Source - RNS
RNS Number : 2718L
SerVision plc
30 September 2016
 

30 September 2016

 

 

SerVision PLC

("SerVision" or the "Company")

 

Interim Results

For the Six Months Ended 30 June 2016

 

The Board of SerVision (AIM: SEV), the AIM quoted leading developer and manufacturer of digital security systems, announces its unaudited results for the six months ended 30 June 2016.

 

 

For further information:

 

 

SerVision plc

+972 2535 0000

Gidon Tahan, Chairman and CEO

 


Allenby Capital Limited (Nominated Adviser and Joint Broker)

+44 (0)20 3328 5656

Nick Athanas / James Reeve 


 

Beaufort Securities Limited (Joint Broker)


Elliot Hance

+44 (0)20 7382 8300

 

Cadogan Leander (Financial PR)


Christian Taylor-Wilkinson

+44 (0)7795 168 157

 

 

 

Notes to Editors

 

SerVision is a pioneer in the field of security communications technology and a leading developer and manufacturer of fully integrated video recording and transmission systems for homeland security and transportation applications. The Company's core technology is proprietary video compression which is optimised for streaming real-time video over any type of cellular or narrowband network.

 



 

CHAIRMAN'S STATEMENT

 

The Board today announces SerVision's consolidated group interim results for the six months ended 30 June 2016.  Revenue for this period was $1,288,000 and our net loss was $1,013,000 compared with a revenue of $1,242,000 and a net loss of $1,445,000 for the corresponding period ending 30 June 2015.  The Group's turnover during this period was marginally higher than H2 of 2015. This year's H1 results include new recurring revenue streams generated from our UK office, which I am confident will continue to grow as more customers subscribe to our solutions and services.  I also expect further growth in the near future as we conclude a number of successful pilots with our new IP-based, High Definition mobile video gateway, the IVG400-N, and as a result of our recent integration with Mobileye's world renowned advanced collision avoidance technology.

 

Sales and Marketing

 

In March 2016, SerVision UK reported that it had commenced commercial operations with a number of significant new customers including, but not limited to; Manchester Airport, Maple Fleet Services, Stobart Rail and Up Front Car Holdings.  The Company's relationship with DHL is continuing to progress well, with the UK office carrying out installations for over 100 DHL vehicles during this period.  

 

Beyond the sales from hardware and installation services, recurring revenue from data plans and UK support/maintenance contracts currently stands at $18,000 per month and the Directors believe this sum will continue to increase as existing projects grow and new opportunities arise.  We are currently in a new round of discussions with DHL regarding the expand of monthly service contracts for DHL vehicles equipped with SerVision's mobile video solutions. 

 

The decision last year to open an office in the UK and commence direct selling to customers has proved successful, with the UK office now providing around 50% of the Company's revenues.

 

Outside of the UK market, and as announced in January 2016, the Group signed a binding agreement with Convoy Technologies LLC ("Convoy"), an established US-based company that manufactures visual tools for heavy duty vehicles to improve fleet safety, security and productivity. Convoy will act as the non-exclusive distributor of SerVision's MVG Video Gateway products in the US, Canada, Central and South America.  Convoy has been making regular orders and are on track to meet expectations for the year.

 

Research and Development

 

SerVision's R&D team has spent much of the year-to-date fine-tuning the performance of the Group's IVG and our new SVCentral monitoring software, as well as adding new features and functions to both platforms, and integrating SerVision's software with Mobileye's collision avoidance technology.  Many of these new features and functions have been in response to client requests; for example, the IVG is now UVID compatible, enabling SerVision to install its solutions into existing camera installations.  We have also been focused on developing an entirely new software solution called SVDownloader that enables automated cloud backup of video. The SVDownloader software can be run as an add-on in our new SVCentral, or it can easily be integrated into third party fleet management software applications. 

 

The next major task on our roadmap is to develop a new server solution that will facilitate alarm management among SVCentral applications running in a multi-user environment.  In parallel to this, our R&D team is researching ways to modify our SDK in order to streamline development of new client applications.  Once the SDK has been modified, we will begin development of a cross-platform web client. We also intend to launch brand new mobile apps for iOS and Android. 

