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INTERCEDE GROUP plc
Preliminary Results for the Year Ended 31 March 201
3
Intercede,
one of the world’s
leading software
providers
, today announces its
preliminary results for the year ended 31 March 20
1
3
.
SUMMARY
-
Resilient
financial performance
in
line with
February Trading Update
:
Sales
£6.7m (2012:
£
7.0m
)
include
North America
n sales
7%
higher at £4.8m (2012: £4.5m)
.
Admin expenses £7.5m (2012: £6.0m) reflect
plann
ed investment in infrastructure, technology
development
and sales capacity
.
Headcount increased to 80 at 31 March 2013 (2012: 70).
Loss
before tax
in line with expectations at
£0.
7
m (201
2
:
Profit before tax
£
0.9
m)
.
L
oss per share
1.2
p
(2012
:
Earnings per share
1.4p
)
.
C
ash
balance
s of £6.
8
m remain strong
a
t
31 March 2013
(20
1
2
: £
7
.0m
)
.
-
Won a major
homeland security project since the year end for a G8 government with a contract value likely
to exceed £1.5m in the year ended 31 March 2014 and £10.0m over a five year period.
-
Increase in the n
umber of digital identities under management by MyID
to
7
m
(2012: 5m)
.
-
New technology to manage virtual smartcards and the security of mobile devices
showcased in partnership
with Microsoft and GSMA.
Richard Parris, Chairman & Chief Executive of
Intercede, said today:
“
I am pleased to report that Intercede is
making good progress towards the realization of its 2020 vision
as the market validate
s
that our commercial vision is an ‘
Idea whose Time has C
ome’.
For the last ten
years Intercede has
been building a solid technology and reference customer base in anticipation of
widespread adoption of digital identities for business and personal use.
During this period
Intercede has
built a
leader
ship position
in a highly selective market
.
“
In 2014
w
e plan to exploit this
established position
as the product life cycle moves
from early adoption
into
a
high
growth phase. This growth will be
inexorably
driven by the ubiquity of the Cloud, trusted
computing on smartphones and tablets, cyber security threats and the cost savings to be harvested
from on
-
line citizen service provision.
I am confident that
Intercede
will emerge as one of the successful
compe
titors in our sector
,
thereby adding significant shareholder value
.
”
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About Intercede
Intercede™ is a security software provider whose MyID® identity management platform enables
global
organisations and governments to create trusted digital identities for
employees and citizens on secure
devices such as smartcards, smartphones and tablets.
MyID® enables the protection of IP, assets, and digital
content, delivering trusted digital identities as the cornerstone of cyber security strategies for government,
defence, financial services and other industries.
The
Company operates in global markets (including the US, Europe and Middle East)
and works with large
international partners to deliver flexible digital identity solutions that are interoperable with oth
er existing
technologies and which are tailored
to customer needs.
The
w
orld’s largest governments, major corporations and mobile network operators
trust Intercede’s
deep
expertise to deliver effective solutions. The Company’s technology achieve
ments reflect a
significant
investment
in the
development
of intellectual property
, exemplary speed of deployment and adherence to international
standards including FIPS 201, where MyID® was the first electronic personalisation product to obtain
GSA
approval.
This trust is reflected in Intercede’s rate of repeat business with its customers, which typically runs at
70
-
80% of annual revenues.
Intercede has been developing ID management systems since
1992 and MyID® is currently deployed by end
customers located in 24 countries. The company is headquartered in the UK, listed on the London Stock
Exchange (AIM: IGP) and is ISO 9001 and TickIT certified.
For more information visit
http://www.intercede.com
ENQUIRIES
Intercede Group plc
Tel.
+44 (0)1455 558111
Richard Parris, Chairman & Chief Executive
Andrew Walker, Finance Director
FinnCap
Tel. + 44 (0)20 7
220
0500
S
tuart Andrews
/Rose Herbert, Corporate Finance
Joanna Weaving, Corporate
Broking
Pelham Bell Pottinger
Tel.
