
guarantee types.
The Board assesses the performance of the operating segments
based on a measure of both direct profit (gross profit) and
operating profit levels. In addition to investment income and
finance costs, operating profit excludes the effects of
equity-settled share-based payments and amortisation of acquired
intangible fixed assets (see Note 8).
Sales between segments are carried out at arms' length. The
following table presents revenue and profit information regarding
the Group's operating segments for the six months ended 30 June
2011 and 2010 respectively
For the 6 months ended
30 June 2011
North
Unaudited Europe America APAC Corporate Total
Note GBP'000's GBP'000's GBP'000's GBP'000's GBP'000's
Revenue 6,285 7,290 2,661 - 16,236
------------------ ----- ---------- ---------- ---------- ---------- ----------
Direct profit 4,699 5,143 2,045 - 11,887
------------------ ----- ---------- ---------- ---------- ---------- ----------
Segment result 257 (586) 605 (1,539) (1,263)
Other charges 8 - - - (430) (430)
------------------ ----- ---------- ---------- ---------- ---------- ----------
Operating
profit/(loss) 257 (586) 605 (1,969) (1,693)
Net finance
(expense)/income (11) (115) 7 (23) (142)
------------------ ----- ---------- ---------- ---------- ---------- ----------
Profit/(loss)
before income
tax 246 (701) 612 (1,992) (1,835)
Income tax
------------------ ----- ---------- ---------- ---------- ---------- ----------
Profit/(loss) for
the period 236 (723) 549 (1,992) (1,930)
------------------ ----- ---------- ---------- ---------- ---------- ----------
For the 6 months
ended 30 June 2010
North
Unaudited Europe America APAC Corporate Total
GBP'000's GBP'000's GBP'000's GBP'000's GBP'000's
Revenue 7,900 10,242 1,864 - 20,006
------------------ ---------- ---------- ---------- ---------- ----------
Direct profit 4,733 7,734 1,381 - 13,848
------------------ ---------- ---------- ---------- ---------- ----------
Segment result 691 1,501 (181) (1,721) 290
Other charges 8 - - - (560) (560)
------------------ ---------- ---------- ---------- ---------- ----------
Operating
profit/(loss) 691 1,501 (181) (2,281) (270)
Net finance
(expense)/income (22) (112) 10 (15) (139)
------------------ ---------- ---------- ---------- ---------- ----------
Profit/(loss)
before income
tax 669 1,389 (171) (2,296) (409)
Income tax (10) (83) (6) - (99)
------------------ ---------- ---------- ---------- ---------- ----------
Profit/(loss) for
the period 659 1,306 (177) (2,296) (508)
------------------ ---------- ---------- ---------- ---------- ----------
8. Other charges
6 months
ended 30 June
2011 2010
GBP000's GBP000's
(unaudited) (unaudited)
Equity-settled share-based payments 93 153
Amortisation of acquired intangible fixed
assets (note 12) 337 407
430 560
9. Income tax expense
The Interim charge for income tax is accrued using the estimated
average annual effective income tax rate for each tax jurisdiction,
applied individually to the pre-tax income of each jurisdiction for
the period. However, as the Group has tax losses in most
jurisdictions, no meaningful average annual effective income tax
rate for the Group can be calculated.
10. Earnings per share
6 months
ended 30 June
Unaudited 2011 2010
GBP000's GBP000's
Earnings per share:
Loss for the period attributable to equity
holders of the Company (1,960) (507)
Number Number
000's 000's
Weighted average number of new ordinary shares
in issue 9,798 9,782
Basic / diluted loss per share - pence per
share * (20.0p) (5.2p)
As there is a loss for the period, there are
no dilutive ordinary shares
GBP000's GBP000's
Loss for the period attributable to equity
holders of the Company (1,960) (507)
Add back:
Other charges (note 8) 430 560
--------- ---------
Adjusted (loss)/profit attributable to equity
holders of the Company (1,530) 53
--------- ---------
Adjusted basic / diluted (loss)/ earnings
per share - pence per share (15.6p) 0.5p
--------- ---------
Number Number
000's 000's
Weighted average number of new ordinary shares
in issue 9,798 9,782
Dilutive effect of share options n/a -
--------- ---------
Weighted average number of new ordinary shares
for diluted earnings per share 9,798 9,782
--------- ---------
Adjusted diluted (loss)/earnings per share (15.6p) 0.5p
- pence per share
--------- ---------
Potentially dilutive shares include 178,571 new ordinary shares
from convertible loan notes (30 June 2010: 178,571) and 673,678 new
ordinary share options (30 June 2010: 621,178).