 

Financials

 

·     Revenues for this period increased to $1,288,000 compared to $1,242,000 for the same period in 2015. 

·     Operating loss for the period was reduced by 31 per cent. to $989,000, compared to an operating loss of $1,436,000 for the same period in 2015.

·     Net loss for the period was reduced by 30 per cent. to $1,013,000 compared to a loss of $1,445,000 for the same period in 2015.

 

On 8 July 2016 SerVision announced that it had entered into a deed of amendment with YA II PN Ltd whereby the parties agreed to amend the terms of their existing loan agreement (the "Loan Agreement") and the Standby Equity Distribution Agreement ("SEDA"). The variation to the Loan Agreement has, inter alia, resulted in an increase in the maximum amount that can be advanced by YA to the Company from £1,000,000 to a total of £3,000,000.

 

Immediately following the entering into of the Deed of Amendment, SerVision requested a drawdown of a principal amount of $786,500 under the Loan Agreement. The repayment schedule for the principal drawn down is 11 equal monthly instalments of $40,200 of the principal together with accrued interest, with the remaining balance payable on 6 July 2017. As at today's date the amount outstanding in relation to the Loan Agreement remains at $786,500 and current repayment schedule envisages the balance being paid in full by July 2017.

 

The Directors wish to bring to shareholders' attention the following matter raised in Note 2 and the independent review report.

 

Emphasis of matter - going concern

 

In their independent review report, which is not qualified, the group's auditor has considered the adequacy of the disclosures made concerning the Group's ability to continue as a going concern. The Group incurred a net loss of $1,013,000 during the six months ended 30 June 2016 and had net current liabilities of $930,000 at that date.  This, along with other matters disclosed in note 2, may indicate the existence of a material uncertainty which may cast significant doubt about the Group's ability to continue as a going concern.  However having completed their review of sales forecasts, budgets and cash flow projections and having made further relevant enquiries, the directors have a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence for the foreseeable future.  The interim financial statements do not include the adjustments that would result if the Group was unable to continue as a going concern.

 

Current Trading and Future Prospects

 

At the time of our Final Results in June, we reported that a number of trials for the new IVG product were underway.  I am pleased to report that we recently supplied a first order of 28 IVGs for a new project in China and a new order earlier this month for seventy IVGs that will be deployed on police vehicles in Tegucigalpa, Honduras.  To date, none of the trials have been abandoned and with IVG pilots ongoing in Israel, the UK, Holland, Botswana, Mexico and Chile, among other countries, the Board is confident of further orders to come in the second half. 

 

Looking further ahead, to next year and beyond; we have recently begun IVG pilots with a number of bus companies, both in the UK and around the world.  The directors believe that the global bus market present a good opportunity and SerVision will be exhibiting at the EURO Bus Expo in November 2016. 

 

As previously announced, our new integration with Mobileye has enabled SerVision to move beyond the transport security market and to offer an outstanding solution for smart transportation and road safety applications.  We are now pursuing a number of commercial opportunities with Mobileye channel partners, both in Israel and abroad.  Based on initial feedback from the market, Mobileye customers are very keen to have access to a remote monitoring platform that can log driving behaviour, capture and store video clips of Mobileye alerts, and provide fleet managers with real time notifications when large numbers of driving infractions occur, which SerVision's products achieve.  

 

We are also working closely with a partner in Turkey to establish a new framework of cooperation with Vodafone, and we are doing the same in Israel with Partner, the country's second largest mobile operator.

 

Conclusion

 

While revenues from the six months ended 30 June 2016 are similar to the comparative figures from the equivalent period last year, there has been a substantial reduction in operating loss. Trading for the third quarter has been consistent with the first half and the Directors are cautiously optimistic of an improved result for the year when compared to 2015 and while it will take a little longer for us to realise profits from newly set up business in the UK, our recurring revenue model there is growing regularly.  We have a large number of trials ongoing, some of which are of a significant size, and our focus now is to convert these to orders.

 

As always, I am grateful to our shareholders for their continued support, and to our staff for their hard work and contribution to our success.

