Regulatory News
REG-GlobeOp Fin Services Interim Results - Part 1
Released: 27/08/2009
com:20090827:Rnsa0787Y
.
RNS Number : 0787Y
GlobeOp Financial Services S.A.
27 August 2009
For Immediate Release 27 August 2009
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2009
GlobeOp Financial Services S.A. ("GlobeOp" or "the Company"), (LSE:GO.) a
leading independent provider of business process outsourcing, financial
technology services and analytics to hedge funds and other asset managers, today
announces its interim results for the six months ended 30 June 2009.
Highlights
* Assets under Administration (AuA) as at 30 June 2009 were $83 billion, with
$11 billion in new clients and $4 billion in new funds from existing clients
added during the first half of 2009
* Revenues of $79.2 million
* Adjusted Operating Profit* of $15.9 million
* Recognition of a legal provision - $27 million after tax impact, $43.5
million pre-tax
* Cash of $53.6 million as at 30 June 2009 compared to $42.9 million as at 31
March 2009
* Interim dividend of 0.65 pence per share - same as first half 2008
* Solid new business pipeline, with several billion of AuA from new client
launches possible for the second half of the year
2009 2008
Half year Half year
Financial Information
Revenues $79.2m $94.5m
Operating (loss) profit+ ($34.1)m $17.4m
(Loss) profit before tax+ ($34.0)m $17.7m
(Loss) earnings per share-diluted ($0.19) $0.12
Dividends per share (pence) 0.65p 0.65p
Key Performance Indicators
Adjusted operating profit* $15.9m $24.6m
Adjusted operating profit as a percentage of revenues 20.0% 26.1%
Profit before tax and exceptionals* $9.5m $17.1m
Profit before tax and exceptionals as a percentage of 12.0% 18.1%
revenues
End of period AuA related to MBA revenues (in billions)* $83bn $104bn
KEY
+ amounts include exceptional costs as described in the Financial Review
discussion below.
* see explanatory note in Financial Review discussion below.
Commenting on the results, Hans Hufschmid, chief executive officer, said:
In the first half of the year, GlobeOp continued to perform well as financial
markets began to stabilise. Many hedge funds returned to profitability, leading
to an encouraging increase in subscriptions. In addition, new business AuA added
during the first half of 2009 stood at $15 billion with $11 billion of AuA from
new clients and $4 billion from new funds from existing clients.
GlobeOp's strong market position and ability to meet the evolving needs of
the industry produced significant opportunities through the expansion of product
offerings. Recent portfolio risk reporting enhancements to the investor
reporting tool, GoBook, respond to increased investor demand for greater
transparency. We also introduced Managed Services for hedge funds and other data
sensitive organisations. Both demonstrate our flexibility as we continue to
develop innovative and relevant products.
Commenting on the second half of 2009, Mr. Hufschmid added:
Continuing the trend we have seen in previous quarters, we expect to see
sustained investor demand for greater transparency, control of capital and
independent portfolio valuation and reconciliation. We also believe fund
managers will seek operational solutions to meet these requirements and to
improve their own cost structures. We will continue to develop solutions for
these evolving needs and to aggressively pursue new business prospects, while
remaining focused on improving productivity and managing costs across the
business. The current environment creates opportunities for companies with
strong financial positions, client bases and scalable operations. Our new
business pipeline is very encouraging and we aim to supplement organic growth
with a focused acquisition strategy targeting our existing markets to increase
our share of the fund administration sector going forward.
Enquiries
GlobeOp Financial Services
Martin Veilleux, Chief Financial Officer (US) +1 646 827 2000
Brunswick Group
Gill Ackers / Roberta Governale (UK) +44 (0)20 7404 5959
Conference Call for Analysts and Investors
There will be a conference call for analysts and investors at 2:30pm GMT. The
dial-in number is +44 (0) 1452 561 263. Participants will need to quote Hans
Hufschmid as chairman of the call, together with the conference ID 26944189.
An instant replay facility will also be available for 7 days after the call. The
dial-in number for the replay facility will be +44 (0) 1452 55 00 00 and the
access code 26944189#. The recorded call will then be accessible via
www.globeop.com.
