TIDMIQH
RNS Number : 7316U
IQ Holdings plc
30 June 2009
IQ Holdings plc
30 June 2009:
IQ Holdings Plc ("IQH" or "the Company") announces its interim results for the
period ended 31 March 2009.
Contacts:
Julian Green
IQ Holdings plc
Tel: 0208 099 0560
Fiona Kindness / Gerry Beaney
Grant Thornton UK LLP (Nomad)
Tel: 0207 7383 5100
Ian Callaway
SVS Securities plc (Broker)
Tel: 0207 638 5600
Bishopsgate Communications Ltd Tel: +44 (0)20 7562 3350
Robyn Samuelson
Gemma O'Hara
Email: iqholdings@bishopsgatecommunications.com
Chairman's Report for 6 Months Ended 31st March 2009
I am pleased to announce the results of IQ Holdings plc ("IQH" or "the Company")
for the six months ended 31st March 2009. The interim figures include the
results of Viewpoint Services Limited ("Viewpoint") and The Wire Services (UK)
Limited ("The Wire") since their acquisition on 29 January 2009 and show a loss,
in line with expectation. The acquisition of Viewpoint is expected to contribute
positively in the financial year 2010.
The period has seen a number of significant developments and decisive actions
taken by the Board, in line with bringing IQH into profitability in the shortest
possible timeframe. Cessation of trading at the loss-making The Wire,
eliminating costs at IQ Research Limited ("IQ Research") and the appointment of
Ms Gale Blears to the Board have all contributed to increased management focus
on developing the business of the Company, which should begin to bear fruit in
the coming months.
Commentary by Business
The focus for IQ Research has been on reducing costs, the net effect of which
should be a business reduced in size, but operationally profitable moving
forward subject to market conditions.
Rosslyn Research Ltd ("Rosslyn") has returned to profitability after a range of
cost efficiencies were realised throughout the period. Rosslyn's trading has
been below expectation but significant contracts have been awarded for which the
benefit will be seen in the next financial year. Management have concentrated on
more effective communication with Rosslyn's core client and potential client
base and is enjoying buoyant levels in demand for quotations.
Viewpoint's business is robust and will drive the immediate and future revenues
of the Company. Integration with Rosslyn is working well with a number of
projects already being undertaken employing the resources of each other. There
is an increased focus on business development for Viewpoint and the appointment
of Ms Gale Blears to the Board of IQH is regarded as a move to strengthen the
Board.
Towards the end of the period the directors took the decision to scale back The
Wire's business operations, resulting in considerable cost savings for the
Company.
Summary
The Company has been affected by the economic downturn and is likely to
experience downward pressure on sales, but the Directors have taken decisive
actions to control costs to enable IQH to benefit from opportunities and the
acquisitions made during the period. There is a strong foundation for the
Company to build upon towards the end of this year and moving into next year.
Whilst the Board feels that the Group can achieve market expectations for full
year results, current market conditions remain very challenging.
