Regulatory News
Final Results
March 31, 2008Globo plc
31 March 2008FOR IMMEDIATE RELEASE 31 March 2008
GLOBO plc
RESULTS FOR THE 6 MONTHS AND 12 MONTHS ENDED
31 DECEMBER 2007Globo plc ("Globo", the "Group" or the "Company"; LSE-AIM: GBO), a leader in the
Information and Communications Technology market in Greece, is pleased to
announce its audited results for the 6 and 12 months ended 31 December 2007,
reflecting the change in accounting reference date of the parent company. The
key points refer solely to the 12 months ended 31 December 2007 and the
comparable period in 2006.Key points:
• These are the first results to be announced since Globo’s Admission to
AIM on 14 December 2007.• €3.0m in new funds were raised (net of expenses) through a share
placing at the time of Admission.• The results reflect strong growth in all parts of the business.
• Revenue in 2007 grew by 66% to €11.0m (2006: €6.6m).
• EBITDA increased 60% to €5.6m (2006: €3.5m).
• Profit before tax was up 103% to €2.1m (2006: €1.0m).
• Board strengthened recently by the appointment of Dr. Joseph Coughlin as a
non-executive Director.On outlook, Chairman, Brett Miller stated:
"Within the last three months, Globo has achieved an excellent forward order
book including approximately €4.0 million of contracts for delivery in 2008 for
digitalising Greek state and parliamentary archives. These contracts, together
with the growing CITRON product sales and S.a.a.S. and maintenance revenues
will provide Globo with increasing visibility of future revenues. In addition,
the Group has an excellent pipeline of potential future business.""The Board is confident of delivering another year of strong growth in 2008."
CONTACTS
Globo
Brett Miller, Non-executive Chairman +44 (0) 20-7584-3663
Costis Papadimitrakopoulos, Managing Director +30 210-646-6008
Dimitris Gryparis, Finance Director +30 210-646-6008Bankside +44 (0) 20-7367-8888
Simon Bloomfield or Steve LiebmannNCB Stockbrokers Limited (Nomad & Broker) +44 (0) 20 7071 5200
Christopher Caldwell or Jonathan GrayAbout Globo
Founded in 1997 by Konstantinos ("Costis") Papadimitrakopoulos and headquartered
in Halandri (a suburb of Athens), AIM-listed Globo has established itself as one
of the market leaders in the Greek ICT market. It provides e-business and
telecom software products and related services to the private and governmental
sectors in Greece as well as developing and operating broadband wired and
wireless networks. It has developed to become one of the largest e-business
software vendors in Greece.The three components of the Globo Group’s key software revenue stream are
outlined below:• products and services that facilitate e-business;
• products and services that enable access to broadband; and
• resale of third-party goods.The first two of these product groups, the e-business and broadband access, are
offered under a software licence or as Software as a Service ("S.a.a.S.").Globo’s products are used by private and public organisations that include more
than 600 corporate and SME clients and more than 60 public sector clients. They
are also sold through 14 value added resellers to a large number of indirect
customers. Globo’s direct private sector customers include Xerox, National Bank
of Greece, Velti, Group Marinopoulos and the University of Brighton.Globo’s public sector customers in Greece include the Ministry of Foreign
Affairs, the Ministry of National Education and Religious Affairs, the
Municipalities of Halandri and of Maroussi and the Hellenic parliament.Globo’s e-Business platform, as well as its e-Commerce and broadband access
technology products have been successfully marketed and operated in Greece, UK,
Ireland, France, Belgium, Cyprus, Romania, Bulgaria, Spain and Italy.CHAIRMAN’S STATEMENT
Introduction
I am pleased to present the first consolidated results for Globo plc (formerly
Israeli Acquisitor 1 plc) following the acquisition of Globo Technologies S.A.
and Profitel Communications S.A. in December 2007. Following Admission to AIM,
Globo plc changed its accounting reference date from 30 June to 31 December to
bring it into line with the Group’s operating companies. The formation of the
Group has been accounted for as a reverse takeover such that they are in
substance a continuation of the Financial Statements of Globo Technologies S.A.