 

G Tahan

Chairman

30 September 2016

 



 

CONDENSED GROUP COMPREHENSIVE INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2016

   

  
  
Six months to
Six months to
Year to 31
  
  
30 June 2016
30 June 2015
December 2015
  
Note
$'000
$'000
$'000
  
  
Unaudited
Unaudited
Audited
  
  
 
  
  
REVENUE
3
1,288
1,242
2,154
  
  
  
  
  
Cost of sales
  
(901)
(752)
(1,260)
  
  
  
  
  
GROSS PROFIT
  
387
490
894
  
  
  
  
  
Administrative expenses
  
(1,376)
(1,926)
(3,310)
  
  
  
  
  
OPERATING LOSS
  
(989)
(1,436)
(2,416)
  
  
  
  
  
Net finance expense
  
(31)
(22)
(154)
  
  
  
  
  
LOSS ON ORDINARY
  
  
  
  
ACTIVITIES BEFORE TAXATION
  
(1,020)
(1,458)
(2,570)
  
  
  
  
  
Tax on loss on ordinary activities
4
7
13
(2)
  
  
 
 
 
NET LOSS FOR THE PERIOD
  
(1,013)
(1,445)
(2,572)
  
  
  
  
  
Translation difference arising from
translating into presentation currency
  
(155)
(99)
(329)

 

TOTAL COMPREHENSIVE 
LOSS FOR THE PERIOD

  
(1,168)
(1,544)
(2,901)
  
  
  
  
  
Loss per share
  
  
  
  
  
  
  
  
  
BASIC
5
(0.92)c
(1.75)c
( 3.18)c
  
  
 
  
  
DILUTED
  
(0.92)c
(1.75)c
( 3.18)c
  
  
 
  
  

   

 

 



CONDENSED GROUP BALANCE SHEET

AT 30 JUNE 2016

 

 


As at 30 June

As at 30 June

As at 31

 

 


 2016

2015

December 2015

 

 


$'000

$'000

$'000

 

 


Unaudited

Unaudited

        Audited

 

ASSETS





 

Non-current assets


 



 

Intangible assets


4,826

4,749

4,818

 

Investment


118

-

118

 

Deferred tax asset 


88

96

80

 

Property, plant and equipment


        48

         63

      56

 

 


  5,080

    4,908

 5,072

 

Current assets





 

Inventories


582

670

702

 

Trade and other receivables


651

1,341

982

 

Cash and cash equivalents


      14

       24

               78

 

 


1,247

     2,035

    1,762

 

 





 

Total assets


6,327

    6,943

   6,834

 

 




 

 

EQUITY





 

Capital and reserves attributable to the

Company's equity shareholders





 

Called up share capital


2,090

1,498

2,090

 

Share premium account


16,127

14,671

16,127

 

Merger reserve


1,979

1,979

1,979

 

Other reserve


66

66

66

 

Retained earnings and translation reserves


(17,197)

   (14,672)

(16,029)

 

Total equity


3,065

     3,542

4,233

 

 





 

LIABILITIES





 

Current liabilities





 

Short term credit from banking institutions


796

873

1,039

 

Loan from the office of the chief scientist


173

161

173

 

Trade and other payables


1,208

      1,635

855

 

 

 

2,177

2,669

2,067

 

Non-current liabilities





 

Long term loan from bank institution

without current maturity


 

58

 

434

 

255

 

Loan from others


748

11

--

 

Post employment benefits


    279

        287

279

 

 


1,085

732

534

 

 





 

Total liabilities


3,262

    3,401

2,601

 

 




 

Total equity and liabilities

 

 


6,327

   6,943

6,834

 

 



 

CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

 


 

 

Share

 

 

Share

 

 

Merger

Other

 

 

Retained

 

 

Translation

 

 

 

 

Total


 

 


Capital

Premium

Reserve

Reserve

Earnings

Reserve


 


$'000

$'000

$'000

$'000

$'000

$'000

$'000

 


 









 

As at 1 January 2015

 1,224

13,588

  1,979

      66

(13,290)

    162

  3,729


 










 

 

Total recognised expense

 

-

 

-

 

-

 

-

(1,445)

 

(99)

 

(1,544)


 










 

Issue of shares

    274

   1,083

          -

          -

            -

        -

  1,357


 










 

At 30 June 2015

      1,498

   14,671

     1,979             

       66

(14,735)

           63

    3,542  


 

 

Total recognised expense

 

                       -

 

                       -

 

                       -

 

                       -

 

(1,127)

 

(230)

 

(1,357)


 










 

Issue of shares

    592

1,456

        -

           -

          -

                -

  2,048


 










 

As at 31 December 2015

 2,090

16,127

  1,979

      66

 (15,862)

       (167)

4,233


 










 

Issue of shares

-

-

-

-

-

-

-


 

 

Total recognised expense

 

        -

 

          -

 

            -

 

        -

 (1,168)

 

           -

 

  (1,168)


 










 

At 30 June 2016

2,090

16,127

1,979

66

(17,030)

(167)

3,065


 










 

 

 

 

 

 

 

 

 

 

 



 

 

CONDENSED GROUP CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

 

 

Six months to

Six months to

Year to 31

 

30 June 2016

30 June 2015

December 2015

 

$'000

$'000

$'000

 

Unaudited

Unaudited

Audited

Cash flows from operating activities




 



 

Loss before taxation

(1,020)

(1,458)

(2,570)

Adjustments for:

 

 


Net finance expense

31

22

154

Doubtful debts

-

462

531

Depreciation and amortisation

337

333

668

Movement in trade and other receivables

331

73

340

Movement in tax assets

-

(13)

-

Movement in inventories

120

(74)

(105)

Movement in post retirement benefits

-

(1)

(8)

Movement in trade and other payables

     353

         (86)

     (866)





Net cash outflow from operating activities

152

(742)

(1,856)

 




Cash flow from investing activities




 




Purchase of property, plant and equipment and intangibles

(345)

(384)

    (781)

Investment in available for sale assets

-

-

(118)

Deposit for leasing vehicles

          -

      (35) 

                -

 




Net cash outflow from investing activities

(345)

(419)

    (899)

 




 




Cash flows from financing activities




Issue of shares

-

1,357

3,405

Net finance costs

(31)

(22)

(154)

Net loans undertaken less repayments

     299

      (251)

    (658)

 




Cash inflow from financing activities

268

1,084

2,593

 




Cash and cash equivalents at beginning of period

(61)

101

101

Net cash inflow/ (outflow) from all activities

    75

      (77)

    (162)

 




Cash and cash equivalents at end of period

    14

        24

      (61)

 




Cash and cash equivalents comprise




Cash (excluding overdrafts) and cash equivalents

14

24

78

Overdrafts

       -

           -

    (139)

 




 

    14

        24

      (61)

 




                                                                                                                                                                                                                               

 



 

 

NOTES TO THE REPORT AND CONDENSED GROUP FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

1.       BASIS OF PREPARATION

 

These consolidated interim group financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRS) as endorsed for use by Companies listed on an EU regulated market and in accordance with IAS34 - "Interim Financial Reporting".  The same accounting policies, presentation and methods of computation have been followed in the preparation of these results as were applied in the Group's latest annual audited financial statements.  It is not expected that there will be any changes or additions to these in the 2016 annual financial statements. 

 

This statement does not comprise statutory accounts as defined in Section 434 of the Companies Act 2006.  The results for the six months ended 30 June 2016 and for the six months ended 30 June 2015 are unaudited.

 

The financial information for the year ended 31 December 2015 is an extract from the latest group financial statements.  The statutory group financial statements for the year ended 31 December 2015, prepared in accordance with IFRS, on which the auditors gave an unqualified opinion, have been filed with the Registrar of Companies.  The audit report contained an emphasis of matter paragraph drawing the attention of the reader to material uncertainty regarding the group's ability to continue as a going concern.

 

These consolidated interim group financial statements are presented in US Dollars and all values are rounded to the nearest thousand dollars ($'000) except when otherwise indicated.

 

2.       GOING CONCERN

 

The directors have prepared and reviewed sales forecasts, budgets and cash flow projections for the next twelve months and, having considered these cash flows and the availability of other financing sources, have concluded that the group will remain a going concern for at least twelve months from the date on which these interim financial statements were approved.  