UNAUDITED CONSOLIDATED INCOME STATEMENT
six months ended 31 MARCH 2009
+----------------------------+------------+------------+------------+------------+
| | | 6 months | 6 months | 12 months |
| | | ended | ended | ended |
| | | 31 March | 31 March | 30 |
| | | 2009 | 2008 | September |
| | | | | 2008 |
+----------------------------+------------+------------+------------+------------+
| | Note | Unaudited | Unaudited | Audited |
+----------------------------+------------+------------+------------+------------+
| | | GBP'000 | GBP'000 | GBP'000 |
+----------------------------+------------+------------+------------+------------+
| Continuing operations | | | | |
+----------------------------+------------+------------+------------+------------+
| Revenue | | 980 | 461 | 908 |
+----------------------------+------------+------------+------------+------------+
| | | | | |
+----------------------------+------------+------------+------------+------------+
| | | | | |
+----------------------------+------------+------------+------------+------------+
| Cost of sales | | (577) | (252) | (461) |
+----------------------------+------------+------------+------------+------------+
| Gross profit | | 403 | 209 | 447 |
+----------------------------+------------+------------+------------+------------+
| | | | | |
+----------------------------+------------+------------+------------+------------+
| | | | | - |
+----------------------------+------------+------------+------------+------------+
| Other administrative | | (697) | (465) | (878) |
| expenses | | | | |
+----------------------------+------------+------------+------------+------------+
| Loss from operating | | (294) | (256) | (431) |
| activities | | | | |
+----------------------------+------------+------------+------------+------------+
| | | | | |
+----------------------------+------------+------------+------------+------------+
| | | | | |
+----------------------------+------------+------------+------------+------------+
| Finance income | | - | 1 | 2 |
+----------------------------+------------+------------+------------+------------+
| Finance expenses | | (4) | (3) | (11) |
+----------------------------+------------+------------+------------+------------+
| Net finance expense | | (4) | (2) | (9) |
+----------------------------+------------+------------+------------+------------+
| | | | | |
+----------------------------+------------+------------+------------+------------+
| | | | | |
+----------------------------+------------+------------+------------+------------+
| Loss before taxation | | (298) | (258) | (440) |
+----------------------------+------------+------------+------------+------------+
| | | | | |
+----------------------------+------------+------------+------------+------------+
| Income tax expense | | - | - | - |
+----------------------------+------------+------------+------------+------------+
| Loss from continuing | | (298) | (258) | (440) |
| operations | | | | |
+----------------------------+------------+------------+------------+------------+
| | | | | |
+----------------------------+------------+------------+------------+------------+
| | | | | |
+----------------------------+------------+------------+------------+------------+
| Basic and diluted loss per | 5 | (0.05)p | (0.4)p | (0.6)p |
| ordinary share | | | | |
+----------------------------+------------+------------+------------+------------+
| | | | | |
+----------------------------+------------+------------+------------+------------+
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
six months ended 31 MARCH 2009
+--------------------------------+---------+------------+------------+----------+
| | Called | Share | Profit and | Total |
| | up | premium | loss | equity |
| | share | account | account | |
| | capital | | | |
+--------------------------------+---------+------------+------------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+---------+------------+------------+----------+
| At start of period | 346 | 984 | (898) | 432 |
+--------------------------------+---------+------------+------------+----------+
| Issue of shares (net of issue | 113 | 849 | - | 962 |
| costs) | | | | |
+--------------------------------+---------+------------+------------+----------+
| Loss for the period | - | - | (298) | (298) |
+--------------------------------+---------+------------+------------+----------+
| | | | | |
+--------------------------------+---------+------------+------------+----------+
| At end of period | 459 | 1,833 | (1,196) | 1,096 |
+--------------------------------+---------+------------+------------+----------+
For the six months ended 31 March 2008
+--------------------------------+---------+------------+------------+----------+
| | Called | Share | Profit and | Total |
| | up | premium | loss | equity |
| | share | account | account | |
| | capital | | | |
+--------------------------------+---------+------------+------------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+---------+------------+------------+----------+
| | | | | |
+--------------------------------+---------+------------+------------+----------+
| At start of period | 99 | 194 | (458) | (165) |
+--------------------------------+---------+------------+------------+----------+
| Issue of shares (net of issue | 246 | 789 | - | 1,035 |
| costs) | | | | |
+--------------------------------+---------+------------+------------+----------+
| Loss for the period | - | - | (258) | (258) |