and Profitel Communications S.A. Accordingly, these results are in respect of
the 6 and 12 months ended 31 December 2007. However, for the purpose of
presenting the Group’s performance during 2007, the Chairman’s Statement, the
Managing Director’s Statement and the Financial Review each refer to the 12
months ended 31 December 2007 and the corresponding period in 2006.Globo delivered strong growth in revenue and profits during 2007 compared to
2006 and recently we have been pleased to announce several substantial new
contracts. The excellent progress made in the first half of the year continued
throughout the traditionally stronger second half with both the private and
public sectors contributing to growth.Results and Finance
As stated previously, the results for 2007 have been drawn up under IFRS 3
"Business Combinations" and more specifically the reverse acquisition provisions
therein. This presents the Group’s results as if the reverse takeover had been
completed at the start of the year. Prior to the reverse acquisition, Globo plc
was a clean ‘shell’ company and, as such, it had no revenue during 2007 other
than interest income and incurred operating costs of approximately €67,000.
Comparative 2006 numbers in this statement and the accompanying financial
information relates solely to Globo Technologies S.A., the principal operating
company within the Group, and Profitel Communications S.A.Revenue for the year grew by over 66 per cent to €11.0 million (2006 – €6.6
million). Operating margins showed a healthy increase to 26.8 per cent (2006 –
23.3 per cent) after allowing for the small margin on some €0.5 million of
revenue arising from the disposal of slow moving telecom equipment inventory.
Operating profit increased 92 per cent to €2.96 million (2006 – €1.54 million)
after providing for Israeli Acquisitor’s operating costs. Excluding these costs,
the growth in operating profit would have been 97 per cent. Profit before tax
increased 103 per cent to €2.10 million (2006 – €1.03 million) resulting in
profit after tax improving by 116 per cent to €2.00 million (2006 – €0.93
million). Basic earnings per share increased to €0.018 (2006 – €0.015).The consolidated balance sheet reflects strong growth in the business with net
working capital reflecting the increase in revenue, which was particularly
weighted towards the closing months of the year. Net debt at 31 December 2007
was €4.65 million (2006 – €4.96 million) including the €3.0 million net proceeds
from the fund raising in December 2007.Strategy
Globo’s strategy, as set out at the time of Admission to AIM, is to expand its
operations both within its Greek domestic market and internationally. There are
a number of strands to the growth strategy. Within the Greek market, Globo plans
to expand the sale of its CITRON branded software products to the corporate and
government sectors. Globo also serves the Small and Medium Enterprise ("SME")
market by delivering its products as Software as a Service ("S.a.a.S.") through
its Profitel subsidiary. The Greek government market (local and national) is
being developed successfully, often through collaborative tenders.
Internationally, Globo plans to establish local sales and support offices in
neighbouring Balkan countries in order to drive forward the expansion of its
S.a.a.S. business model.Underpinning these plans is the expected growth in ICT markets in Greece and
Eastern Europe at a rate which significantly exceeds that for more mature
Western European and North American markets.During the three months since Admission to AIM, Globo has already made
significant progress on each strand of its growth plan.Board
Following Admission, the Board comprised a balance of non-executive and
executive Directors.We were pleased to announce the recent appointment of Dr. Joseph Coughlin as a
non-executive Director. Dr. Coughlin’s broad experience within both the public
and private sectors will enable him to contribute to Globo’s plans for growth.Outlook
Within the last three months, Globo has achieved an excellent forward order book
including approximately €4.0 million of contracts for delivery in 2008 for
digitalising Greek state and parliamentary archives. These contracts, together
with the growing CITRON product sales and S.a.a.S. and maintenance revenues,
will provide Globo with increasing visibility of future revenues. In addition,
the Group has an excellent pipeline of potential future business.The Board is confident of delivering another year of strong growth in 2008.
