Holdings PLC
REPORT AND FINANCIAL
STATEMENTS
for the year ended 31 March 2013
OVERVIEW
We are a leading Fleet Management solutions provider, with
headquarters in Shaftesbury, Dorset. Fundamenatally a UK based
company, we are now rapidly expanding into Europe and the rest
of the World by increasing focus on integrated solutions through our
SWIFT product - establishing a growing base of recurring revenue.
Financial Highlights
Revenue £4.75m (2012: £5.22m)
Recurring revenues up by 9.9% to an annualised £2.15m
Gross profit margin up to 71.9% (2012: 63.7%)
EBITDA £0.31m (2012: £0.36m)
Profit before tax £0.04m (2012: £0.08m)
Cash balances up 29.2% to £1.41m at year end
Net assets increased to £2.52m (2012: £2.38m)
Operational Highlights
Investment for Growth strategy successfully implemented
Successful transition to recurring revenue business model
Strong year for new product and service launches, including:
• Trakm8 ecoN, Logistics, and Tacho Telematics Solutions
Encouraging order pipeline and sales opportunities
Expanding range of international opportunities
Completion of product transfer agreement with Visilink
Current trading Highlights
Investments in new products and sales resource expected to
positively impact the second half of new financial year and beyond
Successful integration of Visilink customers
Year to date revenues are 23% ahead of last year
Monthly Recurring Revenue (£’s)
Year End
31 March 2013
Revenue (£’s)
4.75m
(2012: £5.22m)
Gross profit margin (%)
71.9%
(2012: 63.7%)
Profit before tax (£’s)
0.04m
(2012: £0.08m)
Net Assets (£’s)
2.52m
(2012: £2.38m)
200,000
150,000
100,000
50,000
0
2
2009
2010
2011
2012 2013
Company Number 05452547 Holdings PLCHoldings PLC
Percentage share of
revenue between core
business areas
Percentage share of
revenue between
geographical
business areas
CORE AREAS OF BUSINESS
Solutions:
64%
£3,035,466
Products:
28%
£1,308,627
• Software, servers and web-based portal
• Recurring contracts
• Products hardware
• Product functionality key point of differentiator
Engineering Services:
8%
£405,823
• Telematic consultancy work (this can also act as a
lead generator for SWIFT/Products sales)
WORLDWIDE DISTRIBUTION
UK
73%
£3,465,740
Europe
14%
£679,576
Rest of
World
13%
£604,600
CONTENTS
4
5
6
8
12
Officers and Advisers
Chairman’s Statement
CEO’s Statement
Directors’ Report
Statement of Directors’
Responsibilities
13
14
15
16
Independent Auditors’ Report
to the members of Trakm8
Holdings PLC
Consolidated Statement of
Comprehensive Income
Consolidated Statement
of Changes in Equity
Consolidated Statement
of Financial Position
17
18
42
43
Consolidated Statement
of Cash Flows
Notes to the Consolidated
Financial Statements
Parent Company Balance Sheet
Notes to the Parent Company
Financial Statements
2009
2010
2011
2012 2013
3
Holdings PLCHoldings PLCCompany Number 05452547
OFFICERS AND ADVISERS
DIRECTORS
C D Buck
M Cowley
T Cowley
J Hedges
J Watkins
P Wilson
SECRETARY
J Hedges
REGISTERED OFFICE
Lydden House
Wincombe Business Park
Shaftesbury
Dorset
SP7 9QJ
BANKERS
HSBC Bank plc
HSBC House
Mitchell Way
Southampton
SO18 2XU
AUDITOR
Milsted Langdon LLP
Winchester House
Deane Gate Avenue
Taunton
TA1 2UH
NOMAD and BROKER
finnCap Limited
60 New Broad Street
London
EC2M 1JJ
FINANCIAL PUBLIC RELATIONS
MHP Communications
60 Great Portland Street
London
W1W 7RT
4
Company Number 05452547 Holdings PLCHoldings PLC
CHAIRMAN’S STATEMENT
I am pleased to report that Trakm8’s strategy of reinvesting in
the business in order to drive long term growth is bearing fruit.
Trakm8 has successfully introduced a number of new products
and software solutions that have been well received by the market.
The strength of the Trakm8 financial model where little profit is
taken on the original sales is demonstrated by the improvement in
cash balances to £1.41m and rising recurring revenues which
continues to be the key focus of our strategy.
I am encouraged by the outlook for the business. The Group is well
positioned with a strong balance sheet in a growing market. With the
increasingly advanced solutions offered by the Company’s technology,
I am confident that the business will continue to grow profitably and
take advantage of opportunities as and when they arrive.
As announced separately, I have decided to step down after
seven years as Chairman and non-executive Director of Trakm8.
John Watkins, currently our Chief Executive, has become Executive
Chairman, a new role. At the same time we are appointing Keith Evans,
a former partner of PricewaterhouseCoopers, as non-executive director.
It has been a pleasure contributing to the development of the Trakm8
story and I am confident that its future is bright and secure.
Dawson Buck
Chairman
5
Holdings PLCHoldings PLCCompany Number 05452547 CEO’S STATEMENT
I am pleased with the progress summarised in the
Chairman’s Statement.
The decision was taken last year and implemented
early in the second half, to make a game changing
investment in engineering, sales and support staff.
This increased our operating costs by approximately
£50,000 per month. This decision has also
negatively impacted the profit and loss during the
period as our revenues have as expected lagged
these investments.
Due to delays on some product sales which took
longer to complete than expected, overall revenues
declined somewhat; although disappointing, this is
a reflection of the increased emphasis on solutions
sales and engineering services. The transition from
the hardware supplier Trakm8 was five years ago
to the full solutions supplier of today has made the
revenue line move from one off sales today to long
term recurring service revenues. As a result the top
line can be strongly influenced by individual major
contracts but the underlying revenue security of the
Group continues to improve.
Trakm8 has enjoyed a significant improvement in
sales of complete solutions and engineering services
during the period. This has resulted in strong growth
in recurring revenues and higher margins.
The Group revenues are accounted for in three
segments:
Products
This is the segment where Trakm8 supplies other
Telematics Service Providers with hardware
solutions. In most cases this also includes our market
leading unit configuration firmware. This has been
a year of transition. Many of our UK customers
for our products in the past have migrated to
alternative suppliers that do not compete with them
in the solutions market. This migration is perhaps a
validation of our success in competing at the end
user level.
Following the appointment of an International
Business Development Manager early in the
year, we have increased our international sales of
hardware. This has taken some time to build traction
as customers conduct extensive trials to ensure
that the hardware meets their requirements. New
customers have started to buy units from us in
North and South America. Overall, the total number
of units sold to third parties declined during the
year, but the trend towards year-end was positive.
The highlight of the year was the significant sales of
hardware to Motorola as announced on 2 July 2012.
Whilst the sales of hardware to third party
integrators help us to ensure our manufactured cost
of products are as low as can be achieved, these
revenues are at lower margins and have no on-going
recurring revenues. As such they remain important
to us but not the most strategically important
segment.
Solutions
This segment is where Trakm8 supplies customers
with a fully integrated service provision. Customers
include the AA, E.ON and Jewson. This solution is
also provided through a partner in South Africa.
The number of units reporting to Swift has
continued to grow steadily throughout the year and
this has increased the base of recurring monthly
revenue, which provides the improved security
and predictability to future income. By the end of
the financial year the monthly recurring revenue
had increased by 9.9% on the previous year to an
annualised £2.15m. The majority of these revenues
are not taken as upfront payments ensuring our
cash receipts are close to sales booked.
We were pleased to announce on 25 April 2013
the completion of a product transfer agreement
with Visilink, a Cheshire based Telematics Service
Provider. Under the agreement Visilink’s entire
customer base was offered the opportunity to
transfer to our Swift solution. This process proved
that we could communicate with third party
hardware via our Stream servers. No revenues
accrued during the year to March 2013 but we
expect over 500 units to eventually migrate onto
Swift, providing a lift in recurring revenues for the
new financial year.
During the year the Company enhanced the
engineering investments in new solutions and
launched updated versions of Swift and ecoN. We
also launched a new fleet management routing and
scheduling package called Logistics. This package
has three early adopters and has an encouraging
number of other inquiries.
Another new product developed during the year but
launched in the last month is the Tachograph range
of solutions that integrate the digital tachograph
information into mobile applications for driver and
6
Company Number 05452547 Holdings PLCHoldings PLC CEO’S STATEMENT (continued)
operator status reporting and provide operators
with the legal compliance data required to meet the
driver hours regulations. Again early adopters have
expressed positive feedback and the pipeline of
opportunities is growing.
The new solutions and agreements we have
announced since the year end will provide additional
revenues and opportunities in the current financial
year and after the first two months of trading our
revenues are ahead of last year.
With our strong balance sheet, good cash
generation, and robust business model Trakm8 is in
a position to consider augmenting growth through
selective acquisitions alongside our current organic
growth strategy. Any acquisition will need to meet
our narrow market segment objectives and financial
criteria.