+--------------------------------+---------+------------+------------+----------+
| | | | | |
+--------------------------------+---------+------------+------------+----------+
| At end of period | 345 | 983 | (716) | 612 |
+--------------------------------+---------+------------+------------+----------+
For the 12 months ended 30 September 2008 (Audited)
+--------------------------------+---------+------------+------------+----------+
| | Called | Share | Profit and | Total |
| | up | premium | loss | equity |
| | share | account | account | |
| | capital | | | |
+--------------------------------+---------+------------+------------+----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+---------+------------+------------+----------+
| At start of year | 99 | 194 | (458) | (165) |
+--------------------------------+---------+------------+------------+----------+
| Issue of shares (net of issue | 247 | 790 | - | 1037 |
| costs) | | | | |
+--------------------------------+---------+------------+------------+----------+
| Loss for the year | - | - | (440) | (440) |
+--------------------------------+---------+------------+------------+----------+
| | | | | |
+--------------------------------+---------+------------+------------+----------+
| At end of period | 346 | 984 | (898) | 432 |
+--------------------------------+---------+------------+------------+----------+
UNAUDITED CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2009
+--------------+-----------+-----------+-----------+
| | At | At | At 30 |
| | 31 | 31 | September |
| | March | March | 2008 |
| | 2009 | 2008 | Audited |
| | Unaudited | Unaudited | |
+--------------+-----------+-----------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------+-----------+-----------+-----------+
| Non | | | |
| current | | | |
| assets | | | |
+--------------+-----------+-----------+-----------+
| Property, | 223 | 5 | - |
| plant and | | | |
| equipment | | | |
+--------------+-----------+-----------+-----------+
| Intangible | 2,931 | 1,004 | 1,122 |
| assets | | | |
+--------------+-----------+-----------+-----------+
| Total | 3,154 | 1,009 | 1,122 |
| non | | | |
| current | | | |
| assets | | | |
+--------------+-----------+-----------+-----------+
| | | | |
+--------------+-----------+-----------+-----------+
| Current | | | |
| assets | | | |
+--------------+-----------+-----------+-----------+
| Trade | 1,009 | 325 | 224 |
| and | | | |
| other | | | |
| receivables | | | |
+--------------+-----------+-----------+-----------+
| Cash | 161 | 50 | 13 |
| and | | | |
| cash | | | |
| equivalents | | | |
+--------------+-----------+-----------+-----------+
| Total | 1,170 | 375 | 237 |
| current | | | |
| assets | | | |
+--------------+-----------+-----------+-----------+
| | | | |
+--------------+-----------+-----------+-----------+
| Total | 4,324 | 1,384 | 1,359 |
| assets | | | |
+--------------+-----------+-----------+-----------+
| | | | |
+--------------+-----------+-----------+-----------+
| Current | | | |
| liabilities | | | |
+--------------+-----------+-----------+-----------+
| Short-term | (290) | (78) | (169) |
| borrowings | | | |
+--------------+-----------+-----------+-----------+
| Trade | (1,794) | (694) | (745) |
| and | | | |
| other | | | |
| payables | | | |
+--------------+-----------+-----------+-----------+
| Total | (2,084) | (772) | (914) |
| current | | | |
| liabilities | | | |
+--------------+-----------+-----------+-----------+
| | | | |
+--------------+-----------+-----------+-----------+
| Non | | | |
| current | | | |
| liabilities | | | |
+--------------+-----------+-----------+-----------+
| Provisions | (444) | - | - |
+--------------+-----------+-----------+-----------+
| Long | (700) | - | (13) |
| term | | | |
| borrowings | | | |
+--------------+-----------+-----------+-----------+
| Total | (1,144) | - | (13) |
| non | | | |
| current | | | |
| liabilities | | | |
+--------------+-----------+-----------+-----------+
| | | | |
+--------------+-----------+-----------+-----------+
| Total | (3,228) | (772) | (927) |
| liabilities | | | |
+--------------+-----------+-----------+-----------+
| | | | |
+--------------+-----------+-----------+-----------+
| Net | 1,096 | 612 | 432 |
| assets | | | |
+--------------+-----------+-----------+-----------+
| | | | |
+--------------+-----------+-----------+-----------+
| Capital | | | |
| and | | | |
| reserves | | | |
+--------------+-----------+-----------+-----------+
| Called | 459 | 345 | 346 |
| up | | | |
| share | | | |
| capital | | | |
+--------------+-----------+-----------+-----------+
| Share | 1,833 | 983 | 984 |
| premium | | | |
| account | | | |
+--------------+-----------+-----------+-----------+
| Profit | (1,196) | (716) | (898) |
| and | | | |
| loss | | | |
| account | | | |
+--------------+-----------+-----------+-----------+
| Equity | 1,096 | 612 | 432 |
| attributable | | | |
| to equity | | | |
| holders of | | | |
| the parent | | | |
+--------------+-----------+-----------+-----------+
| | | | |
+--------------+-----------+-----------+-----------+
| | | | |
+--------------+-----------+-----------+-----------+
UNAUDITED CONSOLIDATED CASHFLOW STATEMENT
FOR THE 6 MONTH PERIOD TO 31 MARCH 2009
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| | Note | 6 months | 6 months | 12 months |
| | | ended | ended | ended 30 |
| | | 31 March | 31 March | September |
| | | 2009 | 2008 | 2008 |
