TIDMLIN TIDMLINC
RNS Number : 8995Z
LitComp Plc
30 September 2009
LITCOMP PLC AND SUBSIDIARY UNDERTAKINGS
FINAL RESULTS FOR THE TWELVE MONTHS ENDED 31 MARCH 2009
CHAIRMAN'S REPORT
FOR THE YEAR ENDED 31 MARCH 2009
I am pleased to announce the final results for the 12 months ended 31 March
2009.
The Group has had a good year showing an increase in profit before taxation from
GBP1.11m to GBP1.94m. This represents a strong performance in a difficult
environment
Elite has shown strong growth in the period under review, with the Medico Legal
trading companies showing a slight improvement over previous year.
Financial Summary
Group revenues have increased by 157% from GBP11.45m to GBP29.41m and adjusted
net profit pre tax * by 75% from GBP1.11m to GBP1.94m. Headline earnings per
share has increased by 77% from 12.80p to 22.62p and fully diluted earnings per
share by 70% from 5.83p to 9.92p.
An analysis schedule of earnings, profits, changes and EPS is shown below.
A significant proportion of the uplift has come from Elite Insurance Company
Limited which has increased its revenues, after reinsurance, during the year by
185% from GBP9.68m to GBP27.60m.
Net cash (after adjusting for Invoice Discount balances) is GBP2.68m (2008:
GBP2.99m).
The reduction in cash is principally attributable to the increased emphasis on
deferred premium business within Elite Insurance Company Limited.
The format of the accounts, and the comparables for last year, continues to
comply with International Financial Reporting Standards ("IFRS"). Also the
Consolidated Income Statement reflects a charge for share based payments, which
are principally share options, in accordance with IFRS 2 (Share-based Payments).
The calculation of fully diluted earnings per share reflects the conversion of
all Convertible Loan Notes, Share Options and Warrants.
*Adjusted net profit pre tax is calculated before IFRS 2 share based payments,
Loan Note Interest and AIM related costs amortisation.
Review and Current Prospects
Elite Insurance Company Limited
Revenues from these operations for the full year have increased by 185% to
GBP27.60m (2008: GBP9.68m) and net profit before tax by 10% to GBP2.38m (2008:
GBP2.16m).
Elite's net profit margin has reduced during the year as a result of an
increased proportion of low margin, low risk business; increased operating costs
and reduced investment income, because of lower global interest rates.
Elite has significantly increased its lines of distribution to market during the
year under review and also benefited from a large tranche of "windfall" business
during the first half of the year which comprised a large one-off Bordereaux of
low margin policies representing circa GBP7.2m of turnover. This "windfall"
business is not likely to recur.
Elite has continued to add to its range of insurance products and to build and
secure its sources of business. During the year under review Elite has:
* Significantly increased its underwriting resources;
* Added new financial and legal insurance products to its portfolio;
* Commenced two non ATE lines of insurance business;
* Increased the number of active brokers from 20 to 38;
Since the year end Elite has:
* Appointed Christopher Collins as Non Executive Director. Chris has previously
held a variety of Senior International Regulatory and other positions in the
International Insurance Industry;
* Appointed Charles Wright as Managing Director of Elite Business Development
Limited. Charles has many years experience at a Senior Management level within
the insurance industry, with specific experience of ATE;
* Entered into new reinsurance treaties with two leading International re-insurers
which will provide Elite with additional underwriting capacity as well as
improving its risk profile;
Principal business risks continue to be major unexpected claims, which are a
risk for any insurance company, and legislative changes which could reduce
demand for the Company's products.
Although the Directors' principal effort is concentrated on building business
organically, the Directors will consider acquisitions or strategic partnerships
which demonstrably add value to Elite.
LitComp UK
LitComp UK comprises LitComp plc (company only) and the Medico Legal trading
companies.
LitComp UK achieved total revenues of GBP1.82m (2008: GBP1.76m) an increase of
3%. Operating profit before LitComp plc costs was GBP0.269m (2008: loss of
GBP0.187m). This result and the Medico Legal businesses made a profit
contribution before central office costs.
The Medico Legal trading companies have continued to trade well following the
year end.
LitComp Plc 10% Secured Convertible Loan Notes
As at 31 March 2009 there were GBP2.55m of 10% Secured Convertible Loan Notes
("Loan Notes") outstanding. The Loan Notes are convertible into LitComp plc
Ordinary Shares at a price of 30p which represents a discount to the market
price at the time of writing. Any Loan Notes not converted by 31st of October
2009 will be repayable and will continue to bear interest if not so repaid.
