TIDMGETM
RNS Number : 8029Z
Getmobile Europe PLC
29 September 2009
Chairman's Statement
Introduction
getmobile europe plc (the "Company") is a UK registered company whose shares are
traded on AIM in London, and on Entry Standard in Frankfurt.
In a trading update released on 26 June 2009 the Company reported that trading
in our mobile phone contracts business had deteriorated and that when combined
with planned losses in our new ecommerce initiatives a loss would be incurred
for the 6 months to 30 June 2009.
The trading update also noted that the Company was reviewing a possible sale of
the mobile phone contracts business. In view of the continuing poor performance
of the mobile phone contract business the board has concluded that it should
either sell the business for modest consideration or alternatively continue to
operate the business on a much reduced scale - we have already cut the cost base
of the business. Sales discussions are underway with certain interested
parties.
There has been no improvement in trading since the update provided in June, and
as a result the board has decided that it is appropriate to write off all
acquisition goodwill in the Company and its subsidiaries (the "Group") along
with the other intangible assets associated with the acquisition of the mobile
phone contracts business. This has resulted in an exceptional impairment
provision of EUR11.74 million.
While encouraging progress is continuing to be made in our new ecommerce
businesses they continue to absorb resources. However with cash balances of
EUR10.73 million, and no debt, at 30 June 2009 our balance sheet remains strong.
Results
Sales fell from EUR48.98 million in the 6 months to 30 June 2008 to EUR16.88 million
in the 6 months to 30 June 2009, a reduction of EUR32.10 million. Approximately
EUR16 million of this reduction resulted from the planned cessation of low margin
sales of phone handsets to third party wholesalers, with the balance reflecting
primarily reduced activity in the mobile phones contract business where the
number of contracts sold fell from 69,654 to 33,995, representing a fall of
51.2% in the number of contracts sold. Turnover in our early stage ecommerce
business was EUR1.22 million (2008 EUR4,000)
The reduction in the number of contracts and an associated decrease in margins
reflects an overall smaller market for new and churning post paid mobile phone
contracts due to reduced consumer demand and competition from low cost prepaid
products. The Company estimates that the addressable post paid mobile phone
contract market in Germany has reduced from between eight to nine million
contracts to between five to six million contracts per annum. We have also seen
increased credit denial rates to our customers by the mobile phone contract
operators as a result of the recession and their concentration on maximizing
their own direct sales channels.
The Company incurred a group operating loss before taxation for the 6 months to
30 June 2009 of EUR11.91 million (2008: profit EUR1.65 million). This reflects the
EUR11.74 million exceptional impairment provision against goodwill and intangibles
and an EBITDA (Earnings before interest, tax, depreciation and amortisation)
loss of EUR0.20 million (2008: EBITDA profit EUR1.62 million).
The breakdown of our revenues was as follows:
+------------------------------------------+-----+-------+-----+-------+-----+--------+
| | Six months ended | Year ended |
+------------------------------------------+---------------------------+--------------+
| | 30 June | 30 June | 31 |
| | 2009 | 2008 | December |
| | Unaudited | Unaudited | 2008 |
| | | | Audited |
+------------------------------------------+-------------+-------------+--------------+
| Revenues | | EUR m | | EUR m | | EUR m |
+------------------------------------------+-----+-------+-----+-------+-----+--------+
| Sale of mobile phone contracts and | | 15.66 | | 32.54 | | 76.93 |
| ancillary income | | | | | | |
+------------------------------------------+-----+-------+-----+-------+-----+--------+
| Sale of hand sets to third party | | - | | 16.40 | | 24.40 |
| distributors | | | | | | |
+------------------------------------------+-----+-------+-----+-------+-----+--------+
| New ecommerce initiatives | | 1.22 | | - | | 0.17 |
+------------------------------------------+-----+-------+-----+-------+-----+--------+
| Total revenue | | 16.88 | | 48.94 | | 101.50 |
+------------------------------------------+-----+-------+-----+-------+-----+--------+
The breakdown of EBITDA in the Group was as follows:
+------------------------------------------+-----+--------+-----+--------+-----+--------+
| | Six months ended | Year ended |
+------------------------------------------+-----------------------------+--------------+
| | 30 June | 30 June | 31 |
| | 2009 | 2008 | December |