Finally, I would like to thank all the Trakm8 staff for
their tremendous hard work over the past twelve
months.
John Watkins
CEO
We have also undertaken a considerable amount
of development to white label our ecoN solution
for a new customer. This has been a considerable
engineering task and no solutions revenues were
derived during the period. There are, however, good
opportunities as a result of this development. It is
encouraging that this product is taking market share
from more established competitors.
The Solutions segment is the core value enhancing
activity of the Group and, overall our revenues grew
by 9.3% during the period.
Engineering Services
This is the segment where Trakm8 undertakes
bespoke software development for customers. The
customer specific application engineering has been
a major feature of the product development team as
the larger customers have demanded their particular
requirements. This has also helped improve our core
products.
These engineering projects provide profitable
consultancy activities in themselves, but also
help to integrate customers to Trakm8 solutions,
and provide on-going support and maintenance
revenues.
Projects for Jewson, St Gobain and others have been
undertaken in the past 12 months and whilst this
activity remains a small percentage of the Group
revenues it is considered a key differentiator, skill
and value added capability.
This segment increased by £0.19m over the previous
year to £0.41m.
Outlook
The Board is confident that our investments in new
products and sales resources will positively impact
the second half of new financial year and beyond.
In the meantime we have a strong pipeline of new
products and solutions and we are confident that
our recurring revenues will carry on growing. We
continue to receive inquiries for increasing levels of
engineering services work.
7
Holdings PLCHoldings PLCCompany Number 05452547
DIRECTOR’S REPORT
The Directors submit their report and financial
statements of Trakm8 Holdings PLC for the year
ended 31 March 2013.
Trakm8 Holdings PLC is a public listed company
incorporated and domiciled in England (Company
Number 05452547) whose shares are quoted on
AIM, a market operated by the London Stock
Exchange plc.
PRINCIPAL ACTIVITIES
The principal activities of the Trakm8 Group are the
manufacture, marketing and distribution of vehicle
telematics equipment and services. Trakm8 Holdings
PLC is the holding company for the Trakm8 Group.
REVIEW OF THE BUSINESS
The review of the business is contained in the
Chairman’s and CEO’s Statement on pages 5 to 7.
RESULTS AND DIVIDENDS
The Group results for the year ended 31 March 2013
are shown in the Consolidated Statement of
Comprehensive Income on page 14. The Directors do
not recommend the payment of a dividend.
FUTURE DEVELOPMENTS
Future developments of the business is contained
in the Chairman’s and CEO’s Statement on
pages 5 to 7.
RESEARCH AND DEVELOPMENT
The Board considers that the Group’s research
and development activity plays an important role
in the operational and financial success of the
business. During the year we announced a
strategic investment in our research and
development activities in order to further
enhance the Group’s development resources
and products for future years.
KEY PERFORMANCE INDICATORS
The key performance indicators used to assess the
performance and financial status of the Group are as
follows:-
1. Operating profit. The Group produced an
operating profit of £39,577 compared to last
year’s operating profit of £88,345. The decrease
in operating profit was as a result of our
investment in sales, marketing and
engineering activities.
2. Borrowings. The Group monitors its cash and
borrowings position and updates cash flow
forecasts for the following twelve months on a
daily basis. During the year total borrowings
decreased from £219,316 to £163,083 at
the year end.
3. Customer services. A weekly analysis is
undertaken of outstanding customer service
cases to ensure compliance with our service
level agreements.
4. Credit control. All overdue accounts are
reviewed and where necessary contacted on
a weekly basis.
GOING CONCERN
The Directors confirm that they are satisfied that
the Group has adequate resources and facilities to
continue in business for the foreseeable future.
For this reason they continue to adopt the going
concern basis in preparing the financial statements.
DIRECTORS
The following Directors have held office during the
year:
C D Buck
M Cowley
T Cowley
J Hedges
J Watkins
P Wilson
8
Company Number 05452547 Holdings PLCHoldings PLC
DIRECTOR’S REPORT (continued)
DIRECTORS AND THEIR INTERESTS
The present members of the Board are as listed on page 4. The Directors’ interests in the shares of the
Company are detailed below:-
1p ordinary shares
At 31 March 2013
% of issued
ordinary share
capital (18,864,731
ordinary shares)
1p ordinary shares
At 1 Apr 2012 or on
subsequent date
of appointment
% of issued
ordinary share
capital (18,764,731
ordinary shares)
641,994
1,269,203
1,534,002
1,470,808
4,581,162
555,512
3.37%
6.66%
8.05%
7.72%
24.05%
2.86%
541,994
1,194,203
1,459,002
1,171,025
3,852,738
420,512
2.87%
6.33%
7.73%
6.21%
20.42%
2.23%
C D Buck
M Cowley
T Cowley
J Hedges
J Watkins
P Wilson
The Directors had no interest in the share capital of the Company’s subsidiary undertakings at 31 March 2013
or on the date on which these financial statements were approved.
Directors’ Remuneration
The Directors’ remuneration for the year ended 31 March 2013 was:
Audited
D Buck
M Cowley
T Cowley
J Hedges
J Watkins
P Wilson
Total
Salaries &
Fees
Bonuses
Benefits
Share
Options
£
35,000
78,925
82,106
82,106
£
-
893
929
929
101,656
75,338
455,131
7,749
852
11,352
£
-
5,581
5,581
5,770
11,047
9,429
37,408
£
748
2,243
2,243
2,990
4,110
2,243
14,577
Total
31 March
2013
£
Total
31 March
2012
£
35,748
87,642
90,859
91,795
124,562
87,862
518,468
35,000
81,712
84,798
84,723
84,769
83,094
454,096
9
Holdings PLCHoldings PLCCompany Number 05452547 DIRECTOR’S REPORT (continued)
Directors’ Share Options
At 31 March 2013 the following options had been granted to the Company’s Directors and remain current and
unexercised:
Option
exercise
price
Balance as
at 31 March
2012
Granted
during
year
Exercised
during
year
Expired/
forfeited
during
year
Balance as
at 31 March
2013
Expiry
date
£0.06
£0.13
£0.06
£0.13
£0.06
£0.13
£0.13
£0.06
£0.13
£0.06
£0.13
100,000
-
(100,000)
-
50,000
-
75,000
-
(75,000)
-
150,000
-
75,000
-
(75,000)
-
-
150,000
200,000
-
-
200,000
-
(200,000)
-
275,000
-
100,000
-
(100,000)
-
150,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
50,000
30/07/22
-
-
150,000
30/07/22
-
-
150,000
30/07/22
200,000
30/07/22
-
-
275,000
30/07/22
-
-
150,000
30/07/22
D Buck
M Cowley
T Cowley
J Hedges
J Watkins
P Wilson
The Group provides indemnity cover for the Directors.
10
Company Number 05452547 Holdings PLCHoldings PLC DIRECTOR’S REPORT (continued)
STATEMENT AS TO DISCLOSURE OF
INFORMATION TO THE AUDITOR
The Directors who were in office on the date of
approval of these financial statements have
confirmed, as far as they are aware, that there is no
relevant audit information of which the auditor is
unaware. Each of the Directors has confirmed that
they have taken all the steps that they ought to
have taken as Directors in order to make themselves
aware of any relevant audit information
and to establish that it has been communicated
to the auditor.
AUDITORS
A resolution to reappoint Milsted Langdon LLP,
Chartered Accountants, as auditors, will be put to
the members at the annual general meeting.
By approval of the Board on 28 June 2013.
J Hedges
Secretary
SUPPLIERS PAYMENT POLICY
It is the Group’s policy to establish payment
terms with suppliers and to adhere to those
terms, provided that the goods and services are
in accordance with the agreed terms and conditions.
Trade payables for the parent company at the year
end represented 68 days of purchases
(2012: 45 days).
EMPLOYMENT POLICY
During the year, the Group has consulted with
employees in matters likely to affect their interests
and is committed to involving them in the
performance and development of the Group.
DISABLED EMPLOYEES
The Group gives full consideration to applications
for employment from disabled persons where the
requirements of the job can be adequately fulfilled
by a disabled person.
Should existing employees become disabled, it is
the Group’s policy wherever practicable to provide
continuing employment under normal terms and
conditions and to provide training, career
development and promotion to such employees
as appropriate.
PRINCIPAL RISKS AND UNCERTAINTIES
The following are identified as the principle risks and
uncertainties facing the Group:-
Technology risk - The Group invests in research and
development to enable the delivery of new and
enhanced products and services.
Liquidity risk - The Group operates a long-term
business, and its policy is to finance it primarily
with equity and short to medium-term borrowings.
Short-term flexibility is achieved by cash balances
and overdraft facilities.
Credit risk - The Group aims to minimise its
exposure to credit risk through a mixture of credit
insurance, credit limits and credit checks on new
customers.
Foreign currency risk - Historically the Group has
not used hedging instruments to minimise currency
risk as the exposure is limited. If foreign currency
exposure increases, the use of foreign currency
hedging instruments will be reviewed as necessary.