+44 (0)20 7861 3112
Archie Berens
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Chairman’s Statement
Financial and Operational Highlights
Significant progress has been made this year in building a platform for a step change in
performance as the
market for identity management moves towards mass adoption. Highlights include:
Resilient
financial performance
o
Sales
£6.7m (2012: £7.0m)
include
North America
n sales 7% higher at £4.8m (2012: 4.5m)
.
o
Admin expenses £7.5m (2012: £6.0m) reflect
planned
investment in infrastructure, technology
development and sales capacity.
o
Headcount increased to 80 at 31 March 2013 (2012: 70).
o
Loss before tax £0.
7
m (2012: Profit before tax £0.9m)
.
o
L
oss per share 1.2p (
2012: Earnings per share 1.4p)
.
o
Cash
balance
s of £6.
8
m remain strong at
31 March 2013
(20
12
: £
7.0m
)
.
Large scale
homeland security
project
awarded by a multinational prime contractor on behalf of a
government agency in a G
8
Nation
; an i
nitial
order
for
£0.6m received April 2013
with a c
ontract value likely
to exceed £1.5m in the year ended 31 March 2014 and £10.0m over a five year period.
Increase in the number of digital identities
under management by MyID to
7m (2012: 5m).
New
corporate identity card projects
demonstrate viability of current product line.
Services
to support major
MyID system upgrades
across a range
of
international customers
ensure
longevity of existing customer base.
MyID a
s
Software as a Service (SaaS)
deployments continue
via
third
parties in support of anticipated market
demand.
Technology developments
o
Re
-
architecting of MyID infrastructure to support new platforms and to deliver new levels of user
experience
.
o
MyID extension
s
to manage virtual identity credentials on
Trust
ed
Platform Modules (
TPM
)
in
production
release
of Windows 8
Professional
.
o
Launch
of the first MyID Apps to iTunes
.
o
Launch
of the first MyID
Near Field Communications
(NFC)
Apps to GooglePlay for Androi
d phon
es
.
Corporate devel
o
p
ment
:
A
dditional office space and staff recruitment in the UK and US to support the next
phase of Intercede’s growth.
Results
In the year ended 31 March 201
3
, revenue
decreased
by
3%
from £6,
964,000
to £6,
727,000
at a gross margin
of
99.6% (2012:
98.4%
)
.
Good progress has been made growing our sales and delivery capabilities.
North American sales
have
increased to $7
.
6
m (201
2
: $
7.1
m) and
Intercede
has expanded its
office in Reston, Virginia, to support
further
growth
.
The
operating l
o
ss
for the period was £
764
,000 which compares to
a prior year operating profit of
£
829
,000
. As
at 31 March 201
3
, the Group had cash balances of £6,
770
,000
(
201
2
: £6,968,000)
.
During the year
,
Intercede
record
ed
a
loss
before
tax of £
673
,000 (201
2
:
P
rofit before tax
£
910
,000).
The
loss
reflects planned i
nvestment in our infrastructure, technology development and sales capacity.
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Company Vision
Since I wrote my Chairman’s Statement for last year’s Annual Report
,
the amount
of
digital
data in the world has
increased by at least 40%
,
the number of
internet
users has grown by 0.4 billion
, tablet computer sales have
overtaken laptops, the Samsung Galaxy has outsold the iPhone, North Korea launched a cyber attack on South
Korea,
social media has outpaced the mainstream news services in covering global events, the UK and US
governments have moved citizen services to ‘digitally by default’ and the Bitcoin phenomenon has provided a
window into the future of on
-
line
payment
. The boun
daries between the real world and cyberspace are becoming
more blurred
and the smooth running of the global village is increasingly dependent on adequate levels of
information security
.
Not only are we
all
now
digital consumers, we are also
becoming
digi
tal publishers uploading gigabytes of
multimedia content to the likes of Facebook and Instagram
.
F
urthermore,
we are also actors in a surveillance
society
leaving digital footprints wherever we tread
.