In closing I would like to thank the board, the Group’s employees and our
advisors for their tremendous efforts in a very busy year.Brett Miller
Non-executive ChairmanMANAGING DIRECTOR’S STATEMENT
Introduction
I am pleased to report that Globo has made strong progress in all aspects of
business during 2007, finishing the year with the Company’s Admission to AIM in
mid-December. Our new public company status will reinforce Globo’s position as a
leading e-business Group within our principal markets.Operations
Globo’s business currently operates through two main companies: Globo
Technologies which delivers its CITRON branded e-business software products and
broadband services to both private and public sector customers and Profitel,
which delivers the Group’s Software as a Service ("S.a.a.S") offering to the SME
marketplace.Markets
Government and Public Sector
During 2007, Globo has won a number of public sector contracts for delivering
e-business applications to local authorities including governmental portals,
intranets, digitalisation of libraries, interactive services for citizens and
geographical information systems. Since Admission to AIM in December 2007, Globo
has won major contracts with the Parliament of Greece and the Greek Ministry of
National Education & Religious Affairs for the digitalisation of records and
archives. These contracts emphasise the strength of Globo’s position within the
market for document digitalisation and additional contracts are expected to be
signed during the course of the current year. Revenues earned from public sector
customers in 2007 were approximately €2.4 million.Corporate
During 2007, Globo has won projects from several customers in Greece, such as
Marinopoulos Group, Agricultural Bank, Gregory’s Food Service Group, Bull,
Quality and Reliability, Velti and Xerox. The majority of the projects relate to
Globo’s e-business applications including Citron Internet Server, Citron
Document Server and Citron CRM as well as broadband access technologies
including Internet Hotel and WiPLUS. Revenues earned from corporate sector
customers in 2007 were approximately €8.5 million.SME- Software as a Service
The SME marketplace is served through the Profitel, a subsidiary company in the
Group; this was established initially as a separate company and was acquired by
Globo Technologies with effect from 30 June 2007. Profitel provides Globo’s
suite of CITRON products bundled with appropriate broadband and telephony
services as a S.a.a.S. to the SME marketplace, delivering a stream of recurring
revenues. In 2007, Profitel contributed approximately €0.1 million to Group
revenues.Towards the end of 2007, Globo acquired the assets of OneSoft S.A. for a nominal
sum. Based in Arta, Western Greece, OneSoft is a business developing software
for the SME marketplace. Based in a part of Greece with lower costs than Athens,
the acquisition provides an additional software development team and a call
centre to support the Group’s customers, particularly those using Profitel’s
S.a.a.S. These additional resources will be particularly valuable as Globo
expands into neighbouring geographic areas.International
Globo currently provides Internet Hotel (a fully packaged broadband connectivity
solution for the hotel and restaurant sector) and WiPLUS (the operation of WiFi
‘hotspots’ at venues) to customers in many European countries in addition to
Greece. WiPLUS service is already commercially deployed in Cyprus through a
representative.Progress is being made in developing new subsidiaries to market and support
S.a.a.S. in Bulgaria and Romania with marketing campaigns expected to be
launched in these countries in Q3, 2008. Once these are established, Globo
expects to expand its S.a.a.S. into Turkey and Cyprus by forming its own local
subsidiaries.Globo is also participating in Interactive Services for Electronic Tourism
("I-Set"), an EU funded project for delivering interactive services to smaller
hotels for WiFi, room bookings and general hotel administration. Globo is the
sole technological partner and will provide services to this project, giving
access to a wider market within the EU including the establishment of some 100
WiFi hotspots and S.a.a.S customers in Spain, Italy, Cyprus and Greece. The
I-Set project is also supported by Deloitte & Touche in Portugal, a major
provider of technology consultancy services to the tourism industry, and work is
underway with Bournemouth University on promoting e-tourism. This project is
expected to give Globo significant experience and opportunities for delivering
its S.a.a.S and WiPLUS services to small hotel establishments on a pan-European
basis.Products and Services
Globo has continued its investment in all aspects of its product and service
lines. All existing platforms have been upgraded with significant new features
in order to be fully competitive, both internationally and locally. Globo’s
holistic approach in the development of business software and service offerings
has continued, taking full advantage of the developing convergence of telecoms
and IT.Highlights of the key product and services developments in 2007 include:
New e-Business Products
CITRON Digital Library, an integrated component within Citron Document Server,
provides an end-to-end solution for handling digital assets from their
generation through capturing devices, such as Zeutschel scanners, to the
documentation, archiving and dissemination of the content through different
platforms and media. This new product has provided a significant edge to Globo’s
offering in large public and private tenders for digitalisation projects and is
now used in the Greek General State Archives, the Greek Parliament and numerous
other clients.Globo Development Framework (GDF) is a software development toolset developed to
automate software development, personalise and integrate bespoke solutions to
meet specific customer demands. GDF is being used to develop new solutions and
to tailor existing applications by using graphical interface design and coding
tools, thus limiting the source code development to a minimum to achieve a
shorter time-to-market and lower development costs. Several bespoke solutions
have been developed using GDF, such as Gregory’s ordering and quality assurance
intranet application integrated to the customer’s SAP back office system,
providing access and seamless ordering, delivery tracking and operational
assistance to the 200 franchisees within Greece.Software as a Service ("S.a.a.S.")
