TIDMNASA
RNS Number : 7295K
Nasstar PLC
26 April 2010
?
26 April 2010
Nasstar plc
Interim results for the six months ended 31 March 2010
Nasstar plc ("Nasstar" or "the Group"), which provides cloud computing,
announces its results for the six months ended 31 March 2010.
Key highlights for the period
· Turnover up 10% to GBP1.155m (2009: GBP1.052m)
· EBITDA GBP127,000 (2009: GBP3,000)
· 55% increase in Hosted Desktop subscribers to 1370 (2009: 886) with
a further 100 subscribers now under contract for April / May and over 400
additional subscribers under contract for future delivery over the next 18
months;
· 16% increase in Hosted Exchange subscribers to 9,649 (2009: 8,300)
· 38 partners signed up as at 31 March 2010
Chairman's Statement
Results
I am pleased to report the results for
the Company for the six months ended 31 March 2010. The Company has made good
progress over the last six months with EBITDA being GBP127,000 and turnover
increasing to GBP1.155m. The balance sheet has also been strengthened during the
period with the Company raising GBP337,500 new share capital before expenses.
Subscribers of Nasstar Hosted Desktop have grown during the period and, in
addition to the subscribers currently being invoiced for the service, a further
100 subscriptions have been sold and are being deployed during April and May
2010. In addition a further 400 subscribers will be set up over the next 18
months under agreed deployment plans. As a result Nasstar has now over 1,900
subscribers under contract for Nasstar Hosted Desktop. The sales pipeline from
both direct sales and the partner programme provides a positive indication of
the increased awareness of the hosted desktop product and opportunities for
increasing the number of subscribers on our Hosted Desktop platform. We now have
38 partners extending Nasstar's reach - including overseas partners in Canada
and The Netherlands. Our partner in The Netherlands has already delivered its
first order. Whilst the growth of the partner programme and resulting sales
pipeline are promising, the sales cycle is quite slow in the current economic
climate. The Directors believe that the sales cycle should improve once the
business community becomes more confident in the economic recovery. The Board
also believe that the service updates being released by Nasstar, which will
deliver Microsoft Windows 7 themed desktop, Microsoft Office Professional 2010
and Hosted Exchange 2010 will provide potential customers with further
compelling reasons to adopt Nasstar Hosted Desktop.
Outlook
Nasstar is well positioned to continue to deliver growth. The Directors believe
that growth in the second half of the year will be stronger than the first half
given the growth in partners and resulting opportunities that have now entered
the sales pipeline. The Company's product development has been strong and there
are early indications that the release of Microsoft Windows 7 operating system
will prompt more businesses to consider adopting a cloud service that delivers
the benefits of Windows 7 without the capital investment. Microsoft, who
released 3rd quarter earnings last week, noted there was strong demand for
Windows 7 and business customers were beginning to refresh their desktops. The
enhancements being released by Nasstar Hosted Desktop version 7 reinforce the
benefits of cloud computing and provide further compelling reasons to move from
local hard drives to the cloud.
Lord Daresbury
Chairman
26 April 2010
About Nasstar plc
Nasstar (www.nasstar.com) provides hosted desktop and hosted exchange cloud
computing services that enable subscribers to access their corporate desktop,
files, applications and email in the cloud rather than using local hard drives.
Cloud computing is a 'pay for what you use' approach and provides an alternative
to capital expenditure necessary for traditional on-premise IT.
Nasstar was founded in 1998 by Charles Black. Nasstar plc was admitted to
trading on the London Stock Exchange Alternative Investment Market in December
2005 (AIM: NASA).