The Cloud provides the storage and distribution mechani
sm
and Big Data the means to query and analyse the records of our lives. This is a rich seam of information to be
mined and exploited by ourselves or others for years to come. In this brave new world of human experience the
need for digital security and pr
ivacy has become a popular concern. Both viewers and providers of content need
to be identified with appropriate levels of trust and confidence. This means digital rights management at an
individual level of granularity. We need to know if sources are trus
tworthy and to control who can view our most
cherished on
-
line memories
and intellectual property
. Content needs to be protected for its lifetime to avoid
embarrassment
,
abuse
or theft of v
a
lue
. This requires we all have trusted digital identities or personas to assert
who we are in cyber space and that we have consumer level access to cryptographic tools that can be used to
lock our content away from prying eyes. This is equally applicable in p
rivate, citizen or business life.
Issuing and managing digital identities including necessary encryption technology is Intercede’s business.
Intercede currently has 7 million digital identities actively managed by its MyID software. In my Chairman’s
S
ta
tement last year I stated that Intercede’s Vision is to have more than 100 million identities under
management by 2020. The Vision anticipates a 20
-
fold increase in volume from the 2012 base financial year will
yield a 10
-
fold increase in revenue
against
a
much smaller increase
in the cost base. This is a very attractive
business model. On the basis of this Vision, Intercede continues to invest to ensure the Company is best placed
to exploit this opportunity and to maximise medium and long term returns to s
hareholders.
Typically deployed as a back office infrastructure platform,
Intercede’s MyID
software manages the issuance of
digital identities
that are
used
to
authenticat
e
the access of
users
to
networks and services. This is a key cyber
security requirement with
significant
commercial upside across governments, large corporations and
telecommunications network operators.
O
ver the last
12
months
,
we have also seen our customers, including
governments, large corporations and telecommunications network operators, step change their dependency on
the use of digital channels for service delivery over the Cloud and on to mobile devices such as smartphon
es
and tablets. This is a new driver that has the potential to push the use of Intercede’s products into support
for
consumer devices
and the Internet of Things
.
The inevitability of digital identities being ubiquitous by 2020 has moved a step closer dur
ing the last 12 months
,
driven by consumer demand and new platforms eg support for virtual smart cards on Windows 8
and the
penetration of ARM’s Trusted Execution Engine into most smartphones
. The remaining roadblock to widespread
adoption is the complexit
y of the integration, the interoperability challenges and enforcement of security policies
necessary to deliver a transparent and convenient user experience. Amidst this maelstrom of technology, I am
pleased to report to shareholders that Intercede’s MyID
platform
solves
this problem
by acting
as
the ‘missing
link’ that can unlock the market for all.
I believe it is rare for a company of Intercede’s size to hold such a key
position in such a large potential market.
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To realise this potential,
Intercede wil
l
continue to
focus on two core drivers of business growth
as a foundation
for realising its 2020 Vision
:
Deepening our penetration of existing markets, where MyID has already been particularly applicable
;
and
Tapping into new technology
-
led trends
such as the Cloud and the Internet of Things
to protect and
expand our industry leadership
.
Key Performance Indicators
Last year we set a target of 100m user identities under MyID management by 2020.
I
n the last 12 months
we have
advanced from 5m to
7m users.
The level of exports remain
s
high at 88
% (201
2
: 8
9
%).
Sales in North America have increased by 7% and t
he proportion of revenue attributable to North American
customers has
further increased
to
72
%
(2012: 64%)
.
While this concentration has be
en challenging during
a year when budgets have been subject to substantial pressure and uncertainty, we remain confident that
the US is the largest and least fragmented market for our technology. In the longer term this market will
deliver the greatest ret
urns with the lowest cost of delivery.
The level of repeat business with existing customers remains high at
93
% (201
2
:
79
%) which reflects the
level of trust placed in MyID as a critical component of their IT security infrastructure.
The number of new
customers with revenues over £20,000 is 9 (2012: 8)
which
demonstrates that
MyID
remain
s
cutting edge and
meets
market needs.
Strategy
The
Group
’s 201
2
-
1
3
Business Goals
were
as follows
:
Corporate
d
evelopment
o
Continue to invest in sales and marketing
in order to increase the pipeline of opportunities
.
o
Be the partner of choice for provisioning digital identities to mobile devices.
o
Position MyID as the convergence platform of choice for the next generation of
physical access
control systems (PACS) as an
extension of our support of ICAM
.
o
Invest in
protection
of IP
.