As announced on 24 September 2009 the Company is in advanced discussions with a
potential offeror regarding a possible offer for the Company at a price of 33p
per share in cash which includes arrangements for potential funding of the
redemption of the Loan Notes. If these discussions do not conclude successfully
Directors will ask Loan Note Holders to extend or convert their holdings; the
results of such a request are uncertain and if the Company is forced to use
internal cash resources to redeem the Loan Notes that will significantly reduce
its trading capacity.
Current Trading and Prospects
The Directors are pleased with the performance of the Company across all sectors
of the business and are able to look forward with confidence. However there is
a degree of uncertainty in the ATE market pending a governmental review by Sir
Rupert Jackson into Civil Justice Costs process and changes to the conduct of
low value Road Traffic accident cases, which are not yet finalised and due to
come into force in April 2010. The potential impact of these changes is not
presently known.
Elite has been notified of a number of significant ATE claims after the year
end, all of these are fully provided in the audited accounts to 31 March 2009.
ANALYSIS SCHEDULE OF EARNINGS, PROFITS, CHANGES AND EPS
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| | | | 2009 | | | | 2008 | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| | | Insurance | MLR | Total | | Insurance | MLR | Total |
| | | | & plc | | | | & plc | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| | | GBP'000 | GBP'000 | GBP'000 | | GBP'000 | GBP'000 | GBP'000 |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| Segmental Income | | 27,596 | 1,818 | 29,414 | | 9,683 | 1,764 | 11,447 |
| | | _________ | _________ | _________ | | _________ | _________ | ________ |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| Operating Profit | | 2,378 | (22) | 2,356 | | 2,161 | (466) | 1,695 |
| before AIM | | | | | | | | |
| related costs | | | | | | | | |
| and share base | | | | | | | | |
| payment | | | | | | | | |
| *("Adjusted" Net | | | | | | | | |
| Profit/(loss) | | | | | | | | |
| Pre Tax) | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| AIM related | | - | (94) | (94) | | - | (77) | (77) |
| costs | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| Loan Note | | - | (295) | (295) | | - | (331) | (331) |
| Interest | | _________ | _________ | _________ | | _________ | _________ | ________ |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| Net Profit pre | | 2,378 | (411) | 1,967 | | 2,161 | (874) | 1,287 |
| tax and share | | | | | | | | |
| based payment | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| Share based | | - | (31) | (31) | | - | (177) | (177) |
| payment | | _________ | _________ | _________ | | _________ | _________ | ________ |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| Net Profit pre | | 2,378 | (442) | 1,936 | | 2,161 | (1,051) | 1,110 |
| tax | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| Taxation | | - | (530) | (530) | | - | (326) | (326) |
| | | _________ | _________ | _________ | | _________ | _________ | ________ |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| Retained | | 2,378 | (972) | 1,406 | | 2,161 | (1,377) | 784 |
| Profit/(loss) | | _________ | _________ | __________ | | _________ | _________ | ________ |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| EPS | | | | 22.62p | | | | 12.80p |
| | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| EPS pre share | | | | 23.11p | | | | 15.69p |
| based payment | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| Fully diluted | | | | 9.92p | | | | 5.83p |
| EPS | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
| Fully diluted | | | | 10.10p | | | | 6.75p |
| EPS pre share | | | | | | | | |
| based payment | | | | | | | | |
+------------------+--+-----------+-----------+------------+--+-----------+-----------+----------+
Calculation of Operating Profit, before UK central costs, Aim and share based
payment
+------------------+--+-----------+----------+----------+--+-----------+----------+---------+
| | | | 2009 | | | | 2008 | |
+------------------+--+-----------+----------+----------+--+-----------+----------+---------+
| | | Insurance | MLR | Total | | Insurance | MLR | Total |
| | | | & plc | | | | & plc | |
+------------------+--+-----------+----------+----------+--+-----------+----------+---------+
| | | GBP'000 | GBP'000 | GBP'000 | | GBP'000 | GBP'000 | GBP'000 |
+------------------+--+-----------+----------+----------+--+-----------+----------+---------+
| | | | | | | | | |
+------------------+--+-----------+----------+----------+--+-----------+----------+---------+
| Profit/(loss) on | | 2,378 | (442) | 1,936 | | 2,161 | (1,051) | 1,110 |
| ordinary | | | | | | | | |
| activities | | | | | | | | |
| before tax | | | | | | | | |
+------------------+--+-----------+----------+----------+--+-----------+----------+---------+
| AIM related | | - | 94 | 94 | | - | 77 | 77 |
| costs | | | | | | | | |
+------------------+--+-----------+----------+----------+--+-----------+----------+---------+
CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2009
+------------------------------------------------------------+----------------
=--+--------------------+--------------------+
|
| 2009 | |
2008 |
| |
GBP000 | | GBP000
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
|
| | |
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
| REVENUE
| | |
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
| Gross premiums written
| 29,519 | |
11,323
|
+------------------------------------------------------------+-------------
------+--------------------+--------------------+
| Premiums ceded to
reinsurers | (3,753) |
| (2,611)
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
|
| __________ | |
__________
|
+------------------------------------------------------------+-------------
------+--------------------+--------------------+
| Premiums written net of
reinsurance | 25,766 | |
8,712
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
|
| | |
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
| Fee and commission income
| 1,802 | |
1,720
|
+------------------------------------------------------------+-------------
------+--------------------+--------------------+
| Reinsurance commissions
and profit participation | 1,711 | |
854
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
| Other income
| - | |
5
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
|
| __________ | |
__________
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
| TOTAL REVENUE
| 29,279 | |
11,291
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
|
| __________ | |
__________
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
| EXPENSES
| | |
|
+------------------------------------------------------------+-------------
------+--------------------+--------------------+
| Claims and benefits paid
net of recoveries from reinsurers | (3,490) | |
(984)
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
| Fee and commission expense
| (19,405) | |
(5,630)
|
+------------------------------------------------------------+-------------
------+--------------------+--------------------+
| Corporate expenses -
administrative expenses | (3,968) |
| (2,932)
|
+------------------------------------------------------------+-------------
------+--------------------+--------------------+
| Other expenses - share
based payments charge | (31) | |
(177)
|
+------------------------------------------------------------+-------------
------+--------------------+--------------------+
| Other expenses -
restructuring of group debt | (115) |
| (115)
|
+------------------------------------------------------------+-------------
------+--------------------+--------------------+
| Other expenses - AIM
related costs | (94) |
| (78)
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
|
| _________ | |
_________
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
|
| | |
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
| TOTAL OPERATING EXPENSES
| (27,103) | |
(9,916)
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
|
| _________ | |
_________
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
| OPERATING PROFIT
| 2,176 | |
1,375
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
|
| | |
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
| Investment income
| 135 | |
155
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
| Finance costs
| (375) | |
(420)
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
|
| _________ | |
_________
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
|
| | |
|
+------------------------------------------------------------+-------------
------+--------------------+--------------------+
| PROFIT ON ORDINARY
ACTIVITIES BEFORE TAXATION | 1,936 |
| 1,110
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
| Taxation
| (530) | |
(326)
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
|
| _________ | |
_________
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
|
| | |
|
+------------------------------------------------------------+-------------
------+--------------------+--------------------+
| PROFIT FOR THE FINANCIAL
YEAR AFTER TAXATION | 1,406 | |
784
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
|
| _________ | |
_________
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
|
| | |
|
+------------------------------------------------------------+-------------
------+--------------------+--------------------+
| Earnings per ordinary
share (pence) | | |
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
|
| | |
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
| Basic
| 22.62 | |
12.80
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
|
| | |
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
| Diluted
| 9.92 | |
5.83
|
+------------------------------------------------------------+-------------
=-----+--------------------+--------------------+
|
| _________ | |
_________
|
+------------------------------------------------------------+-------------
------+--------------------+--------------------+
CONTINUING OPERATIONS
None of the group's activities were acquired or discontinued during the current
year or previous year.