| | Unaudited | Unaudited | 2008 |
| | | | Audited |
+------------------------------------------+--------------+--------------+--------------+
| | | EUR m | | EUR m | | EUR m |
+------------------------------------------+-----+--------+-----+--------+-----+--------+
| EBITDA | | | | | | |
+------------------------------------------+-----+--------+-----+--------+-----+--------+
| Mobile phone and handset trading | | 0.24 | | 1.79 | | 3.87 |
| operating profit | | | | | | |
+------------------------------------------+-----+--------+-----+--------+-----+--------+
| Losses of new e-commerce initiatives | | (0.44) | | (0.17) | | (0.42) |
+------------------------------------------+-----+--------+-----+--------+-----+--------+
| Cost of prospectus - Deutsche Börse | | | | - | | (0.23) |
| listing | | | | | | |
+------------------------------------------+-----+--------+-----+--------+-----+--------+
| | | | | | | |
+------------------------------------------+-----+--------+-----+--------+-----+--------+
| | | (0.20) | | 1.62 | | 3.22 |
+------------------------------------------+-----+--------+-----+--------+-----+--------+
The loss per share for the 6 months ended 30 June 2009 was 126.11 Euro cents
(2008: 13.06 Euro cents earnings). The adjusted loss per share after adding back
the EUR11.74 million exceptional impairment provision was 1.82 Euro cents (2008:
13.06 Euro cents earnings).
Pauldirekt, our closed community shopping business has progressed very
satisfactorily and has grown its number of registered users from 15,000 at the
end of December 2008 to 580,000 at the end August 2009
Premingo, our household contracts platform, is now operating at close to
breakeven and management are examining how best to achieve its full potential.
Our 25 % associated company investment in Shirtinator has performed well.
Shirtinator is trading profitably and ahead of expectations at the time of
investment. As separately announced on 29 September, we have purchased an
additional 11.87% stake in Shirtinator to bring our overall investment to
36.87%. Depending on its continued performance and the price and availability of
additional shares the Company would consider increasing this stake beyond 50% in
due course.
Financial Position
Net assets as at 30 June 2009 were EUR10.24 million as compared to EUR22.65 million
as at 31 December 2008, principally reflecting, the impact of the EUR11.74 million
impairment provision.
Cash balances as at 30 June 2009 were EUR10.73 million (31 December 2008: EUR9.03
million). The Group has no debt.
Planned capital commitments of EUR0.77 million to Premingo and Pauldirekt in the
second half of the year, the purchase of the additional 11.87% stake in
Shirtinator, and the payment of the 2008 dividend on 2 July, when allied to
anticipated operating losses and seasonal working capital requirements will lead
to a reduced cash balance as at 31 December 2009.
Business Development and Strategy
In the past the primary focus of Getlogics GmbH our 64% warehousing and
logistics subsidiary, and of Getperformance GmbH (our 100% subsidiary direct
response advertising support company - which has recently changed its name from
GetonTV GmbH) was the support of the mobile phone contract business. Their focus
is now changing to the support of our other ecommerce companies and the
generation of third party sales.
Getlogics has invested in new warehousing in anticipation of the growth of the
Pauldirekt. Getperformance has been successful in generating third party sales
and the intention is to grow these businesses as independent profit
centres.
The Company intends to continue to invest selectively in e-commerce activities.
However, until such time as we have greater clarity on the position of the core
mobile contract business we intend to adopt a cautious approach and preserve our
capital. In the case of Pauldirekt we are investigating the potential to
introduce a third party investor to accelerate its next stage of development and
validate the commercial value of the business model.
Dividend
The Company paid a final dividend in respect of the year ended 31 December 2008
of 6 cents on 2 July 2009. The directors do not intend to recommend the payment
of an interim dividend for 2009.
Outlook
As noted above, in light of its continuing underperformance we have initiated
discussion on the sale of our mobile phone contracts business. In addition the
cost base has been reduced.
The outlook for our remaining subsidiaries, Getperformance, Getlogics, Premingo
and Pauldirekt appears promising in the medium term although, taken together,
they are, in aggregate, likely to be loss making in 2009. Our associate
Shirtinator is developing well and trading profitably.
Our ecommerce management expertise allied to our cash resources facilitates the
ongoing search for selective ecommerce investment opportunities.