11
Holdings PLCHoldings PLCCompany Number 05452547 STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN
THE PREPARATION OF FINANCIAL STATEMENTS
The Directors are responsible for preparing the
Directors’ Report and the financial statements in
accordance with applicable law and regulations.
Company law requires the Directors to prepare
Group and Company financial statements for each
financial year. The Directors are required by the
AIM Rules of the London Stock Exchange to
prepare group financial statements in accordance
with International Financial Reporting Standards
(“IFRS”) as adopted by the European Union (“EU”)
and have elected under company law to prepare the
Company financial statements in accordance with
United Kingdom Generally Accepted Accounting
Practice (United Kingdom Accounting Standards
and applicable law).
The Group financial statements are required by law
and IFRS adopted by the EU to present fairly the
financial position and performance of the Group;
the Companies Act 2006 provides in relation to such
financial statements that references in the relevant
part of that Act to financial statements giving a true
and fair view are references to their achieving a fair
presentation.
Under company law the Directors must not approve
the financial statements unless they are satisfied that
they give a true and fair view of the state of affairs
of the Group and the Company and of the profit or
loss of the Group for that period.
In preparing each of the Group and Company
financial statements, the Directors are required to:
a.
select suitable accounting policies and then
apply them consistently;
b.
make judgements and accounting estimates
that are reasonable and prudent;
c.
for the Group financial statements, state
whether they have been prepared in
accordance with IFRS adopted by the EU
and for the Company financial statements
state whether applicable UK accounting
standards have been followed, subject to any
material departures disclosed and explained
in the Group and Company financial
statements; and
d.
prepare the financial statements on the
going concern basis unless it is inappropriate
to presume that the Group and the Company
will continue in business.
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and
explain the Group’s and the Company’s transactions
and disclose with reasonable accuracy at any time
the financial position of the Group and the Company
and enable them to ensure that the financial
statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets
of the Group and the Company and hence for taking
reasonable steps for the prevention and detection of
fraud and other irregularities.
The Directors are responsible for the maintenance
and integrity of the corporate and financial
information included on the Trakm8 Holdings
PLC website.
Legislation in the United Kingdom governing
the preparation and dissemination of financial
statements may differ from legislation in other
jurisdictions.
We have audited the financial statements of Trakm8
Holdings PLC for the year ending 31st March 2013
which comprise the Consolidated Statement of
Comprehensive Income, the Consolidated Statement
of Changes in Equity, the Consolidated Statement
of Financial Position, the Consolidated Statement
of Cash Flows, the Parent Company Balance Sheet
and the related Notes. The financial reporting
framework that has been applied in the preparation
of the Group financial statements is applicable law
and International Financial Reporting Standards
(IFRS) as adopted by the European Union. The
financial reporting framework that has been applied
in the preparation of the Parent Company financial
statements is applicable law and United Kingdom
Accounting Standards (United Kingdom Generally
Accepted Accounting Practice).
This report is made solely to the Company’s
members, as a body, in accordance with Chapter 3
of Part 16 of the Companies Act 2006. Our audit
work has been undertaken so that we might state
to the Company’s members those matters we are
required to state to them in an auditor’s report and
for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility
to anyone other than the Company and the
Company’s members as a body, for our audit work,
for this report, or for the opinions we have formed.
12
Company Number 05452547 Holdings PLCHoldings PLC
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS
OF TRAKM8 HOLDINGS PLC
We have audited the financial statements of Trakm8 Holdings PLC for the year ending 31st March 2013 which
comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Changes
in Equity, the Consolidated Statement of Financial Position, the Consolidated Statement of Cash Flows, the
Parent Company Balance Sheet and the related Notes. The financial reporting framework that has been
applied in the preparation of the Group financial statements is applicable law and International Financial
Reporting Standards (IFRS) as adopted by the European Union. The financial reporting framework that has
been applied in the preparation of the Parent Company financial statements is applicable law and United
Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16
of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s
members those matters we are required to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we
have formed.
Respective responsibilities of directors and
auditors
As more fully explained in the Directors’
Responsibilities Statement set out on page 12, the
Directors are responsible for the preparation of the
financial statements and for being satisfied that they
give a true and fair view. Our responsibility is to
audit and express an opinion on the financial
statements in accordance with applicable law
and International Standards on Auditing (UK and
Ireland). Those standards require us to comply
with the Auditing Practices Board’s (APB’s)
Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial
statements is provided on the APB’s website at
www.frc.org.uk/apb/scope/private.cfm.
Opinion on the financial statements
In our opinion
the financial statements give a true and fair view
of the state of the Group’s and of the Parent
Company’s affairs as at 31 March 2013 and of the
Group’s profit for the year then ended;
the Group financial statements have been properly
prepared in accordance with IFRS as adopted by
the European Union;
the Parent Company financial statements have
been properly prepared in accordance with United
Kingdom Generally Accepted Accounting Practice;
and
the financial statements have been prepared in
accordance with the requirements of the
Companies Act 2006.
Opinion on other matter prescribed by the
Companies Act 2006
In our opinion the information given in the Directors’
Report for the financial year for which the financial
statements are prepared is consistent with the
financial statements.
Matters on which we are
required to report by exception
We have nothing to report in respect of the
following matters where the Companies Act 2006
requires us to report to you if, in our opinion:
adequate accounting records have not been kept
by the Parent Company, or returns adequate for
our audit have not been received from branches
not visited by us; or
the Parent Company financial statements are
not in agreement with the accounting records and
returns; or
certain disclosures of Directors’ remuneration
specified by law are not made; or
we have not received all the information and ex
planations we require for our audit.
Nigel Fry (Senior Statutory Auditor)
For and behalf of Milsted Langdon LLP
Chartered Accountants and Statutory Auditors
Winchester House
Deane Gate Avenue
Taunton
TA1 2UH
28 June 2013
13
Holdings PLCHoldings PLCCompany Number 05452547 CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME for the year ended 31 March 2013
REVENUE
Cost of sales
Gross profit
Other income
Administrative expenses
OPERATING PROFIT
Finance income
Finance costs
PROFIT BEFORE TAXATION
Income tax credit
PROFIT FOR THE YEAR ATTRIBUTABLE TO THE OWNERS
OF THE PARENT
OTHER COMPREHENSIVE INCOME
Currency translation differences
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
ATTRIBUTABLE TO OWNERS OF THE PARENT
EARNINGS PER ORDINARY SHARE (PENCE)
ATTRIBUTABLE TO OWNERS OF THE PARENT
Notes
2013
£
2012
£
6
7
7
8
9
4,749,916
5,215,565
(1,332,833)
(1,889,499)
3,417,083
3,326,066
-
5,039
3,417,089
3,331,105
(3,377,506)
(3,242,760)
39,577
88,345
2,423
788
42,000
89,133
(4,478)
(5,249)
37,522
83,884
112,537
50,666
150,059
134,550
(1,615)
1,493
148,444
136,043
Basic
Diluted
11
11
0.79p
0.78p
0.71p
0.70p
There were no discontinued operations in 2013 or 2012.
Accordingly the results relate to continuing operations.