 

As disclosed in the Chairman's statement, while revenue from the six months period ended 30 June 2016 is comparable with the six month period ended 30 June 2015, there is a significant improvement when compared to the six month period to 31 December 2015, and the directors remain confident that this trend will continue.  While it will take a little longer for the Group to realize profits from newly acquired business in the UK, the Group recurring revenue model there is growing regularly and, as mentioned above, the directors look forward to entering new vertical markets with the Mobileye integration, and to seizing much larger commercial opportunities with the rollout of the new generation IVG solution.

 

As disclosed in note 7 and the Chairman's statement, the group has raised further funding subsequent to the period end.  The directors have included the proceeds of this fund raising round into their cash flow forecasts and consider it to be sufficient for the group's immediate working capital needs.  Should circumstances change or trading results fail to meet targets, the directors, may, as in previous periods, seek additional equity investment and debt finance from a variety of sources.  If the directors are unsuccessful when seeking any necessary additional investment and finance the group may cease to be a going concern.

 

However having completed their review of sales forecasts, budgets and cash flow projections and having made further relevant enquiries, the directors have a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence for the foreseeable future.  For this reason, they continue to adopt the going concern basis in preparing the financial statements.  There can, however, be no certainty that future sales forecasts will be met and therefore there is still a material uncertainty that could cast doubt on the Group's ability to continue as a going concern and discharge its liabilities as they fall due. These financial statements do not contain any adjustments that would be required if the Company could not continue as a going concern.

 

 

 

3.       BUSINESS SEGMENT ANALYSIS

 

            Class of business

 

            The turnover, loss on ordinary activities before taxation and net assets of the Group are attributable to one class of business, that of developing and selling video surveillance equipment.

               




Turnover by location of customer


Geographical areas


Six months to

Six months to

Year to 31




30 June 2016

30 June 2015

December 2015




$'000

$'000

$'000




Unaudited

Unaudited

Audited








UK and Continental  Europe


804

226

604


North America


215

383

702


Asia and Middle East


71

563

736


Rest of the world


198

   70

112


 


1,288

1,242

2,154

 

 

 

4.         TAXATION

 

The Company is controlled and managed by its Board in Israel. Accordingly, the interaction of UK domestic tax rules and the taxation agreement entered into between the U.K. and Israel operate so as to treat the Company as solely resident for tax purposes in Israel.  The Company undertakes no business activity in the UK such as might result in a Permanent Establishment for tax purposes and accordingly has no liability to UK corporation tax.

 

 

5.       LOSS PER SHARE

 

      The loss per share of (0.92c) (31 December 2015: (loss) (3.18c); 30 June 2015: (loss) (1.75c)) has been calculated on the weighted average number of shares in issue during the period namely 126,801,751 (31 December 2015: 91,233,375; 30 June 2015: 88,130,461) and loss of US$ 1,168,000 (31 December 2015: loss US$2,901,000; 30 June 2015: loss US$ 1,544,000).

                                                                    

      Due to the immaterial number of options in issue there is no material difference between the diluted and basic loss per share.

 

6.       SIGNIFICANT ACCOUNTING POLICIES

 

Inventories:

 

       Inventories represent raw materials, work in progress and goods for resale and stated at the lower of cost and net realisable value.

 

Revenue recognition:

 

Sale of systems

 

The subsidiaries generate revenues mainly from sales of systems. The subsidiaries sell their products directly through the group's distribution networks worldwide.

 

Revenues from systems sales are recognised upon delivery of the system or upon installation at the customer site, where applicable, provided that the system fee is fixed or determinable and persuasive evidence of an arrangement exists.

 

Sale of products

 

Revenues from the sale of purchased products are recognised upon delivery of the products to the customers.

 

 

Research and development

 

Expenditure for research activities are recognised as an expense in the period in which it is incurred.

Expenditure for the development activities of technology used in the production of systems sold by the Group are capitalised and presented as an intangible asset in the balance sheet only if all of the following conditions are met:

 

· Development costs of the technology are identifiable and separable.

· It is probable that the developed technology will generate future economic benefits.