Pierce Casey
Chairman
Group Income Statement
for the six months ended 30 June 2009
+-------------------+----------+----------+----------+--+---+----------+---+----------+----+----------+
| | Six months ended | Year |
| | | ended |
+-------------------------------------------------------+-----------------------------+---------------+
| | 30 June | 30 June | 31 |
| | 2009 | 2008 | December |
| | Unaudited | Unaudited | 2008 |
| | | | Audited |
+-------------------------------------------------------+--------------+--------------+---------------+
| | Notes | | EUR000's | | EUR000's | | EUR000's |
+------------------------------+------------------------+---+----------+---+----------+----+----------+
| | | | | | | | |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| Revenue |2 | | 16,882 | | 48,984 | | 101,458 |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| Cost of sales | | | (13,145) | | (43,267) | | (90,192) |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| Gross profit | | | 3,737 | | 5,717 | | 11,266 |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| Administrative expenses excluding depreciation and | | | (3,932) | | (4,096) | | (8,042) |
| amortisation | | | | | | | |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| | | | | | | | |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| (Loss)/Earnings before interest, tax, depreciation and | (195) | | 1,621 | | 3,224 |
| amortisation | | | | | |
+-----------------------------------------------------------+----------+---+----------+----+----------+
| | | | | | | | |
+-----------------------------------------+-------------+---+----------+---+----------+----+----------+
| Administrative | - depreciation and amortisation | (180) | | (129) | | (248) |
| expenses | | | | | | |
+-------------------+---------------------------------------+----------+---+----------+----+----------+
| | - exceptional items |3 | | (11,742) | | - | | - |
+-------------------+--------------------------------+--+---+----------+---+----------+----+----------+
| Total administrative expenses | | | (15,854) | | (4,225) | | (8,290) |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| | | | | | | | |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| Share of post tax profit of associates | | | 35 | | 43 | | 101 |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| | | | | | | | |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| Group operating (loss)/profit from continuing |2 | | (12,082) | | 1,535 | | 3,077 |
| operations | | | | | | | |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| Finance revenue |4 | | 169 | | 115 | | 269 |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| Finance costs |4 | | - | | - | | (1) |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| | | | | | | | |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| (Loss)/Profit from continuing operations before | | | (11,913) | | 1,650 | | 3,345 |
| taxation | | | | | | | |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| Income tax expense |6 | | (2) | | (480) | | (972) |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| | | | | | | | |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| (Loss)/Profit for the period from continuing | | | (11,915) | | 1,170 | | 2,373 |
| operations | | | | | | | |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| | | | | | | | |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| (Loss)/Profit for the period attributable to: | | | | | | | |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| Equity holders of the parent | | | (11,914) | | 1,234 | | 2,513 |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| Minority interest | | | (1) | | (64) | | (140) |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| | | | (11,915) | | 1,170 | | 2,373 |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| | | | | | | | |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| | | | Euro | | Euro | | Euro |
| | | | Cents | | Cents | | Cents |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| (Loss)/earnings per share |7 | | | | | | |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| Basic and diluted | | | (126.11) | | 13.06 | | 26.60 |
+----------------------------------------------------+--+---+----------+---+----------+----+----------+
| Adjusted and diluted | | | (1.82) | | 13.06 | | 28.98 |
+-------------------+----------+----------+----------+--+---+----------+---+----------+----+----------+
Group Statement of Changes in Equity
for the six months ended 30 June 2009
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| | Share | Distributable | Shareholder | Minority | | Total |
| | capital | reserves | equity | interest | | equity |
+--------------------------------+-----------+-------------------+-----------------+-------------+-+----------+
| | | EUR000's | | EUR000's | | EUR000's | | EUR000's | | EUR000's |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| | | | | | | | | | | |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| At 1 January 2008 | | 1,364 | | 20,126 | | 21,490 | | 18 | | 21,508 |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| Profit for the period | | | | 1,234 | | 1,234 | | (64) | | 1,170 |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| | | | | | | | | | | |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| Other movements: | | | | | | | | | | |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| Group equity attributable to | | | | | | | | 122 | | 122 |
| minority interest | | | | | | | | | | |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| Share based payments | | | | 30 | | 30 | | | | 30 |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| Dividend paid | | | | (945) | | (945) | | | | (945) |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| At 30 June 2008 | | 1,364 | | 20,445 | | 21,809 | | 76 | | 21,885 |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| Profit/(loss) for the period | | | | 1,279 | | 1,279 | | (76) | | 1,203 |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| | | | | | | | | | | |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| Other movements: | | | | | | | | | | |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| Group equity attributable to | | | | | | | | 3 | | 3 |