TOTAL RECOGNISED GAINS AND LOSSES
The group has no recognised gains or losses
other than the profit for the current year.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2009
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | Share | | Share | | Share Based | | Profit & | | Total |
| | Capital | | Premium | | Payment | | Loss | | |
| | | | | | | | | | |
| | | | | | GBP000 | | GBP000 | | |
| | GBP000 | | GBP000 | | | | | | GBP000 |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | | | | | | | | | |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| Balance at 1 April 2007 | 511 | | 838 | | 241 | | 292 | | 1,882 |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | | | | | | | | | |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| Reversal of goodwill amortisation under IFRS | - | | - | | - | | 27 | | 27 |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | | | | | | | | | |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| Restatement of deferred tax under IFRS | - | | - | | - | | 3 | | 3 |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | ________ | | ________ | | ________ | | ________ | | ________ |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | | | | | | | | | |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| As restated | 511 | | 838 | | 241 | | 322 | | 1,912 |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | | | | | | | | | |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| Issue of new ordinary shares | 101 | | 202 | | - | | - | | 303 |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | | | | | | | | | |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| Share based payments | - | | - | | 177 | | - | | 177 |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | | | | | | | | | |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| Profit for the year | - | | - | | - | | 784 | | 784 |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | _________ | | _________ | | _________ | | _________ | | _________ |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | | | | | | | | | |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| Equity as at 31 March 2008 | 612 | | 1,040 | | 418 | | 1,106 | | 3,176 |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | | | | | | | | | |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| Issue of new ordinary shares | 10 | | 20 | | - | | - | | 30 |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | | | | | | | | | |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| Share based payments | - | | - | | 30 | | - | | 30 |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | | | | | | | | | |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| Expired share options | - | | - | | (14) | | 14 | | - |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | | | | | | | | | |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| Share options exercised | - | | - | | (2) | | 2 | | - |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | | | | | | | | | |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| Profit for the year | - | | - | | - | | 1,406 | | 1,406 |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | _________ | | _________ | | _________ | | _________ | | _________ |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | | | | | | | | | |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| Equity as at 31 March 2009 | 622 | | 1,060 | | 432 | | 2,528 | | 4,642 |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | _________ | | _________ | | _________ | | _________ | | _________ |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
| | | | | | | | | | |
+----------------------------------------------+-----------+--------+-----------+--------+-------------+--------+-----------+--------+-----------+
CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2009
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | 2009 | | | | 2008 | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | GBP000 | | GBP000 | | GBP000 | | GBP000 |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| NON-CURRENT ASSETS | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| Goodwill | | | 482 | | | | 482 |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| Other intangible assets | | | - | | | | 1 |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| Property, plant and equipment | | | 54 | | | | 46 |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| Deferred tax asset | | | 126 | | | | 126 |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | _______ | | | | _______ |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | 662 | | | | 655 |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| CURRENT ASSETS | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| Trade and other receivables | 20,678 | | | | 10,324 | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| Cash and cash equivalents | 3,295 | | | | 3,384 | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | _________ | | | | _________ | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | 23,973 | | | | 13,708 | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | _________ | | | | _________ | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| CURRENT LIABILITIES | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| Trade and other payables | (14,376) | | | | (6,641) | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| Current tax liabilities | (2,851) | | | | (1,459) | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| Obligations under finance leases | (12) | | | | (2) | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| Financial liabilities - borrowings | (2,745) | | | | (3,077) | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | _________ | | | | _________ | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | (19,984) | | | | (11,179) | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | _________ | | | | _________ | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| NET CURRENT ASSETS | | | 3,989 | | | | 2,529 |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | ________ | | | | ________ |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| TOTAL ASSETS LESS CURRENT | | | 4,651 | | | | 3,184 |
| LIABILITIES | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| NON-CURRENT LIABILITIES | | | | | | | |
| | | | (9) | | | | (8) |
