TIDMINVU
RNS Number : 9859D
Invu plc
24 May 2012
24 May 2012
Invu Plc
Preliminary Results for the Year Ended 31 January 2012
Invu plc ("Invu" or the "Company"), (INVU.L) the document
management software provider, announces its preliminary results for
the year ended 31 January 2012.
Key Financial Highlights
-- Revenues of GBP2.68million (2011: GBP2.49million)
-- Loss before tax of GBP0.27million (2011: loss: GBP0.65million)
o Adjusted EBITDA profit GBP0.09 million (2011: loss GBP0.03
million)
-- Net Cash (cash net of borrowings) GBP0.55 million (2011: net borrowings: GBP2.27 million)
Commercial Highlights
-- Capital reorganisation increases equity by GBP3.05 million
-- Significant contracts wins in the Finance, Wealth Management and Utilities sectors
-- Continuing product innovation, including mobile device and web applications
Daniel Goldman, Non Executive Chairman, said:
We continue to build the business through commercial success in
several market sectors, improved financial performance and now,
following the capital reorganisation, have a significantly stronger
financial base on which to continue this progress.
Contacts:
Invu plc www.invu.net
Colin Gallick, Chief Executive +44 (0) 1604 859 893
Ian Smith, Finance Director
WH Ireland Limited www.wh-ireland.co.uk
Mike Coe / Marc Davies +44 (0) 117 945 3470
About Invu
Invu [LSE, AIM, Symbol: INVU] develops software that
incorporates document management, content management, workflow,
automation and collaboration specialising in solutions for the
mid-market and smaller businesses. Invu typically gives a return on
investment in under six months, allowing companies to see
efficiency savings in terms of both money and time. Invu's Open
Search integration allows SharePoint users to utilise fully the
benefits of WSS or MOSS whilst retaining the functions of
specialist document and content management. Invu's solutions enable
automated scan, capture and management, processing and output
transformation. Invu also integrates with all major accounting
systems including ERP and CRM systems.
For more information about Invu: www.invu.net
Chairman's statement
The achievement of a full year adjusted EBITDA (earnings before
interest, tax, depreciation, amortisation and share option
expenses) profit of GBP0.09 million, and a second consecutive year
of annual positive operating cash flow of GBP0.14 million, together
with the second consecutive year of revenue growth (this year 7.9%:
last year 13.2%), shows the Group is making good progress towards
our goal of developing a profitable, self sustaining and growing
business.
During the year we carried out a capital reorganisation, as
described below, and this has significantly strengthened the
balance sheet as well as reducing the interest burden this year. In
future years, the reduction in interest expense resulting from this
capital reorganisation should make it easier for the group to
deliver profit attributable to equity holders of the company.
The capital reorganisation included an investment of an
additional GBP3,050,000 in the company by way of non-voting A
ordinary shares. This investment included the conversion of loans,
including interest, amounting to GBP2,353,412, and a subscription
(cash payment) of GBP696,588. Part of the subscription monies were
used to repay a GBP500,000 loan from certain Puma VCT's, and the
balance was used to pay withholding taxes arising on the deemed
payment of interest and professional fees related to the issue of
the shares. The creation of the A ordinary shares, the conversion
and the subscription, were approved by shareholders at a General
Meeting on 29 July 2011.
At the year end the only borrowings remaining on the
consolidated and company balance sheets amount to GBP90,000, which
represents the debt element of the convertible loan issued in
August 2009. The convertible loan was originally issued for
GBP500,000 and this is convertible into equity at 2.5 pence per
share in August 2014.
In November 2011 we issued an additional 5.28 million GBP0.01
ordinary shares in full settlement of an amount of GBP52,800, this
was owed to Malu Partners Limited, which is controlled by a former
director of the company, David Morgan.
The company's issued share capital at the year end, and as of
the date of this report, is 168,752,662 ordinary shares at GBP0.01
each and 305,000,000 of A ordinary shares at GBP0.01 each. The A
ordinary shares are not listed and are therefore not included in
the market capitalisation figures reported by the London Stock
Exchange.