Product and
i
nnovation
o
Exploitation of existing MyID product in maturing market
s
.
o
Development of new product to target the mob
ile device
market.
o
Development of a SaaS model and the positioning of MyID as a core technology to sell to
third
party SaaS providers supporting the PIV
-
I
and CIV
market
s
.
o
Close alignment with the release of M
icrosoft
Windows 8.
Intercede has delivered against these
objectives with solid p
rogress
. Examples include
:
Corporate
d
evelopment
o
Enhanced and enlarged sales and support teams to service growing market demand
for existing
product lines
.
o
Working in partnership with a North American Telco on a mutual mobile ID
strategy.
o
Formed a
partners
hip
with
Certipath
,
to deliver converged LACS and PACS solutions
(
CIV
-
in
-
a
-
Box
)
.
o
Increased levels of patent and trademark activity.
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Product and
i
nnovation
o
Proved the value of the existing MyID platform by winning a
major
government
security project
.
o
D
emonstrate
d
new MyID mobile
platform
in partnership with GSMA (the trade body for mobile
telecoms operators)
on
the
GSMA booth at
the
GSMA
Mobile World Congress,
Barcelona,
February
2013
.
o
Received first MyID Mobile and Kiosk o
rders from US customers
.
o
MyID SaaS deployments continue via third parties in support of anticipated market demand.
o
Launched MyID
Windows 8 virtual smart card solution on the Microsoft booth at the RSA
Conference, February 2013.
The Group’s 201
3
-
1
4
Business Strategy
is as follows:
Corporate
d
evelopment
o
Position MyID as
the
credential management system of choice for high assurance networks
.
o
Exploit
global
leadership in P
IV solutions
market
.
o
Capture new major corporate accounts
in US and Europe
.
o
W
iden
sales channels to cover major players in the mobile telecoms industry
.
o
Progress
the Microsoft
partnership
to revenue
generation
.
o
Partner with Cloud service providers to deliver Identity in the Cloud using MyID
.
Product and
i
nnovation
o
Continue to re
-
engineer the existing MyID platform to improve scalability and supportability
in
anticipation of
a rapid expansion of market demand
.
o
Accelerate research and development in expanding the MyID platform to provision digital
identities into mobile devices
.
o
Expand
the MyID
mobile identity product suite to include client applications for
secure
communications
.
o
Expand the scope of MyID to also manage the identities of networked components as part of the
emergen
ce of the Internet of
T
hings. This expands the market size by at least one or two orders
of magnitude.
Intellectual Property
Intercede continues to invest to protect its intellectual property and trademarks.
The I
ntercede MyID product suite
is undergoing
continuous
development
and improvement
to support
new
hardware platforms, deliver heightened levels of user experience and e
nsure more resilience and security.
Dustin Ingalls,
Microsoft Group Program Manager for Windows Security and Identity, said:
“Most enterprise mobile computer platforms, available on the market today, ship with Trusted
Platform Modules (TPM) already installed. A key security benefit of Microsoft’s Windows 8
is its
ability to easily configure the TPM to do a number of operations including functioning as Virtual
Smart Cards (VSC). We believe that VSCs will change the way mobile computer users assert
their trusted identities in cyberspace; therefore, we collabor
ated closely with Intercede to ensure
that VSCs can be managed ‘out
-
of
-
the
-
box’ using the company’s MyID Identity and Credential
Management System. This means that Windows 8 customers have immediate access to an end
-
to
-
end solution for creating and managin
g the assured identities of employees and consumers. We
chose to work with Intercede because of MyID’s ease of deployment and advanced technical
features.”
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The Board continues to support ongoing investment in existing and new product capability to maximise the
potential of market leadership
, the value of its intellectual property
and to ensure Intercede is best
placed for
future exploitation.
Appointment of Non
-
Executive Director
We were very pleased to announce the appointment, on 1
5
April 2013, of Ian Drew as a Non
-
Executive Director
of the Company. Ian is currently Executive Vice President of Marketing and Business Development for ARM
Holdings plc. He brings a wealth of highly relevant experience of our markets and will be a valuabl
e addition to
our Board.