| | | Unaudited | Unaudited | Audited |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| | | GBP000 | GBP000 | GBP000 |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| | | | | |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Net cash flow generated from operations | 7 | 147 | (138) | (198) |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| | | | | |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Interest paid | | (4) | (2) | (11) |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| | | | | |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Net cashflow from operating activities | | 143 | (140) | (209) |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| | | | | |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Cashflow from investing activities | | | | |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Acquisition of assets & trade | | (669) | (540) | (625) |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Fixed asset acquisition | | (20) | | |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Interest received | | - | - | 2 |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| | | | | |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Net cash outflow from investing activities | | (689) | (540) | (623) |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| | | | | |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| | | | | |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Financing | | | | |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Proceeds from issue of shares | | 481 | 964 | 966 |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Costs of share issue | | - | (129) | (130) |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Repayments of directors loans | | - | - | (4) |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Debt acquired on acquisition of subsidiary | | - | (129) | (129) |
| undertakings | | | | |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Repayment of bank loans | | (18) | - | (12) |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Increase in finance leases | | 5 | - | - |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| New bank loans | | 150 | - | - |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| | | | | |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Net cash inflow from financing | | 618 | 706 | 691 |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| | | | | |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Increase /(Decrease)in cash and cash equivalents | | 72 | 26 | (141) |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| | | | | |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Cash and cash equivalents at beginning of period | | (138) | (54) | 3 |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| | | | | |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| Cash and cash equivalents at end of period | | (66) | (28) | (138) |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
| | | | | |
+-----------------------------------------------------+--------+--------------+--------------+--------------+
NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT
for the 6 months ended 31 march 2009
1. BASIS OF PREPARATION OF INTERIM REPORT
The information for the interim accounts for the six month period ended 31 March
2009 has neither been audited or reviewed by the auditors, and does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985 (section 435 of the Companies Act 2006). The figures and financial
information for the year ended 30 September 2008 do not constitute financial
statements for that year. Those financial statements have been delivered to the
Registrar and included an audit report which was unqualified, contained no
statements under either section 237(2) or (3) of the 1985 Act (section 498(2) or
(3) of the 2006 act).The audit report in those financial statements ended 30
September 2008 did however contain the following emphasis of matter:
"Without qualifying our opinion, we draw attention to Note 1 in the financial
statements. The Group incurred a net loss of GBP440,000 during the year ended 30
September 2008 and, as of that date, the Group's current liabilities exceeded
its current assets by GBP677,000. These conditions, along with other matters
explained in Note 1 to the financial statements and in the Chairman's Report on
page 3, indicate the existence of a material uncertainty which may cast
significant doubt about the Company's and Group's ability to continue as a going
concern. The financial statements do not include the adjustments, to the balance
sheet that would result if the Company or Group was unable to continue as a
going concern."
2. ACCOUNTING POLICIES
Basis of Accounting
The Interim financial report has been prepared using accounting policies
consistent with International Financial Reporting Standards (IFRS) for the first
time. The disclosures required by IFRS 1 concerning the transition from UK GAAP
to IFRS are given in note 6.
The report has been prepared on a going concern basis in accordance with
International Financial Reporting Standards ("IFRS") as issued by the
International Accounting Standards Board ("IASB") at 30 September 2008 as well
as all interpretations issued by the International Financial Reporting
Interpretations Committee ("IFRIC") at 30 September 2008 as adopted by the EU
and applicable law. The group has not availed itself of early adoption options
in such standards and interpretations.
The Directors have considered the financial projections for the period to 30
September 2010. These indicate that whilst the Group is expected to be
profitable, the ability of the group to meet its financial commitments will be
dependent on the success of the management team in continuing to secure new
contacts, the continued support of creditors and financiers and/or additional
support from shareholders. The Board has received positive indications that this
support will be available and that sufficient funds will be available to meet
these requirements and has, consequently, prepared this report on a going
concern basis. These matters do, though, constitute a fundamental uncertainty.
The report does not contain any adjustment to the carrying value of assets or
liabilities that might arise if the Group were not to be a going concern.
The report has been prepared under the historical cost basis and are presented
in Sterling rounded to the nearest thousand. The principal accounting policies
adopted are set out below:
Basis of consolidation
The consolidated report incorporates the financial information of the Company
and entities controlled by the Company (its subsidiaries) made up to 31 March
each year. Control is achieved where the Company has the power to govern the
financial and operating policies of an entity so as to obtain benefits from its
activities.
The results of subsidiaries acquired or disposed of during the year are included
in the consolidated income statement from the effective date of acquisition or
up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial information of
subsidiaries to bring the accounting policies used into line with those used by
the Group. All intra-group transactions, balances, income and expenses are
eliminated on consolidation.
Business combinations
The purchase method of accounting is used for all acquired businesses as defined
by IFRS 3 - Business Combinations.
As a result of the application of the purchase method of accounting, goodwill is
initially recognised as an asset being the excess at the date of acquisition of
the fair value of the purchase consideration plus directly attributable costs of
acquisition over the net fair values of the identifiable assets, liabilities and
contingent liabilities of the subsidiaries acquired.
Where fair values are estimated on a provisional basis they are finalised within
12 months of acquisition with consequent changes to the amount of goodwill.
Intangible assets acquired as part of a business combination
Identifiable intangible assets acquired as part of a business combination are
initially recognised separately from goodwill if the asset's fair value can be
measured reliably, irrespective of whether the asset had been recognised by the
acquiree before the business combination. An intangible asset is considered
identifiable only if it is separable or arises from contractual or other legal
rights, regardless of whether those rights are transferable or separable from
the entity or from other rights and obligations.
Goodwill
Goodwill arising on consolidation represents the excess cost of acquisition over
the group's interest in the fair value of the identifiable assets and
liabilities of a subsidiary, associate or jointly controlled entity at the date
of acquisition.
Goodwill arising on acquisition before the date of transition to IFRS has been
retained at the previous UK GAAP amounts subject to being tested for impairment
at that date.
Goodwill is recognised as an asset and reviewed for impairment at least
annually. Any impairment is recognised immediately in the income statement and
is not subsequently reversed.
On disposal of a subsidiary, associate or jointly controlled entity, the
attributable amount of goodwill is included in the determination of the profit
or loss on disposal.
Revenue recognition
Revenue represents amounts earned under contracts to provide professional
services. Revenue is recognised as earned when, and to the extent that, the firm
obtains the right to consideration in exchange for its performance under these
contracts. It is measured at the fair value of the right to consideration, which
represents amounts chargeable to clients, including expenses and disbursements
but excluding VAT. Revenue is generally recognized as contract activity
progresses so that for incomplete contracts it reflects the partial performance
of the contractual obligations by reference to the value of work performed.
Revenue not billed to clients is included in debtors and invoices on account in
excess of the relevant amount of revenue are included in deferred income.
Taxation
The tax expense represents the sum of the tax currently payable and deferred
tax.
The tax currently payable is based on taxable profits for the year. Taxable
profit differs from net profit as reported in the income statement because it
excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The
Group's liability for current tax is calculated using tax rates that have been
enacted or substantively enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability method. Deferred
tax liabilities are generally recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary differences
can be utilised. Such assets and liabilities are not recognised if the temporary
difference arises from goodwill or from the initial recognition (other than in a
business combination) of other assets and liabilities in a transaction that
affects neither the tax profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries and associates, and interests in joint
ventures, except where the Group is able to control the reversal of the
temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that is no longer probable that sufficient
taxable profits will be available to allow all, or part, of the asset to be
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised. Deferred tax is
charged or credited in the income statement, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also
dealt with in equity.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation
and any recognised impairment loss.