We issued share options to the executive management team in
January 2012 and these will considerably increase their equity
interest in the business once the share price moves above 1.75
pence per share. The share price was 0.42 pence per share at the
date of issue of these options.
The improvements made to date in the business are ultimately the
result of the hard work and dedication of our employees and
business partners. I would like to register my thanks for another
year of achievement.
Daniel Goldman
Non Executive Chairman
23 May 2012
Chief Executive Officer's statement
Financial performance
I am pleased to report a full year trading performance with
sales growth (up 7.9% to GBP2.68 million), an adjusted EBITDA
(earnings before interest, tax, depreciation, amortisation and
share option expenses) profit of GBP0.09 million (2011: loss
GBP0.03 million) and another improvement in the operating loss
which was reduced from GBP0.33 million to GBP0.10 million.
We exit the year having generated GBP0.17 million of cash with a
net cash balance of GBP0.55 million (2011: net borrowings of
GBP2.27 million). The net cash balance represents, cash of GBP0.64
million (2011: GBP0.47) net of borrowings of GBP0.09 million (2011:
GBP2.74 million).
Operations
During the year the business has been focused on, the design,
development and distribution of software that enables customers to
manage paper and electronic documents and information, as well as
business process workflow, in a simple and effective way.
Our market
We have carried out the great majority of our business in the
United Kingdom and have had a small amount of legacy revenue from
overseas, the majority of which arises from business relationships
established through our former Netherlands office.
In March 2011 we appointed Kompro as our exclusive reseller in
the Netherlands. This year the Netherlands has contributed GBP0.09
million of revenue during the year.
Small and medium sized businesses
Our software is designed to address the needs of small and
medium sized businesses.
We have set ourselves a goal to improve our sales mix towards
the larger companies in the small and medium sized business sector.
This year we have increased the average deal size of new customer
wins by 43% (last year an increase of 50%) which shows good
progress towards this goal.
This approach does mean that we focus our efforts on winning
higher value deals at new customer sites and consequently the
number of new customer sites acquired in the year has been lower
(148) than last year (217).
The total contract value of deals won at new customers has
remained steady and our growth has been through both selling more
seats to existing customers and the growth in customer support
revenue that occurs if you add new customers and retain a high
percentage of your existing customers. We have a customer retention
rate of around 90% (by value) and closed the year with 1,600
customers who had a customer support contract.
Sales model
Our primary route to market has traditionally been through our
reseller channel, last year we introduced one OEM in the
accountancy sector, IRIS, and began to make some direct sales. The
reseller channel has proven effective at winning business in the
small business sector. However, we have identified that we can more
effectively serve medium sized businesses by supplementing the
reseller approach with a direct approach. This year 46% of our new
customer wins by value (7% of the number of new customer sites)
have come through this direct approach. Our reseller channel
remains the most significant part of our revenue with 72% of our
business being transacted through the reseller channel.
Vertical markets
Invu document management software can yield significant business
benefits to any business in any sector and consequently our
reliance on any particular sector is limited.
During last year we introduced IRIS as an OEM. IRIS supplies
Invu software under its own brand in the accountancy sector, and in
its first full year it has established itself as one of our top
resellers.
The housing association market emerged as a major vertical last
year, and though we reported no significant new contract wins this
year, it has been an important source of recurring revenue both in
terms of additional software sales to existing customers and
customer support revenue.
Some of the larger contract wins in the year have been in the
finance, wealth management and utilities sectors.
In the finance sector we made a significant sale to Redmayne
Bentley Stockbrokers. The primary driver for this sale was the
ability of Invu software to aid regulatory compliance.
In the wealth management sector we made a significant sale to
Waddesdon Manor. The primary driver of this sale was the ability of
the Invu software to effectively manage records with effective
capture, storage and retrieval which can then facilitate process
improvement through the use of workflow.
