Released: 18/06/2009
Part 3 : For preceding part double click [nRn2R0852U]
The recoverable amount of the CGUs is determined based on a value-in-use
computation. Where the value-in-use exceeds the carrying value of the CGU the
asset is not impaired; where the carrying amount exceeds the value in use an
impairment is recognised. Estimates used in this process are key judgmental
estimates in the financial statements.
The CGUs represent the lowest level within the group at which goodwill is
monitored for internal management purposes and are not larger than the primary
and secondary segments determined in accordance with IAS 14"Segment Reporting".
The cash flow forecasts employed for the value-in-use computation are extracted
from management's budgets and forecasts for a five-year period approved by
senior management and the Board of Directors.
A growth rate of 2%-3% has been used in determining value-in-use beyond the
period covered by the budgets and forecasts. This assumption is made based on
the trading conditions which the Group expects to experience.
The recoverable amount stemming from this exercise represents the present value
of the future cash flows inclusive of the terminal value discounted at an
appropriate discount rate to the CGU being assessed for impairment; discount
rates of 11.8% - 12.3% were used.
6 Administrative expenses - special items - continued
Applying the above techniques, an impairment of goodwill of E76.5 million (2008:
6 months: E143.1 million 2008: 12 months (E149.17 million)) has been
recognised.
The values applied to each of the key assumptions are derived from a combination
of internal and external factors based on historical experience and take into
account the stability of cash flows typically associated with these businesses.
Key assumptions include managements':
* estimates of future profitability;
* trade working capital investment needs and;
* expected capital expenditure in the normal course of business.
(b) Restructuring costs
Restructuring costs relate to redundancy costs associated with the
rationalisation and restructuring of various group activities after the disposal
of Spain, France and Italy. During 2008, restructuring costs related to the
costs, incurred in the closure of Cardpoint offices in Blackpool and Frankfurt
and include rebranding, consultancy, and redundancy costs in relation to the
integration of both businesses since 5 December.
The 2008 costs also included the write down of certain assets which did not meet
the criteria of fair value adjustments on the reverse acquisition of alphyra by
Cardpoint.
(c) (Profit)/loss on disposal of subsidiaries
The group successfully completed the sale of France, Spain and Italy in October
2008 (Spain and Italy) and March 2009 (France). Following the completion of the
sale a profit on disposal of E4.2m was recorded. The group sold its gift card
business OLG to Branded Payment Solutions Limited in October 2008. Following
completion of the sale a loss on disposal of E600k was recorded.
During 2008, the group provided for a loss on disposal of E3.6 million, to write
the carrying value of the subsidiaries held for resale to their recoverable
amount.
(d) Increase in bad debt provision
During the period, the group's bad debt provision was increased by E2.7m to
reflect exposure to a downturn in the Romanian economy. The group is in the
process of recovering value through guarantees but as the legal process will
take sometime to resolve the group has provided for the risk.
(e) (Profit) on disposal of financial assets
On January 6, 2009 the group sold its holding in Orbiscom to Mastercard, for a
profit of E1.9m.
(f) Share option charge
The share option charges result from the acceleration of the vesting period of
Cardpoint share options as a result of the reverse acquisition of alphyra by
Cardpoint.
(g) Legal action with former directors
On the 16 October 2008 the company settled with the two former directors who had
taken legal action against the company in relation to an unfair dismissal case
and removal from office. Costs of E4.1 million were incurred in respect of
settlements, legal and related costs.
7 Finance costs - special items
6 month 6 month Year
period ended period ended ended
31 March 31 March 30 September
2009 2008 2008
E'000 E'000 E'000
Bank arrangement fees 456 2,385 3,853
Easy termination of derivative financial instruments - 433 433
456 2,818 4,286
Special items include fees incurred in relation to the renegotiation of the
group's facility agreement including related consulting and legal fees.
In 2008, the costs also included fees in relation to the early termination of
Cardpoint's banking arrangements, which include penalties on the early
termination of derivative financial instruments.
8 Earnings per share
Basic and diluted
Basic earnings per share are calculated by dividing the (loss) attributable to
equity holders of the company by the weighted average number of ordinary shares
in issue during the period.
6 month 6 month Year
period ended period ended ended
31 March 31 March 30 September
2009 2008 2008
Loss attributable to equity holders of the company (91,877) (166,559) (206,386)
(E'000)
Weighted average number of ordinary shares in 440,693 186,431 306,798
issue ('000)
Basic and diluted loss per share (cent per share) * (21c) (89c) (67c)
* None of the group's contingently issuable shares were dilutive as they
would have decreased the loss per share in all periods.
9 Classification of borrowings as current liabilities
As a result of a breach of banking covenants as at 31 March 2009 IAS 1
"Presentation of Financial Statements" requires the group's debt to be
classified as current. Negotiations with the bankers were ongoing at the time
and the bankers subsequently agreed to waive the default existing at 31 March
2009.