| minority interest | | | | | | | | | | |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| Dividends paid | | | | (472) | | (472) | | | | (472) |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| Share based payments | | | | 30 | | 30 | | | | 30 |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| At 31 December 2008 | | 1,364 | | 21,282 | | 22,646 | | 3 | | 22,649 |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| Loss for the period | | | | (11,914) | | (11,914) | | | | (11,914) |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| | | | | | | | | | | |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| Other movements: | | | | | | | | | | |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| Group equity attributable to | | | | | | | 45 | | 45 |
| minority interest | | | | | | | | | |
+-----------------------------------+--------+--------+----------+------+----------+----+--------+-+----------+
| Share based payments | | | | 31 | | 31 | | | | 31 |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| Dividend declared and approved | | | | (567) | | (567) | | | | (567) |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
| At 30 June 2009 | | 1,364 | | 8,832 | | 10,196 | | 48 | | 10,244 |
+--------------------------------+--+--------+--------+----------+------+----------+----+--------+-+----------+
Group Balance Sheet
as at 30 June 2009
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| | | Six months ended | Year ended |
+------------------------------------+-------+-----------------------------+--------------+
| | | 30 June | 30 June | 31 |
| | | 2009 | 2008 | December |
| | | Unaudited | Unaudited | 2008 |
| | | | | Audited |
+------------------------------------+-------+--------------+--------------+--------------+
| | Notes | | EUR000's | | EUR000's | | EUR000's |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Non current assets | | | | | | | |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Intangible assets | | | 252 | | 11,807 | | 11,960 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Property, plant and equipment | | | 409 | | 231 | | 284 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Investment in associated companies | 5 | | 425 | | 128 | | 41 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Other investments | | | 150 | | | | |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Deferred tax asset | | | - | | 182 | | 65 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| | | | 1,236 | | 12,348 | | 12,350 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| | | | | | | | |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Current assets | | | | | | | |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Inventories | | | 1,021 | | 2,382 | | 1,756 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Trade and other receivables | | | 3,476 | | 11,071 | | 11,592 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Overseas tax paid in advance | | | 314 | | 289 | | - |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Cash and cash equivalents | | | 10,733 | | 9,719 | | 9,028 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| | | | 15,544 | | 23,461 | | 22,376 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| | | | | | | | |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Total assets | | | 16,780 | | 35,809 | | 34,726 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| | | | | | | | |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Current liabilities | | | | | | | |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Trade and other payables | | | 6,268 | | 13,375 | | 11,526 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Corporation and overseas taxes | | | 268 | | 549 | | 296 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Other financial liabilities | | | - | | - | | 150 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| | | | 6,536 | | 13,924 | | 11,972 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| | | | | | | | |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Non current liabilities | | | | | | | |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Deferred tax | | | - | | - | | 105 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| | | | | | | | |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Net assets | | | 10,244 | | 21,885 | | 22,649 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| | | | | | | | |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Equity attributable to equity holders of | | | | | | |
| the parent | | | | | | |
+--------------------------------------------+-----+--------+-----+--------+-----+--------+
| Called up share capital | | | 1,364 | | 1,364 | | 1,364 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Distributable reserves | | | 8,832 | | 20,445 | | 21,282 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| | | | | | | | |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Group shareholders equity | | | 10,196 | | 21,809 | | 22,646 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| | | | | | | | |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| Minority interest | | | 48 | | 76 | | 3 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
| | | | 10,244 | | 21,885 | | 22,649 |
+------------------------------------+-------+-----+--------+-----+--------+-----+--------+
Group Statement of Cash Flows
for the six months ended 30 June 2009
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| | | Six months ended | Year ended |
+--------------------------------------+-----+------------------------------+---------------+
| | | 30 June | 30 June | 31 |
| | | 2009 | 2008 | December |
| | | Unaudited | Unaudited | 2008 |
| | | | | Audited |