14
Company Number 05452547 Holdings PLCHoldings PLC CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY for the year ended 31 March 2013
Share
Capital
Share
premium
Merger
Reserve
Translation
reserve
Retained
Earnings
£
£
£
£
£
Total equity
attributable to
owners of
the parent
£
Balance as at 1 April 2011
187,647
1,719,402
509,837
206,321
(387,218)
2,235,989
Comprehensive income
Profit for the year
Other comprehensive income
Exchange differences on
translation of overseas
operations
Total comprehensive income
Transactions with owners
-
-
-
-
-
-
Shares issued
1,000
4,250
IFRS2 Share based payments
-
-
Transactions with owners
1,000
4,250
-
-
-
-
-
-
-
134,550
134,550
(1,493)
-
(1,493)
(1,493)
134,550
133,057
-
-
-
-
5,250
5,537
5,537
5,537
10,787
Balance as at 1 April 2012
188,647
1,723,652
509,837
204,828
(247,131)
2,379,833
Comprehensive income
Profit for the year
Other comprehensive income
Exchange differences on
translation of overseas
operations
Total comprehensive income
Transactions with owners
-
-
-
-
-
-
Shares issued
5,500
27,500
Purchase of own shares
IFRS2 Share based payments
-
-
-
-
Transactions with owners
5,500
27,500
-
-
-
-
-
-
-
-
150,059
150,059
(1,615)
-
(1,615)
(1,615)
150,059
148,444
-
-
-
-
-
33,000
(57,924)
(57,924)
19,656
19,656
111,791
143,176
Balance as at 31 March 2013
194,147
1,751,152
509,837
203,213
(135,340)
2,523,009
15
Holdings PLCHoldings PLCCompany Number 05452547 CONSOLIDATED STATEMENT OF FINANCIAL
POSITION as at 31 March 2013
NON CURRENT ASSETS
Intangible assets
Property and equipment
Deferred income tax asset
CURRENT ASSETS
Inventories
Trade and other receivables
Current tax assets
Cash and cash equivalents
CURRENT LIABILITIES
Trade and other payables
Borrowings
CURRENT ASSETS LESS CURRENT LIABILITIES
TOTAL ASSETS LESS CURRENT LIABILITIES
NON CURRENT LIABILITIES
Borrowings
Provisions
NET ASSETS
EQUITY
Share capital
Share premium account
Merger reserve account
Translation reserve
Retained earnings
Notes
2013
£
2012
£
12
13
16
14
15
9
17
18
18
19
868,530
1,005,107
560,175 517,118
110,290
98,421
1,538,995
1,620,646
548,143
410,016
643,172
782,375
100,668
15,488
1,405,133
1,087,474
2,697,116
2,295,353
(1,532,349)
(1,250,672)
(46,740)
(56,223)
(1,579,089)
(1,306,895)
1,118,027
988,458
2,657,022
2,609,104
(116,343)
(17,670)
(163,093)
(66,178)
2,523,009
2,379,833
21
194,147
188,647
1,751,152
1,723,652
509,837
509,837
203,213
204,828
(135,340)
(247,131)
TOTAL EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT
2,523,009
2,379,833
These financial statements were approved by the Board of Directors and authorised for issue on
28 June 2013 and are signed on their behalf by:
J Watkins
Director
16
J Hedges
Director
Company Number 05452547 Holdings PLCHoldings PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 March 2013
NET CASH INFLOW FROM OPERATING ACTIVITIES
23
496,650
110,845
Notes
2013
£
2012
£
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment
Purchases of intangible assets
NET CASH USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Issue of new shares
Purchase of Treasury shares
(97,834)
-
(91,232)
(89,241)
(97,834)
(180,473)
33,000
5,250
(57,924)
-
(Repayment) / new obligations under hire purchase agreements
(35,125)
53,296
Repayment of loans
NET CASH (USED IN) /FROM FINANCING ACTIVITIES
(21,108)
(81,157)
(20,471)
38,075
NET INCREASE / (DECREASE) IN CASH
AND CASH EQUIVALENTS
317,659
(31,553)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
1,087,474
1,119,027
CASH AND CASH EQUIVALENTS AT END OF YEAR
1,405,133
1,087,474
17
Holdings PLCHoldings PLCCompany Number 05452547 NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013
1. GENERAL INFORMATION
4. ACCOUNTING POLICIES
Trakm8 Holdings PLC (“Company”) is a public
limited company incorporated in the United
Kingdom (registration number 05452547). The
Company is domiciled in the United Kingdom and
its registered address is Lydden House, Wincombe
Business Park, Shaftesbury, Dorset, SP7 9QJ. The
Company’s Ordinary Shares are traded on the AIM
market of the London Stock Exchange.
The Group’s principal activity is the manufacture,
marketing and distribution of vehicle telematics
equipment and services. The Company’s principal
activity is to act as a holding company for its subsid-
iaries.
2. AUTHORISATION OF FINANCIAL
STATEMENTS AND STATEMENT OF
COMPLIANCE WITH IFRS
The Group’s financial statements have been
prepared in accordance with International Financial
Reporting Standards (“IFRS”) and International
Financial Reporting Interpretations Committee
(“IFRIC”) interpretations as endorsed by the
European Union, and with those parts of the
Companies Act 2006 applicable to companies
reporting under IFRS.
3. BASIS OF PREPARATION
The accounting policies set out in note 4 have been
applied consistently to all periods presented in these
consolidated financial statements.
These financial statements are presented in ster-
ling as that is considered to be the currency of the
primary economic environment in which the Group
operates. This decision was based on the Group’s
workforce being based in the UK and that sterling
is the currency in which management reporting and
decision making is based.
Basis of Accounting
The preparation of the financial statements requires
management to make estimates and assumptions
that affect the reported amounts of revenues,
expenses, assets and liabilities, and the disclosure
of contingent liabilities at the date of the financial
statements. If in the future such estimates and
assumptions which are based on management’s
best judgement at the date of the financial
statements, deviate from the actual circumstances,
the original estimates and assumptions will be
modified as appropriate in the year in which the
circumstances change. Where necessary, the
comparatives have been reclassified or extended
from the previously reported results to take into
account presentational changes.
Basis of Consolidation
The consolidated financial statements incorporate
the financial statements of the Company and entities
controlled by the Company (its subsidiaries) made
up to 31 March each year. Control is achieved where
the Company has the power to govern the financial
and operating policies of an investee entity so as to
obtain benefits from its activities.
The trading results of subsidiaries acquired or
disposed of during the year are included in the
consolidated Statement of Comprehensive Income
from the effective date of acquisition or up to the
effective date of disposal, as appropriate.
All intra-group transactions, balances, income and
expenditure are eliminated on consolidation.
The purchase method of accounting is used to
account for the acquisition of subsidiaries by the
Group. The cost of an acquisition is measured as
the fair value of the assets given, equity instruments
issued and liabilities incurred or assumed at the date
of exchange. Identifiable assets acquired and
liabilities and contingent liabilities assumed in a
business combination are initially measured at fair
value at the acquisition date irrespective of the
extent of any minority interest. The excess of cost
of acquisition over the fair values of the Group’s
share of identifiable net assets acquired is
recognised as goodwill. Any deficiency of the cost
of acquisition below the fair value of identifiable net
assets acquired (i.e. discount on acquisition) is
recognised directly in the Statement of
Comprehensive Income.
18
Company Number 05452547 Holdings PLCHoldings PLC NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
4.
ACCOUNTING POLICIES (continued)
Where necessary, adjustments are made to the
financial statements of subsidiaries to bring the
accounting policies used into line with those used by
other members of the Group.
Share-based Payments
The Group has applied the requirements of IFRS
2 Share-based Payment. In accordance with the
transitional provisions, IFRS 2 has been applied to all
grants of equity instruments after 7 November 2002
that were unvested as of 1 April 2006.
The Group issues equity-settled share-based
payments to certain employees. Equity-settled
share-based payments are measured at fair value
at the date of grant. The fair value determined at the
grant date of equity-settled share-based payments
is expensed on a straight-line basis over the vesting
period, based on the Group’s estimate of shares that
will eventually vest.
The fair value is measured by use of the
Black-Scholes option pricing model. The expected
life used in the model has been adjusted, based
on management’s best estimate, for the effect
of non-transferability, exercise restrictions,
and behavioural considerations. No expense is
recognised for awards that do not ultimately vest.
Financial Instruments
Financial assets and financial liabilities are
recognised in the Group’s balance sheet when
the Group becomes a party to the contractual
provisions of the instrument.
Trade receivables
Trade receivables are initially recognised at fair
value and subsequently measured at their amortised
cost using the effective interest method less any
provision for impairment. A provision for
impairment is made where there is objective
evidence, (including customers with financial
difficulties or in default on payments), that amounts
will not be recovered in accordance with original
terms of the agreement. A provision for impairment
is established when the carrying value of the
receivable exceeds the present value of the future
cash flow discounted using the original effective
interest rate. The carrying value of the receivable
is reduced through the use of an allowance account
and any impairment loss is recognised in the
Statement of Comprehensive Income.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand
and demand deposits, and other short-term highly
liquid investments that are readily convertible to a
known amount of cash and are subject to an
insignificant risk of change in value. For the
purposes of the Cash Flow Statement, cash
and cash equivalents includes bank overdrafts.
Financial liabilities and equity
Financial liabilities and equity instruments are
classified according to the substance of the
contractual arrangements entered into. An equity
instrument is any contract that evidences a residual
interest in the assets of the Group after deducting all
of its liabilities.
Bank borrowings
Interest-bearing bank loans and overdrafts are
recorded at the proceeds received, net of direct
issue costs. Finance charges, including premiums
payable on settlement or redemption, are accounted
for on an accruals basis and are added to the
carrying amount of the instrument to the extent that
they are not settled in the period in which they arise.
Trade payables
Trade payables are initially recognised at fair
value and subsequently at amortised cost using
the effective interest method.
Goodwill
Goodwill arising on consolidation is recorded as
an intangible asset and is the surplus of the cost
of acquisition over the Group’s interest in the fair
value of identifiable net assets acquired. Goodwill is
reviewed annually for impairment. Any impairment
identified as a result of the review is charged in the
Statement of Comprehensive Income. Negative
goodwill is written off in the year in which it arises.
On disposal of a subsidiary, associate or jointly con-
trolled entity, the attributable amount of goodwill is
included in the determination of the profit or loss on
disposal.
19
Holdings PLCHoldings PLCCompany Number 05452547 NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
4.
ACCOUNTING POLICIES (continued)
Intangible Assets other than Goodwill
An intangible asset, which is an identifiable
non-monetary asset without physical substance,
is recognised to the extent that it is probable that
the expected future economic benefits attributable
to the asset will flow to the Group and that its cost
can be measured reliably. Such intangible assets
are carried at cost less amortisation. Amortisation
is charged to ‘Administrative expenses’ in the
Statement of Comprehensive Income on a
straight line basis over the intangible assets’
useful economic life (1-10 years).
Expenditure on research activities is recognised as
an expense in the period in which it is incurred.