Profitel’s offering of S.a.a.S. has been extended with additional services
including SMS, fax and email campaigns, hosting services, e-commerce and website
builders. Additionally, significant development has focused on the S.a.a.S.
licencing server to enable the provision of customer installed applications
(such as CRM, ERP and Document Management) under the S.a.a.S. payment model.
This allows the Group to develop applications to address typical customer
concerns such as security and the outsourced storage of critical data and
commercial information, through installing the application in the customer’s
premises but charging on a "pay as you go" basis.Broadband Access
The Group’s WiPLUS service has also undergone significant development. New
features include payment modules supporting pre-paid, subscription and micro
payments utilising online credit card clearance, PayPal accounts and premium SMS
usage. Additional new network features include dynamic IP, SMTP redirection,
mobile client authentication and virtual user LANs. The WiPLUS Hotspot module
has been extended to support ‘thinner’ clients running LINUX platforms in order
to minimise the costs of investment for smaller installations such as cafes and
restaurants.The WiPLUS infrastructure currently supports all standards of the Wi-Fi Alliance
in terms of functionality and roaming, thus being able to be integrated within
global Wi-Fi aggregator offerings.People
Since the Admission to AIM, recruitment in Athens and the acquisition of OneSoft
has increased the number of direct employees from 49 to 85 today.I would like to thank each employee for their hard work during the year
including the substantial additional burden during the preparation for the IPO
in December 2007.Key Tasks for 2008
Globo’s key priorities in 2008 are to maintain the excellent momentum of the
past year in each area of the business. In particular, we expect to see a steady
increase in recurring revenues as a proportion of the Group total as the year
progresses, thereby improving the forward visibility for the business as a
whole. Globo aims to expand its geographical footprint to neighbouring countries
by forming subsidiaries which will replicate Profitel’s successful business
model, as well as establishing partnerships which will enable the Group to
exploit additional markets around the world. Organic growth of the Group’s
companies and the acquisition of smaller, complementary businesses will be the
tools to develop Globo’s positioning as a major e-business provider in the
region.Investment in all aspects of the business is considered to be a key driver for
profitable growth. Globo sees tremendous opportunities in the areas of SMEs,
S.a.a.S and ubiquitous computing, driven by broadband availability through fixed
and wireless networks. The structural EU funding is also expected to provide
further impetus to the growth rate of the ICT market within the region.Costis Papadimitrakopoulos
Managing DirectorFINANCIAL REVIEW
Profit for the financial year before tax was €2.10 million (2006 – €1.04
million). The profit after tax for the financial year of €2 million (2006 – €0.9
million) reduced the retained losses of previous years.In the financial year ended 31 December 2007, revenue reached €11.03 million,
posting an increase of 66.4 per cent compared with 2006 (€6.63 million). The
increase in revenue was fuelled by organic growth in both private (51 per cent
from 2006) and public sector (167 per cent from 2006) segments of the Group. The
revenue mainly consists of sales of the Group’s own products and services (85
per cent) while 15 per cent of the revenue comes from sales of third party
goods.Operating expenses excluding depreciation and amortization were €5.68 million,
representing an increase of 73.1 per cent compared with 2006 (€3.28 million) in
support of the increase in revenue. Depreciation and amortization of intangibles