Notes to Editors - About GlobeOp
GlobeOp Financial Services (LSE:GO.) is a leading, independent financial
technology specialist providing automated, integrated middle- and back-office,
administration and risk reporting services to hedge funds and asset management
firms-including banks, insurance companies, mutual & pension funds and
proprietary traders. Clients trading a wide range of asset classes and
derivatives outsource to GlobeOp to reduce technology investments and
operational risks, and to focus resources on asset generation and portfolio
management. Established in 2000, GlobeOp serves over 180 clients worldwide,
representing $81 billion in assets under administration (AuA).With headquarters
in London and New York, GlobeOp employs more than 1,500 people on three
continents; offices are also located in Dublin, Ireland; George Town, Cayman
Islands; Harrison and Yorktown Heights, NY and Hartford, CT, U.S.A.; and Mumbai
(Bombay), India. Further information: www.globeop.com
(R) 2009 - GlobeOp Financial Services LLC (GlobeOp). All rights reserved.
GlobeOp and the GlobeOp "G" are trade and service marks of GlobeOp and its
affiliates.
Important notice
Certain statements in this announcement of interim results are forward looking
statements. By their nature, forward looking statements involve a number of
risks, uncertainties or assumptions that could cause actual results or events to
differ materially from those expressed or implied by those statements. Forward
looking statements regarding past trends or activities should not be taken as
representations that such trends or activities will continue in the future.
Accordingly, undue reliance should not be placed on forward looking statements.
CHAIRMAN'S STATEMENT
The results of the first half were accomplished within a very challenging
market environment. Despite difficult economic conditions, GlobeOp added $15
billion of new AuA and generated 20% Adjusted Operating Profit on $79.2 million
of revenue. Through prudent management of the business, the Company again
generated positive cash flow from operations and continued to invest
significantly in technology and infrastructure. These investments further
broaden GlobeOp's service offerings and enhance the scalability of its
operations. GlobeOp also continued to focus on productivity and service quality
initiatives throughout the first half. We believe this positions the Company
well as a platform for potential consolidation within the fund administration
sector.
GlobeOp has also settled a long-standing legal dispute that relates to the
2004 and 2005 time period. Resolving this issue removes the uncertainty of
ongoing arbitration and allows management to continue its focus on leveraging
the highly efficient operating platform it has built and improved over the
years. The Company has significantly invested in its people, processes, controls
and technology to strengthen its service offerings and infrastructure. GlobeOp
now also pursues an independent audit of its operating processes and controls to
meet SAS 70 Type II certification each year. Further details regarding the
settlement are provided in the Litigation Update section.
Finally, based on the strength of the results I am pleased to announce an
interim dividend of 0.65 pence per share. It will be paid on 8 October 2009,
with an ex-dividend date of 16 September 2009 and a record date of 18 September
2009.
CHIEF EXECUTIVE'S REVIEW
Operational Review
During the first half of this year we continued to invest in GlobeOp
services and technology, add new clients and expand our relationships with
existing clients. At the same time, we carefully managed our cost structure. As
a result, we put into production our second state-of-the-art data center, which
is wholly-owned, and extended our Risk Reporting expertise and capabilities for
both clients and their investors. We also expanded our product offerings with
the introduction of Managed Services for hedge funds and other data-sensitive
organizations. We continued to strengthen our sales force and increased our
share of the hedge fund administration market with the addition of $15 billion
of AuA from new clients and new funds from existing clients.
While making our investments and expanding the business during the first half
of the year, we also maintained a sharp focus on cash flow and core
profitability. Reflecting this, our 30 June 2009 cash balance of $53.6 million
increased nearly $10.7 million from $42.9 million as at 31 March 2009 and grew
$6.9 million in the past twelve months, even after capital investments that
included nearly $11 million for the purchase and build-out of our Yorktown
Heights, New York data center.