10 Reconciliation of changes in equity
Share Share Other Reverse Hedging Translation Retained Minority Total
capital premium reserve acquisition reserve reserve losses interests
reserve
E'000 E'000 E'000 E'000 E'000 E'000 E'000 E'000 E'000
At 1 October 2007 8,296 132,617 522 - 304 (526) (105,338) 155 36,030
Ordinary shares issued in Cardpoint plc 244 868 1,112
Exchange differences on translating foreign operations
(43,895) (43,895)
Transfer to reverse acquisition reserve (8,540) (133,485) (522) 136,064 6,483 -
Ordinary shares issued in Payzone plc 4,263 314,886 (124,028) 195,121
Credit for equity settled share based payments
3,840 3,840
Cash flow hedge:
- Fair value loss in period (902) (902)
- Transfer to finance costs (304) (304)
Loss for the financial period (166,559) 110 (166,449)
At 31 March 2008 4,263 314,886 - 12,036 (902) (37,938) (268,057) 265 24,553
Ordinary shares issued in Payzone plc 1,740 33,068 34,808
Share issue costs (1,114) (1,114)
Exchange differences on translating foreign operations
(35) 10,057 10,022
Credit for equity settled share based payments
-
Cash flow hedge:
- Fair value gain in period 1,510 1,510
Loss for the financial period (39,827) 352 (39,475)
At 30 September 2008 6,003 346,840 - 12,036 573 (27,881) (307,884) 617 30,304
10 Reconciliation of changes in equity - continued
Share Share Other Reverse Hedging Translation Retained Minority Total
capital premium reserve acquisition reserve reserve losses interests
reserve
E'000 E'000 E'000 E'000 E'000 E'000 E'000 E'000 E'000
At 30 September 2008 6,003 346,840 - 12,036 573 (27,881) (307,884) 617 30,304
Cash flow hedge:
- Fair value loss in period (5,960) (5,960)
Credit for equity settled share based payments
115 115
Share issue costs (320) (320)
Loss for the financial period (91,877) 71 (91,806)
Exchange differences on translating foreign operations
(36,675) (36,675)
At 31 March 2009 6,003 346,520 - 12,036 (5,387) (64,556) (399,646) 688 (104,342)
11 Cash and cash equivalents
As at 31 As at 31 As at 30
March March September
2009 2008 2008
E'000 E'000 E'000
Cash and cash equivalents 30,299 24,762 43,348
Cash held in disposal group held for sale 1,097 - 1,659
Bank overdraft in disposal group held for sale (2,934) - (755)
28,462 24,762 44,252
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAXKXFDLNEFE
.
Part 3 : For preceding part double click [nRn2R0852U]
The recoverable amount of the CGUs is determined based on a value-in-use
computation. Where the value-in-use exceeds the carrying value of the CGU the
asset is not impaired; where the carrying amount exceeds the value in use an
impairment is recognised. Estimates used in this process are key judgmental
estimates in the financial statements.
The CGUs represent the lowest level within the group at which goodwill is
monitored for internal management purposes and are not larger than the primary
and secondary segments determined in accordance with IAS 14"Segment Reporting".
The cash flow forecasts employed for the value-in-use computation are extracted
from management's budgets and forecasts for a five-year period approved by
senior management and the Board of Directors.
A growth rate of 2%-3% has been used in determining value-in-use beyond the
period covered by the budgets and forecasts. This assumption is made based on
the trading conditions which the Group expects to experience.
The recoverable amount stemming from this exercise represents the present value
of the future cash flows inclusive of the terminal value discounted at an
appropriate discount rate to the CGU being assessed for impairment; discount
rates of 11.8% - 12.3% were used.
6 Administrative expenses - special items - continued
Applying the above techniques, an impairment of goodwill of E76.5 million (2008:
6 months: E143.1 million 2008: 12 months (E149.17 million)) has been
recognised.
The values applied to each of the key assumptions are derived from a combination
of internal and external factors based on historical experience and take into
account the stability of cash flows typically associated with these businesses.
Key assumptions include managements':
* estimates of future profitability;
* trade working capital investment needs and;
* expected capital expenditure in the normal course of business.
(b) Restructuring costs
Restructuring costs relate to redundancy costs associated with the
rationalisation and restructuring of various group activities after the disposal
of Spain, France and Italy. During 2008, restructuring costs related to the
costs, incurred in the closure of Cardpoint offices in Blackpool and Frankfurt
and include rebranding, consultancy, and redundancy costs in relation to the
integration of both businesses since 5 December.
The 2008 costs also included the write down of certain assets which did not meet
the criteria of fair value adjustments on the reverse acquisition of alphyra by
Cardpoint.
(c) (Profit)/loss on disposal of subsidiaries
The group successfully completed the sale of France, Spain and Italy in October
2008 (Spain and Italy) and March 2009 (France). Following the completion of the
sale a profit on disposal of E4.2m was recorded. The group sold its gift card
business OLG to Branded Payment Solutions Limited in October 2008. Following
completion of the sale a loss on disposal of E600k was recorded.