Nasstar plc
Consolidated income statement
for the six months ended 31 March 2010
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| | | Six | | Six | | Year to |
| | | months | | months | | 30 |
| | | to | | to | | September |
| |Notes | 31 | | 31 | | 2009 |
| | | March | | March | | Audited |
| | | 2010 | | 2009 | | GBP000 |
| | | Unaudited | | Unaudited | | |
| | | GBP000 | | GBP000 | | |
| | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| Revenue | | 1,155 | | 1,052 | | 2,018 |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| Cost of sales | | (535) | | (415) | | (912) |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| Gross profit | | 620 | | 637 | | 1,106) |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| Operating and | | (686) | | (813) | | (1,734) |
| administrative expenses | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| Exceptional costs | | - | | - | | (91) |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| Share-based payments | | (16) | | (16) | | (33) |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| Total operating and | | | | | | |
| administrative expenses | | (702) | | (829) | | (1,858) |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| Operating loss | | (82) | | (192) | | (752) |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| Finance expense | | (79) | | (95) | | (190) |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| Loss before taxation | | (161) | | (287) | | (942) |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| Taxation | | - | | 3 | | 3 |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| Loss for the period | | | | | | |
| attributable to | | (161) | | (284) | | (939) |
| shareholders | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| Loss per share: | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| Basic and diluted | 5 | (0.49)p | | (1.75)p | | (5.60)p |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+----------------------------+-------+-----------+----------+-----------+----------+-----------+
Nasstar plc
Consolidated balance sheet
as at 31 March 2010
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | 31 | | 31 | | 30 |
| | | March | | March | | September |
| | | 2010 | | 2009 | | 2009 |
| | | Unaudited | | Unaudited | | Audited |
| | | GBP000 | | GBP000 | | GBP000 |
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Assets | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Non-current assets | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Goodwill | | 844 | | 844 | | 844 |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Intangible assets | | 199 | | 179 | | 196 |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Plant and equipment | | 350 | | 467 | | 415 |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Deferred taxation | | 175 | | 175 | | 175 |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | 1,568 | | 1,665 | | 1,630 |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Current assets | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Trade and other | | 433 | | 536 | | 468 |
| receivables | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Cash and cash | | 49 | | - | | 400 |
| equivalents | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | 482 | | 536 | | 868 |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Total assets | | 2,050 | | 2,201 | | 2,498 |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Equity and liabilities | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Capital and reserves | | | | | | |
| attributable to equity | | | | | | |
| holders | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Share capital | | 357 | | 169 | | 319 |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Share premium | | 2,706 | | 1,669 | | 2,404 |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Merger reserve | | 662 | | 662 | | 662 |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Retained deficit | | (2,360) | | (1,577) | | (2,215) |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Total equity | | 1,365 | | 923 | | 1,170 |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Non-current liabilities | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Interest-bearing loans | | 53 | | 126 | | 94 |
| and borrowings | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Current liabilities | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Interest-bearing loans | | 139 | | 186 | | 162 |
| and borrowings | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Trade and other payables | | 493 | | 966 | | 1,072 |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | 632 | | 1,152 | | 1,234 |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| Total equity and | | 2,050 | | 2,201 | | 2,498 |
| liabilities | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------+----------+-----------+----------+-----------+----------+-----------+
Nasstar plc
Consolidated cash flow statement
for the six months ended 31 March 2010
+---------------------------------+-----------+----------+-----------+----------+-----------+
| | Six | | Six | | Year to |
| | months | | months | | |
| | to | | to | | 30 |
| | 31 | | 31 | | September |
| | March | | March | | 2009 |
| | 2010 | | 2009 | | Audited |
| | Unaudited | | Unaudited | | GBP000 |
| | GBP000 | | GBP000 | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Cash flow from operating | | | | | |
| activities | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Operating loss before taxation | (82) | | (192) | | (752) |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Adjustments for: | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Depreciation and amortisation | 209 | | 195 | | 400 |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Share-based payments | 16 | | 16 | | 33 |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Corporation tax paid | - | | 3 | | 3 |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Net cash flow from operating | 143 | | 22 | | (316) |
| activities before changes in | | | | | |
| working capital | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Decrease/(increase) in trade | 35 | | (3) | | 65 |
| and other receivables | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| (Decrease)/increase in trade | (579) | | 66 | | 172 |
| and other payables | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Net cash flow generated from | (401) | | 85 | | (79) |
| operating activities | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Investing activities | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Payments for intangible assets | (71) | | (78) | | (160) |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Payments for property, plant | (76) | | (189) | | (277) |
| and equipment | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Net cash outflow from investing | (147) | | (267) | | (437) |
| activities | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Financing activities | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Issue of ordinary share capital | 340 | | 205 | | 1,090 |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Proceeds from lease-finance | 34 | | 174 | | 239 |
| arrangements | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Repayment of lease-finance | (98) | | (173) | | (288) |