Development expenditure is capitalised as an
intangible asset only if the following conditions
are met:
an asset is created that can be identified;
it is probable that the asset created will generate
future economic benefit;
the development cost of the asset can be
measured reliably;
it meets the Group’s criteria for technical and
commercial feasibility; and
sufficient resources are available to meet the
development to either sell or use as an asset.
Development expenditure thus capitalised is
amortised on a straight-line basis over its useful
life. Where the criteria are not met, development
expenditure is recognised as an expense in the
‘Administrative expenses’ line of the Statement
of Comprehensive Income.
Property, Plant and Equipment
Property, plant and equipment are stated at cost
less any subsequent accumulated depreciation or
impairment losses. With the exception of freehold
buildings held at 31 March 2006 (the date of
transition to IFRS), cost represents purchase price
together with any incidental costs to acquisition.
As permitted by IFRS 1, the cost of freehold
buildings at 31 March 2006 represents deemed
cost, being the market value of the property
for existing use at that date.
Depreciation is provided on all property, plant
and equipment, other than freehold land, at rates
calculated to write each asset down to its estimated
residual value over its expected useful life, as follows:
Buildings
2%
straight line
Furniture, fixtures
and equipment
Computer
equipment
25%
reducing balance
33%
straight line
Assets held under finance leases or hire
purchase arrangements are depreciated over
their expected useful lives on the same basis
as owned assets or, where shorter, over the term
of the relevant agreement.
The assets’ residual values and useful lives are
reviewed at each balance sheet date and adjusted
if appropriate. The carrying values of property, plant
and equipment are reviewed for impairment when
events or changes in circumstances indicate that the
carrying value may not be recoverable.
Inventories
Inventories are valued at the lower of cost and net
realisable value. In general cost is determined on
a first in first out basis and includes all direct
expenditure and production overheads based on
a normal level of activity. Net realisable value is the
price at which the stocks can be sold in the normal
course of business after allowing for the costs of
realisation and where appropriate for the costs of
conversion from its existing state to a finished
condition. Provision is made for obsolete, slow
moving and defective stocks.
20
Company Number 05452547 Holdings PLCHoldings PLC NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
4.
ACCOUNTING POLICIES (continued)
Leases
Assets held under finance leases, which are
leases where substantially all the risks and rewards
of ownership of the asset have been transferred to
the Group, are capitalised in the balance sheet and
depreciated over the shorter of the lease term or
their useful lives. The asset is recorded at the lower
of its fair value and the present value of the
minimum lease payments at the inception of the
lease. The capital elements of future obligations
under finance leases are included in liabilities in the
balance sheet and analysed between current and
non-current amounts. The interest elements of
future obligations under finance leases are charged
to the Statement of Comprehensive Income over
the periods of the leases and represent a constant
proportion of the balance of capital repayments
outstanding in accordance with the effective
interest rate method.
Leases where the lessor retains substantially all
the risks and rewards of ownership are classified
as operating leases. The cost of operating leases
(net of any incentives received from the lessor) is
charged to the Statement of Comprehensive Income
on a straight line basis over the periods of the leases.
Foreign Currencies
Foreign currency assets and liabilities are
converted to sterling at the rates of exchange
ruling at the end of the financial year. Transactions
in foreign currencies are converted to sterling at the
rates of exchange ruling at the transaction date.
All of the resulting exchange differences are
recognised in the Statement of Comprehensive
Income as they arise.
For the purpose of presenting consolidated financial
statements, the assets and liabilities of the Group’s
foreign operations are translated at exchange rates
prevailing on the balance sheet date. Income and
expense items are translated at the average
exchange rates for the period. Exchange differences
arising are classified as equity and transferred to the
Group’s reserves. Such translation differences are
recognised as income or expense in the period in
which the operation is disposed of.
Taxation
The tax expense represents the sum of the current
tax expense and deferred tax expense.
The tax currently payable is based on taxable profit
for the year. Taxable profit differs from net profit as
reported in the Statement of Comprehensive Income
because it excludes items of income or expense
that are taxable or deductible in other years and
it further excludes items that are never taxable or
deductible. The Group’s liability for current tax is
calculated by using tax rates that have been enacted
or substantively enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or
recoverable on differences between the carrying
amount of assets and liabilities in the financial
statements and the corresponding tax bases used in
the computation of taxable profit, and is accounted
for using the balance sheet liability method.
Deferred tax liabilities are recognised for all taxable
temporary differences and deferred tax assets are
recognised to the extent that it is probable that
taxable profits will be available against which
deductible temporary differences can be utilised.
Deferred tax is calculated at the tax rates that
are expected to apply to the period when the
asset is realised or the liability is settled based
upon tax rates that have been enacted or
substantively enacted.
Revenue Recognition
Revenue represents the total of amounts receivable
for goods and services provided excluding value
added tax. Revenue is recognised on the delivery
of the goods to the customer. Where a service is
provided covering a future period the applicable
revenue is shown as Deferred Income under
Current Liabilities.
Warranty Claims
Provision is made for liabilities arising in respect of
expected warranty claims.
Government grants
Government grants towards research and
development projects are recognised as income
over the periods necessary to match them with the
related costs and are included within Other Income.
21
Holdings PLCHoldings PLCCompany Number 05452547 NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
4.
ACCOUNTING POLICIES (continued)
Segmental Reporting
Operating segments are reported in a manner
consistent with the internal reporting provided
to the chief operating decision-maker. The chief
operating decision maker, who is responsible for
allocating resources and assessing performance of
the operating segments, has been identified as the
Board of Directors.
Equity
Equity comprises the following:
Share capital represents the nominal value of
equity shares.
Share premium represents the excess over
nominal value of the fair value of consideration
received for equity shares, net of expenses of the
share issue.
Merger reserve represents the excess over
nominal value of the fair value of consideration
received for equity shares issued on reverse
acquisition of subsidiaries, net of expenses of the
share issue prior to the date of transition to IFRS.
Translation reserve represents cumulative foreign
exchange gains and losses on retranslation of
overseas operations.
Retained earnings represents retained losses.
Changes in Accounting Standards
and Disclosures
a. The Group has not adopted any new
interpretations or amendments to existing
standards in the year ended 31 March 2013.
b. There are no standards or interpretations that
have been issued by the IASB that will have a
material impact on the Group’s
financial statements.
22
Company Number 05452547 Holdings PLCHoldings PLC
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
5.
CRITICAL ACCOUNTING JUDGEMENTS
AND KEY SOURCES OF ESTIMATION
UNCERTAINTY
Critical judgements in applying the Group’s
accounting policies
Recoverability of trade debtors
The withdrawal or reduction of credit facilities from
Banks and leasing companies is affecting a wide
range of businesses. Management are particularly
conscious of the financial weakness of some
companies and is closely monitoring its outstanding
debtor book in order to minimise the risk
associated with future bad debts. Weekly cash
receipts are analysed and future supplies are
stopped if accounts remain overdue. An increasing
number of customers taking the Group’s services
pay by direct debit and this is reducing the Group’s
exposure to the non-recoverability of trade debtors
in the future.
In the process of applying the Group’s accounting
policies, which are described in note 4, management
has made the following judgements that have the
most significant effect on the amounts recognised in
the financial statements (apart from those involving
estimations, which are dealt with below).
Valuation of intellectual property
In assessing the fair value of the intellectual
property, management have considered the
underlying value of the income streams. Attention
has been paid to the potential introduction of new
products and services and the return anticipated
from these and existing product sales. The Directors
believe that the fair value of the intellectual property
is both appropriate and a realistic assessment of its
long term value to the Group.
Key sources of estimation uncertainty
The key assumptions concerning the future, and
other key sources of estimation uncertainty at the
balance sheet date, that have a significant risk
of causing a material adjustment to the carrying
amounts of assets and liabilities within the next
financial year are discussed below.
Recoverability of internally-generated
intangible asset
During the year, management reconsidered
the recoverability of its internally generated
intangible asset which is included in the balance
sheet at £237,281. The costs relate to the
development of the Group’s portfolio of hardware
and software products and management continue
to believe that the anticipated revenues will enable
the carrying amount to be recovered in full.
Assumptions have been made on the number
of years over which the costs will be recovered
based on management’s best expectations and
these could turn out to be longer or shorter
although any subsequent adjustment is not
expected to be material.
23
Holdings PLCHoldings PLCCompany Number 05452547
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
6. SEGMENTAL ANALYSIS
The format of segmental reporting is based on the Group’s management and internal reporting of the
segments below which carry different risks and rewards and are used to make strategic decisions.
Products is the sale of hardware through the Group’s distributors. Solutions represents the sale of the
Group’s full vehicle telematics service direct to customers. Engineering services comprises bespoke
professional services and mapping solutions.
The Board review the revenue results by segment and the gross margin. Cost of sales comprise hardware
costs and have been allocated to the segments based on the number of units sold. Administration costs
and assets and liabilities are not separated out by segment.