During 2008, the group provided for a loss on disposal of E3.6 million, to write
the carrying value of the subsidiaries held for resale to their recoverable
amount.
(d) Increase in bad debt provision
During the period, the group's bad debt provision was increased by E2.7m to
reflect exposure to a downturn in the Romanian economy. The group is in the
process of recovering value through guarantees but as the legal process will
take sometime to resolve the group has provided for the risk.
(e) (Profit) on disposal of financial assets
On January 6, 2009 the group sold its holding in Orbiscom to Mastercard, for a
profit of E1.9m.
(f) Share option charge
The share option charges result from the acceleration of the vesting period of
Cardpoint share options as a result of the reverse acquisition of alphyra by
Cardpoint.
(g) Legal action with former directors
On the 16 October 2008 the company settled with the two former directors who had
taken legal action against the company in relation to an unfair dismissal case
and removal from office. Costs of E4.1 million were incurred in respect of
settlements, legal and related costs.
7 Finance costs - special items
6 month 6 month Year
period ended period ended ended
31 March 31 March 30 September
2009 2008 2008
E'000 E'000 E'000
Bank arrangement fees 456 2,385 3,853
Easy termination of derivative financial instruments - 433 433
456 2,818 4,286
Special items include fees incurred in relation to the renegotiation of the
group's facility agreement including related consulting and legal fees.
In 2008, the costs also included fees in relation to the early termination of
Cardpoint's banking arrangements, which include penalties on the early
termination of derivative financial instruments.
8 Earnings per share
Basic and diluted
Basic earnings per share are calculated by dividing the (loss) attributable to
equity holders of the company by the weighted average number of ordinary shares
in issue during the period.
6 month 6 month Year
period ended period ended ended
31 March 31 March 30 September
2009 2008 2008
Loss attributable to equity holders of the company (91,877) (166,559) (206,386)
(E'000)
Weighted average number of ordinary shares in 440,693 186,431 306,798
issue ('000)
Basic and diluted loss per share (cent per share) * (21c) (89c) (67c)
* None of the group's contingently issuable shares were dilutive as they
would have decreased the loss per share in all periods.
9 Classification of borrowings as current liabilities
As a result of a breach of banking covenants as at 31 March 2009 IAS 1
"Presentation of Financial Statements" requires the group's debt to be
classified as current. Negotiations with the bankers were ongoing at the time
and the bankers subsequently agreed to waive the default existing at 31 March
2009.
10 Reconciliation of changes in equity
Share Share Other Reverse Hedging Translation Retained Minority Total
capital premium reserve acquisition reserve reserve losses interests
reserve
E'000 E'000 E'000 E'000 E'000 E'000 E'000 E'000 E'000
At 1 October 2007 8,296 132,617 522 - 304 (526) (105,338) 155 36,030
Ordinary shares issued in Cardpoint plc 244 868 1,112
Exchange differences on translating foreign operations
(43,895) (43,895)
Transfer to reverse acquisition reserve (8,540) (133,485) (522) 136,064 6,483 -
Ordinary shares issued in Payzone plc 4,263 314,886 (124,028) 195,121
Credit for equity settled share based payments
3,840 3,840
Cash flow hedge:
- Fair value loss in period (902) (902)
- Transfer to finance costs (304) (304)
Loss for the financial period (166,559) 110 (166,449)
At 31 March 2008 4,263 314,886 - 12,036 (902) (37,938) (268,057) 265 24,553
Ordinary shares issued in Payzone plc 1,740 33,068 34,808
Share issue costs (1,114) (1,114)
Exchange differences on translating foreign operations
(35) 10,057 10,022
Credit for equity settled share based payments
-
Cash flow hedge:
- Fair value gain in period 1,510 1,510
Loss for the financial period (39,827) 352 (39,475)
At 30 September 2008 6,003 346,840 - 12,036 573 (27,881) (307,884) 617 30,304
10 Reconciliation of changes in equity - continued
Share Share Other Reverse Hedging Translation Retained Minority Total
capital premium reserve acquisition reserve reserve losses interests
reserve
E'000 E'000 E'000 E'000 E'000 E'000 E'000 E'000 E'000
At 30 September 2008 6,003 346,840 - 12,036 573 (27,881) (307,884) 617 30,304
Cash flow hedge:
- Fair value loss in period (5,960) (5,960)
Credit for equity settled share based payments
115 115
Share issue costs (320) (320)
Loss for the financial period (91,877) 71 (91,806)
Exchange differences on translating foreign operations
(36,675) (36,675)
At 31 March 2009 6,003 346,520 - 12,036 (5,387) (64,556) (399,646) 688 (104,342)
11 Cash and cash equivalents
As at 31 As at 31 As at 30
March March September
2009 2008 2008
E'000 E'000 E'000
Cash and cash equivalents 30,299 24,762 43,348
Cash held in disposal group held for sale 1,097 - 1,659
Bank overdraft in disposal group held for sale (2,934) - (755)
28,462 24,762 44,252
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAXKXFDLNEFE