GoIndustry-DoveBid plc / Index: AIM / Epic: GOI / Sector: Support Services
3 May 2011
GoIndustry-DoveBid plc ('GoIndustry DoveBid' or 'the Group')
Preliminary results
GoIndustry DoveBid, the global provider of asset management, disposition and valuations services for industrial and financial clients, announces its preliminary results for the year ended 31 December 2010.
Overview
GoIndustry DoveBid delivers innovative solutions that value assets accurately, optimise asset utilisation, properly dispose of surplus assets and reduce costs. The Group combines asset, industry and market expertise, with eCommerce technology to service the needs of multinational corporations, financial institutions, insolvency practitioners, used equipment dealers and asset based lenders around the world.
Results Summary
For the year ended 31 December 2010
|
2010
�000's |
2009
�000's
|
Direct Profit |
27,811 |
25,274 |
Adjusted* profit/(loss) before tax |
613 |
(1,442) |
Exceptional items |
(409) |
(2,187) |
Other charges |
(893) |
(1,036) |
Loss before taxation |
(689) |
(4,665) |
Adjusted* earnings per share |
9.6p |
(26.9p) |
Adjusted* diluted earnings per share |
9.6p |
(26.9p) |
Loss per share basic and fully diluted |
(3.7p) |
(78.2p) |
* Adjusted profit/ (loss) before tax and adjusted profit/ (loss) per share are before exceptional charges, amortisation of acquired intangible assets and an IFRS charge for share-based payments
*2009 numbers have been restated to account for the share consolidation.
Chairman's Statement
I am pleased to report on the progress GoIndustry DoveBid has made during 2010. The Group delivered a robust trading performance for the year ended 31 December 2010 and reported adjusted profits before tax for the third consecutive six month period. We have developed a number of corporate initiatives, which we believe will enhance the future performance of the Group.
In September 2010, we launched Go-Optimize�, which is a managed one-stop service solution to help clients achieve a better return on their equipment. In addition, we have continued to increase our emphasis on our multinational corporate accounts utilising our global presence and our understanding of used equipment markets. Large corporations are increasingly focused on efficiently managing and realising value from both under-utilised and redundant assets. Our global footprint of thirty-six offices across twenty countries, combined with our online auction platform and extensive industry experience, provides us with a significant competitive advantage in servicing global corporations. We believe this streamlined corporate focus will provide the Group with additional opportunities to generate repeat business that will give GoIndustry DoveBid greater earnings visibility going forward.
In 2010, we continued to provide the highest level of service to our growing list of clients. I am pleased to report that the excellence of our services has been recognised during the period with the following awards:
- Proctor and Gamble Supplier of Excellence Award 2010 (also 2009)
- Pepsi Supplier of the Year 2010 (also 2009)
- Intercontinental Finance Magazine 'Asset Valuation & Appraiser of the Year' for 2010
- Finance Monthly Magazine 'Asset Appraiser Firm of the Year' for 2010
- ACQ Asset Appraiser of the Year 2010 (also 2009 and 2008)
Financial performance
The financial results for the year ended 31 December 2010 highlight the incisive actions taken in 2009. These actions significantly reduced fixed costs and focused on higher margin trading activities. This has resulted in sustained revenue generation and margin expansion, which in turn has helped improve profitability.
The continued focus on margin improvement and cost control resulted in an improvement in most of the key operating metrics. The Group increased Direct Profit by 10.0% from �25.3m in 2009 to �27.8m in 2010. Adjusted profit before tax improved from an adjusted loss before tax in 2009 of �1..4m to an adjusted profit before tax of �0.6m, before charges for amortisation of acquired intangibles of �0.7m (2009: �0.7m), share based payments of �0.2m (2009: �0.3m), and an exceptional charge of �0.4m (2009: �2.2m) which related primarily to the changes to the Board and to the restructuring of the North American legal entities. The Group's loss before tax improved significantly from a loss in 2009 of �4.7m to a loss of �0.7m in 2010.
At 31 December 2010 the Group had sufficient liquidity with a positive cash position (excluding client funds on deposit) of �3.7m and headroom of �5.1m on its working capital facilities. In addition, at 31 December 2010 the Group had �12.2m (2009: �16.2m) of client funds on deposit. Short term borrowings amounted to �2.1m.
Basic earnings per share showed a loss of 3.7p (2009: loss of 78.2p after adjusting for the share consolidation). Adjusted basic earnings per share for the year was 9.6p (2009: loss 26.9p), where the adjustments to the loss attributable to equity holders of the Company are exceptional costs, amortisation of acquired intangible assets and an IFRS 2 charge for share based payments.
Board
In July 2010, we were delighted to welcome Leslie-Ann Reed to the Board as Chief Financial Officer. Leslie-Ann has significant experience in senior executive financial management roles for several multi-national public companies. Prior to joining GoIndustry DoveBid, she was the CFO at Metal Bulletin plc, a quoted business-to-business information service organisation.
Outlook
2010 has been an important year for GoIndustry DoveBid. We have put the 2009 restructuring behind us and taken actions to better position the Group for future growth. We have leveraged our global strengths, realised market opportunities and have made a marked move to focus on corporate-led business as the core basis of a growing, resilient, scalable and geographically diverse business. We expect, in light of a strong pipeline of contracted business and other opportunities, to see continued improvement in the Group's performance in FY2011, despite softness of the first quarter sales in North America.
Looking ahead, we will continue to focus on the existing corporate-led business and on winning new multi-year global corporate accounts. This will bring greater visibility to revenue, and will help improve both profits and cash flow. I believe we are in a stronger position, and anticipate continuing improvement in the Group's performance.
Finally, I would like to thank the Board and all of our employees for their hard work and commitment over the period, and our shareholders for their continued support of our strategy which I believe will continue to serve us well in the coming years.
Neville Davis
Non-Executive Chairman
3 May 2011
Business Review
GoIndustry DoveBid is the global market leader in the provision of surplus asset management, online auction and valuation services for the industrial & financial marketplaces. These financial results show the significant improvement that has been made by the Group in 2010. We believe the market opportunity should be great, and have implemented a strategy that will leverage our industrial equipment knowledge, our global presence and our online sales platform to address the equipment valuation, redeployment and disposal needs of corporations.