Year ended 31 March 2013
Products
Solutions
£
£
Engineering
services
£
Unallocated
Total
£
£
Segment revenue
Gross profit
1,308,627
3,035,466
405,823
-
4,749,916
306,945
2,704,315
405,823
-
3,417,083
Depreciation & amortisation
(117,841)
(66,569)
(90,052)
-
(274,462)
Finance income
Finance costs
Income tax
-
-
-
2,423
2,423
-
-
-
(4,478)
(4,478)
-
-
-
112,537
112,537
Year ended 31 March 2012
Products
Solutions
£
£
Engineering
services
£
Unallocated
Total
£
£
Segment revenue
Gross profit
2,226,230
2,776,872
212,463
-
5,215,565
789,858
2,323,746
212,462
-
3,326,066
Government grant income
-
-
5,039
-
5,039
Depreciation & amortisation
(124,058)
(53,703)
(93,230)
-
(270,991)
Finance income
Finance costs
Income tax
-
-
-
788
788
-
-
-
(5,249)
(5,249)
-
-
-
50,666
50,666
24
Company Number 05452547 Holdings PLCHoldings PLC NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
6. SEGMENTAL ANALYSIS (continued)
The Group’s operations are located in the UK and the Czech Republic. The following table provides an
analysis of the Group’s revenue by geography based upon location of the Group’s customers.
Year ended 31 March 2013
Products
Solutions
United Kingdom
Europe
Africa
Rest of the World
£
219,703
608,186
93,000
387,738
£
2,942,885
65,744
-
26,837
Engineering
services
£
Total
£
303,152
3,465,740
5,646
90,525
6,500
679,576
183,525
421,075
1,308,627
3,035,466
405,823
4,749,916
The Group had one customer who accounted for more than 10% of the Group revenue (2012: one).
Year ended 31 March 2012
Products
Solutions
United Kingdom
1,291,621
2,767,583
£
£
Europe
Africa
Rest of the World
171,772
214,928
547,909
9,289
-
-
Engineering
services
£
98,205
24,258
90,000
-
Total
£
4,157,409
205,319
304,928
547,909
2,226,230
2,776,872
212,463
5,215,565
25
Holdings PLCHoldings PLCCompany Number 05452547 NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
7.
PROFIT FROM OPERATIONS
Profit from operations is stated after charging/ (crediting):
Other income - Government grant
Loss on disposal of fixed assets
Depreciation - owned fixed assets
- assets on hire purchase
Amortisation of intangible assets
Operating lease rentals - Land and buildings
- Other
Loss on foreign exchange transactions
Staff costs (note 10)
Auditor’s remuneration
- audit services
Parent Company and consolidation
- tax advisory services
Subsidiary audits
R&D Cost
-
-
Expensed
Amortised
2013
£
2012
£
-
(5,039)
2,633
-
33,560
18,417
30,205
6,417
219,852
234,369
17,729
76,187
14,251
31,123
6,936
11,180
1,945,388
1,714,323
2013
£
4,825
11,250
2,340
2013
£
457,067
66,978
2012
£
4,680
10,920
2,285
2012
£
598,818
55,109
26
Company Number 05452547 Holdings PLCHoldings PLC NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
8.
FINANCE COSTS
Interest on finance leases
Interest on other loans
9.
INCOME TAX
R&D tax credit
Recognition of deferred tax
2013
£
-
4,478
4,478
2012
£
54
5,195
5,249
2013
£
(100,668)
(40,868)
2012
£
(15,488)
(112,689)
Current year deferred tax movement
28,999
77,511
Income tax credit
(112,537)
(50,666)
Factors affecting the tax charge
The tax assessed for the year is lower (2012: lower) than the applicable rate of corporation tax in the UK. The
difference is explained below:
Profit before tax
37,522
83,884
Profit on ordinary activities multiplied by the standard rate of
corporation tax in the UK of 24% (2011: 26%)
9,005
21,810
Effects of:
Expenses not deductible/income not taxable
1,687
23,167
2013
£
2012
£
Share option adjustment
Temporary differences
Change in deferred tax rates
Deferred tax brought forward recognised
R&D tax credit
Total tax
(4,717)
(706)
4,717
16,979
18,307
16,261
(40,868)
(100,668)
(112,537)
(112,689)
(15,488)
(50,666)
27
Holdings PLCHoldings PLCCompany Number 05452547 NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
10.
EMPLOYEES
The average monthly number of persons (including Directors)
employed by the Group was:
Research and development
Selling and distribution
Production
Administration
2013
No.
2012
No.
18
24
1
10
53
15
19
1
10
45
Staff costs for the employees and Directors (included under Administrative expenses):
Wages and salaries
Social security costs
Share based payments
Costs relating to the Directors who are the key management of the Group:
Wages and salaries
Benefits
Social security costs
Share based payments
2013
£
2012
£
1,707,001
1,509,854
218,731
19,656
198,931
5,537
1,945,388
1,714,322
2013
£
466,483
37,408
53,525
14,577
571,993
2012
£
434,337
19,759
49,659
1,103
504,858
Further details of Directors’ fees and salaries, bonuses and pensions are given in the Directors’ Report on page 9.
28
Company Number 05452547 Holdings PLCHoldings PLC NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
11.
EARNINGS PER ORDINARY SHARE
The earnings per ordinary share has been calculated using the profit for the year and the weighted average
number of ordinary shares in issue during the year as follows:
Earnings for the year after taxation
Number of ordinary shares of 1p each
Basic weighted average number of ordinary shares of 1p each
Basic weighted average number of ordinary shares of 1p each
(diluted)
Basic profit pence per share
Diluted profit pence per share
2013
£
150,059
No.
19,044,731
18,999,526
2012
£
134,550
No.
18,864,731
18,820,621
19,208,565
19,159,446
0.79p
0.78p
0.71p
0.70p
29
Holdings PLCHoldings PLCCompany Number 05452547 NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
12.
INTANGIBLE ASSETS
COST
As at 1 April 2011
Additions
As at 31 March 2012
Additions
Reduction in acquisition cost
As at 31 March 2013
AMORTISATION
As at 1 April 2011
Charge for year
As at 31 March 2012
Charge for year
As at 31 March 2013
NET BOOK VALUE
As at 31 March 2013
As at 31 March 2012
As at 1 April 2011
Intellectual
property
£
Development
costs
£
Total
£
1,673,863
486,510
2,160,373
-
89,241
89,241
1,673,863
575,751
2,249,614
-
126,375
126,375
(43,100)
-
(43,100)
1,630,763
702,126
2,332,889
Intellectual
property
£
Development
costs
£
667,381
179,260
846,641
152,874
999,515
631,248
827,222
1,006,482
342,757
55,109
397,866
66,978
464,844
237,282
177,885
143,753
Total
£
1,010,138
234,369
1,244,507
219,852
1,464,359
868,530
1,005,107
1,150,235
Development costs have been internally generated.
Amortisation expenses of £219,852 (2012: £234,369) have been charged to Administrative expenses in the
Consolidated Statement of Comprehensive Income. Development costs will be fully amortised within the
next four years and Intellectual Property will be fully amortised within the next four years.
30
Company Number 05452547 Holdings PLCHoldings PLC NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
13.
PROPERTY & EQUIPMENT
COST
As at 1 April 2011
Additions
Exchange differences
As at 31 March 2012
Additions
Exchange differences
Disposals
As at 31 March 2013
DEPRECIATION
As at 1 April 2011
Charge for year
Exchange differences
As at 31 March 2012
Charge for year
Exchange differences
Disposals
As at 31 March 2013
NET BOOK VALUE
As at 31 March 2013
As at 31 March 2012
As at 1 April 2011
Freehold
property
£
Furniture,
fixtures and
equipment
£
Computer
equipment
£
Total
£
420,000
84,269
181,165
685,434
10,498
80,734
91,232
-
-
(504)
-
420,000
94,263
261,899
900
76,659
20,275
-
-
(172)
(23,418)
(177)
(60,265)
(504)
776,162
97,834
(349)
(83,683)
420,900
147,332
221,732
789,964
Freehold
property
£
Furniture,
fixtures and
equipment
£
Computer
equipment
£
Total
£
22,040
41,191
159,196
222,427
4,408
11,332
20,882
36,622
-
(5)
-
(5)
26,448
52,518
180,078
259,044
4,419
10,148
37,410
51,977
-
-
(3)
(20,787)
(177)
(60,265)
(180)
(81,052)
30,867
41,876
157,046
229,789
390,033
105,456
64,686
560,175
393,552
41,745
81,821
517,118
397,960
43,078
21,969
463,007
Included within freehold property is £199,585 (2012: £199,585) relating to land which is not depreciated. The
net book value of computer equipment includes £33,333 (2012: £51,750) in respect of assets held under
finance leases and hire purchase contracts. The depreciation charge in respect of these assets was £18,417
(2012: £6,417).
Total depreciation expenses of £51,977 (2012: £36,622) have been charged to administrative expenses in the
Consolidated Statement of Comprehensive Income.
31
Holdings PLCHoldings PLCCompany Number 05452547 NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
14.
INVENTORIES
Finished goods and goods for resale
2013
£
548,143
2012
£
410,016
The cost of inventories recognised as an expense and included in cost of sales amounted to £1,332,833
(2012: £1,889,499). During the year old inventory lines totalling £35,000 (2012: £40,947) were written
down and charged to cost of sales in the Consolidated Statement of Comprehensive income.