As anticipated, revenue decreased from $94.5 million in the first half of
2008 to $79.2 million during the first half of this year. The decline reflected
a reduction in AuA from $88 billion at the beginning of 2009 to $83 billion as
at 30 June 2009. The addition of $15 billion from new clients and new funds from
existing clients during the first six months of 2009 was offset by investor
redemptions and client terminations of $33 billion. However, subscriptions and
fund performance, which were both negatively impacted by the tough economic
environment in the second half of 2008, have begun to improve. Combined, they
added $13 billion to AuA during the first half of 2009. Adjusted operating
profit margin decreased to 20.0% from 26.1% in the prior year period primarily
due to non-recurring costs. Excluding these costs, adjusted operating profit
margin would have been 25.2% for the first half of 2009 versus 27.4% for the
first half of 2008. See the Financial Review section for further details.
We are reporting an operating loss of $34.1 million for the first half of
2009 as a result of a one-time $43.5 million pre-tax charge related to a legal
settlement. This settlement will be paid over time until 2011 using existing
cash resources and will be a tax deductible expense during the year in which
each payment is made. The tax benefit of this charge is approximately $16.5
million. See the Litigation Update section for further details.
We are pleased with our core operating performance for the first half of the
year. Revenue, adjusted operating profit and cash flow from operations all
exceeded internal projections. We also increased our market share during a
challenging period and continued to invest in the business. As a result, we have
further strengthened our offerings and delivery of services and this positions
us well in an industry that has begun to stabilize.
Current Trading and Outlook
Looking ahead to the second half of 2009, we expect to see sustained investor
demand for greater transparency, control of capital and independent portfolio
valuation and reconciliation. We also believe fund managers will continue to
seek operational solutions to meet these requirements and to improve their own
operational cost structures. We will keep developing solutions for these
evolving needs and aggressively track new business opportunities. In addition,
we intend to pursue a focused acquisition strategy targeted to our existing
markets to increase our share of the fund administration sector and to take
advantage of our cost-effective, leveragable and high-quality platform.
Our current pipeline of prospects is promising, with several billion of AuA
from new client launches possible for the second half of the year. Redemptions
were $6.4 billion in July but we see the pace of redemptions notably slowing,
with approximately $700 million thus far in August. The current schedule of
forward-looking redemptions shows a substantial reduction compared to 2008 and
early 2009 levels. So far in the second half of 2009, subscriptions have
continued their upward trend from the first half of 2009, as July was the first
month since September 2008 to exceed $2 billion of inflows, a figure nearly
matched by August 2009 subscriptions.
We remain focused on prudently managing costs and further improving
productivity. We continue to be confident in our ability to generate strong cash
flow from operations while introducing new technology and solutions to improve
productivity and client service levels.
We believe our highly efficient operating model, solid financial position and
proven ability to meet the evolving needs of the industry position us well for
the long term.
Financial review
Overview
Total revenues decreased by $15.3 million, or 16%, to $79.2 million for the
first half of 2009 versus $94.5 million for the first half of 2008. The decline
in revenues was, as anticipated, primarily the result of lower average AuA
during the first half of 2009 versus the first half of the prior year.
A $43.5 million pre-tax charge was recorded in the first half results for
the settlement of a historical legal dispute. As a result, an operating loss of
$34.1 million was recognized for the period. Further details are provided in the
Litigation Update section. The first half of 2008 delivered an operating profit
of $17.4 million.
Adjusted operating profit, a non-IFRS financial measure described below,
decreased by $8.7 million, or 36%, from $24.6 million for the first half of 2008
to $15.9 million for the first half of 2009. As a percentage of revenues,
adjusted operating profit decreased to 20.0% in the current year period from
26.1% in the prior year period. This margin reduction was impacted by a $1.6
million accrual for the estimated exit costs related to a leased data center
that was replaced by a new wholly-owned facility that became operational during
the first half of 2009, and by a $1.2 million increase in litigation-related
fees over the prior year period. Without lease exit and litigation-related
expenses, adjusted operating profit as a percentage of revenues would have been
25.2% for the first half of 2009 versus 27.4% for the first half of 2008.
Profit before tax and exceptionals, a non-IFRS financial measure described
below, decreased by $7.6 million, or 44%, from $17.1 million during the first
half of 2008 to $9.5 million during the first half of 2009. Net loss for the
first half of 2009 was $19.7 million versus a net profit of $12.4 million for
the first half of 2008.
The following table sets forth selected financial and operating data for the
six months ended 30 June 2009 and 2008. All amounts are in US Dollars and in
thousands, except percentages, employee data and as otherwise indicated.
Six months ended 30 June
2009 2008 Change
(unaudited) (unaudited)
Revenues
MBA revenues $74,077 $87,844 -16%
Risk Reporting revenues 3,318 4,007 -17%
Transaction Solutions revenues 1,756 2,654 -34%
Total revenues 79,151 94,505 -16%
Expenses
Employee costs, excluding costs related to share options and 38,812 45,698 -15%
restricted stock
Employee costs related to share options and restricted stock 2,023 2,548 -21%
Technology costs 13,100 11,955 10%
Depreciation and amortization expense 4,471 5,279 -15%
Occupancy costs 5,389 5,332 1%
Legal claims - pre-tax(1) 43,500 -- n/a
Insurance reimbursement related to water damage at facility -- (613) n/a
Other operating expenses 5,985 6,901 -13%
Total operating expenses 113,280 77,100 47%
Operating (loss) profit (34,129) 17,405 -296%
Interest income, net 157 274 -43%
(Loss) profit before tax (33,972) 17,679 -292%
Taxation (benefit) expense (14,292) 5,306 369%
Net (loss) profit $(19,680) $12,373 -259%
Key Performance Indicators:
Adjusted operating profit(2) $15,865 $24,619 -36%
Adjusted operating profit as a percentage of revenues 20.0% 26.1%
Profit before tax and exceptionals(3) $9,528 $17,066 -44%
Profit before tax and exceptionals as a percentage of revenues 12.0% 18.1%
AuA related to MBA revenues-end of period (in billions)(4) $83 $104 -20%
Employees-beginning of period (excluding temporary employees) 1,734 1,704 2%
Employees-end of period (excluding temporary employees) 1,554 1,789 -13%
Revenues
Revenues decreased $15.3 million, or 16%, to $79.2 million in the first half
of 2009. This reduction was comprised of decreases in MBA revenues of $13.7
million, Transaction Solutions revenues of $0.9 million and Risk Reporting
revenues of $0.7 million.
The decrease in MBA revenues was predominantly related to a 14% reduction in
average AuA for the first half of 2009 versus the first half of 2008. The
decrease in Transaction Solutions revenues was primarily due to a net decline in
trade volumes and positions. The decrease in Risk Reporting revenues was mainly
related to a reduction in AuA for certain clients whose fees are based on their
AuA.
Operating expenses
Operating expenses increased $36.2 million to $113.3 million in the first
half of 2009 from $77.1 million in the same period last year due to the $43.5
million pre-tax charge recorded for the settlement of a historical legal
dispute. This one-time charge was offset by a $7.3 million decrease in operating
expenses primarily related to a $7.4 million reduction in employee costs.
Employee costs, excluding costs related to share options and restricted
stock, decreased 15% from $45.7 million in the first half of 2008 to $38.8
million in the first half of 2009 primarily due to a 6% decrease in average
headcount and a reduction in average compensation and benefits per headcount. In
addition, employee costs related to share options and restricted stock declined
21% from $2.5 million in the first half of 2008 to $2.0 million in the first
half of 2009.
Technology costs increased 10% from $12.0 million in the first half of 2008
to $13.1 million in the first half of 2009. This was primarily due to a $1.6
million accrual for the anticipated exit costs related to a leased data center
recorded in the first half of 2009. Excluding these lease exit costs, technology
costs declined 3% in the first half of 2009 as compared to the first half of
2008.
Other operating expenses decreased 13% from $6.9 million in the first half of
2008 to $6.0 million in the first half of 2009. This was primarily due to
reductions of $0.8 million in travel and other employee-related costs, $0.8
million in professional service fees, $0.3 million in pass-through costs and
$0.2 million in miscellaneous expenses, partially offset by a $1.2 million
increase in litigation-related fees over the prior year period.
Operating (loss) profit
The operating loss of $34.1 million in the first half of 2009 includes a
$43.5 million pre-tax charge for the settlement of a historical legal dispute.
Operating profit in the first half of 2008 was $17.4 million. Adjusted operating
profit was $15.9 million in the first half of 2009 versus $24.6 million in the
first half of 2008, a decrease of $8.7 million or 36%. Adjusted operating profit
is not a measure of financial performance under IFRS. A reconciliation of
adjusted operating profit to operating (loss) profit is shown in the explanatory
notes below. As a percentage of revenues, adjusted operating profit was 20.0% in
the first half of 2009 as compared to 26.1% in the first half of 2008. This
margin reduction was impacted by a $1.6 million accrual for the estimated exit
costs related to a leased data center and a $1.2 million increase in
litigation-related fees over the prior year period. Without lease exit and
litigation-related expenses, adjusted operating profit as a percentage of
revenues would have been 25.2% for the first half of 2009 versus 27.4% for the
first half of 2008. The decline in the adjusted operating profit margin was due
to a greater decrease in revenues than in the Company's principal operating
expenses - employee and technology costs - as well as a slight increase in
occupancy costs.
1H 2009
Rate of 1H 2009 1H 2008
(Reduction) % of Revenues % of Revenues
Increase
Revenue (16%) 100% 100%
Employee costs, excluding share-based compensation (15%) 49% 48%
Technology costs (a) (3%) 15% 13%
Occupancy costs 1% 7% 6%
(a) excluding $1.6 million accrual for lease exit costs
in first half 2009.
Taxation
Our effective income tax rate for the first half of 2009 was a benefit of
42% versus a charge of 30% for the first half of 2008. The tax benefit in the
current year period is the result of the $16.5 million estimated income tax
benefit related to the legal charge recorded during the period. In addition, the
current year tax provision includes the positive impact of an increase in our
share price during the first half of 2009 on the estimated future expense
deductions related to employee share awards.
Our effective tax rate may vary from year to year depending on, amongst
other factors, our geographic and business mix of taxable earnings as well as
the deductibility of expenses for income tax purposes relative to financial
reporting purposes.
Balance Sheet and Cash Flow
At 30 June 2009, we had cash and cash equivalents of $53.6 million,
excluding $2.2 million of restricted cash, versus $51.2 million at 31 December
2008 and $46.7 million at 30 June 2008.
The following table sets forth the components of our cash flows for the
following periods. Amounts are in US Dollars and millions.
Six months ended
______ 30 June______
2009 2008
(unaudited) (unaudited)
Net cash provided by operating activities $7.8 $14.2
Net cash used in investing activities (5.3) (5.6)
Net cash used in financing activities (2.4) (2.0)
Increase in cash and cash equivalents 0.1 6.6
Effect of foreign exchange rate changes 2.3 --
Cash and cash equivalents, beginning of the period 51.2 40.1
Cash and cash equivalents, end of the period $53.6 $46.7
During the first six months of 2009, we generated net cash from operating
activities of approximately $7.8 million compared to $14.2 million during the
first six months of 2008. This decrease in cash generation was primarily related
to a decrease in profit before tax and exceptionals of $7.5 million, offset by a
net improvement in working capital.
Cash used in investing activities in 2009 includes $3.2 million for the
substantial completion of the build-out of the Company's new data center in
Yorktown Heights, New York, that was purchased in the second half of 2008. Cash
used in the first half of 2008 included $4.5 million for the expansion and
upgrade of the Company's data center in Harrison, New York.
Cash used in financing operations for both periods primarily related to the
Company's dividend payments.
We are currently in discussions with the Bank of Scotland to amend financial
covenants to allow borrowings by the Company, if so desired, under its $30
million credit facility, despite the operating loss reported in the six months
ended 30 June 2009.
Litigation Update
We have settled a long-standing claim brought in arbitration by a former hedge
fund client. The claim relates to GlobeOp's obligation to calculate and
distribute the net asset value of the fund and the impact on that of mis-priced
position values provided by a principal of the hedge fund's investment manager.