Depreciation is charged so as to write off the cost or valuation of assets over
their estimated useful lives on the following bases:
Office equipment 20% reducing balance
The gain or loss arising on the disposal or retirement of an asset is determined
as the difference between the sales proceeds and the carrying amount of the
asset and is recognised in income.
Leased Assets
Leases are classified as finance leases if substantially all the risks and
rewards of ownership are transferred to the lessee. All other leases are
classified as operating leases.
Assets and liabilities deriving from finance lease contracts are initially
recognised in the balance sheet at the lower of their fair value and the present
value of the minimum future lease rentals.
After initial recognition, the depreciation policy applied is consistent with
that for depreciable assets that are owned. As a result, the depreciation
recognised is calculated in accordance with the useful life stated for property,
plant and equipment. In cases where there is no reasonable certainty that the
lessee will obtain ownership by the end of the lease term, the asset is fully
depreciated over the shorter of the lease term and its useful life.
The interest element of rental obligations is charged to the income statement
over the period of the lease at a constant rate on the balance of finance lease
obligations outstanding.
Rentals payable under non-onerous operating leases are expensed in the income
statement on a straight-line basis over the lease term.
Incentives to take out operating leases are credited to the income statement on
a straight-line basis over the lease term.
Impairment of tangible and intangible assets excluding goodwill
At each balance sheet date, the Group reviews the carrying amounts of its
tangible and intangible assets to determine whether there is any indication that
those assets have suffered an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated in order to determine the
extent of the impairment loss (if any). Where the asset does not generate cash
flows that are independent from other assets, the Group estimates the
recoverable amount of the cash-generating unit to which the asset belongs. An
intangible asset with an indefinite useful life is tested for impairment
annually and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair values less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the
asset for which the estimate of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to
be less than its carrying amount, the carrying amount of the asset
(cash-generating unit) is reduced to its recoverable amount. An impairment loss
is recognised as an expense immediately, unless the relevant asset is carried at
a revalued amount, in which case the impairment loss is treated as a revaluation
decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset
(cash-generating unit) is increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognised
for the asset (cash-generating unit) in prior years. A reversal of an impairment
loss is recognised as income immediately, unless the relevant asset is carried
at a revalued amount, in which case the reversal of the impairment loss is
treated as a revaluation increase.
Financial instruments
Financial assets and financial liabilities are recognised on the Group's balance
sheet when the Group becomes a party to the contractual provisions of the
instrument.
Financial assets are classified in accordance with the nature and purposes of
the financial assets and are determined at the time of initial recognition.
Cash and cash equivalents
Cash and cash equivalents comprise of cash on hand and demand deposits that are
subject to an insignificant risk of changes in value.
Trade receivables
Trade receivables are measured at initial recognition at fair value, and are
subsequently measured at amortised cost using the effective interest rate
method. Appropriate allowances for estimated irrecoverable amounts are
recognised in profit and loss when there is objective evidence that the asset is
impaired. The allowance recognised is measured as the difference between the
asset's carrying amount and the present value of estimated future cash flows
discounted at the effective interest rate compound at initial recognition.
Trade receivables do not carry any interest and are stated at their nominal
value as reduced by appropriate allowances for estimated irrecoverable amounts.
Loans and other receivables
Loan and other receivables that have fixed or determinable payments that are not
quoted on active markets are classified as loans and receivables. Loans and
receivables are measured at amortised cost using the effective interest rate
method, less any impairment. Interest income is recognised by applying the
effective interest rate, except for short term receivables when recognition
would be immaterial.
Financial liability and equity
Financial liabilities and equity instruments are classified according to the
substance of the contractual agreements entered into. An equity instrument is
any contract that evidences a residual interest in the assets of the Group after
deducting all of its liabilities. Equity instruments are recognised at the
amount of proceeds received net of costs directly attributable to the
transaction. To the extent that those proceeds exceed the par value of the
shares issued they are credited to a share premium account.