In the utilities sector we made a significant sale to Jersey
Water. The primary driver for this sale was the ability of Invu
software to automate the capture of documents and then to improve
the access of staff working offsite to those documents resulting in
improvements in customer relationship management.
Delivering market-driven innovation
Our annual software release, which was made available to all
customers during the first quarter of the financial year, included
e-mail management and web approval modules. These modules have been
well received by customers and have helped drive sales to both new
and existing customers during the year.
We have just made available to all customers our latest software
release and this continues the theme of making documents and
workflow available anywhere. This release, as well as supporting
the latest platforms and using the latest technology (.Net4),
offers invoice processing functionality applicable to small and
medium size business, provides simple records management and
enables portals for the accountancy sector.
The needs of the mobile worker, particularly those who want to
work through their browser using devices like tablets, are
addressed. The introduction of a next generation viewer provides
true thin client viewing of PDF's and Microsoft Office documents.
An upgrade to Invu Web Approval is browser based and suitable for
tablet devices.
We find that many of our customers have onerous compliance
requirements. Our simple records management functionality allows
straightforward and effective management of document life cycle
management policy, execution of that policy and a robust audit
trail.
We have partnered with Practice Web, a leading provider of
portal technology to accountants, in producing a connector to their
portal which will allow accountants to securely share documents
stored in Invu with their clients, transact with them and then
bring the updated document back into Invu.
Outlook
The UK economy is expected to perform weakly in our next
financial year to 31 January 2013. As the majority of our business
comes from UK customers, we are anticipating this will be a
demanding year. Our first quarter has proven to be challenging as
we have seen customer order lead times for new business lengthen,
while our recurring revenue has continued to be strong. Over the
full financial year we intend to continue to build on the stable
base we have created during last two financial years.
Colin Gallick
Chief Executive Officer
23 May 2012
Financial Review
Revenue has increased by 7.9% from GBP2.49 million to GBP2.68
million. Revenue comprises the sale of software and related
implementation and installation services and the sale of annual
software support contracts. The Group reported sales of software
and related services of GBP1.04 million compared to GBP0.97 million
in the prior year. The revenue arising from the sale of support
contracts is recognised evenly over the life of the contract and
revenue was GBP1.64 million compared to GBP1.52 million in the
prior year. The key performance metric for the sale of software
support contracts is the renewal rate which was 90% compared to 85%
last year.
The gross profit has increased to GBP2.20 million from GBP2.01
million. This represents an improvement in the gross margin
percentage from 80.7% to 81.9%. This improvement is primarily
driven by the revenue increase and favourable product sales mix
offset increased in investment in technical support staff to
maintain the service level offered to customers with support
contracts.
The average headcount was 32 compared to 25 last year, with 33
(2011: 27) employed at the end of the year. The head count figures,
in both years, include 3 non-executive directors. This increase in
headcount was the major contribution to a 13.5% increase in staff
costs to GBP1.81 million from GBP1.60 million. Staff costs related
to professional services and technical support personnel are
included in cost of sales and were GBP0.22 million (2011: GBP0.17
million). The remaining GBP1.59 million (2011: GBP1.43 million) of
staff costs are included in administrative expenses.
Administrative expenses were 1.6% lower than last year at
GBP2.30 million (2011: GBP2.34 million). The decrease arises from
lower expenditures on non staff costs, (primarily facility costs,
amortisation and depreciation) of GBP0.20 million offset by an
increase in the staff costs, included in administration, of GBP0.16
million.
Finance costs were GBP0.2 million this year compared to GBP0.3
million last year. This decrease arose because of the conversion of
GBP2.35 million of borrowings to equity in July 2011 and the
subsequent repayment of GBP0.5 million of borrowings in August
2011, which were both enabled by the issue of shares in July
2011.
The tax credit of GBP0.04 million (2011: charge GBP0.09 million)
represents the payment by Her Majesty's Revenue and Customs of
research and development tax credits claimed for prior financial
years.