15.
TRADE AND OTHER RECEIVABLES
Trade receivables
Prepayments
The analysis of trade receivables by currency is as follows:
Pound sterling
Euro
Other
2013
£
543,390
99,782
643,172
2013
£
519,433
-
23,957
543,390
2012
£
690,354
92,021
782,375
2012
£
570,532
54,147
65,675
690,354
An allowance for impairment is made where there is an identified event which, based on previous experience,
is evidence of a reduction in the recoverability of the outstanding amount. The allowance that has been
made for estimated irrecoverable trade receivables is nil (2012: £20,500).
As at 31 March 2013 trade receivables of £192,177 were past due but not impaired. The ageing analysis of
these trade receivables is as follows:-
Up to 3 months
3 to 6 months
2013
£
187,806
4,371
192,177
2012
£
359,411
14,721
374,132
The Directors consider that the carrying amount of trade and other receivables approximates to their fair
values. The maximum exposure to credit risk at the reporting date is the carrying value of each class of
receivable mentioned above.
32
Company Number 05452547 Holdings PLCHoldings PLC NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
16.
DEFERRED TAX
The analysis of deferred tax assets and deferred tax liabilities is as follows:
Deferred tax asset
Deferred tax asset to be recovered after more than 12 months
128,149
116,443
Deferred tax liability
Deferred tax liability to be recovered after more than 12 months
(17,859)
(18,022)
Deferred tax asset net
110,290
98,421
2013
£
2012
£
The movement in the deferred income tax assets and liabilities during the year is as follows:-
Deferred tax assets
As at 1 April 2012
Charged to the income statement
At 31 March 2013
Deferred tax liabilities
As at 1 April 2011
Credited to the income statement
At 31 March 2012
Credited to the income statement
At 31 March 2013
Accelerated tax
depreciation
£
(16,739)
(6,829)
(23,568)
Utilisation of
unrecognised
losses
£
133,182
18,535
151,717
Total
£
116,443
11,706
128,149
Building
revaluation
£
(18,185)
163
(18,022)
163
(17,859)
33
Holdings PLCHoldings PLCCompany Number 05452547 NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
17.
CURRENT LIABILITIES – TRADE AND OTHER PAYABLES
Trade payables
Taxation and social security
Other payables
Accruals and deferred income
2013
£
684,417
146,277
14,400
687,255
2012
£
429,574
136,333
14,801
669,964
1,532,349
1,250,672
The Directors consider that the carrying amount of trade payables approximates to their fair value.
18.
BORROWINGS
Bank loan
Obligations under finance leases and hire purchase arrangements
(see note 20)
On demand or within one year
After one and within two years
After two and within five years
After five years
Less: Amount due for settlement within one year
(shown as current liabilities)
2013
£
138,083
25,000
2012
£
159,191
60,125
163,083
219,316
2013
£
2012
£
46,740
56,223
22,402
46,740
71,377
69,269
22,564
47,084
163,083
219,316
(46,740)
(56,223)
Amount due for settlement after more than one year
116,343
163,093
The bank loan is secured by a fixed and floating charge on all the assets of the Group. It is repayable by
monthly instalments until 2019 and bears interest at a floating rate of 2.50% over base rate.
34
Company Number 05452547 Holdings PLCHoldings PLC NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
19.
PROVISIONS
As at 1 April
Decrease during the year
At 31 March
2013
£
2012
£
66,178
70,000
(48,508)
(3,822)
17,670
66,178
The provision relates to the estimated additional costs payable under the terms of the contract for the
acquisition of the telematics assets from Vincotech Gmbh. The costs relate to commission payable and
have been estimated based on the anticipated numbers of units that will be sold.
20.
OBLIGATIONS UNDER HIRE PURCHASE CONTRACTS
Gross hire purchase liabilities – minimum payments:
No later than 1 year
Later than 1 year and no later than 5 years
Less future finance charges
Present value
The present value of minimum hire purchase payments is analysed as follows:
No later than 1 year
Later than 1 year and no later than 5 years
2013
£
25,000
-
25,000
-
25,000
2013
£
25,000
-
25,000
2012
£
35,125
25,000
60,125
-
60,125
2012
£
35,125
25,000
60,125
All contracts are denominated in sterling and are secured on the assets. The fair value of the hire purchase
obligations approximates to their carrying amount.
35
Holdings PLCHoldings PLCCompany Number 05452547 NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
21.
SHARE CAPITAL
No’s
‘000’s
2013
£
No’s
‘000’s
2012
£
Authorised
Ordinary shares of 1p each
200,000
2,000,000
200,000
2,000,000
Allotted, issued and fully paid
Ordinary shares of 1p each
19,414
194,147
18,864
188,647
Movement in share capital:
As at 1 April
New shares issued
As at 31 March
2013
£
188,647
5,500
194,147
2012
£
187,647
1,000
188,647
The Company currently holds 370,000 Ordinary Shares in treasury representing 1.9% of the Company’s
issued share capital. The number of 1 pence Ordinary Shares that the Company has in issue less the total
number of treasury shares is 19,044,731.
36
Company Number 05452547 Holdings PLCHoldings PLC NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
22.
SHARE-BASED PAYMENTS
Trakm8 Holdings PLC has issued options (under the Trakm8 Approved Option Scheme) to subscribe for
ordinary shares of 1p in the Company. The purpose of the Option Scheme is to retain and motivate eligible
employees.
The exercise price and number of shares to which the options relate are as follows:
Option
Exercise
Price
6p
15.5p
12.5p
13p
Balance
as at 31
March
2012
550,000
300,000
100,000
-
Granted
during
year
Exercised
during
year
Expired/
forfeited
during
the year
-
-
-
(550,000)
-
-
-
Balance
as at 31
March
2013
-
300,000
100,000
-
-
-
- 1,225,000
Grant date
Option &
expected
Life (years)
Risk free
rate of
return
Volatility
30/07/09
30/04/10
31/07/11
30/07/12
3.0
3.0
3.0
10.0
-
3.02%
3.02%
3.02%
-
54%
54%
54%
The share price was 13.5 pence on 1 May 2012 being the date of exercise of the above 550,000 options.
The weighted average exercise price of share options which were outstanding as at 31 March 2013 was 13.5
pence.
The exercise of all share options is the closing market price on the day of grant. A vesting period of 1 to 3
years is applicable according to the terms of each scheme.
The fair value of the equity settled share options granted is estimated as at the date of grant using the Black
Scholes option pricing model taking into account the terms and conditions upon which the options were
granted. The volatility has been based on historic share prices and the dividend yield has been assumed to
be 0% for all schemes.
The Group charged £19,659 to the Statement of Comprehensive Income in respect of Share-Based Payments
for the financial year ended 31 March 2013 (2012: £5,537).
Share options exercisable at the 31 March 2013 were 400,000.
37
Holdings PLCHoldings PLCCompany Number 05452547 NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
23.
CASH FLOWS
Reconciliation of profit before tax to net cash flow from
operating activities:
Profit before tax
Depreciation
Bank and other interest charges
Amortisation of intangible assets
Capitalised development costs
Share based payments
Development
costs
£
Total
£
37,522
83,884
54,610
36,622
2,055
4,461
219,852
234,369
(126,375)
-
19,656
5,537
Operating cash flows before movement in working capital
207,320
364,873
Movement on retranslation of overseas operations
Movement in inventories
Movement in trade and other receivables
Movement in trade and other payables
Cash generated from operations
Interest paid
Interest received
Income taxes received
Net cash inflow from operating activities
(1,446)
(138,127)
(994)
(150,974)
139,203
110,797
276,267
(226,224)
483,217
97,478
(4,478)
(5,249)
2,423
788
15,488
17,828
496,650
110,845
Cash and cash equivalents comprise cash at bank, other short-term highly liquid investments with a maturity
of three months or less (together presented as ‘Cash and cash equivalents’ on the face of the balance sheet).
38
Company Number 05452547 Holdings PLCHoldings PLC NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
24.
FINANCIAL COMMITMENTS
At the balance sheet date, the Group had outstanding commitments for future minimum operating lease
payments under non-cancellable operating leases, which fall due as follows:
Operating Leases
Land and buildings
Within one year
In the second to fifth years inclusive
Other
Within one year
In the second to fifth years inclusive
2013
£
17,729
53,186
86,898
62,995
2012
£
17,522
70,086
34,112
36,646
Land and buildings under operating leases represents one lease payable by the Group which has an expiry
date in March 2017.
25.
RELATED PARTY TRANSACTIONS
Details of the remuneration and share transactions with the company of the Directors, who are the key
management personnel of the Group, are disclosed in the Directors’ report.
J Watkins was a Director and shareholder of Omitec Group Limited until 2 July 2012 when the Group
was sold to Continental. Omitec Limited was a wholly owned subsidiary of Omitec Group Limited.
Since that date Linda Watkins, wife of John Watkins, remained a Director of Omitec Limited but resigned
on the 31 March 2013.