| Obligations under finance leases | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | __________ | | | | __________ |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| NET ASSETS | | | 4,642 | | | | 3,176 |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | __________ | | | | __________ |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| EQUITY | | | | | | | |
| | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| Share capital | | | 622 | | | | 612 |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| Share premium | | | 1,060 | | | | 1,040 |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| Other reserves | | | 432 | | | | 418 |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| Retained earnings | | | 2,528 | | | | 1,106 |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | _________ | | | | _________ |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| TOTAL EQUITY | | | 4,642 | | | | 3,176 |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | _________ | | | | _________ |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
| | | | | | | | |
+------------------------------------+-----------+----------+------------+----------+-----------+----------+------------+
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2009
+-------------+------------------------------+--------------+-----------------+------------------+
| | | 2009 | 2008 |
| | | GBP000 | GBP000 |
+--------------------------------------------+--------------+-----------------+------------------+
| | Notes | | |
+--------------------------------------------+--------------+-----------------+------------------+
| Net cash generated from operating | 1 | 598 | 917 |
| activities | | | |
+--------------------------------------------+--------------+-----------------+------------------+
| | | ________ | ________ |
+--------------------------------------------+--------------+-----------------+------------------+
| | | | |
+--------------------------------------------+--------------+-----------------+------------------+
| Investing activities | | | |
+--------------------------------------------+--------------+-----------------+------------------+
| Interest received | | 135 | 156 |
+--------------------------------------------+--------------+-----------------+------------------+
| Purchases of property, plant and equipment | | (24) | (30) |
+--------------------------------------------+--------------+-----------------+------------------+
| Proceeds from disposal of property, plant | | - | - |
| and equipment | | | |
+--------------------------------------------+--------------+-----------------+------------------+
| | | _________ | _________ |
+--------------------------------------------+--------------+-----------------+------------------+
| | | | |
+--------------------------------------------+--------------+-----------------+------------------+
| Net cash generated from investing | | 111 | 126 |
| activities | | | |
+--------------------------------------------+--------------+-----------------+------------------+
| | | _________ | _________ |
+--------------------------------------------+--------------+-----------------+------------------+
| | | | |
+--------------------------------------------+--------------+-----------------+------------------+
| Financing activities | | | |
+--------------------------------------------+--------------+-----------------+------------------+
| Capital element of finance lease payments | | (6) | (3) |
+--------------------------------------------+--------------+-----------------+------------------+
| Issue of new ordinary shares | | 2 | - |
+--------------------------------------------+--------------+-----------------+------------------+
| Share premium on issue of ordinary shares | | 5 | - |
+--------------------------------------------+--------------+-----------------+------------------+
| Repayment of 10% secured convertible loan | | (578) | - |
| notes | | | |
+--------------------------------------------+--------------+-----------------+------------------+
| Interest paid | | (374) | (416) |
+--------------------------------------------+--------------+-----------------+------------------+
| | | _________ | _________ |
+--------------------------------------------+--------------+-----------------+------------------+
| | | | |
+--------------------------------------------+--------------+-----------------+------------------+
| Net cash generated (used in) financing | | (951) | (419) |
| activities | | | |
+--------------------------------------------+--------------+-----------------+------------------+
| | | _________ | _________ |
+--------------------------------------------+--------------+-----------------+------------------+
| | | | |
+--------------------------------------------+--------------+-----------------+------------------+
| Net (decrease)/increase in cash and cash | | (242) | 624 |
| equivalents | | | |
+--------------------------------------------+--------------+-----------------+------------------+
| | | | |
+--------------------------------------------+--------------+-----------------+------------------+
| Cash and cash equivalents at beginning of | | 3,343 | 2,719 |
| year | | | |
+--------------------------------------------+--------------+-----------------+------------------+
| | | _________ | _________ |
+--------------------------------------------+--------------+-----------------+------------------+
| Cash and cash equivalents at end of year | | 3,101 | 3,343 |
+--------------------------------------------+--------------+-----------------+------------------+
| | | _________ | _________ |
+--------------------------------------------+--------------+-----------------+------------------+
| Consisting of | | | |
+--------------------------------------------+--------------+-----------------+------------------+
| Cash at bank and in hand | | 1,334 | 3,384 |
+--------------------------------------------+--------------+-----------------+------------------+
| Units in unit trusts | | 1,961 | - |
+--------------------------------------------+--------------+-----------------+------------------+
| Bank overdrafts | | (194) | (41) |
+--------------------------------------------+--------------+-----------------+------------------+
| | | _________ | _________ |
+--------------------------------------------+--------------+-----------------+------------------+
| | | 3,101 | 3,343 |
+--------------------------------------------+--------------+-----------------+------------------+