Bank borrowings
Interest-bearing bank loans and overdrafts are recorded at the proceeds
received, net of direct issue costs. Finance charges, including premiums payable
on settlement or redemption and direct issue costs, are accounted for on a n
accrual basis in profit or loss using effective interest rate method and are
added to the carrying amount of the instrument to the extent that they are not
settled in the period in which they arise.
Trade payables
Trade payables are not interest-bearing, are fair valued at initial recognition,
stated at their nominal value and then recorded at amortised cost.
3. SEGMENTAL ANALYSIS
The primary reporting format is by business segment and the second reporting
format is by geographical area.
Primary analysis by business segment
For management purposes the group is organised into one operating segment which
is that of providers of market research and market information. All sales
revenue, costs, assets and liabilities of the group are attributable to the
principal activities of the group.
Secondary analysis by geographical area
The business operates solely in one geographical area, the UK.
4. Dividends
The Company is not in a position to declare an interim dividend.
5. loss per share
The calculation is based on the loss attributable to equity shareholders divided
by the weighted average number of ordinary shares in issue during the period as
follows:
+-----------------------------------------------+----------+----------+-----------+
| | 6 months | 6 months | 12 |
| | ended | ended | months |
| | 31 March | 31 March | ended 30 |
| | 2009 | 2008 | September |
| | | | 2008 |
+-----------------------------------------------+----------+----------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------------------------+----------+----------+-----------+
| | | | |
+-----------------------------------------------+----------+----------+-----------+
| Numerators; loss attributable to equity | 298 | 258 | 440 |
| shareholders | | | |
+-----------------------------------------------+----------+----------+-----------+
| | | | |
+-----------------------------------------------+----------+----------+-----------+
| | No. '000 | No. '000 | No. '000 |
+-----------------------------------------------+----------+----------+-----------+
| Denominators; weighted average number of | | | |
| equity shares | | | |
+-----------------------------------------------+----------+----------+-----------+
| Basic and diluted | 607,330 | 64,237 | 74,983 |
+-----------------------------------------------+----------+----------+-----------+
| | | | |
+-----------------------------------------------+----------+----------+-----------+
| | | | |
+-----------------------------------------------+----------+----------+-----------+
6. ACQUISITION OF viewpoint field, viewpont studios and the wire
On 30 January 2009 the company completed the purchase of the businesses of
Viewpoint and The Wire for an aggregate consideration of GBP1,500,000.
Intangible assets arising on the acquisition have provisionally been calculated
at GBP1,809,000. These are provisional values only and further details will be
contained in the financial statements for the year to 30 September 2009. The
directors have considered the carrying value of intangible assets at 31 March
2009 and are satisfied that there has been no impairment in value at that date
On 30 January 2009, IQ Holdings plc acquired the businesses know as Viewpoint
Field, Viewpoint Studios and The Wire from Illuminas Ltd, a subsidiary of Media
square plc . Total consideration was GBP1,500,000 (GBP600,000 cash, GBP600,000
deferred cash and GBP300,000 in shares). A further GBP497,000 of professional
fees and expenses were incurred during the transaction.
The assembled workforce, profitability and the synergies that the Group will
obtain all contributed to the amount paid.
The fair values shown below for all businesses acquired during the year are
provisional as the hindsight period allowed by financial reporting has not yet
expired.