During the year ended 31 March 2013 a total of £1,263,349 was invoiced to Trakm8 Limited by Omitec Limited
(2012: £1,678,110) and Trakm8 Limited invoiced Omitec Limited £12,673 (2012: £20,056).
39
Holdings PLCHoldings PLCCompany Number 05452547 NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
26.
FINANCIAL INSTRUMENTS
Financial risk factors
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk and
interest rate risk), credit risk and liquidity risk. Where appropriate, the Group seeks to mitigate potential
adverse effects on its financial performance.
Liquidity risk
The Group’s objective is to maintain a balance between continuity and flexibility of funding through the use
of borrowings and financial assets with a range of maturities. Borrowing facilities are monitored against the
Group’s forecast requirements and it is the Group’s policy to mitigate the risk by maintaining undrawn
overdraft facilities and cash reserves. The bank overdraft facility is £250,000 and as at 31 March 2013 this
facility was not being utilised.
Credit risk
The Group’s principal financial assets are bank balances, cash and trade and other receivables. The Group’s
credit risk is primarily attributable to its trade receivables and the Group attaches considerable importance
to the collection and management of trade receivables. The Group minimises its credit risk through the
application of appropriate credit limits to customers based on an assessment of net worth and trading
history with the Group. Standard credit terms are net 30 days from date of invoice. Overdue trade
receivables are managed through a phased escalation culminating in legal action.
The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings
assigned by international credit-rating agencies.
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the
basis of measurement and the basis on which income and expense are recognised, in respect of each class of
financial asset, liability and equity instrument are disclosed in note 4 to the financial statements.
Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an
optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
Consistent with others in the industry, the Group monitors capital on the basis of the gearing ratio. This ratio
is calculated as debt divided by total capital. Debt is calculated as total borrowings including “current and
non-current borrowings” as shown in the consolidated balance sheet. Total capital is calculated as “equity” as
shown in the consolidated balance sheet plus debt.
The Group’s strategy has been to reduce gearing and to increase cash and cash equivalents. This has been
successfully achieved through the profits generated during the year.
40
Company Number 05452547 Holdings PLCHoldings PLC
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2013 (continued)
26.
FINANCIAL INSTRUMENTS (continued)
Total borrowings (note 18)
Total equity
Total capital
Gearing ratio
Financial instruments by category
Assets per balance sheet
Trade and other receivables excluding prepayments
Cash and cash equivalents
Liabilities as per balance sheet
Borrowings (excluding finance lease liabilities)
Hire purchase
Trade and other payables excluding statutory liabilities
2013
£
163,083
2,523,009
2,686,092
6%
2012
£
219,316
2,379,833
2,599,149
8%
Loan and receivables
2013
£
644,058
1,405,133
2,049,191
2012
£
705,842
1,087,474
1,793,316
Financial liabilities at amortised cost
2013
£
138,083
25,000
1,386,072
1,549,155
2012
£
159,191
60,125
1,114,339
1,333,655
41
Holdings PLCHoldings PLCCompany Number 05452547 PARENT COMPANY BALANCE SHEET
as at 31 March 2013
FIXED ASSETS
Investments
CURRENT ASSETS
Debtors
Cash at bank
CREDITORS: Amounts falling due within one year
NET CURRENT ASSETS
NET ASSETS
CAPITAL AND RESERVES
Called up share capital
Share premium
Profit and loss account
SHAREHOLDERS’ FUNDS
Notes
2013
£
2012
£
3
4
5
6
7
7
801,782
801,782
150,005
894,364
1,049,958
312,375
1,199,963
1,206,739
(42,455)
(34,134)
1,157,508
1,172,605
1,959,290
1,974,387
194,147
188,647
1,751,152
1,723,652
13,991
62,088
1,959,290
1,974,387
These financial statements were approved by the Directors and authorised for issue on 28 June 2013 and are
signed on their behalf by:
J Watkins
Director
J Hedges
Director
42
Company Number 05452547 Holdings PLCHoldings PLC
NOTES TO THE PARENT COMPANY FINANCIAL
STATEMENTS for the year ended 31 March 2013
Foreign Currencies
Foreign currency assets and liabilities are
converted to sterling at the rates of exchange
ruling at the end of the financial year. Transactions in
foreign currencies are converted to sterling at the
rates of exchange ruling at the transaction date. All
of the resulting exchange differences are recognised
in the profit and loss account as they arise.
Deferred Taxation
Provision is made for deferred taxation in respect
of all material timing differences that have originated
but not reversed by the balance sheet date. Timing
differences represent differences between gains and
losses recognised for tax purposes in periods
different from those in which they are recognised
in the financial statements. No deferred tax is
recognised on permanent differences between
the Company’s taxable gains and losses and its
results as stated in the financial statements.
Deferred tax assets and liabilities are included
without discounting.
2. PROFIT AND LOSS ACCOUNT
As permitted by Section 408 of the Companies Act
2006, the profit and loss account of the Company is
not presented as part of these financial statements.
The (loss)/profit after tax for the year in the
Company is (£9,829) (2012: Profit £2,953).
1. ACCOUNTING POLICIES
Basis of Accounting
The financial statements have been prepared under
the historical cost convention in accordance with the
applicable accounting standards.
Share-based payments
The company has applied the requirements of FRS
20 Share-based Payments. In accordance with the
transitional provisions, FRS 20 has been applied to
all grants of equity instruments after 7 November
2002 that were unvested as of 1 April 2006.
The Company issues equity-settled share-based
payments to certain employees. Equity-settled
share-based payments are measured at fair value at
the date of grant. The fair value determined at the
grant date of equity-settled share-based payments
is expensed on a straight-line basis over the vesting
period, based on the Company’s estimate of shares
that will eventually vest.
The fair value is measured by use of the
Black-Scholes option pricing model. The
expected life used in the model has been adjusted,
based on management’s best estimate, for the effect
of non-transferability, exercise restrictions, and
behavioural considerations. No expense is
recognised for awards that do not ultimately vest.
Financial Instruments
Financial liabilities and equity instruments are
classified according to the substance of the
contractual arrangements entered into. Instruments
issued by the Company are recorded at the
proceeds received, net of direct issue costs.
Investments
Fixed asset investments are stated at cost less
impairment against the cost of investments. The
carrying values of investments in subsidiaries are
reviewed for impairment if events or changes in
circumstances indicate the carrying value may not
be recoverable.
43
Holdings PLCHoldings PLCCompany Number 05452547
NOTES TO THE PARENT COMPANY FINANCIAL
STATEMENTS for the year ended 31 March 2013 (continued)
3. INVESTMENTS
Cost
At 1 April 2012 and 31 March 2013
Subsidiaries
£
801,782
Name of subsidiary
Country of
incorporation
Class of holding
Proportion held and
voting rights
Nature of business
Trakm8 Limited
England and Wales
Ordinary
Trakm8 s.r.o. (formally
PJsoft s.r.o.)
Interactive Projects
Limited
Purple Reality
Limited
Czech Republic
Ordinary
England and Wales
Ordinary
England and Wales
Ordinary
100%
Marketing and
distribution of vehicle
telematics
100%
Mapping services
100%
100%
Dormant
Dormant
4. DEBTORS
Amounts due from subsidiary undertakings
Prepayments
5. CREDITORS: Amounts falling due within one year
Trade creditors
Accruals and other creditors
2013
£
149,633
372
150,005
2013
£
22,115
20,340
42,455
2012
£
887,619
6,745
894,364
2012
£
14,649
19,485
34,134
44
Company Number 05452547 Holdings PLCHoldings PLC NOTES TO THE PARENT COMPANY FINANCIAL
STATEMENTS for the year ended 31 March 2013 (continued)
6. SHARE CAPITAL
Details of share capital and share options are shown in notes 21 and 22 to the consolidated accounts above.
7. RESERVES
At 1 April 2011
Shares issued
FRS20 Share based payments
Profit for the year
At 1 April 2012
Shares issued
FRS20 Share based payments
Purchase of own shares
Loss for the year
As at 31 March 2013
Share Capital
Share premium
£
187,647
1,000
-
-
188,647
5,500
-
-
-
Profit and
loss reserve
£
Total
£
1,719,402
53,598
1,960,647
4,250
-
-
5,250
5,537
5,537
2,953
2,953
1,723,652
62,088
1,974,387
27,500
-
33,000
19,656
19,656
(57,924)
(9,829)
13,991
(57,924)
(9,829)
1,959,290
£
-
-
-
194,147
1,751,152
8. FINANCIAL COMMITMENTS
At the balance sheet date, the company had outstanding commitments for future minimum operating lease
payments under non-cancellable operating leases, which fall due as follows:
Operating Leases
Motor Vehicles
Within one year
In the second to fifth years inclusive
9. RELATED PARTIES
2013
£
4,464
6,325
2012
£
-
-
The Company has taken advantage of the exemptions conferred by FRS 8 from the requirement to disclose
transactions between wholly owned subsidiary undertakings.
45
Holdings PLCHoldings PLCCompany Number 05452547