| | | ________ | ________ |
+--------------------------------------------+--------------+-----------------+------------------+
| | | | |
+--------------------------------------------+--------------+-----------------+------------------+
| | | | |
+--------------------------------------------+--------------+-----------------+------------------+
| | | 2009 | 2008 |
+--------------------------------------------+--------------+-----------------+------------------+
| | | GBP000 | GBP000 |
+--------------------------------------------+--------------+-----------------+------------------+
| 1. | Profit for the year before | | 1,936 | 1,110 |
| | taxation | | | |
+-------------+------------------------------+--------------+-----------------+------------------+
| | | | | |
+-------------+------------------------------+--------------+-----------------+------------------+
| | Adjustments for Finance | | 375 | 420 |
| | costs | | | |
+-------------+------------------------------+--------------+-----------------+------------------+
| | Investment revenues | | (135) | (155) |
+-------------+------------------------------+--------------+-----------------+------------------+
| | Depreciation of property, | | 31 | 26 |
| | plant and equipment | | | |
+-------------+------------------------------+--------------+-----------------+------------------+
| | Amortisation of intangibles | | 1 | 1 |
+-------------+------------------------------+--------------+-----------------+------------------+
| | Share based payments | | 31 | 177 |
+-------------+------------------------------+--------------+-----------------+------------------+
| | Restructuring of group debt | | 115 | 115 |
+-------------+------------------------------+--------------+-----------------+------------------+
| | | | _________ | _________ |
+-------------+------------------------------+--------------+-----------------+------------------+
| | | | | |
+-------------+------------------------------+--------------+-----------------+------------------+
| | Operating cash flows before | | 2,354 | 1,694 |
| | movements in working capital | | | |
+-------------+------------------------------+--------------+-----------------+------------------+
| | | | | |
+-------------+------------------------------+--------------+-----------------+------------------+
| | Decrease in inventories | | - | 15 |
+-------------+------------------------------+--------------+-----------------+------------------+
| | (Increase) in receivables | | (10,354) | (5,006) |
+-------------+------------------------------+--------------+-----------------+------------------+
| | Increase in payables | | 8,836 | 4,214 |
+-------------+------------------------------+--------------+-----------------+------------------+
| | | | _________ | __________ |
+-------------+------------------------------+--------------+-----------------+------------------+
| | | | | |
+-------------+------------------------------+--------------+-----------------+------------------+
| | Cash generated by operations | | 836 | 917 |
+-------------+------------------------------+--------------+-----------------+------------------+
| | Tax paid | | (238) | - |
+-------------+------------------------------+--------------+-----------------+------------------+
| | | | _________ | __________ |
+-------------+------------------------------+--------------+-----------------+------------------+
| | | | | |
+-------------+------------------------------+--------------+-----------------+------------------+
| | Net cash generated from | | 598 | 917 |
| | operating activities | | | |
+-------------+------------------------------+--------------+-----------------+------------------+
| | | | _________ | __________ |
+-------------+------------------------------+--------------+-----------------+------------------+
LITCOMP PLC AND SUBSIDIARY UNDERTAKINGS
NOTES TO THE ANNOUCEMENT
1. Publication of Non Statutory Accounts
The financial information set out in this announcement for the years ended 31
March 2009 and 2008 does not constitute the Group's statutory accounts as
defined in section 240 of the Companies Act 1985.
The primary statements, comprising consolidated income statement, consolidated
statement of changes in equity and consolidated cash flow statement for the year
ended 31 March 2009 and, consolidated balance sheet as at 31 March 2009, have
been extracted from the Group's audited statutory report and financial
statements.
The auditor's report on the statutory report and financial statements for the
year ended 31 March 2009 is modified on the basis of an emphasis of matter
opinion in relation to going concern. No statement was required under section
237 (2) or (3) of the Companies Act 1985.
The comparatives figures (for the year ended 31 March 2008) have been extracted
from the audited statutory report and financial statements for that year, which
has been delivered to the Registrar of Companies and upon which the auditor's
report was modified on the basis of an emphasis of matter opinion in relation to
going concern.
2. Basis of Preparation
The Group's statutory report and financial statements have been prepared in
accordance with International Accounting Standard Board ("IASB") and
interpretations issued by the International Financial Reporting Interpretations
Committee of the IASB (together with "IFRS") as endorsed by the European Union
in 2005.
The information contain within this announcement has been extracted from the
statutory report and financial statements for the year ended 31 March 2009 and
as such, does not contain all the information required to be disclosed in the
statutory report and financial statements in accordance with IFRS.
3. Accounting Policies
The principal accounting policies applied in the preparation of the statutory
report and financial statements for the year ended 31 March 2009 have not
changed since the end of the last financial year end and have all been
consistently applied throughout the period.
4. Functional Currency
The results are prepared in pound sterling as this is the currency of the
primary economic environment in which the Group operates.
5. Segmental Information
"Ins" represents the results of the ATE Insurance business whilst "Reports"
comprises the provision of Medico-Legal Reports and litigation services.
All income is generated within the United Kingdom albeit the insurance policies
are underwritten in Gibraltar.