The net loss of GBP0.23 million (2011: loss GBP0.75 million)
results in a loss per share of 0.07 pence compared to a loss per
share of 0.46 pence in the previous year.
The operating cash generation was at the same level as last
year, GBP0.14 million. This arose from an adjusted EBITDA profit of
GBP0.09 million (2011: loss of GBP0.03 million) and cash generation
from working capital of GBP0.05 million (2011: GBP0.17 million).
The primary driver this year for cash generated from working
capital was growth in the billings of customer support contracts
which are recognised in revenue over their term.
Net cash generation in the period was GBP0.17 million (2011:
cash consumption of GBP0.018 million) and this resulted in a
closing cash balance of GBP0.64 million (2011: GBP0.47
million).
The balance sheet shows a shareholders' deficit of GBP0.8
million compared to a GBP3.65 million deficit last year. This
improvement is primarily the result of the issue of GBP3.05 million
of A ordinary shares which were used to convert borrowings and
related interest of GBP2.35 million into equity, to pay withholding
taxes on the interest, to repay additional borrowings of GBP0.5
million and to pay the costs of the issue.
Ian Smith
Finance Director
23 May 2012
INVU PLC
Consolidated Income Statement
For the year ended 31 January 2012
Notes 2012 2011
GBP'000 GBP'000
Revenue 2 2,684 2,488
Cost of sales (487) (479)
---------- ----------
Gross profit 2 2,197 2,009
Administration expenses (2,298) (2,335)
---------- ----------
Loss from operations 2 (101) (326)
Finance costs (167) (326)
---------- ----------
Loss before income tax 2 (268) (652)
Income tax credit/(charge) 3 42 (97)
---------- ----------
Loss for the year attributable
to:
Equity holders of the parent
company (226) (749)
Loss per share
Basic and diluted (pence per
share) 4 (0.07) (0.46)
---------- ----------
INVU PLC
Statement of Comprehensive Income
For the year ended 31 January 2012
Notes 2012 2011
GBP'000 GBP'000
Loss for the year 2 (226) (749)
Other comprehensive income
Exchange differences on translating foreign - -
operations
------------ ------------
Other comprehensive income for the year - -
(net of tax)
------------ ------------
Total comprehensive income for the year
attributable to:
Equity holders of the Company (226) (749)
The Company did not have any other income or expense other than
the loss for the year.
INVU PLC
Consolidated Balance Sheet
As at 31 January 2012
Notes 2012 2011
GBP'000 GBP'000
Non-current assets
Intangible assets 137 210
Property, plant and equipment 24 42
------------ ------------
161 252
Current assets ------------ ------------
Trade and other receivables 634 581
Cash and cash equivalents 5 641 470
------------ ------------
1,275 1,051
------------ ------------
Total assets 1,436 1,303
Current liabilities
Trade and other payables 2,181 2,212
Borrowings 26 2,667
------------ ------------
2,207 4,879
------------ ------------
Net current liabilities (932) (3,828)
------------ ------------
Non-current liabilities
Borrowings 64 77
------------ ------------
64 77
------------ ------------
Total liabilities 2,271 4,956
Net liabilities (835) (3,653)
Equity
Share capital 4,738 1,635
Equity components of convertible loan
notes 375 375
Shares to be issued 29 29
Share premium 412 412
Merger reserve 361 29,260
Share option reserve 246 233
Reverse acquisition reserve (20,570) (20,570)
Retained earnings 13,511 (15,090)
Foreign currency translation reserve 63 63
------------ ------------
Total deficit attributable to:
Equity holders of the Company (835) (3,653)
Consolidated statement of changes in equity
For the year ended 31 January 2012
Equity
Components Shares Foreign
of to Share Reverse Currency
Share Convertible be Share Merger option acquisition Retained Translation
Capital loan notes issued premium reserve reserve reserve earnings reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 February
2010 1,635 375 29 412 29,260 229 (20,570) (14,341) 63 (2,908)
Total
comprehensive
income - - - - - - - (749) - (749)
Movement on
share
option
reserve - - - - - 4 - - - 4
At 31 January