Outlook
In summary, o
ur pipeline of commercial opportunities
is likely to reach an inflexion point in 2014 as we continue
to deepen
the
penetration of markets where Intercede’s MyID product has become an industry standard.
In t
he
emerging markets of Cloud computing, managed services and mobile digital identities I believe we can
accelerate our growth profile
. The outlook is therefore
very
positive
and trending towards our 2020 Vision of
having 100 million digital identities mana
ged by MyID.
Richard Parris
Chairman & Chief Executive
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Business and Finance Review
Introduction
The past year has been challenging, but the Company has had the courage of its convictions to execute the
strategy determined by the Board and previously advised to shareholders. The costs associated with this
strategy have been incurred now but the benefi
ts, in terms of increased revenues and cashflow generation, are
anticipated to arise in future periods.
Business Development
Intercede has embarked upon a period of substantial investment in order to take advantage of the opportunities
provided by th
e advent of smart phones and global cyber security concerns
.
The main areas of selective investment are;
The development of mobile security applications involving interoperability with technologies such as
iPhone, Android and BlackBerry.
Increased
collaboration with major industry players such as Microsoft and ARM
.
The establishment of accredited PIV
-
I platforms with a number of new entrants to a market which is
forecast to involve in excess of 50 million identities.
The launch of the world’s first
secure email service based on TSCP specification (TSCP is the Trans
Global Secure Collaboration Program, a co
-
operative forum of leading aerospace
&
defence companies
and government agencies working together to develop an open standards
based security fram
ework).
Intercede is a member of the consortium involved in this initiative.
Sales and marketing to promote and protect the MyID name and technology and to build industry
relationships.
These activities have resulted in further growth in headcount and a c
ommensurate need for office and IT
infrastructure and equipment. The Company has substantially increased its office space to facilitate further
growth with the acquisition of a new office in Lutterworth close by the existing Head Office and by taking on
ad
ditional rental space in the Reston, US office.
Financial Results
Revenue for the year ended
31 March 2013 was £6,727,000 (2012: £6,964,000)
with no one project
representing more than 25% of total revenue (2012: 15%). Over the last four years, exports h
ave increased from
56% to 88% of total revenue.
Gross profit margins remain high, but the planned investment in additional resources outlined above has
resulted in a 2
4
% increase in administrative expenses from £6,023,000 to £7,467,000. With revenues
broadly
flat, this has resulted in a £764,000 operating loss (2012: £829,000 operating profit).
Staff costs continue to represent the main area of expense, representing 74% of total operating costs (2012:
77%).
Intercede had 80 employees and contractors a
s at 31 March 2013 (2012: 70)
.
The average number of
employees
and contractors increased from 68
to 77
year on year
.
Expenditure on research and development (R&D) activities totalled £2,328,000 (2012: £2,071,000). In
accordance with IFRS, the Board has co
ntinued to determine that all internal R&D costs incurred in the year are
expensed. No development expenditure has been capitalised as at 31 March 2013 (2012: £nil).
Finance income for the year was £91,000 (2012: £81,000) as the Group maintained cash and
interest bearing
short term deposits in excess of £6 million throughout the period notwithstanding increased levels of investment.
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9
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A £101,000 taxation credit for the period (2012: £233,000 taxation charge) primarily reflects cash received
following th
e 2012 R&D claim. The Group is a beneficiary of the UK Government’s efforts to encourage
innovation by allowing 125% (2012: 100%) of qualifying R&D expenditure to be offset against taxable profits.
As at 31 March 2013, the Group has £
6
,
843
,000 (2012: £4,
091,000) of prior year tax losses available for carry
forward.
A loss for the year of £572,000 (2012: Profit of £677,000) resulted in a loss
per share
of 1.2
p
(2012: Earnings
per share 1.4p).
Funding
As at 31 March 20
13
, the Group had cash balances
totaling £
6,770
,000 (20
12
: £
6,968
,000).
The decrease in
cash balances principally reflects the acquisition of new UK office facilities that resulted in a total outflow of
£449,000 including set up costs. Cash generated from operations remained positive at
£35,000 (2012:
£862,000) notwithstanding the increased investment outlined above.