| arrangements | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Interest paid | (79) | | (95) | | (190) |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Net cash flow from financing | 197 | | 111 | | 851 |
| activities | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Net (decrease)/increase in cash | (351) | | (71) | | 335 |
| & cash equivalents in the | | | | | |
| period | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Cash & cash equivalents at the | 400 | | 65 | | 65 |
| beginning of the period | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| Cash & cash equivalents at the | 49 | | (6) | | 400 |
| end of the period | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+
+-+------------------------------+------------+----------+------------+----------+------------+
| 1| Corporate information |
+-+-------------------------------------------------------------------------------------------+
| | Nasstar Plc ("the Company") is a company incorporated in England and Wales and |
| | quoted on the London Stock Exchange's Alternative Investment Market. |
+-+-------------------------------------------------------------------------------------------+
| | |
+-+-------------------------------------------------------------------------------------------+
| 2| Basis of preparation |
+-+-------------------------------------------------------------------------------------------+
| | These condensed interim financial statements of the Company and its subsidiaries |
| | ("the Group") for the six months ended 31 March 2010 have been prepared using |
| | accounting policies consistent with International Financial Reporting Standards |
| | (IFRSs). The same accounting policies, presentation and methods of computation are |
| | followed in the condensed set of financial statements as applied in the Group's |
| | latest audited financial statements for the year ended 30 September 2009. |
| | |
+-+-------------------------------------------------------------------------------------------+
| | These condensed interim financial statements do not constitute Statutory Accounts |
| | under the Companies Act 2006, have not been audited, and do not include all of the |
| | information required for full annual financial statements. They should be read in |
| | conjunction with the Group's consolidated annual financial statements for the year |
| | ended 30 September 2009. The auditors' opinion on those Statutory Accounts was |
| | unqualified and did not draw attention to any other matters required by the |
| | Companies Act 2006. The Statutory Accounts for the year ended 30 September 2009 have |
| | been delivered to the Registrar of Companies. |
| | |
+-+-------------------------------------------------------------------------------------------+
| | The comparative figures presented are for the six months ended 31 March 2009 and the |
| | year ended 30 September 2009. |
+-+-------------------------------------------------------------------------------------------+
| | |
+-+-------------------------------------------------------------------------------------------+
| 3| Total comprehensive income |
+-+-------------------------------------------------------------------------------------------+
| | There are no additional items of income and expense which are not included within |
| | the profit and loss for the period. |
+-+-------------------------------------------------------------------------------------------+
| | |
+-+-------------------------------------------------------------------------------------------+
| 4| Segmental analysis |
+-+-------------------------------------------------------------------------------------------+
| | A segment is a distinguishable component of the Group that is engaged in providing |
| | products or services in a particular business sector (business segment) or in |
| | providing products or services in a particular economic environment (geographic |
| | segment), which is subject to risks and rewards that are different in those other |
| | segments. |
| | |
+-+-------------------------------------------------------------------------------------------+
| | The Group operated in the period in one segment, the provision of software as a |
| | service, and in one market, the United Kingdom. The disclosures required by IFRS8 |
| | relating to profits, losses, assets and liabilities of the segment are therefore |
| | shown by the financial statements as a whole. |
+-+-------------------------------------------------------------------------------------------+
| | |
+-+-------------------------------------------------------------------------------------------+
| | The Group had one overseas customer in the period. |
+-+-------------------------------------------------------------------------------------------+
| | |
+-+-------------------------------------------------------------------------------------------+
| 5| Loss per share |
+-+-------------------------------------------------------------------------------------------+
| | The calculation of the basic loss per share for the six months ended 31 March 2010 |
| | is based upon the following: |
+-+-------------------------------------------------------------------------------------------+
| | |
+-+-------------------------------------------------------------------------------------------+
| | | Six | | Six | | Year to |
| | | months | | months | | 30 |
| | | to | | to | | September |
| | | 31 | | 31 | | 2009 |
| | | March | | March | | Audited |
| | | 2010 | | 2009 | | |
| | | Unaudited | | Unaudited | | |
| | | | | | | |
+-+------------------------------+------------+----------+------------+----------+------------+
| | Weighted average number of | 32,629,560 | | 16,227,545 | | 16,776,227 |
| | shares in issue | | | | | |
+-+------------------------------+------------+----------+------------+----------+------------+
| | | | | | | |
+-+------------------------------+------------+----------+------------+----------+------------+
| | Loss attributable to | GBP161,000 | | GBP284,000 | | GBP939,000 |
| | shareholders of the parent | | | | | |
+-+------------------------------+------------+----------+------------+----------+------------+
| | | | | | | |
+-+------------------------------+------------+----------+------------+----------+------------+
| | Loss per 1p ordinary share | 0.49p | | 1.75p | | 5.60p |
+-+------------------------------+------------+----------+------------+----------+------------+
| | The diluted loss per share for all periods is the same as the basic loss per share |
| | as the losses have an anti-dilutive effect. |
+-+-------------------------------------------------------------------------------------------+
| | |
+-+-------------------------------------------------------------------------------------------+
| 6| Dividend |
+-+-------------------------------------------------------------------------------------------+
| | No dividend has been paid in the period. |
+-+-------------------------------------------------------------------------------------------+
| | |
+-+------------------------------+------------+----------+------------+----------+------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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