Business objectives and strategy
GoIndustry DoveBid's key strategy is focused on delivering sustainable and growing profits for the Group by providing a complete set of services to assist corporate clients in maximising the value of their surplus industrial assets. We believe the corporate market will provide a solid environment for medium term growth and will deliver long term benefits for the Group, as it provides more recurring revenues than the traditional auction business which is more transactional in nature. We aim to deliver sustainable profit growth in our key vertical markets by:
- accelerating growth of corporate accounts by improving the breadth and depth of existing client relationships as well as signing new accounts;
- focusing investment on our proprietary online auction platform and our AssetZone� asset management tools to manage our business and our clients transactions more efficiently;
- continually increasing the effectiveness of our sales and marketing capabilities to access new market opportunities;
- constantly improving the global quality of our services to clients; and
- penetrating the corporate Investment Recovery services space by providing a comprehensive superior solution.
The Group has several compelling differentiators upon which to build. Our exceptional professional knowledge of the used equipment market, combined with a broad service offering and global coverage, has put the Group at the forefront of assisting large corporations to pro-actively manage their surplus industrial assets. In September 2010, GoIndustry DoveBid launched Go-Optimize�, which offers a complete set of managed services and tools to recover value from used assets through utilising our:
- valuation and appraisal services;
- online or webcast auctions;
- AssetZone� asset management and redeployment tool; and
- Industry specific online marketplaces, such as the highly successful BioPharma Exchange.
The objective of Go-Optimize� is to achieve outstanding results for clients by generating cash from asset sales, cash savings from reduced capital expenditure, and delivering a highly focused, highly efficient and transparent asset management programme.
Operational highlights
The continued focus on margin improvement and cost control ensured that the Group achieved an improvement across all income streams, and as a result, Direct Profit increased by 10.0% to �27.8m (2009: �25.3m).
We increased our focus on commission sales, especially multi-year service arrangements with large global corporations ('Corporate Forward Flow' or 'CFF' accounts). In addition, we continued to reduce our principal business, which exposes the Group to financing commitments and fluctuations in asset values. As a result, Direct Profit on Commission Sales of �20.8m (2009: �17.7m) accounted for 75% of total Direct Profit compared to 70% in 2009. The proportion of sales conducted online also changed significantly, increasing to 86% (2009: 70%). This was primarily due to more corporate activity, as well as the growing popularity of the Group's Industry Exchanges, which are increasingly becoming a recurring destination site for buyers and sellers of used equipment.
Our North American business showed strong momentum, and delivered a robust performance, with Direct Profit up 18.7% at �15.6m (2009: �13.1m). Commission Sales experienced strong growth with Direct Profit up 20.6% to �11.0m (2009: �9.1m) representing 70% (2009: 69%) of total Direct Profit. Much of this increase was due to greater penetration of existing accounts. This overall strong performance more than compensated for the weaker market conditions experienced in Professional Services where Direct Profit from valuations was down 19.5% to �2.0m (2009: �2.5m). The Principal Deals business delivered growth of �1.1m over 2010 to �2.6m (2009: �1.5m).
Our business in Europe showed solid improvement over the previous year, delivering Direct Profit of �9.2m, up 4.8% (2009: �8.8m). As in North America, we saw an improvement in Commission Sales, with Direct Profit up 19.7% to �7..3m (2009: �6.1m), which more than offset the slight decline in Direct Profit from Professional Services, down �0.5m on 2009 to �1.8m. Again, this was mainly due to challenging conditions in the asset based lending market. Towards the end of the year valuations work recovered in Europe mainly due to greater demand in the UK. Direct Profit on Principal Deals was �0.1m down from �0.3m compared with 2009.
The demand for our services from sellers of assets in the Asia Pacific region ('APAC'), where we continue to invest for future growth, recovered more slowly than anticipated. This resulted in a decrease in Direct Profit of 10.3% to �3.0m (2009: �3.3m). Activity from buyers and sellers in APAC, however, is now increasing, particularly in China. We view this as a strong growth opportunity where we are very well positioned compared to any competitors.
The Group derives more than half of its Direct Profit in US dollars, so movements in the Sterling-US dollar rate affect our reported Direct Profit. The average Sterling-US dollar exchange rate for 2010 was US$1.547, against US$1.561 a year ago. The impact of exchange rates in 2010, although not significant, has reinforced the improvement in North American Direct Profit.
The Group continues to actively manage its cash flow and at 31 December 2010 reported a net positive cash position (excluding client funds on deposit and borrowings) of �0.5m, an improvement on the positive net cash balance of �0.2m at 31 December 2009. In 2010, the Group disposed of a warehouse in Germany for �0.5m, which was no longer required due to the increasing number of online auctions.
GoIndustry DoveBid is committed to continually improving the quality of services to clients, and improving operational excellence, efficiency and financial results. In 2010 the Group released major upgrades to customer-facing systems to improve user experience for both new and existing clients. These enhancements continue on a monthly basis, and are an important focus in 2011 and beyond.
Overview of the Group's financial performance
For the year ended 31 December 2010 the Group generated Revenues of �40.1m down 4.5% from �42.0m in 2009, mainly due to a change in the mix of business. However, due to improved margins across the board, our key measure of top line performance, Direct Profit, was up a very creditable 10..0% to �27.8m (2009: �25.3m) with an increased margin up from 60.2% in 2009 to 69.3% in 2010. The main driver of growth within Direct Profit was Commission Sales where Direct Profit was up 17.3% to �20.8m (2009: �17.7m). The overall softness in the financial lending markets, adversely affected Professional Services. This resulted in valuations fees being down 21.0% to �4.2m (2009: �5.3m). Principal Deals, which are transactional in nature, saw Direct Profit increase by 26.3% to �2.8m (2009: �2.2m).