The arbitration will be terminated and a settlement agreement was signed.
GlobeOp expects that the cost of this settlement will be approximately $27
million, net of $16.5 million of applicable income tax benefits. The amount of
the settlement is $43.5 million, with $20 million paid at settlement and the
remainder paid over time with interest equal to the U.S. prime rate. The last
payment will be February 2011. The settlement will be paid out of existing cash
resources and will be a tax-deductible business expense during the year in which
each payment is made. GlobeOp has no further liabilities outstanding in relation
to this matter and the issue will have no impact on current and future clients.
Dividend
The Board has declared an interim dividend of 0.65 pence per share payable
on 8 October 2009, with an ex-dividend date of 16 September 2009 and a record
date of 18 September 2009.
First Half Important Events
During the six months ended 30 June 2009, the Group was involved in
arbitration with a former hedge fund client. The arbitration hearing took place
during May and June 2009. A settlement agreement was signed on 26 August 2009 in
order to avoid the risk and uncertainty of a binding arbitration award, which
could not be subject to an appeal, and to receive favorable payment terms for
the settlement amount. The amount of the settlement is $43.5 million. See the
Litigation Update section for further details.
Other important events are as noted elsewhere in this interim results
announcement.
Principal Risks and Uncertainties
Our business performance and the execution of our strategy are subject to a
number of risks and uncertainties, not wholly within our control, which could
have a material impact on the Group's performance and could cause actual results
to differ materially from forecast and historic results.
The principal risks and uncertainties facing the Group include: the current
state of the world's financial markets; trends, developments and risks,
including market stress or volatility, associated with the hedge fund industry;
ability to hire and retain highly skilled employees and reliance on key senior
members of our management team; dependence on the capacity and reliability of
our computer and communications systems and those of third-party service
providers; ability to protect our intellectual property and retain key
third-party licenses; continuation of contracts with our existing clients;
substantial litigation risk from and through our clients and otherwise in the
ordinary course of business; ability to maintain our reputation as a leading
independent hedge fund services provider; ability to comply with applicable laws
and regulations including financial service regulations; exposure to
fluctuations in exchange rates and interest rates.
Further details of these principal risks and uncertainties can be found in the
2008 Annual Report, available from the GlobeOp website (www.globeop.com).
All of the above risks have the potential to impact our results or financial
position during the remaining six months of the financial year.
Related-Party Transactions
The Company has related-party relationships with its subsidiaries (which are
eliminated upon consolidation) and with its Directors and members of key
management in the form of remuneration. There are no transactions with related
parties who are not members of the Group.
Explanatory notes:
(1) Legal claims - pre-tax includes the pre-tax charge recorded for the
settlement of a historical legal dispute. See the Litigation Update section for
further details.
(2) Adjusted operating profit is calculated by the Company as operating
profit prior to depreciation and amortization expense, employee costs related to
share options and restricted stock, legal claims - pre tax and insurance
reimbursements related to water damage to a company facility. Adjusted operating
profit is not a measure of financial performance under IFRS. Our calculation of
adjusted operating profit may be different from the calculation used by other
companies and therefore comparability may be limited. The following table
reconciles operating (loss) profit to adjusted operating profit:
Six months ended
30 June
2009 2008
($'000)
(unaudited)
Operating (loss) profit $(34,129) $17,405
Depreciation and amortization expense 4,471 5,279
Employee costs related to share options and restricted stock 2,023 2,548
Legal claims - pre-tax 43,500 --
Insurance reimbursement related to water damage at facility -- (613)
Adjusted operating profit $15,865 $24,619
(3) Profit before tax and exceptionals is calculated by the Company as profit
before tax prior to legal claims - pre tax and insurance reimbursements related
to water damage to a company facility. Profit before tax and exceptionals is not
a measure of financial performance under IFRS. Our calculation of profit before
tax and exceptionals may be different from the calculation used by other
companies and therefore comparability may be limited. The following table
reconciles (loss) profit before tax to profit before tax and exceptionals:
Six months ended
30 June
2009 2008
($'000)
(unaudited)
(Loss) profit before tax $(33,972) $17,679
Legal claims - pre-tax 43,500 --
Insurance reimbursement related to water damage at facility -- (613)
Profit before tax and exceptionals $9,528 $17,066
(4) AuA (assets under administration) is an operational metric in the hedge
fund services industry commonly used to describe the amount of funds currently
under a fund service provider's administration. We define AuA as the aggregate
amount of our clients' assets that we are servicing that we use as the basis for
invoicing those clients for services rendered in a particular month, in
accordance with the terms of our client contracts. Consistent with past
disclosure, the performance of clients' funds for the current month is not
included in the measurement of AuA at the end of that month. Thus, June 2009
client fund performance is not within the 30 June 2009 figure.