+--------------------------------------+-----+---------------+--------------+---------------+
| | | | EUR000's | | EUR000's | | EUR000's |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Operating activities | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| (Loss)/profit for the period | | | (11,915) | | 1,170 | | 2,373 |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Adjustments to reconcile profit for | | | | | | | |
| the year to net cash inflow from | | | | | | | |
| operating activities | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Tax on continuing operations | | | 2 | | 480 | | 972 |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Net finance revenue | | | (169) | | (115) | | (268) |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Net profit on sale of associates | | | - | | (15) | | (15) |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Share of post tax profits of | | | (35) | | (43) | | (101) |
| associates | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Impairment of goodwill and other | | | 11,742 | | | | |
| intangibles | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Depreciation and impairment of | | | 76 | | 45 | | 104 |
| property, | | | | | | | |
| plant and equipment | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Amortisation of intangible assets | | | 104 | | 84 | | 144 |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Share-based payments | | | 32 | | 30 | | 60 |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Decrease/(increase) in inventories | | | 735 | | (673) | | (47) |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Decrease /(increase) in trade and | | | 8,216 | | 1,906 | | 1,493 |
| other receivables | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| (Decrease)/increase in trade and | | | (6,164) | | 1,214 | | 310 |
| other payables | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Cash generated from operations | | | 2,624 | | 4,083 | | 5,025 |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Income taxes paid | | | (320) | | (96) | | (438) |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Net cash flow from operating | | | 2,304 | | 3,987 | | 4,587 |
| activities | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Investing activities | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Interest received | | | 169 | | 115 | | 269 |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Dividend from associate | | | 22 | | | | 145 |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Sale of property, plant and | | | - | | | | 21 |
| equipment | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Sale of associates | | | - | | 68 | | 68 |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Investment in associates | | | (390) | | - | | - |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Investment in subsidiary undertakings net | | (125) | | (19) | | (17) |
| of cash acquired | | | | | | |
+--------------------------------------------+----+----------+-----+--------+-----+---------+
| Other investment | | | (150) | | - | | - |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Payments to acquire property, plant | | | (125) | | (68) | | (201) |
| and equipment | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Payments to acquire intangibles | | | | | (88) | | (150) |
| (excluding goodwill) | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Net cash flow from investing | | | (599) | | 8 | | 135 |
| activities | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Financing activities | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Interest paid | | | - | | - | | (1) |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Dividends paid to equity | | | - | | - | | (1,417) |
| shareholders of the parent | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Net cash flow from financing | | | - | | - | | (1,418) |
| activities | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Increase/(decrease) in cash and cash | | | 1,705 | | 3,995 | | 3,304 |
| equivalents | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Cash and cash equivalents at the | | | 9,028 | | 5,724 | | 5,724 |
| beginning of the year | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
| Cash and cash equivalents at the | | | 10,733 | | 9,719 | | 9,028 |
| period end | | | | | | | |
+--------------------------------------+-----+----+----------+-----+--------+-----+---------+
Notes to the Financial Information
1. Basis of preparation
The Group's financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRSs) as adopted by the European
Union other than IAS 34 ("Interim Financial Reporting") and as applied in
accordance with the provisions of the Companies Act 2006.
The interim condensed consolidated financial statements do not include all the
information and disclosures required in the annual financial statements, and
should be read in conjunction with the Group's annual financial statements as at
31 December 2008.
The accounting policies adopted in the preparation of the interim condensed
consolidated financial statements are consistent with those followed in the
preparation of the Group's annual financial statements for the year ended 31
December 2008.
The financial information contained in this interim statement does not amount
to statutory financial statements within the meaning of section 435 Companies
Act 2006. The financial statements for the year ended 31 December 2008, from
which information has been extracted, were prepared under IFRS and have been
delivered to the Registrar of Companies. The report of the auditors was
unqualified in accordance with section 495 Companies Act 2006 and did not
contain a statement under sections 498 (2) or (3) Companies Act 2006.
2. Revenue and segmental analysis
The Group's revenue, operating profit by destination and source, were all
derived from external customers in the European Union where its net assets are
located. All revenues arose in the Group's German businesses.
3. Exceptional items
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| | | Six months ended | Year ended |
+--------------------------------------+-----+-----------------------------+--------------+
| | | 30 June | 30 June | 31 |
| | | 2009 | 2008 | December |
| | | Unaudited | Unaudited | 2008 |
| | | | | Audited |
+--------------------------------------+-----+--------------+--------------+--------------+
| | | | EUR000's | | EUR000's | | EUR000's |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| | | | | | | | |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| Impairment of goodwill | | | 11,378 | | - | | - |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| Impairment of other intangibles | | | 364 | | - | | - |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| | | | 11,742 | | - | | - |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
As noted in the Chairman's Statement there is uncertainty as to the future
profitability of the Group's mobile telephone contracts business and following a
review of the impact of this it has been concluded that the value of the Group's
goodwill and other associated intangibles assets is impaired and these assets
have been written off as at 30 June 2009.
4. Finance revenues and costs
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| | | Six months ended | Year ended |
+--------------------------------------+-----+-----------------------------+--------------+
| | | 30 June | 30 June | 31 |
| | | 2009 | 2008 | December |
| | | Unaudited | Unaudited | 2008 |
| | | | | Audited |
+--------------------------------------+-----+--------------+--------------+--------------+
| | | | EUR000's | | EUR000's | | EUR000's |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| Finance revenue | | | | | | | |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| Bank interest receivable | | | 65 | | 115 | | 269 |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| Write back of provision for finance | | | 104 | | - | | - |
| fee | | | | | | | |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| | | | 169 | | 115 | | 269 |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| | | | | | | | |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| Finance costs - bank interest | | | - | | - | | (1) |
| payable | | | | | | | |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| | | | 169 | | - | | (1) |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
5. Investment in associated companies
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| | Six months ended | Year ended |
+--------------------------------------------+-----------------------------+--------------+
| | 30 June | 30 June | 31 |
| | 2009 | 2008 | December |
| | Unaudited | Unaudited | 2008 |
| | | | Audited |
+--------------------------------------------+--------------+--------------+--------------+
| | | EUR000's | | EUR000's | | EUR000's |
+--------------------------------------------+-----+--------+-----+--------+-----+--------+
| | | | | | | | |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| At 1 January | | | 41 | | 137 | | 137 |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| Cost of investments | | | 390 | | 10 | | - |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| Disposal of investments | | | (19) | | (62) | | (52) |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| Share of profits after tax | | | 35 | | 43 | | 101 |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| Dividend received | | | (22) | | | | (145) |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
| At end of period | | | 425 | | 128 | | 41 |
+--------------------------------------+-----+-----+--------+-----+--------+-----+--------+
6. Income tax expense
+--------------+----------------------------+-----+--------+-----+--------+-----+--------+
| | Six months ended | Year ended |
+-------------------------------------------+-----------------------------+--------------+
| | 30 June | 30 June | 31 |
| | 2009 | 2008 | December |
| | Unaudited | Unaudited | 2008 |
| | | | Audited |
+-------------------------------------------+--------------+--------------+--------------+
| | | EUR000's | | EUR000's | | EUR000's |
+-------------------------------------------+-----+--------+-----+--------+-----+--------+
| Current income tax: | | | | | | |
+-------------------------------------------+-----+--------+-----+--------+-----+--------+
| UK | | | - | | 43 | | 90 |
| corporation | | | | | | | |
| tax | | | | | | | |
+--------------+----------------------------+-----+--------+-----+--------+-----+--------+
| Foreign tax | | | 41 | | 267 | | 445 |
+--------------+----------------------------+-----+--------+-----+--------+-----+--------+
| Current income tax charge | | 41 | | 310 | | 535 |
+-------------------------------------------+-----+--------+-----+--------+-----+--------+
| Amounts over provided in previous years - | | - | | - | | (3) |
| UK | | | | | | |
+-------------------------------------------+-----+--------+-----+--------+-----+--------+
| Amounts under provided in previous years | | - | | - | | 48 |
| - Foreign | | | | | | |
+-------------------------------------------+-----+--------+-----+--------+-----+--------+