Trading Statement:
+-----------------------+----------+---------+---------+---------+---------+---------+
| | Ins | Reports | 2009 | Ins | Reports | 2008 |
| | GBP'000 | GBP'000 | Total | GBP'000 | GBP'000 | Total |
| | | | GBP'000 | | | GBP'000 |
+-----------------------+----------+---------+---------+---------+---------+---------+
| | | | | | | |
+-----------------------+----------+---------+---------+---------+---------+---------+
| Segmental income | 27,596 | 1,818 | 29,414 | 9,683 | 1,764 | 11,447 |
| | ______ | ______ | ______ | ______ | ______ | ______ |
+-----------------------+----------+---------+---------+---------+---------+---------+
| Trading Profit/(loss) | 2,378 | (22) | 2,356 | 2,161 | (466) | 1,695 |
+-----------------------+----------+---------+---------+---------+---------+---------+
| | | | | | | |
+-----------------------+----------+---------+---------+---------+---------+---------+
| AIM related costs | - | (94) | (94) | - | (77) | (77) |
+-----------------------+----------+---------+---------+---------+---------+---------+
| | | | | | | |
+-----------------------+----------+---------+---------+---------+---------+---------+
| Loan note interest | - | (295) | (295) | - | (331) | (331) |
| | ______ | ______ | ______ | ______ | ______ | ______ |
+-----------------------+----------+---------+---------+---------+---------+---------+
| | | | | | | |
+-----------------------+----------+---------+---------+---------+---------+---------+
| Profit/(loss) before | 2,378 | (411) | 1,967 | 2,161 | (874) | 1,287 |
| tax and share based | | | | | | |
| payments | | | | | | |
+-----------------------+----------+---------+---------+---------+---------+---------+
| | | | | | | |
+-----------------------+----------+---------+---------+---------+---------+---------+
| Share based payments | - | (31) | (31) | - | (177) | (177) |
| | ______ | ______ | ______ | ______ | ______ | ______ |
+-----------------------+----------+---------+---------+---------+---------+---------+
| | | | | | | |
+-----------------------+----------+---------+---------+---------+---------+---------+
| Net profit/(loss) | 2,378 | (442) | 1,936 | 2,161 | (1,051) | 1,110 |
| before tax | | | | | | |
+-----------------------+----------+---------+---------+---------+---------+---------+
| | | | | | | |
+-----------------------+----------+---------+---------+---------+---------+---------+
| Tax | - | (530) | (530) | - | (326) | (326) |
| | ______ | ______ | ______ | ______ | ______ | ______ |
+-----------------------+----------+---------+---------+---------+---------+---------+
| | | | | | | |
+-----------------------+----------+---------+---------+---------+---------+---------+
| Net profit after tax | 2,378 | (972) | 1,406 | 2,161 | (1,377) | 784 |
| | ______ | ______ | ______ | ______ | ______ | ______ |
+-----------------------+----------+---------+---------+---------+---------+---------+
Balance Sheet:
+----------------------+----------------+---------+----------+---------+---------+----------+
| | Ins | Reports | 2009 | Ins | Reports | 2008 |
| | GBP'000 | GBP'000 | Total | GBP'000 | GBP'000 | Total |
| | | | GBP'000 | | | GBP'000 |
+----------------------+----------------+---------+----------+---------+---------+----------+
| | | | | | | |
+----------------------+----------------+---------+----------+---------+---------+----------+
| Goodwill | - | 482 | 482 | - | 482 | 482 |
+----------------------+----------------+---------+----------+---------+---------+----------+
| | | | | | | |
+----------------------+----------------+---------+----------+---------+---------+----------+
| Other Intangibles | - | - | - | - | 1 | 1 |
+----------------------+----------------+---------+----------+---------+---------+----------+
| | | | | | | |
+----------------------+----------------+---------+----------+---------+---------+----------+
| Property, plant and | 28 | 26 | 54 | 17 | 29 | 46 |
| equipment | | | | | | |
+----------------------+----------------+---------+----------+---------+---------+----------+
| | | | | | | |
+----------------------+----------------+---------+----------+---------+---------+----------+
| Deferred tax asset | - | 126 | 126 | - | 126 | 126 |
+----------------------+----------------+---------+----------+---------+---------+----------+
| | | | | | | |
+----------------------+----------------+---------+----------+---------+---------+----------+
| Trade and other | 19,486 | 1,192 | 20,678 | 8,073 | 2,251 | 10,324 |
| receivables | | | | | | |