2011 1,635 375 29 412 29,260 233 (20,570) (15,090) 63 (3,653)
Equity
Components Shares Foreign
of to Share Reverse Currency
Share Convertible be Share Merger option acquisition Retained Translation
Capital loan notes issued premium reserve reserve reserve earnings reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 February
2011 1,635 375 29 412 29,260 233 (20,570) (15,090) 63 (3,653)
Total
comprehensive
income - - - - - - - (226) - (226)
Transfer
between
reserves - - - - (28,899) - - 28,899 - -
Movement on
share
option
reserve - - - - - 13 - - - 13
Issue of
shares 3,103 - - - - - - (72) - 3,031
At 31 January
2012 4,738 375 29 412 361 246 (20,570) 13,511 63 (835)
INVU PLC
Consolidated cash flow statement
For the year ended 31 January 2012
Notes 2012 2011
GBP'000 GBP'000
Net cash inflows from operating activities 6 140 142
Taxation 77 -
Investing activities
Purchases of property, plant and equipment
and intangibles (35) -
Sales of property, plant and equipment 1 18
Expenditure on internally developed intangible
assets (54) (55)
------------ ------------
Net cash used in investing activities (88) (37)
Financing activities
Net proceeds from the issue of shares 677 -
Borrowings (repaid) (535) -
Interest paid (100) (92)
Repayment of obligations under finance
leases - (31)
------------ ------------
Net cash flow from financing activities 42 (123)
------------ ------------
Net increase/(decrease) in cash and cash
equivalents 171 (18)
Cash and cash equivalents at the beginning
of the year 470 8 488
Cash and cash equivalents at the end
of the year 5 641 470
---------------- --------
INVU PLC
Notes to the preliminary announcement
For the year ended 31 January 2012
1. ANNUAL REPORT
The financial information set out above/ below does not
constitute the company's statutory accounts for 2011 or 2012.
Statutory accounts for the years ended 31 January 2012 and 31
January 2011 have been reported on by the Independent Auditors. The
Independent Auditor's report on the Annual Report and Financial
Statements for 2012 were unqualified and did not contain a
statement under 498 (2) or (498 (3) of the Companies Act 2006. The
Independent Auditor's Reports on the Annual Report and Financial
Statements for 2011 were unqualified and did not contain a
statement under 498(2) or 498(3) of the Companies Act 2006 but did
include an emphasis of matter paragraph regarding going
concern.
Statutory accounts for the year ended 31 January 2011 have been
filed with the Registrar of Companies. The statutory accounts for
the year ended 31 January 2012 will be delivered to the Registrar
in due course and will be posted to shareholders shortly and
thereafter will be available from the Company's registered office
at The Beren, Blisworth Hill Farm, Stoke Road, Blisworth,
Northampton, Northamptonshire NN7 3DB and from the Company's
website www.invu.net.
While the financial information included in this preliminary
announcement has been prepared in accordance with the recognition
and measurement criteria of International Financial Reporting
Standards (IFRSs), this announcement does not itself contain
sufficient information to comply with IFRSs.
The consolidated financial statements for the year ended 31
January 2012 comprise the consolidated financial information for
Invu plc ("the company") and its subsidiaries.
2. SEGMENTAL ANALYSIS
The Group's services being, the design, sale and support of
computer software for the electronic management of information and
documents operate through a common infrastructure and support
function. Therefore the Directors believe the activities constitute
one operating segment through which it provides services.
The segment results are as follows:
2012 2011
GBP'000 GBP'000
Revenue by service:
Sale of software licences and
related services 1,040 966
Sale of software maintenance contracts 1,644 1,522
------------ ------------
Revenue 2,684 2,488
Gross profit 2,197 2,009
Loss from operations (101) (326)
Loss before income tax (268) (652)
Loss for the year (226) (749)
Included in revenue above are GBP0.086 million (2011: GBP0.007
million) related to sales in Europe. All other revenue relates to
the UK.