reached €2.56 million (€1.98 million in 2006) reflecting the significant product
development undertaken both in 2006 and 2007.Operating profit increased by 92.2
per cent to €2.96 million (€1.54 million in 2006) which despite the increase of
29.3 per cent in the depreciation and the amortization charge, delivered an
operating margin of 26.8 per cent, improved from 2006 (23.2 per cent).The net interest charge for the year was €0.86 million, an increase of €0.35
million, as the Group used financing tools for working capital purposes, mainly
on significant public sector contracts. We believe that these costs will be
reduced in 2008 as management is already renegotiating for reduced charges and
commissions with every cooperating bank.Profit before taxes for 2007 was €2.10 million representing an increase of 103.9
per cent over 2006 (€1.03 million). The taxation charge for the year was €0.10
million (2006 – €0.11 million) which relates predominantly to deferred taxation
as the Group has taken advantage of special tax relief incentives provided by
the Greek Government. These laws provide special treatment for investments made
by the Group.Basic earnings per share increased from €0.015 to €0.018.
The balance sheet at 31 December 2007 was substantially strengthened as a result
of raising €2.99 million (net) by floating on AIM in December 2007. The funds
raised by the IPO will be used to fund increased working capital requirements
that resulted from the stout growth in revenue and to finance the product
development and investments of the Group.Total assets were €26.62 million at 31 December 2007 (2006 – €17.32 million). Of
total assets, €10.21 million were held in non current assets, €12.71 million
were held in trade debtors, prepayments and other current assets and €3.70
million were cash and cash equivalents. Equity increased by 96.5 per cent to€11.56 million and total liabilities increased by 31.6 per cent to €15.06
million.Accounts receivables and prepayments increased by €3.04 million primarily
because of the high duration of large public projects that the Group gained in
the year. The Group expects a significant proportion of the outstanding amounts
will be recovered in 2008. Inventory was €0.38 million, reduced by €0.55 million
(2006 – €0.93 million) as a result of the disposal of slow moving telecom
equipment.Cash generated from operations was €1.56 million while net cash used in
investing activities was €4.92 million reflecting the significant investment in
product development and infrastructure.Dimitris Gryparis
Finance DirectorCONSOLIDATED INCOME STATEMENT
For the 6 and 12 months ended 31 December 2007Six months Six months Year Year
ended ended ended ended
31 December 30 June 31 December 31 December
2007 2007 2007 2006
•’000 •’000 •’000 •’000Continuing Operations
Revenue 6,936 4,093 11,029 6,627
Cost of sales (3,445) (2,440) (5,885) (3,369)
———- ———- ———- ———-Gross Profit 3,491 1,653 5,144 3,258
Other operating income 79 76 155 167
Distribution expenses (417) (298) (715) (365)
Administrative expenses (928) (619) (1,547) (1,286)
Other operating expenses (58) (18) (76) (233)
———- ———- ———- ———-Operating Profit 2,167 794 2,961 1,541
Finance costs (net) (464) (394) (858) (506)
———- ———- ———- ———-Profit before Tax 1,703 400 2,103 1,035
Taxation (37) (64) (101) (106)
———- ———- ———- ———-
Profit for the period/year
from continuing operations
attributable to the equity
holdings of the parent 1,666 336 2,002 929
========== ========== ========== ==========Six months Six months Year Year
ended ended ended ended
31 December 30 June 31 December 31 December
2007 2007 2007 2006Basic earnings per share
(• per share) (Note 3) 0.015 0.003 0.018 0.015
========== ========== ========== ==========Diluted earnings per share
(• per share) (Note 3) 0.015 0.003 0.018 n/a
========== ========== ========== ==========A separate statement of recognised income and expense is not presented as the
only recognised income and expense is the profit for the period/year, all of
which is attributable to the equity holders of the parent.CONSOLIDATED BALANCE SHEET
At 31 December 2007As at As at As at
31 December 30 June 31 December
2007 2007 2006
•’000 •’000 •’000
ASSETSNon-Current Assets
Property, plant and equipment 3,339 3,148 2,740
Intangible assets 5,508 5,029 3,975
Goodwill 194 67 –
Deferred tax assets 1,157 1,195 1,248
Other receivables 7 19 16
———– ———– ———–
Total Non-Current Assets 10,205 9,458 7,979
———– ———– ———–Current Assets
Inventories 379 1,143 925
Trade receivables 9,930 6,933 6,489
Other receivables 84 87 481
Other current assets 2,322 1,476 366
Cash and cash equivalents 3,696 872 1,077
———– ———– ———–
Total Current Assets 16,411 10,511 9,338
———– ———– ———–TOTAL ASSETS 26,616 19,969 17,317
=========== =========== ===========EQUITY AND LIABILITIES
Shareholders’ Equity
Ordinary shares (Note 4) 1,781 3,211 3,211
Share premium 3,894 700 700
Other reserves 5,708 4,153 4,153
Reverse acquisition reserve 351 – –
Retained losses (179) (1,849) (2,185)
———– ———– ———–
Total Equity – Capital and Reserves 11,555 6,215 5,879
———– ———– ———–Non-Current Liabilities
Borrowings 1,500 1,750 1,500
Retirement benefit obligations 99 44 44
Finance lease liabilities 1,838 1,949 1,928
Provisions 37 37 52
———– ———– ———–
Total Non – Current Liabilities 3,474 3,780 3,524
———– ———– ———–Current Liabilities
Trade and other payables 3,548 3,349 2,287
Taxes payable 331 427 776
Borrowings 6,843 5,199 4,536
Accrued liabilities 865 999 315
———– ———– ———–
Total Current Liabilities 11,587 9,974 7,914
———– ———– ———–TOTAL EQUITY AND LIABILITIES 26,616 19,969 17,317
=========== =========== ===========CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Reverse
Share Share Shares Merger Other Acquis Ret-
Prem- to be Res- Res- -ition ained
Capital ium issued erve erves Reserve Losses Total
•’000 •’000 •’000 •’000 •’000 •’000 •’000 •’000Balance as
at 1,652 – – – 3,021 – (1,823) 2,850
1 January
2006
Allocation
of
profit for – – – – 1,291 – (1,291) –
2005
Increase in
capital by
allocation
of 159 – – – (159) – – –
reserves
Increase in
capital 1,400 700 – – – – – 2,100
Profit for
the – – – – – – 929 929
year ————– ———————- ——— ——– ——
Total
changes 1,559 700 – – 1,132 – (362) 3,029
for the ————– ——————— ——— ——– ——
year
Balance as
at
31 December 3,211 700 – – 4,153 – (2,185) 5,879
2006 ===================== ============== ========= ======== ======Balance as
at 3,211 700 – – 4,153 – (2,185) 5,879
1 January
2007
Profit for
the – – – – – – 336 336
period ——————— ————– ——— ——– ——
Total
changes – – – – – – 336 336
for the ——————— ————– ——— ——– ——
period
Balance as
at 3,211 700 – – 4,153 – (1,849) 6,215
30 June ===================== ============== ========= ======== ======
2007Balance as
at 3,211 700 – – 4,153 – (1,849) 6,215
1 July 2007
Increase in
capital 1,713 4,039 – 1,500 – – – 7,252
Costs of – (1,266) – – – – – (1,266)
issue
Reverse
acquisition (3,143) 421 15 – – 351 – (2,356)
Share based
payments – – 40 – – – – 40
Profit for
the – – – – – – 1,670 1,670
period ——————— ————– ——— ——– ——
Total
changes (1,430) 3,194 55 1,500 – 351 1,670 5,340
for the ——————— ————– ——— ——– ——
period
Balance as
at
31 December 1,781 3,894 55 1,500 4,153 351 (179) 11,555
2007 ===================== ============== ========= ======== ======CONSOLIDATED CASH FLOW STATEMENT
Six months Six months Year
ended ended ended
31 December 30 June 31 December
2007 2007 2006
•’000 •’000 •’000
Cash Flows from Operating Activities
Cash generated from operations (Note
5) 368 1,195 2,633
Interest paid (476) (401) (506)
Income tax paid – (7) (15)
———– ———- ———-
Net Cash from Operating Activities (108) 787 2,112
=========== ========== ==========Cash Flow from Investing Activities
Acquisition of subsidiaries (453) (63) –
Purchases of tangible and intangible
assets (2,211) (2,314) (3,434)
Sales of tangible and intangible assets 85 5 –
Increase in other long term assets 13 (1) –
Interest received 12 7 –
———– ———- ———-
Net Cash from Investing Activities (2,554) (2,366) (3,434)
=========== ========== ==========Cash Flows from Financing Activities
Proceeds from issue of share capital 4,148 456 1,644
Increase in long term liabilities (57) 6 170
Increase in long term loans (250) 250 399
Increase in current loans 1,823 796 283
Repayments of obligations under finance
leases (178) (134) (223)
———– ———- ———-
Net Cash from Financing Activities 5,486 1,374 2,273
=========== ========== ==========Net Increase/(Decrease) in Cash and Cash
Equivalents 2,824 (205) 951
=========== ========== ==========Movement in Cash and Cash Equivalents
Cash and cash equivalents at the
beginning of the period 872 1,077 126
Net increase/(decrease) in cash and cash
equivalents 2,824 (205) 951
———– ———- ———-
Cash and Cash Equivalents at the End of
the Period 3,696 872 1,077
=========== ========== ==========NOTES TO THE FINANCIAL STATEMENTS
For the 6 and 12 months ended 31 December 20071 Basis of preparation
The Financial Statements have been prepared in accordance with International
Financial Reporting Standards as adopted by the European Union ("IFRS"), IFRIC
interpretations and the parts of the Companies Act 1985 applicable to companies
reporting under IFRS. The Financial Statements have been prepared under the
historical cost convention.Prior to the acquisition of Globo Technologies S.A., Globo plc had an accounting
reference date of 30 June. It has since been decided to amend the year end to 31
December in order to be coterminous with Globo Technologies S.A. and Profitel
Communications S.A., the principal operating companies within the Group. As a
result, these Financial Statements are for the six month period from 1 July 2007
to 31 December 2007. The comparative periods consist of Globo Technologies S.A.
and Profitel Communications S.A. Relevant information has been included in the
Income Statement, Balance Sheet, Cash Flow Statement and Statement of Changes in
Equity to enable comparison with previous periods.The financial information in this announcement does not constitute the Company’s
statutory accounts for the six and twelve month periods ended 31 December 2007,
but is derived from those accounts. Statutory accounts for the year ended 30
June 2007 have been delivered to the Registrar of Companies and those for the
period to 31 December 2007 will be delivered after the Company’s Annual General
Meeting. The auditors have reported on those accounts; their reports were
unqualified and did not contain statements under s237(2) or s237(3) Companies
Act 1985.2 Segmental analysis of revenue
Six months Six months Year Year
ended ended Ended Ended
31 December 30 June 31 December 31 December
2007 2007 2007 2006
•’000 •’000 •’000 •’000Revenue from software
products & services 6,119 3,309 9,428 5,913
Revenue from telecom
services 110 – 110 –
Revenue from sales of
third party goods 707 784 1,491 714
———- ——— ———- ———-Total 6,936 4,093 11,029 6,627
========== ========= ========== ==========Revenue is mainly derived from sales of Group’s software products and services
to private and public sector customers based upon contractual agreements. Sales
of third party goods which are treated as a complement to the Group’s software
products and services are recognized according to the relevant contractual
obligations.3 Earnings per Share
Basic earnings per share are calculated by dividing the profit after tax
attributable to equity holders by the weighted average number of ordinary shares
in issue during the period.Six months Six months Year Year
ended ended ended Ended
31 December 30 June 31 December 31 December
2007 2007 2007 2006
Profit attributable
to
equity holders of the 1,666 336 2,002 929
Company (€000’s)
Weighted average
number
of ordinary shares in 111,715,794 110,000,000 110,857,897 63,314,386
issueDiluted earnings per share assumes that options and warrants outstanding at 31
December 2007 were exercised at 1 January 2008, for options and warrants where
the exercise price was less than the average price of the ordinary shares during
the period. On this basis, the calculation of diluted earnings per share is
based on the profit attributable to ordinary shareholders divided by 112,215,794
(six months ended 30 June 2007:110,500,000; year ended 31 December 2007:
111,357,897) ordinary shares.4 Share Capital
Company
Ordinary shares Redeemable shares
Number Nominal Number Nominal
value value
• •Authorised
At 1 July 2007 200,000,000 200,000 4,000,000 40,000
Increase in period 2,800,000,000 2,800,000 – –
Consolidation (2,700,000,000) – – –
———- ——— ——— ———
At 31 December 2007 300,000,000 3,000,000 4,000,000 40,000
========== ========= ========= =========On 13 December 2007, every ten issued, and authorised but unissued, ordinary
shares of 0.1p each in the share capital of the Company was consolidated into
one ordinary share of 1p each, but otherwise with the same rights attached to
them as stated in the Articles of Association.Allotted, Called up and Fully Paid
Ordinary shares
Number Nominal
value
•’000At 1 July 2007 – shares of 0.1p each 50,000,000 68
Consolidation (45,000,000) –
———- ———
5,000,000 68Issued in the period – placing shares 15,589,530 213
Issued in the period – consideration shares 110,000,000 1,500
———- ———
At 31 December 2007 – shares of 1p each 130,589,530 1,781
========== =========Redeemable shares rank pari passu with the ordinary shares save that they are
redeemable at par at the option of the Company at any time. The holders of
ordinary shares and redeemable shares are entitled, pari passu amongst
themselves, to the profits of the Company available for distribution to be
distributed according to the amounts paid up on such ordinary shares or
redeemable shares.Group
Number of Ordinary shares Share premium
shares
•’000 •’000
At 1 January 2006 4,130,000 1,652 –
Issue of shares 3,896,250 1,559 700
———— ———— ———–
At 31 December 2006 8,026,250 3,211 700
============ ============ ===========At 1 January 2007 8,026,250 3,211 700
———— ———— ———–
At 30 June 2007 8,026,250 3,211 700
============ ============ ===========At 1 July 2007 8,026,250 3,211 700
Reverse acquisition
adjustments (8,026,250) (3,211) –
Consideration shares 110,000,000 1,500 –
Existing shares of Globo
Plc 5,000,000 68 421
Placing shares 15,589,530 213 2,773
———— ———— ———–
At 31 December 2007 130,589,530 1,781 3,894
============ ============ ===========Under reverse acquisition accounting, the equity structure appearing in the
consolidated financial statements shall reflect the equity structure of the
legal parent, including the equity instruments issued by the legal parent to
effect the combination.5 Consolidated Cash Generated from Operations
Six months Six months Year
ended ended Ended
31 December 30 June 31 December
2007 2007 2006
•’000 •’000 •’000Profit for the period before tax 1,703 400 1,035
Adjustments for:
Depreciation of property, plant and
equipment 247 236 321
Amortisation of intangible assets 1,164 893 1,654
Provisions – – (96)
Share-based payments 40 – –
Work in progress 436 (639) –
Recognition of government grants (48) (23) (45)
Interest income/expenses 464 394 506
Adjustments for changes in working
capital
Decrease in inventory 328 456 211
Increase in trade receivables (2,910) (606) (1,003)
Increase in other current assets (846) (1,108) (134)
Increase/(decrease) in liabilities
(except bank and tax) (114) 1,544 (65)
(Decrease)/increase in tax liabilities (96) (352) 249
———— ——— ———-
Cash Generated from Operations 368 1,195 2,633
============ ========= ==========This information is provided by RNS
The company news service from the London Stock Exchange