+----------------------+----------------+---------+----------+---------+---------+----------+
| | | | | | | |
+----------------------+----------------+---------+----------+---------+---------+----------+
| Cash and cash | 2,590 | 705 | 3,295 | 2,509 | 875 | 3,384 |
| equivalents | ______ | ______ | ______ | ______ | ______ | ______ |
+----------------------+----------------+---------+----------+---------+---------+----------+
| Total Assets | 22,104 | 2,531 | 24,635 | 10,599 | 3,764 | 14,363 |
| | ______ | ______ | ______ | ______ | ______ | ______ |
+----------------------+----------------+---------+----------+---------+---------+----------+
| | | | | | | |
+----------------------+----------------+---------+----------+---------+---------+----------+
| | | | | | | |
+----------------------+----------------+---------+----------+---------+---------+----------+
| Trade and other | (12,645) | (1,731) | (14,376) | (4,525) | (2,116) | (6,641) |
| payables | | | | | | |
+----------------------+----------------+---------+----------+---------+---------+----------+
| | | | | | | |
+----------------------+----------------+---------+----------+---------+---------+----------+
| Current tax | (1,640) | (1,211) | (2,851) | (634) | (825) | (1,459) |
| liabilities | | | | | | |
+----------------------+----------------+---------+----------+---------+---------+----------+
| | | | | | | |
+----------------------+----------------+---------+----------+---------+---------+----------+
| Obligations under | - | (21) | (21) | - | (10) | (10) |
| finance lease | | | | | | |
+----------------------+----------------+---------+----------+---------+---------+----------+
| | | | | | | |
+----------------------+----------------+---------+----------+---------+---------+----------+
| Financial | - | (2,745) | (2,745) | - | (3,077) | (3,077) |
| liabilities; | ______ | ______ | ______ | ______ | ______ | ______ |
| borrowings | | | | | | |
+----------------------+----------------+---------+----------+---------+---------+----------+
| Total liabilities | (14,285) | (5,708) | (19,993) | (5,159) | (6,028) | (11,187) |
| | ______ | ______ | ______ | ______ | ______ | ______ |
+----------------------+----------------+---------+----------+---------+---------+----------+
| | | | | | | |
+----------------------+----------------+---------+----------+---------+---------+----------+
| Net | 7,819 | (3,177) | 4,642 | 5,440 | (2,264) | 3,176 |
| Assets/(liabilities) | ______ | ______ | ______ | ______ | ______ | ______ |
+----------------------+----------------+---------+----------+---------+---------+----------+
6. Earnings per ordinary share
Basic earnings per ordinary share is based on earnings of GBP1,406,199 (2008:
GBP783,454) for the year and on 6,217,676 (2008: 6,120,012) being the weighted
average number of shares on issue during the year.
Fully diluted earnings per ordinary share is calculated on earnings of
GBP1,406,199 for the year adjusted for convertible loan note interest and on
17,148,283 (2008: 19,119,952) being the potential weighted average number of
shares.
7. 10% Secured convertible loan notes
On 21 November 2005 the company issued GBP3.605m convertible loan notes of which
GBP2.551m were outstanding at the year end. Interest is payable in quarterly
instalments at a coupon rate of 10% per annum.
The loan notes are convertible into equity shares by the loan note holders and
if not converted these loan notes are redeemable at par at the end of their
term. For each GBP1 of loan note converted 3.3 ordinary shares of GBP0.10 each
would be issued.
During the year the loan note term was extended by one year and they are now
repayable on 31 October 2009 to the extent which they have not been converted.
The loan notes are secured over the assets of the Group.
8. Provision of Annual Report and Accounts
The annual report and accounts for the twelve months ended 31 March 2009 has
today been sent to shareholders and is available to download from the Company's
website at www.litcomp-plc.com
9.Date of approval of this announcement
This announcement was approved by the Directors on 29 September 2009
END
Enquiries:
Litcomp Plc
Tel: +44 (0) 147 656 0113
Jason Smart, Chief Executive Officer
Paul Lavender, Finance Director
Seymour Pierce Limited
Tel: +44 (0) 207 107 8000
Richard Feigen / Chris Howard / Christopher Wren
Bishopsgate Communications Ltd
Tel: +44 (0) 207 562 3350
Maxine Barnes
Gemma O'Hara
This information is provided by RNS
The company news service from the London Stock Exchange
END
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