| Total current income tax | | 41 | | 310 | | 580 |
+-------------------------------------------+-----+--------+-----+--------+-----+--------+
| | | | | | | |
+-------------------------------------------+-----+--------+-----+--------+-----+--------+
| Deferred tax: | | | | | | |
+-------------------------------------------+-----+--------+-----+--------+-----+--------+
| Origination and reversal of temporary | | (39) | | 170 | | 392 |
| differences | | | | | | |
+-------------------------------------------+-----+--------+-----+--------+-----+--------+
| | | | | | | |
+-------------------------------------------+-----+--------+-----+--------+-----+--------+
| Tax charge in the income statement | | 2 | | 480 | | 972 |
+-------------------------------------------+-----+--------+-----+--------+-----+--------+
| | | | | | | |
+-------------------------------------------+-----+--------+-----+--------+-----+--------+
| Tax charge in the income statement is disclosed | | | | | |
| as follows: | | | | | |
+-------------------------------------------------+--------+-----+--------+-----+--------+
| Income tax expense on continuing | | 2 | | 480 | | 972 |
| operations | | | | | | |
+-------------------------------------------+-----+--------+-----+--------+-----+--------+
| | | 2 | | 480 | | 972 |
+--------------+----------------------------+-----+--------+-----+--------+-----+--------+
As at 31 December 2008 a deferred tax asset of EUR65,000 (30 June 2008: EUR182,000),
relating to historic losses carried forward in the Company's German subsidiary
getmobile AG and tax adjustments in relation to its former silent partners
investors, was recognised and included in non current assets. As at 31 December
2008 a deferred tax liability of EUR105,000 (June 2008: EURnil) in relation to
intangible fixed asset value adjustments on acquisition was included in non
current liabilities.
Both of these balances have been released in full in the period to 30 June 2009
due to utilisation of losses forward, the write off of the associated intangible
fixed assets and the uncertainty of future recoverability of the remaining
portion of the deferred tax asset.
7. (Loss) earnings per share
+--------------------------------------+------+----+----------+----+--------+-----+--------+
| | | Six months ended | Year ended |
+--------------------------------------+------+-----------------------------+--------------+
| | | 30 June | 30 June | 31 |
| | | 2009 | 2008 | December |
| | | Unaudited | Unaudited | 2008 |
| | | | | Audited |
+--------------------------------------+------+---------------+-------------+--------------+
| | | | EUR000's | | EUR000's | | EUR000's |
+--------------------------------------+------+----+----------+----+--------+-----+--------+
| | | | | | | | |
+--------------------------------------+------+----+----------+----+--------+-----+--------+
| (Loss) Profit for period for basic and | | (11,914) | | 1,234 | | 2,513 |
| diluted earnings per share | | | | | | |
+--------------------------------------+------+----+----------+----+--------+-----+--------+
+--------------------------------------+-----+-----+----------+----+-------+-----+-------+
| | | No. | No. | No. |
+--------------------------------------+-----+----------------+------------+-------------+
| | | | 000's | | 000's | | 000's |
+--------------------------------------+-----+-----+----------+----+-------+-----+-------+
| | | | | | | | |
+--------------------------------------+-----+-----+----------+----+-------+-----+-------+
| Weighted average number of ordinary shares for | 9,447 | | 9,447 | | 9,447 |
| basic, adjusted | | | | | |
| and diluted EPS | | | | | |
+--------------------------------------------------+----------+----+-------+-----+-------+
| | | | | | | |
+--------------------------------------------+-----+----------+----+-------+-----+-------+
| Basic and diluted (loss) earnings per | | (126.11) | | 13.06 | | 26.60 |
| share (cents) | | | | | | |
+--------------------------------------------+-----+----------+----+-------+-----+-------+
| Adjusted and diluted (loss) earnings per | | (1.82) | | 13.06 | | 28.98 |
| share (cents) | | | | | | |
+--------------------------------------+-----+-----+----------+----+-------+-----+-------+
The calculation of adjusted loss or earnings per share is based on the loss or
profit attributable to equity holders of the parent used for the calculation of
basic loss or earnings per share as set out above, adjusted by adding back the
exceptional impairment provision of EUR11,742,000 (Year ended 31 December 2008:
adding back the costs associated with the issue of a prospectus of EUR225,000), as
the directors believe this is an appropriate measure of underlying performance.
8.Interim report
This interim financial information was approved by the Board of Directors on 28
September 2009.
This report will be sent to all shareholders and copies will be available from
the Company's registered office - 4th Floor, 74 Chancery Lane, London WC2A IAD
and on the Company's website - www.getmobile-europe.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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