During the year, the Group invested in its selling capabilities. This investment, together with the associated increase in sales commissions, primarily led to adjusted administration costs increasing by 4.1% to �26.9m (2009: �25.9m). The combined effect of Direct Profit increasing by 10.0% and Administration costs rising by 4.1% resulted in Adjusted EBITDA of �1..5m compared to �0.1m in 2009. Margin on Direct Profit was 5.5% compared to 0..3% in 2009.
The Adjusted Profit before Tax was �0.6m, a significant improvement over the loss of �1.4m in 2009.
Reported Loss before Tax was �0.7m compared to a loss before tax of �4.7m in 2009, reflecting the exceptional costs of �0.4m (2009: �2.2m), amortisation of acquired intangibles of �0.7m (2009: �0.7m) and share based payment charges of �0.2m (2009: �0.3m).
Exceptional costs
During the year the Group incurred exceptional costs of �0.4m mainly due to the changes to the Board, and the restructuring of the legal entities within the North American structure. The objective of the restructuring was to make the Group more efficient for both management and administrative purposes. In 2009 the Group incurred exceptional costs of �2.2m, in relation to reorganisation of the Board, the Group and its financing, as well as the disposal of an associated entity.
Taxation
In recent years the Group has not recognised any deferred tax asset arising from tax losses as there was no certainty that these losses would be utilised in the foreseeable future. With improved results, it is now considered that this situation has changed, and so a deferred tax asset has been recognised, and will be available to offset any taxable gains. Not all countries warrant recognition of a deferred tax asset as yet, but the Group regularly reviews this situation.
Earnings per share
Adjusted basic Earnings per Share was 9.6p against an adjusted loss of 26.9p in 2009 after adjusting for the effect of the share consolidation.
Basic Loss per Share was 3.7p (2009: loss 78.2p). Earnings and Adjusted Earnings per Share are calculated on the weighted average number of New Ordinary Shares in issue of 9,790,481 for the year ended 31 December 2010 (2009: 628,415,117 Ordinary Shares equivalent to 6,284,151 New Ordinary Shares).
Dividend
The Board does not recommend a dividend for the year (2009: nil).
Balance sheet and net cash
At 31 December 2010 the Group had net cash, after borrowings, of �0.5m (2009: Net cash: �0.2m). The Group ended the year with bank borrowings of �2.2m (2009: �3.4m) drawn against total facilities of �7.3m. Other borrowings comprised convertible loan notes of �0.5m (2009: �0.5m) and subordinated loan notes of �0.5m (2009: �0.5m). Since the end of the financial year the Group has renewed its main bank facilities for another year. The Group's cash balance and borrowing capacity are expected to provide sufficient liquidity for operations.
Treasury policy
Treasury policies are approved by the Board, and the Executive Directors have the delegated authority to approve financial transactions within agreed terms of reference. The Group's financial instruments principally comprised of bank borrowings, cash, and various other items that arise directly from its trading operations. The cash includes significant amounts of client cash held in the normal course of conducting sales. The main purpose of these financial instruments is to ensure that finance is available for the Group's operations. The main risks arising from the Group's financial instruments are interest rate risk, liquidity risk and foreign currency risk. The Board reviews and agrees policies for managing each of these risks and they are summarised below. These policies are unchanged from the previous year.
a) Interest rate risk
The Group finances its operations through a mixture of retained profits, operational cashflow, bank and subordinated debt. Historically the Group has expanded its operations both organically and by acquisition which has led to the need for external finance. For borrowings denominated in US dollars, the Board has chosen a credit facility with a floating rate of interest linked to US Prime Rate with a margin of 0.75% and for borrowings denominated in Sterling the rate is 2.5% over base rate.
b) Liquidity risk
The Group's policy throughout the year has been to ensure continuity of funding by the use of term loan facilities of US$1.9m and �0.3m, subordinated debt of �0.5m. There are also revolving credit facilities for Principal Deals of US$3.5m and Working Capital of US$5.5m, both of which are committed until April 2012.
c) Foreign currency risk
The Group has a substantial overseas customer base and maintains bank accounts in foreign currency converting this currency to Sterling at the appropriate times minimising the exposure to exchange rate fluctuations.
Key financial and operational targets
At a Group level there are a number of key financial and operational targets. In addition, each of the operating divisions monitors a number of key performance indicators. This year the Group delivered an improved performance against the majority of financial and operational targets. By continuing to focus on these essential benchmarks, the Group has been able to concentrate on mitigating the adverse effects of the global recession and produce creditable results whilst establishing a more resilient and efficient platform to support future growth.
Revenue measures
Gross asset sales ('GAS') for 2010 was �145.6m, which represents the level of activity handled by the operations and measures the sum of the proceeds of all assets sold at auction or in a negotiated sale.
Direct Profit, which represents gross profit before administrative expenses is the key operating metric that is used for measuring level of business activity and growth in each business unit. Direct Profit is used rather than Revenue as reported on the Consolidated Statement of Comprehensive Income, because revenue can be skewed from one year to the next depending on the volume of Principal Deals undertaken. In each of the three revenue streams, Direct Profit is measured as follows:
- Commission Sales - GoIndustry DoveBid acts as an agent and sells equipment on behalf of a seller. Direct Profit represents the sum of the buyer's premium, seller's commission and expenses billed to the seller, less the cost of expenses incurred and any commissions paid to third parties.
- Professional Services - GoIndustry DoveBid provides Professional Services (such as appraisals and valuations) to its clients. Direct Profit represents the professional fees and expenses billed, less expenses incurred, and any commissions paid to third parties.
- Principal Deals - GoIndustry DoveBid acts as principal, either purchasing the equipment for sale outright or guaranteeing a minimum price to the seller. In the event of a Purchase deal, Direct Profit represents the sum of GAS achieved and buyer's premium, less the cost of the assets purchased, expenses incurred and any commissions paid to third parties. In the event of a Guarantee deal, Direct Profit represents the sum of GAS achieved and buyer's premium, less the guaranteed value of the assets, the seller's share of any upside realised above the guarantee, expenses incurred and any commissions paid to third parties. In both cases, should GAS fall below the purchase or guarantee amount, then it will be deducted from the buyer's premium; if GAS is significantly lower, a loss is recorded against Direct Profit.
Adjusted profit before tax
This measure indicates the trading profits of the Group, after bank and interest charges, but before amortisation and impairment of acquired intangible assets and goodwill, exceptional items, and share based payments. In the year ended 31 December 2010, Adjusted Profit before Tax improved significantly turning the 2009 loss of �1.4m into a profit of �0.6m.
Adjusted earnings per share
This key measure indicates the underlying profit attributable to shareholders. It measures not only trading performance, but also the impact of treasury management, bank and interest charges. Our business and financial strategy is directed at delivering consistent Adjusted Earnings per Share growth. In the year ended 31 December 2010, Adjusted basic Earnings per Share was 9.6p per share (2009: Adjusted basic loss of 26.9p after adjusting for the share consolidation during the year. The increase reflects the improved overall performance of the Group.
Consistent and sustainable revenue streams
The strategy to provide a range of managed services solutions has allowed the Group to focus on the global corporate market. This push towards more robust and sustainable revenue streams has resulted in a strong portfolio of offerings, which includes:
- professional disposal and related services to enable corporate entities to realise the value of redundant assets
- specialist professional valuation and appraisal services;
- AssetZone� - proprietary web-based portal for managing corporate assets;
- Industry Exchanges - providing recurring online B2B global marketplaces.
The Group continued to improve its online product and service offering, with enhancements to the website which included improved payment mechanisms and customer experiences. The Group has also invested in the improvement of its operating systems and online services, so as to deliver ongoing benefits.
Adjusted operating margin
Improving and maintaining the Adjusted Operating Margin (as a percentage of Direct Profit) is a key goal for the Group. Reflecting the improved Direct Profit and improved operational efficiency, our Adjusted Operating Margin for 2010 increased to 3.2%, compared to a negative margin of 2.3% in 2009.
Principal risks
The main risks, which affect the Group as a whole, include the following:
GoIndustry DoveBid operates in a market where many deals are awarded on an individual basis. Although the strength of the customer relationships often mean deals are awarded to the Group on a regular basis, there are few guaranteed revenue streams and it can be difficult to forecast the business results more than 3 - 6 months into the future. The strategy to provide a range of managed solutions to global corporate clients is designed to reduce this risk and to increase visibility over future revenue streams.
The impact of major auction sales can be significant on the Group's results, although the regularly scheduled Industry Exchange auctions, which are mainly sourced from corporate forward flow clients, help to mitigate this risk.
When the Group takes a principal position in assets that are being offered for sale, either by buying directly from the seller or by guaranteeing a minimum sale price to the seller, the Group will then sell those assets on its own account and recognise the full financial impact from that transaction. This represents an additional risk for the Group in return for the expectation of a higher profit. GoIndustry DoveBid's ability to bid for and win Principal Deals is predicated on continued access to credit facilities. In order to control the risks and protect the Group from downside exposure, all principal transactions require the approval of the Investment Committee, which is made up of both equipment experts from across the Group and business professionals.
The expertise of our valuers and appraisers is critical to the success of the Group when assessing whether to take a principal position. Our knowledge of the assets and the global markets for disposing of those assets is a key resource, as is our global valuation database.
One of the Group's key competitive advantages is its database of potential buyers located in over 200 countries. Guidelines and regulations about marketing practices and data protection laws vary from country to country and may change. Substantial changes may prohibit us from direct marketing or increase the risk of lawsuits.
There are a number of other organisations that offer similar services to those of GoIndustry DoveBid. Such organisations may be better funded or operate with a lower cost base than GoIndustry DoveBid. Aggressive competition from such organisations could have a negative impact on the financial performance of the Group.
GoIndustry DoveBid is a people based business. Failure to attract or retain key employees could seriously impede future growth. To ensure staff retention the Group operates competitive remuneration packages for key individuals. The retention and motivation of key personnel is fundamental in the future success of GoIndustry, as is the ability to recruit new personnel to support future growth.
GoIndustry DoveBid's business is increasingly dependent on IT infrastructure, electronic platforms and the internet, for delivery of its services. Any downtime can disrupt sales and undermine buyer confidence. Short-term service interruptions may affect sales realisations on individual jobs, whilst long-term service interruptions would materially affect the financial results of the Group. Whilst our businesses could be adversely affected from such disruption, the Group is sufficiently diversified to minimise such impact. During the year under review the Group has continued to invest in new systems and electronic platforms with greater protection against failure.
The success of the Group's businesses is in part dependent on the success of its branded services. Damage to reputation and/or brand could lead to an adverse impact on the Group. GoIndustry DoveBid is conscious of the need to ensure the careful management of services to reduce this risk.
GoIndustry DoveBid is operating in an international environment. While this provides growth in new territories, it comes coupled with risks in terms of cultural and political conditions, foreign laws and legislations, tax changes, currency fluctuations, language barriers, and differing regulatory requirements. GoIndustry DoveBid engages with local professionals to seek advice, as appropriate, in the countries where we operate.
Future developments
The shifting of industrial production from developed western economies to China, India and the emerging economies of Eastern Europe is set to continue for many years. Data published by The Economist shows that 25% of global manufacturing output is still produced in North America, and the major economies of the European Union follow close behind.
Growing acceptance of the internet as a medium for transacting business around the world will also play a significant part in the future growth of the Group, and the Group's regularly scheduled Industry Exchange auctions are a key engine for future growth and improved visibility of earnings.
Consolidated statement of comprehensive income |
|
|
|
|
|
Year ended 31 December 2010 |
Year ended 31 December 2009 |
|
|
Before exceptional items and other charges |
Exceptional items (note 5) |
Other charges (note 6) |
Total |
Before exceptional items and other charges |
Exceptional items (note 5) |
Other charges (note 6) |
Total |
|
|
�'000 |
�'000 |
�'000 |
�'000 |
�'000 |
�'000 |
�'000 |
�'000 |
|
Note |
(unaudited) |
(audited) |
|
Revenue |
|
40,094 |
- |
- |
40,094 |
41,990 |
- |
- |
41,990 |
Cost of sales |
|
(12,283) |
- |
- |
(12,283) |
(16,716) |
- |
- |
(16,716) |
Direct profit |
|
27,811 |
- |
- |
27,811 |
25,274 |
- |
- |
25,274 |
Administrative expenses |
|
(26,926) |
(409) |
(893) |
(28,228) |
(25,857) |
(1,773) |
(1,036) |
(28,666) |
Operating profit/(loss) |
|
885 |
(409) |
(893) |
(417) |
(583) |
(1,773) |
(1,036) |
(3,392) |
Finance costs |
|
|
|
|
|
|
|
|
|
Interest income |
|
82 |
- |
- |
82 |
141 |
- |
- |
141 |
Finance costs |
|
(354) |
|
- |
(354) |
(972) |
(414) |
- |
(1,386) |
|
|
(272) |
- |
- |
(272) |
(831) |
(414) |
- |
(1,245) |
Share of loss of associate |
|
- |
- |
- |
- |
(28) |
- |
- |
(28) |
Profit /(loss) before income tax |
|
613 |
(409) |
(893) |
(689) |
(1,442) |
(2,187) |
(1,036) |
(4,665) |
Income tax credit/(charge) |
7 |
|
|
|
227 |
|
|
|
(170) |
Loss for the year |
|
|
|
|
(462) |
|
|
|
(4,835) |
Other comprehensive income |
|
|
|
|
|
|
|
|
Currency translation differences |
|
(235) |
|
|
|
(2,130) |
Actuarial gains/(losses) on defined benefit pension fund |
|
687 |
|
|
|
(2,150) |
Other comprehensive income for the year |
|
|
452 |
|
|
|
(4,280) |
Total comprehensive income for the year |
|
|
(10) |
|
|
|
(9,115) |
Loss attributable to: |
|
|
|
|
|
|
|
|
|
Equity holders of the Company |
|
|
(359) |
|
|
|
(4,916) |
Non-controlling interests |
|
|
|
|
(103) |
|
|
|
81 |
|
|
|
|
|
(462) |
|
|
|
(4,835) |
Total comprehensive loss attributable to: |
|
|
|
|
|
|
|
Equity holders of the Company |
|
|
|
93 |
|
|
|
(9,196) |
Non-controlling interests |
|
|
|
|
(103) |
|
|
|
81 |
|
|
|
|
|
(10) |
|
|
|
(9,115) |
Loss per share |
|
|
|
|
|
|
|
|
|
Loss per share attributable to owners of the parent during the year |
|
|
|
|
|
|
Basic * |
8 |
|
|
|
(3.7p) |
|
|
|
(78.2p) |
Diluted * |
8 |
|
|
|
(3.7p) |
|
|
|
(78.2p) |
* 2009 loss per share restated for the share restructuring (see note 11) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated statement of financial position |
As at 31 December 2010 |
|
|
|
|
|
|
2010 |
|
2009 |
|
|
Note |
�'000 |
|
�'000 |
|
|
|
(unaudited) |
|
(audited) |
|
Non-current assets |
|
|
|
|
|
Property, plant and equipment |
|
350 |
|
1,026 |
|
Intangible assets |
|
32,178 |
|
32,335 |
|
Deferred tax asset |
|
327 |
|
- |
|
|
|
|
|
|
|
|
|
32,855 |
|
33,361 |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Inventories |
|
334 |
|
597 |
|
Trade and other receivables |
|
5,515 |
|
6,649 |
|
Cash and cash equivalents |
|
15,920 |
|
20,751 |
|
|
|
|
|
|
|
|
|
21,769 |
|
27,997 |
|
|
|
|
|
|
|
Total assets |
|
54,624 |
|
61,358 |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
9,185 |
|
9,375 |
|
Due to clients |
|
12,237 |
|
16,236 |
|
Borrowings |
9 |
2,053 |
|
2,317 |
|
|
|
|
|
|
|
|
|
23,475 |
|
27,928 |
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Trade and other payables |
|
10 |
|
358 |
|
Borrowings |
9 |
1,162 |
|
2,048 |
|
Retirement benefit obligations |
|
3,358 |
|
4,581 |
|
|
|
|
|
|
|
|
|
4,530 |
|
6,987 |
|
|
|
|
|
|
|
Total liabilities |
|
28,005 |
|
34,915 |
|
|
|
|
|
|
|
Net assets |
|
26,619 |
|
26,443 |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Share capital |
11 |
98 |
|
9,745 |
|
Share premium |
11 |
22,983 |
|
22,495 |
|
Shares to be issued |
|
- |
|
542 |
|
Capital redemption reserve |
|
28,609 |
|
18,908 |
|
Other reserves |
|
54,278 |
|
54,327 |
|
Accumulated losses |
|
(79,508) |
|
(79,836) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital and reserves attributable to owners of the parent |
|
26,460 |
|
26,181 |
|
|
|
|
|
|
|
Non-controlling interests |
|
159 |
|
262 |
|
|
|
|
|
|
|
Total equity |
|
26,619 |
|
26,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jack Reinelt |
Leslie-Ann Reed |
|
|
|
Chief Executive Officer |
Chief Financial Officer |
|
|
|
|
|
|
|
Registered in England No. 5381812 |
|
|
|
|
|
|
|
|
|
|
|
Consolidated statement of changes in equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended 31 December 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to owners of the parent |
|
|
|
|
Share capital |
Share premium |
Capital redemption reserve |
Shares to be issued |
Own shares held in trust |
Acquisition reserve |
Share options reserve |
Foreign currency reserve |
Accumulated losses |
TOTAL |
Non-controlling interest |
TOTAL Equity |
|
�'000 |
�'000 |
�'000 |
�'000 |
�'000 |
�'000 |
�'000 |
�'000 |
�'000 |
�'000 |
�'000 |
�'000 |
At 1 January 2010 (audited) |
23,583 |
18,872 |
- |
542 |
(974) |
47,649 |
1,322 |
7,236 |
(71,882) |
26,348 |
181 |
26,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period |
- |
- |
- |
- |
- |
- |
- |
- |
(4,916) |
(4,916) |
81 |
(4,835) |
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial loss on defined benefit pension scheme |
- |
- |
- |
- |
- |
- |
- |
- |
(2,150) |
(2,150) |
- |
(2,150) |
Currency translation differences |
- |
- |
- |
- |
- |
- |
- |
(2,130) |
- |
(2,130) |
- |
(2,130) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income: |
- |
- |
- |
- |
- |
- |
- |
(2,130) |
(7,066) |
(9,196) |
81 |
(9,115) |
Transactions with owners: |
|
|
|
|
|
|
|
|
|
|
|
|
Cancellation of shares |
(18,908) |
- |
18,908 |
- |
888 |
- |
- |
- |
(888) |
- |
- |
- |
New shares issued |
2,657 |
2,126 |
- |
- |
- |
- |
- |
- |
- |
4,783 |
- |
4,783 |
Conversion of loan notes |
2,413 |
1,923 |
- |
- |
- |
- |
- |
- |
- |
4,336 |
- |
4,336 |
Cost of share issue |
- |
(426) |
- |
- |
- |
- |
- |
- |
- |
(426) |
- |
(426) |
Share based payments |
- |
- |
- |
- |
- |
- |
250 |
- |
- |
250 |
- |
250 |
Transfer of shares |
- |
- |
- |
- |
86 |
- |
- |
- |
- |
86 |
- |
86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total transactions with owners: |
(13,838) |
3,623 |
18,908 |
- |
974 |
- |
250 |
- |
(888) |
9,029 |
- |
9,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2010 (audited) |
9,745 |
22,495 |
18,908 |
542 |
- |
47,649 |
1,572 |
5,106 |
(79,836) |
26,181 |
262 |
26,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period |
- |
- |
- |
- |
- |
- |
- |
- |
(359) |
(359) |
(103) |
(462) |
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial gain on defined benefit pension scheme |
- |
- |
- |
- |
- |
- |
- |
- |
687 |
687 |
- |
687 |
Currency translation differences |
- |
- |
- |
- |
- |
- |
- |
(235) |
- |
(235) |
- |
(235) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income: |
- |
- |
- |
- |
- |
- |
- |
(235) |
328 |
93 |
(103) |
(10) |
Transactions with owners: |
|
|
|
|
|
|
|
|
|
|
|
|
New shares issued |
54 |
488 |
- |
(542) |
- |
- |
- |
- |
- |
- |
- |
- |
Cancellation of redeemable deferred shares held |
(9,701) |
- |
9,701 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Share based payments |
- |
- |
- |
- |
- |
- |
186 |
- |
- |
186 |
- |
186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total transactions with owners: |
(9,647) |
488 |
9,701 |
(542) |
- |
- |
186 |
- |
- |
186 |
- |
186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2010 (unaudited) |
98 |
22,983 |
28,609 |
- |
- |
47,649 |
1,758 |
4,871 |
(79,508) |
26,460 |
159 |
26,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated statement of cash flows |
|
For the year ended 31 December 2010 |
|
|
|
|
|
|
Year ended 31 December |
|
|
|
2010 |
2009 |
|
|
Note |
�'000 |
�'000 |
|
|
|
(unaudited) |
(audited) |
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
Cash (used by)/generated from operations |
10 |
(3,550) |
3,212 |
|
Interest paid |
|
(354) |
(1,116) |
|
Income tax paid |
|
(31) |
(156) |
|
Interest received |
|
82 |
141 |
|
|
|
|
|
|
Net cash (used in)/generated from operating activities |
|
(3,853) |
2,081 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Purchases of property, plant and equipment |
|
(64) |
(94) |
|
Proceeds from sale of property, plant and equipment |
|
542 |
91 |
|
Purchases of intangible assets |
|
(615) |
(394) |
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
(137) |
(397) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
Proceeds from issuance of ordinary shares |
|
- |
4,087 |
|
Decrease in borrowings |
|
(1,150) |
(1,815) |
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in)/generated from financing activities |
|
(1,150) |
2,272 |
|
|
|
|
|
|
|
|
|
|
|
Net (decrease)/increase in cash and cash equivalents |
|
(5,140) |
3,956 |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the year |
|
20,751 |
18,037 |
|
Effect of foreign exchange rate changes |
|
309 |
(1,242) |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the year |
|
15,920 |
20,751 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to the condensed consolidated financial statements
1. General information
GoIndustry-DoveBid plc ('the company') and its subsidiaries (together 'the Group') is the global market leader in the provision of asset management, auction and valuation services relating to industrial equipment.
The Group has offices in locations across Europe, North America, and Asia.
The company is a public limited company incorporated and domiciled in the United Kingdom. The address of its registered office is 1-6 Lombard Street, London, EC3V 9JU.
The company is listed on the Alternative Investment Market (AIM) of the London Stock Exchange (GOI).
2. Basis of preparation
The financial information contained in this document does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The figures for the year ended 31 December 2010 have been extracted from the unaudited financial statements for the year ended 31 December 2010, which have been prepared in compliance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and with the standing interpretations issued by the International Financial Reporting Interpretations Committee of the IASB. The figures for the year ended 31 December 2009 have been extracted from the audited statutory accounts for that year which have been filed with the Registrar of Companies and received an unqualified auditor's report which did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
3. Accounting policies
The condensed financial statements have been prepared under the historical cost convention.
The same accounting policies, presentation and methods of computation has been followed in these condensed financial statements as were applied in the preparation of the Group's financial statements for the year ended 31 December 2009.
4. Segmental analysis
Management has determined the operating segments based on the reports reviewed by the Board, acting as the strategic steering committee that are used to make strategic decisions. The Board considers the business both from a geographical and a revenue stream perspective. Geographically, management considers the performance in Europe, North America and Asia Pacific ('APAC')..
The reportable operating segments derive their revenue from commissions arising from auctions, fees from valuations and other professional services and from sales, commissions and billable expenses arising from principal deals, of both buy and guarantee types.
The performance of the operating segments is measured both at Direct Profit and Operating Profit levels.
(a) Geographical analysis
Year ended 31 December 2010 |
Europe |
North America |
Asia Pacific |
Corporate |
Consolidated |
(Unaudited) |
�'000 |
�'000 |
�'000 |
�'000 |
�'000 |
Revenue |
14,649 |
21,534 |
3,911 |
- |
40,094 |
Direct profit |
9,218 |
15,616 |
2,977 |
- |
27,811 |
Segment result |
1,375 |
2,865 |
(206) |
(3,169) |
885 |
Exceptional items |
(48) |
- |
(66) |
(295) |
(409) |
Other costs |
- |
- |
- |
(893) |
(893) |
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit/(loss) |
1,327 |
2,885 |
(272) |
(4,357) |
(417) |
Finance (costs)/income - net |
(58) |
(220) |
22 |
(16) |
(272) |
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) before income tax |
1,269 |
2,665 |
(250) |
(4,373) |
(689) |
Income tax (expense)/credit |
(20) |
216 |
31 |
- |
227 |
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the year |
1,249 |
2,881 |
(219) |
(4,373) |
(462) |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortisation |
277 |
472 |
153 |
451 |
1,353 |
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
12,711 |
34,753 |
3,632 |
3,528 |
54,624 |
Segment liabilities |
11,127 |
12,078 |
1,857 |
2,943 |
28,005 |
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure: |
|
|
|
|
|
Property, plant and equipment |
8 |
34 |
22 |
- |
64 |
Intangible assets |
154 |
- |
- |
461 |
615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended 31 December 2009 |
Europe |
North America |
Asia Pacific |
Corporate |
Consolidated |
(audited) |
�'000 |
�'000 |
�'000 |
�'000 |
�'000 |
Revenue |
15,165 |
22,016 |
4,809 |
- |
41,990 |
Direct profit |
8,798 |
13,158 |
3,318 |
- |
25,274 |
Segment result |
321 |
766 |
499 |
(2,169) |
(583) |
Exceptional items |
(620) |
4 |
(223) |
(934) |
(1,773) |
Other costs |
- |
- |
- |
(1,036) |
(1,036) |
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)/profit |
(299) |
770 |
276 |
(4,139) |
(3,392) |
Finance (costs)/income - net |
(57) |
(590) |
18 |
(202) |
(831) |
Convertible loan note restructuring interest |
- |
- |
- |
(414) |
(414) |
Share of loss of associate |
- |
(28) |
- |
- |
(28) |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit before income tax |
(356) |
152 |
294 |
(4,755) |
(4,665) |
Income tax expense |
(6) |
(45) |
(119) |
- |
(170) |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit for the year |
(362) |
107 |
175 |
(4,755) |
(4,835) |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortisation |
290 |
511 |
240 |
328 |
1,369 |
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
15,348 |
38,456 |
3,682 |
3,872 |
61,358 |
Segment liabilities |
9,487 |
20,015 |
1,551 |
3,862 |
34,915 |
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure: |
|
|
|
|
|
Property, plant and equipment |
32 |
50 |
12 |
- |
94 |
Intangible assets |
150 |
- |
- |
244 |
394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Revenue stream analysis
|
2010 |
2009 |
|
�'000 |
�'000 |
|
(unaudited) |
(audited) |
Revenue |
|
|
Commission sales |
29,874 |
28,296 |
Professional services |
4,746 |
6,930 |
Principal deals |
5,474 |
6,764 |
|
|
|
|
|
|
|
40,094 |
41,990 |
|
|
|
|
|
|
Direct profit |
|
|
Commission sales |
20,812 |
17,745 |
Professional services |
4,186 |
5,301 |
Principal deals |
2,813 |
2,228 |
|
|
|
|
|
|
|
27,811 |
25,274 |
|
|
|
(c) Revenue from external customers
|
2010 |
2009 |
|
�'000 |
�'000 |
|
(unaudited) |
(audited) |
Entity's country of domicile - United Kingdom |
8,379 |
10,407 |
Foreign countries from which the Group derives revenue: |
|
|
USA |
21,247 |
22,016 |
Germany |
6,034 |
3,592 |
Other Europe |
523 |
1,166 |
Asia Pacific |
3,911 |
4,809 |
|
|
|
|
|
|
|
40,094 |
41,990 |
|
|
|
|
|
|
5. Exceptional costs
|
Year ended 31 December |
|
2010 |
2009 |
�'000 |
(unaudited) |
(audited) |
Reorganisation costs |
(91) |
(1,140) |
Costs associated with Zetabid |
- |
(265) |
Board change costs |
(200) |
(368) |
Legacy costs associated with legal cases |
(118) |
- |
Convertible loan note restructuring interest |
- |
(414) |
|
|
|
|
|
|
|
(409) |
(2,187) |
|
|
|
|
|
|
6. Other charges
|
Year ended 31 December |
|
2010 |
2009 |
�'000 |
(unaudited) |
(audited) |
Equity-settled share-based payments |
(186) |
(336) |
Amortisation of acquired intangible fixed assets |
(707) |
(700) |
|
|
|
|
|
|
|
(893) |
(1,036) |
|
|
|
|
|
|
7. Income tax expense
The charge for income tax is accrued using the estimated average annual effective income tax rate for each tax jurisdiction, applied individually to the pre-tax income of each jurisdiction for the year. However, as the Group has tax losses in most jurisdictions, no meaningful average annual effective income tax rate can be calculated. Previously, no deferred tax asset has been recognised in respect of tax losses. However, this year a deferred tax asset has been recognised, as it is now considered that there is sufficient certainty over the recoverability of this asset.
8. Earnings per share
|
Year ended 31 December |
|
2010 |
2009 |
|
(unaudited) |
(audited) |
Earnings per share: |
|
|
Loss for the year attributable to equity holders of the Company - �'000 |
(359) |
(4,916) |
|
|
|
|
|
|
Weighted average number of new ordinary shares in issue in thousands* |
9,790 |
6,284 |
|
|
|
|
|
|
Basic / diluted loss per share - pence per share * |
(3.7p) |
(78.2p) |
|
|
|
As there is a loss for the year, there are no dilutive new ordinary shares |
|
|
|
|
|
Adjusted earnings per share: |
|
|
Loss for the year attributable to equity holders of the Company - �'000 |
(359) |
(4,916) |
Add back: |
|
|
Exceptional items |
409 |
2,187 |
Other costs |
893 |
1,036 |
|
|
|
|
|
|
Total adjustments |
1,302 |
3,223 |
|
|
|
|
|
|
Adjusted profit/(loss) attributable to equity holders of the Company - �'000 |
943 |
(1,693) |
|
|
|
|
|
|
Adjusted basic earnings/(loss) per share - pence per share * |
9.6p |
(26.9p) |
|
|
|
Weighted average number of new ordinary shares in issue in thousands* |
9,790 |
6,284 |
|
|
|
Dilutive effect of share options in thousands* |
56 |
- |
|
|
|
|
|
|
Weighted average number of new ordinary shares for diluted earnings per share |
9,846 |
6,284 |
|
|
|
|
|
|
Adjusted diluted earnings/(loss) per share - pence per share * |
9.6p |
(26.9p) |
|
|
|
|
|
|
* 2009 loss per share restated for the share restructuring |
|
|
9. Borrowings
|
2010 |
2009 |
|
�'000 |
�'000 |
|
(unaudited) |
(audited) |
Current |
|
|
Bank loans and overdrafts |
1,087 |
2,084 |
Convertible loan notes |
500 |
- |
Subordinated loan notes |
466 |
233 |
|
|
|
|
|
|
|
2,053 |
2,317 |
|
|
|
|
|
|
Non-current |
|
|
Bank loans |
1,162 |
1,287 |
Convertible loan notes |
- |
500 |
Subordinated loan notes |
- |
261 |
|
|
|
|
|
|
|
1,162 |
2,048 |
|
|
|
|
|
Floating rate: |
|
|
Expiring within one year |
1,087 |
2,084 |
Fixed rate: |
|
|
Expiring within one year |
966 |
233 |
Expiring beyond one year |
1,162 |
2,048 |
|
|
|
|
|
|
|
3,215 |
4,365 |
|
|
|
|
|
|
|
The fair value of current and non-current borrowings equals their carrying amount, as the impact of discounting is not significant.
The bank loans totalling �2.2m are used to fund principal transactions and working capital and are secured by charges over the assets of the companies and a parent company guarantee from GoIndustry-DoveBid plc. Subsequent to year-end these facilities were renewed and are in place until 30 April 2012. There is also a term loan facility that matures on 30 April 2012. These loans bear floating interest at a rate of 0.75% above US Prime Rate.
The convertible loan notes are held by GoIndustry-DoveBid plc, mature on 31 December 2011 and bear interest at 12% per annum. The notes are convertible at any time into 1p Ordinary shares at a price of �2.80 per new ordinary share. The notes may be redeemed by the company at par at any time after 31 December 2010.
The subordinated loan notes are held by DoveBid, Inc. and do not bear interest. The loan notes are unsecured, subordinated to other debt of the Group and are repayable in 60 monthly instalments ending 30 November 2011.
10. Net cash flow from operating activities
|
|
|
|
Year ended 31 December |
|
2010 |
2009 |
|
�'000 |
�'000 |
|
(unaudited) |
(audited) |
|
|
|
Loss before income tax |
(689) |
(4,665) |
Adjustments for: |
|
|
Depreciation |
256 |
434 |
Amortisation |
1,097 |
935 |
Profit on disposal of PPE |
(53) |
- |
Share based payments |
186 |
336 |
Net retirement benefit cost |
169 |
117 |
Finance costs - net |
272 |
1,245 |
Share of loss from associate |
- |
28 |
Pension contributions by Company |
(850) |
(740) |
Changes in working capital: |
|
|
Inventories |
284 |
1,943 |
Trade and other receivables |
980 |
3,719 |
Due to clients |
(4,193) |
862 |
Trade and other payables |
(1,009) |
(1,002) |
|
|
|
|
|
|
Cash (used in)/generated from operations |
(3,550) |
3,212 |
|
|
|
11. Share capital and premium
On 25 February 2010, the Company issued 5,420,000 ordinary shares of 1 pence each in satisfaction of the deferred arrangement on the second anniversary of the acquisition of Dovebid, Inc.
At the Company's AGM on 23 June 2010, the Company announced a restructuring of its equity share capital by consolidating every 100 of its issued ordinary shares of 1 pence each into one new ordinary share of �1.00 each, immediately followed by a subdivision of each �1.00 ordinary share into one new ordinary share of 1 pence (the "New Ordinary Shares") and one deferred share of 99 pence.
On 22 December 2010, the company issued one New Ordinary Share of 1 pence to fund the repurchase of the 9,798,493 deferred shares of 99 pence each created on 23 June 2010. The deferred shares were then immediately cancelled.
**ENDS**
Jack Reinelt |
GoIndustry-DoveBid plc |
Tel: 020 7098 3700 |
Leslie-Ann Reed |
GoIndustry-DoveBid plc |
Tel: 020 7098 3700 |
Chris Fielding |
WH Ireland Ltd
(Nominated Adviser) |
Tel: 020 7220 0470 |
Felicity Edwards |
St Brides Media & Finance Ltd |
Tel: 020 7236 1177 |
Felicity Edwards
St Brides Media and Finance Ltd
Chaucer House
38 Bow Lane
London
EC4M 9AY
Tel: +44 (0) 207 236 1177
Mob: +44 (0) 7748 843871
Fax: +44 (0) 207 236 1188
Email: felicity@sbmf.co.uk
Web: www.stbridesmedia.co.uk