+------------------+---------+-------------+-------------+---+---------+-------------+-------------+
| | Viewpoint Field and | | The Wire |
| | Viewpoint Studios | | |
+------------------+-------------------------------------+---+-------------------------------------+
| | Book | Provisional | Provisional | | Book | Provisional | Provisional |
| | value | fair value | fair value | | value | fair value | fair value |
| | | adjustments | | | | adjustments | |
+------------------+---------+-------------+-------------+---+---------+-------------+-------------+
| | GBP'000 | GBP'000 | GBP'000 | | GBP'000 | GBP'000 | GBP'000 |
+------------------+---------+-------------+-------------+---+---------+-------------+-------------+
| Assets | | | | | | | |
+------------------+---------+-------------+-------------+---+---------+-------------+-------------+
| Property, plant | 177 | - | 177 | | 34 | - | 34 |
| & | | | | | | | |
| equipment | | | | | | | |
+------------------+---------+-------------+-------------+---+---------+-------------+-------------+
| Receivables | 520 | (63) | 457 | | 238 | (24) | 214 |
+------------------+---------+-------------+-------------+---+---------+-------------+-------------+
| | 697 | (63) | 634 | | 272 | (24) | 248 |
+------------------+---------+-------------+-------------+---+---------+-------------+-------------+
| Liabilities | | | | | | | |
+------------------+---------+-------------+-------------+---+---------+-------------+-------------+
| Trade and other | (189) | - | (189) | | (61) | - | (61) |
| payables | | | | | | | |
+------------------+---------+-------------+-------------+---+---------+-------------+-------------+
| Provisions | - | (403) | (403) | | - | (41) | (41) |
+------------------+---------+-------------+-------------+---+---------+-------------+-------------+
| | (189) | (403) | (592) | | (61) | (41) | (102) |
+------------------+---------+-------------+-------------+---+---------+-------------+-------------+
| | | | | | | | |
+------------------+---------+-------------+-------------+---+---------+-------------+-------------+
| Net assets | 508 | (466) | 42 | | 211 | (65) | 146 |
| acquired | | | | | | | |
+------------------+---------+-------------+-------------+---+---------+-------------+-------------+
| | | | | | | | |
+------------------+---------+-------------+-------------+---+---------+-------------+-------------+
| Total net assets acquired | | | | | | 188 |
| | | | | | | |
+------------------+---------+-------------+-------------+---+---------+-------------+-------------+
+---------------------+-----------+--------------+----+----------+----------+----------+
| Satisfied by: | | | | | |
+---------------------+-----------+-------------------+----------+----------+----------+
| | | | | | |
+---------------------+-----------+--------------+---------------+----------+----------+
| Shares | | | | 300 | |
+---------------------+-----------+--------------+---------------+----------+----------+
| Cash | | | | 600 | |
+---------------------+-----------+--------------+---------------+----------+----------+
| Deferred cash | | | | 600 | |
+---------------------+-----------+--------------+---------------+----------+----------+
| Costs of | | | | 497 | |
| acquisition | | | | | |
+---------------------+-----------+--------------+---------------+----------+----------+
| | | | | | 1,997 |
+---------------------+-----------+--------------+---------------+----------+----------+
| | | | | | |
+---------------------+-----------+--------------+---------------+----------+----------+
| Intangible assets recognised in connection with acquisitions | | 1,809 |
| during the period | | |
+----------------------------------------------------------------+----------+----------+
| | | |
+----------------------------------------------------------------+----------+----------+
| | | |
+---------------------+-----------+--------------+----+----------+----------+----------+
Provisional fair value adjustments include provisions for doubtful debts and
provisions for dilapidations on all of the Group's leased properties.
7. CASH USED IN OPERATIONS
+-----------------------------------------------+----------+----------+-----------+
| | 6 months | 6 months | 12 |
| | ended | ended | months |
| | 31 March | 31 March | ended 30 |
| | 2009 | 2008 | September |
| | | | 2008 |
+-----------------------------------------------+----------+----------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------------------------+----------+----------+-----------+
| Loss from operating activities | (294) | (256) | (431) |
+-----------------------------------------------+----------+----------+-----------+
| Depreciation of property, plant and equipment | 10 | 1 | 7 |
+-----------------------------------------------+----------+----------+-----------+
| Decrease/(increase) in receivables | (87) | 34 | 128 |
+-----------------------------------------------+----------+----------+-----------+
| Increase/(decrease) in payables | 518 | 83 | 98 |
+-----------------------------------------------+----------+----------+-----------+
| Cash inflow / (outflow) from operations | 147 | (138) | (198) |
+-----------------------------------------------+----------+----------+-----------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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