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT
Six months ended Six months ended
30 June 2009 30 June 2008
(unaudited) (unaudited)
Notes $'000 $'000
Revenue 79,151 94,505
Operating expenses 6 (113,280) (77,100)
Operating (loss) profit (34,129) 17,405
Finance income 10 214 684
Finance costs 10 (57) (410)
Finance income, net 10 157 274
(Loss) profit before tax (33,972) 17,679
Taxation 11 14,292 (5,306)
(Loss) profit for the period (19,680) 12,373
(Loss) earnings per share:
Basic 12 (0.19) 0.12
Diluted 12 (0.19) 0.12
The accompanying notes are an integral part of this unaudited condensed
consolidated interim
financial information.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE (LOSS) INCOME
Six months ended Six months ended
30 June 2009 30 June 2008
(unaudited) (unaudited)
$'000 $'000
Net (loss) profit recognized in income statement (19,680) 12,373
Other comprehensive income (loss)
Cumulative translation adjustment 2,688 (691)
Other comprehensive income (loss) 2,688 (691)
Total comprehensive (loss) income (16,992) 11,682
The accompanying notes are an integral part of this unaudited condensed
consolidated interim
financial information.
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
At 30 June At 30 June 2008 At 31 December
2009 2008
(unaudited) (unaudited) (audited)
Notes $'000 $'000 $'000
Assets
Non-current assets
Intangible assets, net 6,804 8,597 6,941
Property, plant and equipment, net 14 29,131 22,269 29,931
Deferred income tax assets 11 15,377 10,817 4,084
Accounts receivable and other assets 15 856 943 823
Restricted cash 2,181 1,339 2,187
Total non-current assets 54,349 43,965 43,966
Current assets
Accounts receivable and other assets 15 15,002 22,603 23,422
Corporate tax receivable 5,909 - 486
Cash and cash equivalents 53,626 46,673 51,259
Total current assets 74,537 69,276 75,167
Total assets 128,886 113,241 119,133
The accompanying notes are an integral part of this unaudited condensed
consolidated interim
financial information.
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
30 June 30 June 31 December
2009 2008 2008
(unaudited) (unaudited) (audited)
Notes $'000 $'000 $'000
Shareholders' Equity
Capital and reserves attributable to equity holders of the Company
Share capital 10,960 10,914 10,960
Treasury shares (110) (1,086) (41)
A Beneficiary Certificates 16 - 1,086 -
Share premium 7,813 13,139 8,356
Other reserves 24,808 24,053 17,864
Retained earnings 17,745 31,730 40,186
Total Shareholders' equity 61,216 79,836 77,325
Liabilities
Non-current liabilities
Trade and other payables 18 677 553 560
Provisions for liabilities and charges 17 26,469 2,881 2,679
Deferred lease obligations 1,718 1,947 1,639
Total non-current liabilities 28,864 5,381 4,878
Current liabilities
Trade and other payables 18 16,660 26,479 30,257
Corporate tax liabilities 596 1,295 3,033
Provisions for liabilities and charges 17 21,550 250 3,640
Total current liabilities 38,806 28,024 36,930
Total liabilities 67,670 33,405 41,808
Total Shareholders' equity and liabilities 128,886 113,241 119,133
More to follow, for following part double-click [nRn2a0787Y]