The Group has no debt and, following the 2010 Capital Reduction, is in a position to be able to commence the
payment of dividends as and when the Board considers this to be
appropriate.
Summary
When the Board determined its strategy for increased investment, it did so in expectation of a higher level of
ongoing sales from Intercede’s existing technology. This was not the case during the year ended 31 March 2013
against a
general backdrop of funding issues for both existing and potential new customers (government and
corporate alike) and consequent delays in project approval. Markets remain difficult, as illustrated by EU
austerity measures and US sequestration, but we are
better placed to successfully execute and achieve the
benefits of our strategy 12 months on.
Andrew Walker
Finance Director
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10
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INTERCEDE GROUP plc
Consolidated Statement of Comprehensive Income for the year ended 31 March 201
3
Notes
201
3
2012
£’000
£’000
Continuing operations
Revenue
2
6,727
6,964
Cost of sales
(24)
(112)
__________
__________
Gross profit
6,703
6,852
Administrative expenses
(7,467)
(6,023)
__________
__________
Operating (loss)/profit
(764)
829
Finance income
91
81
__________
__________
(Loss)/profit before tax
(673)
910
Taxation
3
101
(233)
__________
__________
(Loss)/profit for the year
(572)
677
__________
__________
__________
__________
Total comprehensive (
expense
)/income attributable to owners of
the
parent
company
(572)
677
__________
__________
__________
__________
(Loss)/earnings per share (pence)
4
-
basic
(1.2p)
1.4p
-
diluted
(1.2p)
1.4p
__________
__________
There is no
other comprehensive income for the year.
The accompanying notes are an integral part of these financial statements.
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11
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15
INTERCEDE GROUP plc
Consolidated Balance Sheet at 31 March 201
3
Notes
201
3
2012
£’000
£’000
Non
-
current assets
Property, plant and equipment
644
183
__________
__________
Current assets
Trade and other receivables
991
1,311
Cash and cash equivalents
6,770
6,968
__________
__________
7,761
8,279
__________
__________
Total assets
8,405
8,462
__________
__________
Equity
Share capital
6
487
484
Share premium account
232
110
Other reserves
1,508
1,508
Retained earnings
3,530
3,930
__________
__________
Total equity
5,757
6,032
__________
__________
Current liabilities
Trade and other payables
998
910
Deferred revenue
1,650
1,520
__________
__________
2,648
2,430
__________
__________
Total equity and liabilities
8,405
8,462
__________
__________
The accompanying notes are
an integral part of these financial statements.
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12
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15
INTERCEDE GROUP plc
Consolidated Statement of Changes in Equity for the year ended 31 March 201
3
Share
Share
Other
Retained
Total
capital
premium
reserves
earnings
£’000
£’000
£’000
£’000
£’000
At 31 March 2011
484
86
1,508
3,113
5,191
Issue of shares, net of costs (note 6)
-
24
-
-
24
Employee share option scheme charge
-
-
-
140
140
Total comprehensive income
-
-
-
677
677
_______
________
________
_______
_______
At
31 March 2012
484
110
1,508
3,930
6,032
Issue of shares, net of costs (note 6)
3
122
-
-
125
Employee share option scheme charge
-
-
-
172
172
Total comprehensive
expense
-
-
-
(572)
(572)
_______
________
________
_______
_______
At 31 March 2013
487
232
1,508
3,530
5,757
_
______
________
________
_______
_______
The accompanying notes are an integral part of these financial statements.
Page
13
of
15
INTERCEDE GROUP plc
Consolidated Cash Flow Statement for the year ended 31 March 201
3
201
3
2012
£’000
£’000
Cash flows from operating activities
Operating (loss)/profit
(764)
829
Depreciation
92
67
Employee share option scheme charge
172
140
Decrease/(increase)
in trade and other receivables
317
(461)
Increase
in trade and other
payables
218
287
__________
__________
Cash generated from operations
35
862
Taxation
101
47
__________
__________
Net cash generated from operating activities
136
909
__________
__________
Investing activities
Interest received
94
73
Purchases of property, plant and equipment
(553)
(84)
__________
__________
Net cash
used in
investing activities
(459)
(11)
__________
__________
Financing activities
P
roceeds
o
n
issue of shares
125
24
__________
__________
Net cash
generated
from financing activities
125
24
__________
__________
Net
(decrease)/
increase in cash and cash equivalents
(198)
922
Cash and cash equivalents at the beginning of the year
6,968
6,046
__________
__________
Cash and cash equivalents at
the end of the year
6,770
6,968
__________
__________
The accompanying notes are an integral part of these financial statements.