· The development costs of the technology can be measured reliably.

 

Development costs meeting these criteria are capitalised and amortised on a straight-line basis over their useful economic lives (currently six years) once the related technology is available for use.

 

Investments

 

The available for sale financial asset represents the Group's investment in a company in China. It is carried at fair value with changes in fair value recognised in other comprehensive income and the available for sale reserve. Where there is a significant or prolonged decline in the fair value of an available for sale asset which constitutes evidence of impairment, the full amount of the impairment including any amount previously recognised in other comprehensive income is recognised in profit or loss.

 

 

7.       POST BALANCE SHEET DATE EVENTS

 

         

In July 2016 SerVision entered into a deed of amendment with YA II PN Ltd whereby the parties agreed to amend the terms of their existing loan agreement (the "Loan Agreement") and the Standby Equity Distribution Agreement ("SEDA"). The variation to the Loan Agreement has, inter alia, resulted in an increase in the maximum amount that can be advanced by YA to the Company from £1,000,000 to a total of £3,000,000.

 

On 7 July 2016, immediately following the entering into of the Deed of Amendment, SerVision requested a drawdown of a principal amount of $786,500 under the Loan Agreement.

 

8.      RELATED PARTY TRANSACTIONS

 

         During the year the Company entered into an agreement with Gabriel Sassoon, an existing shareholder in the Company, to provide the Company with an unsecured working capital loan facility of US$1.0 million.  As at the 30 June 2016 the balance outstanding was $853,000.

 

         The loan is unsecured, repayable on 15 February 2019 and attracts interest at a rate of 6%.

 

         To the extent that the loan is unpaid at 15 February 2019 the company is obliged to issue new Ordinary shares to the shareholder to extinguish the liability.  The issue price of the shares would be calculated on the basis of the average closing mid-market price of the company's ordinary shares for the calendar month prior to the Repayment Date, subject to the issue price of the shares being no less than 3.5 pence per share

 

         Included in current liabilities are loans of $74,000 due to G Tahan, a director.

 

 

INDEPENDENT REVIEW REPORT TO SERVISION PLC

 

 

Introduction

 

We have been engaged by the company to review the condensed set of group financial statements in the interim report for the six months ended 30 June 2016 which comprises the Group Comprehensive Income Statement, the Group Balance Sheet, the Group Cash Flow Statement, the Group Statement of Changes in Equity and related explanatory notes 1 to 8.  We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

 

Directors' responsibilities

 

The interim report, including the financial information contained therein, is the responsibility of, and has been approved by, the directors.  The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market. As disclosed in note 1, the annual financial statements of Servision Plc are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this interim report has been prepared in accordance with International Accounting Standard 34, ''Interim Financial Reporting,'' as adopted by the European Union.

 

Our responsibility

 

Our responsibility is to express to the Group a conclusion on the condensed set of group financial statements in the interim report based on our review.

 

This report is made solely to the company in accordance with the terms of our engagement and for no other purpose.  No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent.  Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability.

 

Scope of review

 

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Auditing Practices Board for use in the United Kingdom.  A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.  A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.  Accordingly, we do not express an audit opinion.

 

Conclusion

 

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of group financial statements in the interim report for the six months ended 30 June 2016 is not prepared, in all material respects, in accordance with International Accounting Standard 34, as adopted by the European Union.

 

Emphasis of matter - going concern

 

In forming our conclusion, which is not qualified, we have considered the adequacy of the disclosures made concerning the Group's ability to continue as a going concern.  The Group incurred a net loss of $1,013,000 during the six months ended 30 June 2016 and had net current liabilities of $930,000 at that date.  This, along with other matters disclosed in note 2, may indicate the existence of a material uncertainty which may cast significant doubt about the Group's ability to continue as a going concern.  The interim financial statements do not include the adjustments that would result if the Group was unable to continue as a going concern.

 

 

 

haysmacintyre                                                                                                                                    26 Red Lion Square

Chartered Accountants                                                                                                                    London

Registered Auditors                                                                                                                          WC1R 4AG

30 September 2016                                                                                                                                                                       

 

 

 

 

 

              

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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