2008-07-15 08:31:00
15/07/2008
GB00B1VYCD45/GBP/PLUS/ex
DATASMS HOLDINGS PLC ("the Company" or "DataSMS")
FINAL RESULTS FOR THE PERIOD ENDED 31 MARCH 2008
CHAIRMAN'S STATEMENT
This is my first report for DataSMS which has undergone many changes over the last 12 months.
The Board remains committed to creating value for our shareholders through the growth of our primary
product portfolio. We have successfully launched our newest product suite into the market and made progress
in many of our target industries.
The Company has taken significant steps towards becoming an established leader in the child safety and
personal security market.
FINANCIAL PERFORMANCE
The period under review was a time of transition as the Company introduced a new range of products and
moved its focus to the child safety and personal security markets as the strategy of the business changed
but now that the transition is complete the performance since the end of the period has improved and we
expect this trend to continue to develop as demand for our product increases.
DELIVERING OUR STRATEGY
With the completion of the new Communication Engine (CE) software platform in early 2007, the Tag n Go
child safety system was launched in September 2007. Tag n Go has three separate systems within the suite
Tripsafe, Swift-e and Tag n Go Active. Further developments have ensured all three products can be used
around the world where mobile phone coverage exists. This added compatibility provides greater access to a
global market.
Sales of our Tripsafe child safety system developed specifically for schools were the first to be
implemented and we now have a growing client base in the education sector.
Swift-e is our retail product which is purchased by parents online and offline. Since the website was
launched in 2008 the online shop has received sales from around the world for the international Swift-e.
Sales of the Swift-e have increased since entering the travel and leisure markets and we see significant
growth potential through travel related industries. The Swift-e wristband is currently on sale through
branches of the Co-operative Travel in the North East as part of a trial. Early results are encouraging and
after a successful trial we anticipate making the Swift-e wristband available through all of the branches
in the UK.
Tag n Go Active is currently being trialled by several companies both here and abroad and after completion
of the trials would hope to secure an order for the system.
Earlier this year the Company appointed Kids Reunited as their UK distributor and granted a licence for
them to sell the Swift-e under the brand name Safe@Play. Since then they have successfully sold the Swift-e
into nurseries throughout the UK.
The Company has recently been granted a Secured By Design product licence issued by the Association of
Chief Police Officers (ACPO) for the entire Tag n Go suite of products. DataSMS are 1 of 400 companies
holding a licence and the only company who hold a licence for a child safety product. As a direct result of
this achievement we have received orders from UK police forces for our Swift-e wristband made from a Tyvek
material instead of silicon. These wristbands expire after 1 day and are given away by Police Officers at
outdoor events.
SUMMARY
The Company has successfully moved through this period of transition and are focused on growing the
business.
We have increased our product portfolio, which continue to present significant opportunities for growth. We
are progressing in positioning our products as a leader in the child safety and personal security market in
relation to our product.
I would like to thank all our people for their efforts and for the continued support of all our
stakeholders.
Keith Robinson,
Chairman
GROUP PROFIT AND LOSS ACCOUNT
PERIOD FROM 13 DECEMBER 2006 TO 31 MARCH 2008
Period from
13 Dec 06 to
31 Mar 08
£
GROUP TURNOVER 20,378
Cost of sales 11,397
--------------
-----------
GROSS PROFIT 8,981
Administrative expenses 237,791
Other operating income (2,835)
--------------
-----------
OPERATING LOSS (225,975)
Interest receivable 1,528
Interest payable and similar charges (188)
--------------
-----------
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (224,635)
Tax on loss on ordinary activities -
--------------
-----------
LOSS FOR THE FINANCIAL PERIOD (224,635)
=============
===
Earnings per share (pence)
Basic (2.31)
=============
===
Diluted (2.31)
=============
===
All of the activities of the group are classed as continuing.
The group has no recognised gains or losses other than the results for the period as set out above.
GROUP BALANCE SHEET
AS AT 31 MARCH 2008
31 Mar 08
£ £
FIXED ASSETS
Intangible assets 37,112
Tangible assets 2,438
--------------
-----------
39,550
CURRENT ASSETS
Stocks 10,353
Debtors 12,892
Cash at bank 51,811
--------------
-----------
75,056
CREDITORS: Amounts falling due within one year 26,065
--------------
-----------
NET CURRENT ASSETS 48,991
--------------
-----------
TOTAL ASSETS LESS CURRENT LIABILITIES 88,541
=============
===
CAPITAL AND RESERVES
Called-up equity share capital 97,200
Share premium account 215,976
Profit and loss account (224,635)
--------------
-----------
SHAREHOLDERS' FUNDS 88,541
=============
===
GROUP CASH FLOW
PERIOD FROM 13 DECEMBER 2006 TO 31 MARCH 2008
Period from
13 Dec 06 to
31 Mar 08
£
NET CASH OUTFLOW FROM OPERATING ACTIVITIES (222,450)
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE 1,340
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT (3,103)
ACQUISITIONS AND DISPOSALS 4,097
--------------
-----------
CASH OUTFLOW BEFORE FINANCING (220,116)
FINANCING 271,927
--------------
-----------
INCREASE IN CASH 51,811
=============
===
NOTES
1. ACCOUNTING POLICIES
Basis of accounting
The financial statements have been prepared under the historical cost convention and in accordance
with applicable accounting standards.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the company and all
group undertakings. These are adjusted, where appropriate, to conform to group accounting policies.
Acquisitions are accounted for under the acquisition method and goodwill on consolidation is
capitalised and written off over eight years from the year of acquisition. The results of companies
acquired or disposed of are included in the group profit and loss account after or up to the date that
control passes respectively. As a consolidated group profit and Loss Account is published, a separate
profit and loss account for the parent company is omitted from the group financial statements by
virtue of section 230 of the Companies Act 1985.
Turnover
The turnover shown in the group profit and loss account represents amounts invoiced during the period,
exclusive of Value Added Tax.
Goodwill
Positive purchased goodwill arising on acquisitions is capitalised, classified as an asset on the
Balance Sheet and amortised over its estimated useful life. Goodwill is reviewed for impairment at
the end of the first full financial year following each acquisition and subsequently as and when
necessary if circumstances emerge that indicate that the carrying value may not be recoverable.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value,
over the useful economic life of that asset as follows:
Goodwill - 8 years
Fixed assets
All fixed assets are initially recorded at cost.
Depreciation
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value,
over the useful economic life of that asset as follows:
Office equipment - 25%-50% reducing balance
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for
obsolete and slow moving items.
Operating lease agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership
remain with the lessor are charged against profits on a straight line basis over the period of the
lease.
Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed
at the balance sheet date where transactions or events have occurred at that date that will result in
an obligation to pay more, or a right to pay less or to receive more tax, with the following
exceptions:
Deferred tax assets are recognised only to the extent that the directors consider that it is more
likely than not that there will be suitable taxable profits from which the future reversal of the
underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the
periods in which timing differences reverse, based on tax rates and laws enacted or substantively
enacted at the balance sheet date.
Deferred government grants
Capital grants and contributions receivable are credited to deferred income and released to the income
and expenditure account over the estimated lives of the relevant assets
Revenue grants and contributions received and receivable in respect of specific project expenditure
are credited to deferred income and recognised in the income and expenditure account in the same
period as the related expenditure
2. EARNINGS PER SHARE
The basic earnings per ordinary share is calculated by dividing profit for the year less non-equity
dividends and other appropriations in respect of non-equity shares by the weighted average number of
equity shares outstanding during the year.
The diluted earnings per ordinary share is calculated by dividing profit for the year less non-equity
dividends and other appropriations in respect of non-equity shares by the weighted average number of
equity shares outstanding during the year (after adjusting both figures for the effect of dilutive
potential ordinary shares).
The calculation of basic and diluted earnings per ordinary share is based upon the following data:
Earnings
Period from
13 Dec 06 to
31 Mar 08
£
Earnings for the purposes of basic earnings per share (224,635)
--------------
------------
Earnings for the purposes of diluted earnings per share (224,635)
=============
====
Number of shares
Period from
13 Dec 06 to
31 Mar 08
No
Basic weighted average number of shares 9,720,000
--------------
------------
Weighted average number of shares
for the purposes of diluted earnings per share 9,720,000
=============
====
3. INVESTMENTS
Company Total
£
COST
Additions 41,249
--------------
--------------
At 31 March 2008 41,249
=============
=============
==
NET BOOK VALUE
At 31 March 2008 41,249
=============
=============
==
Investments represents the following group company:
Country of Holding
Subsidiary undertakings incorporation
DataSMS Limited England Ordinary shares100%
4. SHARE CAPITAL
Authorised share capital:
31 Mar 08
£
10,000,000 Ordinary shares of £0.01 each 100,000
=============
====
Allotted, called up and fully paid:
No £
Ordinary shares of £0.01 each 9,720,000 97,200
============= ==============
==== ===
5. RESERVES
Share premium Profit and loss
account account
£ £
Loss for the period - (224,635)
Other movements
New equity share capital subscribed 215,976 -
----------------- -----------------
-------------- --------------
Balance carried forward 215,976 (224,635)
================ =================
==== ===
6. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
31 Mar 08
£ £
Loss for the financial period (224,635)
New equity share capital subscribed 97,200
Net premium on new share capital subscribed 215,976
--------------
------------
Net addition to shareholders' funds 88,541
--------------
------------
Closing shareholders' funds 88,541
=============
====
7. RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM
OPERATING ACTIVITIES
Period from
13 Dec 06 to
31 Mar 08
£
Operating loss (225,975)
Amortisation 5,302
Depreciation 2,682
Increase in stocks (10,353)
Increase in debtors (9,713)
Increase in creditors 15,607
--------------
-----------
Net cash outflow from operating activities (222,450)
=============
===
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Period from
13 Dec 06 to
31 Mar 08
£
Interest received 1,528
Interest paid (188)
Net cash inflow from returns on investments and servicing of finance 1,340
=============
===
CAPITAL EXPENDITURE
Period from
13 Dec 06 to
31 Mar 08
£
Payments to acquire tangible fixed assets (3,103)
--------------
---------
Net cash outflow from capital expenditure (3,103)
=============
==
AQUISITIONS AND DISPOSALS
Period from
13 Dec 06 to
31 Mar 08
£
Net cash acquired with trade/business 4,097
--------------
---------
Net cash inflow from acquisitions and disposals 4,097
=============
==
FINANCING
Period from
13 Dec 06 to
31 Mar 08
£
Issue of equity share capital 55,951
Share premium on issue of equity share capital 256,050
Expenses on issue of equity shares (40,074)
--------------
-----------
Net cash inflow from financing 271,927
=============
===
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
31 Mar 08
£ £
Increase in cash in the period 51,811
--------------
-----------
51,811
--------------
-----------
Change in net funds 51,811
Net funds at 13 December 2006 -
--------------
-----------
Net funds at 31 March 2008 51,811
=============
===
ANALYSIS OF CHANGES IN NET FUNDS
At Cash flows At
13 Dec 2006 31 Mar 2008
£ £ £
Net cash:
Cash in hand and at bank - 51,811 51,811
-------------- -------------- --------------
----- ----------- -----------
Net funds - 51,811 51,811
============= ============== =============
== ===
8. ACQUISITIONS AND DISPOSALS
Fair value and
book value
£
Intangible fixed assets 4,648
Tangible fixed assets 2,017
Debtors 3,179
Cash 4,097
Creditors (51,706)
--------------
------------
(37,765)
=============
====
Goodwill acquired 37,766
=============
====
Satisfied by:
Consideration paid - Fair value of shares issued 1
=============
====
Full accounts for the Group for the period, which received an unqualified auditors' report are available
upon request to the company at the registered office. The directors of the Group do not propose the
payment of a dividend. The financial information in this announcement has been extracted from the Groups
audited accounts.
The Directors of the Group accept responsibility for the content of this announcement.
ENQUIRIES:
DATASMS HOLDINGS PLC TEL: 0845 123 5813
Terry Munley, Managing Director
ST HELEN'S CAPITAL PLC TEL: 020 7628 5582
Duncan Vasey
www.datasms.com
www.tagngo.co.uk
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