Page
14
of
15
INTERCEDE GROUP plc
Preliminary Results for the Year Ended 31 March
201
3
NOTES
1.
The financial information set out
in this announcement does not constitute the Group’s Statutory Accounts
for the years ended 31 March 201
2
or 201
3
, but is derived from those accounts. Statutory Accounts for
201
2
have been delivered to the Registrar of Companies and those for 201
3
, which h
ave been approved
by the Board of Directors, will be delivered following the Group’s Annual General Meeting. The Company’s
auditors have reported on those accounts; their reports were unqualified and did not contain statements
under Section 498 of the Comp
anies Act 2006.
The Annual General Meeting of the Company will be held at 11.00 am on Wednesday 2
5
September 201
3
at Lutterworth Hall. Copies of the full Stat
utory Accounts will be despatched to shareholders in due course.
Copies will also be available on the website (www.intercede.com) and from the registered office of the
Company: Lutterworth Hall, St. Mary’s Road, Lutterworth, Leicestershire, LE17 4PS.
2.
SE
GMENTAL REPORTING
All of the Group’s revenue, operating profits and net assets originate from operations in the United
Kingdom. The Directors consider that the activities of the Group constitute a single business segment.
The split of revenue by
geographical destination of the end customer can be analysed as follows:
2013
2012
£’000
£’000
啋
806
779
Rest of Europe
651
814
North America
4,823
4,450
Rest of World
447
921
__________
__________
6,727
6,964
__________
_________
3.
TAXATION
The tax
credit/(
charge
)
comprises:
2013
2012
£’000
£’000
䍵Cr敮琠y敡r
–
rh潲灯o慴i潮⁴ x
-
-
Current year
–
rh f敲e敤⁴ x
-
(280)
Current year
–
rp潲灯o慴i潮⁴ x
(13)
(12)
Prior year
–
rp潲灯oa瑩on⁴ x
6
(11)
Research and
Development tax credits relating to prior years
108
70
__________
__________
101
(233)
__________
_________
The Group has unused tax losses of £
6
,
843
,000 (201
2
: £
4
,
09
1,000) and unrecognised deferred tax assets
of £
1,574
,000 calculated at the UK
corporation tax rate of 2
3
% that came into effect from 1 April 201
3
(201
2
:
£
982
,000 calculated at the previous UK corporation tax rate of 2
4
%).
Page
15
of
15
4.
(LOSS)/
EARNINGS PER ORDINARY SHARE
The calculations of
(loss)/
earnings per ordinary share are based on
the (loss)/profit for the financial year and
the weighted average number of ordinary shares in issue during each year. Basic and diluted loss per share
are the same as potential dilution cannot be applied to a loss making period.
2013
2012
£'000
£'000
(Loss)/p
rofit for the year
(572)
677
__________
__________
Number
Number
Weighted average number of shares
-
basic
48,613,172
48,367,939
-
diluted
50,228,664
49,662,277
__________
__________
Pence
Pence
(Loss)/e
arnings per share
-
basic
(1.2p)
1.4
-
diluted
(1.2p)
1.4
__________
__________
5.
DIVIDEND
The Directors do not recommend the payment of a dividend.
6.
SHARE CAPITAL
2013
2012
£’000
£’000
Authorised
481,861,616 ordinary shares of 1p each (2012: 481,861,616)
4,819
4,819
__________
__________
Issued and fully paid
48,735,005 ordinary shares of 1p each (2012: 48,428,005)
487
484
___________
__________
On 14 March 2012, certain employees exercised options totalling 63,000 ordinary shares at an exercise
price of 40.5p per share.
In June 2012, certain employees and a Director of the Company exercised options totalling 307,000
ordinary shares at an exercise price of 40.5p per share.
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