11. Property, plant and equipment
Property, Furniture,
Land and plant and fittings
GBP'000 buildings equipment and equipment Total
Cost:
At 1 January 2010
(audited) 1,072 491 2,018 3,581
Exchange differences (85) 26 80 21
Additions 4 7 32 43
Disposals (444) (15) (31) (490)
At 30 June 2010
(unaudited) 547 508 2,099 3,154
Exchange differences 45 - (21) 24
Additions 4 - 18 22
Disposals (22) (13) (43) (78)
At 1 January 2011
(audited) 574 495 2,018 3,122
Exchange differences 18 (13) (52) (47)
Additions 2 - 83 85
Disposals (238) (52) (28) (318)
30 June 2011 (unaudited) 356 430 2,056 2,842
Accumulated depreciation:
At 1 January 2010
(audited) 490 363 1,702 2,555
Exchange differences (36) 19 66 49
Charge for the period 25 19 93 137
Disposals (12) (9) (23) (44)
At 30 June 2010
(unaudited) 467 392 1,838 2,697
Exchange differences 16 (2) (23) (9)
Charge for the period 26 10 83 119
Disposals (3) (1) (31) (35)
At 1 January 2011
(audited) 506 399 1,867 2,772
Exchange differences 19 (11) (51) (43)
Charge for the period 7 15 77 99
Disposals (239) (38) (24) (301)
30 June 2011 (unaudited) 293 365 1,869 2,527
Net book value:
At 30 June 2011 63 65 187 315
At 1 January 2011 68 96 186 350
At 30 June 2010 80 1162 261 457
At 1 January 2010 582 128 316 1,026
12. Intangible assets
Acquired Software
customer Acquired and systems
Goodwill Trademarks relationships brands development Total
GBP GBP GBP
000's GBP 000's GBP 000's 000's GBP 000's 000's
Cost:
At 1 January
2010
(audited) 46,486 - 2,951 955 3,063 53,455
Exchange
differences 1,524 - 633 114 (2) 2,269
Additions - - - - 138 138
At 30 June
2010
(unaudited) 48,010 - 3,584 1,069 3,199 55,862
Exchange
differences 848 - (545) (86) 49 266
Additions - 48 - - 429 477
Disposals - - - - (1) (1)
At 1 January
2011
(audited) 48,858 48 3,039 983 3,676 56,604
Exchange
differences (657) - (105) (32) (60) (854)
Additions - 1 - - 349 350
At 30 June
2011
(unaudited) 48,201 49 2,934 951 3,965 56,100
Accumulated
amortisation:
At 1 January
2010
(audited) 17,530 - 1,082 175 2,333 21,120
Exchange
differences 982 - 221 22 405 1,630
Charge for the
period - - 354 53 153 560
At 30 June
2010
(unaudited) 18,512 - 1,657 250 2,891 23,310
Exchange
differences 1,140 - (189) (19) (353) 579
Charge for the
period - 4 254 46 233 537
At 1 January
2011
(audited) 19,652 4 1,722 277 2,771 24,426
Exchange
differences (12) - (56) (7) (65) (140)
Charge for the
period - 2 290 47 232 572
At 30 June
2011
(unaudited) 19,640 6 1,956 317 2,939 24,858
Net book
value:
At 30 June
2011 28,561 43 978 634 1,026 31,242
At 1 January
2011 29,206 44 1,317 706 904 32,177
At 30 June
2010 29,498 - 1,927 819 308 32,552
At 1 January
2010 28,956 - 1,869 780 730 32,335
13. Inventories
30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
(unaudited) (unaudited) (audited)
Goods for sale as part of Principal
Deals 990 1,180 334
990 1,180 334
14. Trade and other receivables
30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
(unaudited) (unaudited) (audited)
Trade receivables - net 2,587 1,179 2,433
Prepayments and accrued income 2,360 3,896 1,850
Other receivables 1,114 1,673 1,232
Total 6,061 6,748 5,515
A provision has been made against all past-due receivables that
are considered impaired at the balance sheet date, as follows:
30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
(unaudited) (unaudited) (audited)
Trade receivables 2,609 1,412 2,478
Provision for doubtful debts (22) (233) (45)
Trade receivables - net 2,587 1,179 2,433
It is not practicable or meaningful to produce an analysis of
past due trade receivables because the Group does not have standard
credit terms on all its sales. In the majority of auction sales,
the Group's receivables form part of the auction proceeds that are
collected into the client account and settled with the Group at the
same time as they are settled with the client, typically within 4-6
weeks of the auction. However, in more complex cases the payment
terms may be linked to the dismantling and shipping of an asset
from one location to another, such that a drawdown might only be
made when the assets have reached shipping point.
15. Cash and cash equivalents
30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
(unaudited) (unaudited) (audited)
Own cash on hand and at bank 1,552 3,283 1,678
Short-term bank deposits 5,002 10,120 8,462
Monies held under guarantee 3,113 3,730 5,780
Total 9,667 17,133 15,920
Less: amounts due to clients (note
16) (8,656) (13,009) (12,237)
Net cash 1,011 4,124 3,683
16. Trade and other payables
30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
(unaudited) (unaudited) (audited)
Current
Trade payables 3,993 3,522 3,455
Amounts due to clients (note 15) 8,656 13,009 12,237
Social security and other taxes 1,735 2,837 2,115
Accrued expenses 3,886 3,563 3,615
Total 18,270 22,931 21,422
30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
Non-current (unaudited) (unaudited) (audited)
Other - - 10
- - 10
17. Borrowings and loans
30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
(unaudited) (unaudited) (audited)
Current
Bank loans and overdrafts 2,445 2,596 1,087
Convertible loan notes 500 - 500
Subordinated loan notes 324 253 466
Total 3,269 2,849 2,053
Non-current
Bank loans and overdrafts 1,965 1,508 1,162
Convertible loan notes - 500 -
Subordinated loan notes - 143 -
1,965 2,151 1,162
The Group's borrowings are split between fixed
and floating rate as set out below :
30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
(unaudited) (unaudited) (audited)
Floating rate:
Expiring within one year 2,445 2,596 1,087
Expiring beyond one year 1,965 347 -
Fixed rate:
Expiring within one year 824 253 966
Expiring beyond one year - 1,804 1,162
5,234 5,000 3,215
The fair value of current and non-current borrowings equals
their carrying amount, as the impact of discounting is not
significant.
Of the bank loans totalling GBP4.4m, GBP1.9m relates to loans
used to fund principal transactions and working capital which are
secured by charges over the assets of those companies and a parent
company guarantee from GoIndustry-DoveBid plc. These facilities are
in place until 30 April 2012. There is also a term loan facility of
GBP2.3m that is due to mature on 1 July 2014. These US loans have a
floating interest rate of 3.25% above LIBOR.
The loan held of GBP0.15m is repayable on demand, bears interest
at a floating rate of 2.5% above UK Base Rates and is secured by a
guarantee over the assets of that company.
The convertible loan notes are held by GoIndustry-DoveBid plc,
mature on 31 December 2011 and bear interest at 12% per annum. The
notes are convertible at any time into 1p New Ordinary shares at a
price of GBP2.80 per share (30 June 2010: 1p New Ordinary shares at
GBP2.80 per share). The notes may be redeemed by the Company at par
at any time after 31 December 2010.
The subordinated loan notes are held by GoIndustry DoveBid, Inc.
(formerly called DoveBid, Inc.) and do not bear interest. The loan
notes are unsecured, subordinated to other debt of the Group and
are repayable in 60 monthly instalments ending 30 November
2011.
Six months ended 30 June 2010 GBP000's
Opening amount as at 1 January 2010 4,365
Exchange differences 192
Repayment of borrowings (619)
Drawdown of loan 1,062
Closing amount as at 30 June 2010 5,000
---------
Six months ended 31 December 2010
Opening amount as at 1 July 2010 5,000
Exchange differences (92)
Repayment of borrowings (1,855)
Drawdown of loan 162
Closing amount as at 31 December 2010 3,215
---------
Six months ended 30 June 2011
Opening amount as at 1 January 2011 3,215
Exchange differences (77)
Repayment of borrowings (487)
Drawdown of loan 2,583
Closing amount as at 30 June 2011 5,234
---------
The Group has the following undrawn
facilities:
30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
(unaudited) (unaudited) (audited)
Floating rate:
Expiring within one year 4,947 5,251 6,439
The Board of Directors believe that the Group has sufficient
headroom to enable it to conform to covenants on its existing
borrowings. The Group has sufficient working capital and undrawn
financing facilities to service its operating activities.
18. Deferred tax asset
Tax losses
GBP000's
At 1 January 2010 (audited) -
At 30 June 2010 (unaudited) -
Credit to statement of comprehensive income (327)
At 31 December 2010 (audited) (327)
Exchange differences 15
At 30 June 2011 (unaudited) (312)
-----------
19. Share capital and premium
New ordinary
Deferred shares Ordinary shares shares at
at 99p each at 1p each 1p each
Number Number
of Ordinary Number of Ordinary of Ordinary Share
shares shares shares shares shares shares premium
2010 000's GBP000's 000's GBP000's 000's GBP000's GBP000's
Opening
At 1 balance
January (audited) - - 974,430 9,745 - - 22,495
Issue of
deferred
25 share
February consideration - - 5,420 54 - - 488
Restructuring
23 June of shares 9,798 9,701 (979,850) (9,799) 9,798 98 -
Opening
At 1 balance
July (unaudited) 9,798 9,701 - - 9,798 98 22,983
Cancellation
22 of deferred
December shares held (9,798) (9,701) - - - - -
2011
Opening
At 1 balance
January (audited) - - - - 9,798 98 22,983
Closing
At 30 balance
June (unaudited) - - - - 9,798 98 22,983
20. Cash used in operations
Year
6 months ended 30 ended
June 31 December
2011 2010 2010
Note GBP'000 GBP'000 GBP'000
(Unaudited) (Unaudited) (Audited)
Loss before income tax (1,835) (409) (689)
Adjustments for:
Depreciation 11 99 138 256
Amortisation 12 572 560 1,097
Gain/(loss) on disposal of
property, plant and
equipment 14 (52) (53)
Share based payments 8 93 153 186
Net retirement benefit cost - - 169
Net finance expense 142 139 272
Pension contributions by
the Company (418) (351) (850)
Changes in working capital:
(Increase) / decrease in
inventories (667) (544) 284
(Increase) / decrease in
trade and other
receivables (547) (858) 980
Decrease in due to clients (3,460) (3,614) (3,176)
Increase / (decrease) in
trade and other payables 493 451 (2,026)
Cash used in operations (5,514) (4,387) (3,550)
Company Information
Broker & Nominated Advisers
WH Ireland Limited
24 Martin Lane
London EC4R 0DR
Auditor
Baker Tilly UK Audit LLP
25 Farringdon Street
London EC4A 4AB
Solicitors
SJ Berwin LLP
10 Queen Street Place
London EC4R 1BE
Registered office
1-6 Lombard Street
London EC3V 9JU
Bankers
Barclays Bank PLC
155 Bishopsgate
London EC2M 3XA
Company Secretary
Leslie-Ann Reed,
1-6 Lombard Street
London EC3V 9JU
Registrars
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Registered in England No. 5381812
Europe
1-6 Lombard Street
London, EC3V 9JU
United Kingdom
T: +44 20 7098 3700
F: +44 20 7098 3795
North America
11425 Cronhill Drive
Owings Mills, Baltimore
Maryland 21117
USA
T: +1 410 654 7500
F: +1 410 654 5876
Asia Pacific
Room 1104
China Chem Plaza
29 Leighton Road
Causeway Bay
Hong Kong, PR China
T: + 852 2528 9313
F: + 852 2528 1371
This information is provided by RNS
The company news service from the London Stock Exchange
END
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