All non-current assets and liabilities are held within the
UK.
The Group had one reseller who was responsible for 17% (2011:
24%) of the Group's sales through resellers to end users. No other
reseller was responsible for more than ten percent of the Group's
sales through resellers to end users.
3. TAXATION
2012 2011
GBP'000 GBP'000
Current taxation
- Adjustment in respect of prior years (42) 97
- Current tax charge - -
Total tax credit (42) 97
========= =========
The tax rate used for the reconciliations below is the corporate
tax rate of 26% (2011:28%) payable by corporate entities in the
United Kingdom on taxable profits under tax law in that
jurisdiction.
The charge for the year can be reconciled to the loss per the
income statement as follows:
2012 2011
GBP'000 GBP'000
Loss before taxation (268) (652)
============ ============
Profit multiplied by standard rate of
corporation tax in the UK of 26% (2011:
28%) (70) (183)
Tax effect of:
Expenses not deductable 47 93
Enhanced relief on research and development (14) (7)
Tax effect of share options 3 1
Fixed asset temporary differences 13 38
Unutilised losses carried forward 21 58
Research and development tax (credit)/reversal (42) 97
Total tax (credit)/charge for the year (42) 97
============ ============
4. EARNINGS PER SHARE
2012 2011
Number Number
Weighted average number of common shares in
issue during the year 320,083,512 163,472,662
================== ==================
Basic loss per share (0.07) p (0.46)p
================== ==================
Diluted loss per share (0.07) p (0.46)p
================== ==================
The basic loss per share is based on the loss after taxation of
GBP226,000 (2011: GBP749,000) and on the weighted average number of
shares in issue during the year of 320,083,512 (2011:
163,472,662).
In accordance with IAS 33, there is no difference calculated
between the basic and diluted earnings per share figures on the
basis of the average market value and exercise prices prevailing
during the period. The convertible loan notes have no impact on
diluted earnings per share because the exercise of conversion
rights would have the effect of reducing the loss per share by
virtue of saving of loan stock interest which would otherwise be
payable.
5. CASH AND CASH EQUIVALENTS
Group Group
2012 2011
GBP'000 GBP'000
Cash at bank and in hand 641 470
6. CASH GENERATED FROM OPERATIONS
2012 2011
GBP'000 GBP'000
Loss for the year (226) (749)
Adjustments for:
Tax (42) 97
Depreciation 35 97
Amortisation 145 196
(Profit)/Loss on disposal of property,
plant and equipment (1) 3
Employee share scheme expense 13 4
Interest expense 167 326
Changes in working capital
Inventories - 17
Trade and other receivables (98) 143
Trade and other payables 147 8
Net cash generated by operating activities 140 142
========== ===========
7. AVAILABILITY OF THIS ANNOUNCEMENT
Copies of this announcement will be available from the Company's
registered office: The Beren, Blisworth Hill Farm, Stoke Road,
Blisworth, Northampton, Northamptonshire NN7 3DB, and on the
Company's website, www.invu.net.
8. CAUTIONARY STATEMENT
Invu Plc has made forward looking statements in this press
release, including: statements about the market for and benefits of
its products and services; financial results; product development
plans; the potential benefits of business relationships with third
parties; and business strategies. These statements about future
events are subject to risks and uncertainties that could cause Invu
Plc's actual results to differ materially from those that might be
inferred from the forward-looking statements. Invu Plc can make no
assurance that any forward-looking statements will prove
correct.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UOSNRUAAVUAR
Invu (LSE:INVU)
Gráfico Histórico do Ativo
De Jan 2025 até Fev 2025
Invu (LSE:INVU)
Gráfico Histórico do Ativo
De Fev 2024 até Fev 2025
