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Oleeo PLC  -  OLEE   

Final Results

Released 16:28 02-Nov-2018

RNS Number : 2485G
Oleeo PLC
02 November 2018
 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014

 

2 November 2018

 

PRELIMINARY ANNOUNCEMENT OF THE AUDITED RESULTS OF

OLEEO PLC

 

Chairman's Statement

 

 

 

I am pleased to present the preliminary statement of Oleeo Plc ("Oleeo" or the "Company"), which show the results of the Company for the year to 31 July 2018.

 

Financial and Operating review

 

Revenues were £9,981,563, 1.4% up on £9,848,048 reported in the previous year.  Meanwhile, as anticipated in my full year statement for 2017, profits before tax for 2018 are significantly down at £490,504 compared to last year's profit of £811,543. The slight increase in revenues was underpinned by an increase in ongoing subscription revenues counteracted by lower implementation revenues. The average headcount rose very slightly broadly in line with sales, while operating profit fell as salary, marketing and other costs increased.

 

 

The changes in Key Performance Indicators between the financial years 2017/2018 and 2016/2017 were as follows:

 

2017/18

£

2016/17

£

 

 

 

Sales per employee

86,796

86,513

Operating profit per employee

4,111

6,783

 

All Oleeo employees are motivated by two goals - highly satisfied & retained clients and the acquisition and smooth on-boarding of new clients - achieved through the development, implementation and ongoing support of innovative technology to enable our clients to recruit high quality and diverse new hires. As we seek to support clients, innovate and broaden our markets, these goals have been pursued over the past year by our existing experienced team and through increased resources across customer support, delivery, product development, and marketing. Inevitably these increased costs have impacted heavily on our profits and will continue to do so for the foreseeable future.

 

An experienced team, successful clients, and strong technology provide a solid foundation.  However an uncertain general economic outlook, a tough environment for our clients and prospects, an extremely competitive market, lower than expected new sales, known reductions in revenues from the existing clients this year and next, and upward pressure on costs as we seek to grow through additional investments in customer success, marketing and product development provide continued downward pressure on sales and profits and a highly challenging and uncertain outlook for sales and, more particularly, profits, which are expected to be substantially lower in the current year than in the year which has just closed.

 

The team at Oleeo always go above and beyond the call of duty, I would like to thank everyone for their hard work and dedication.

 

Principal risks and uncertainties

 

Commercial and operational risk

Competitive pressure and economic instability is a continuing and growing risk for the Company.  The Company manages this risk by developing leading edge products capable of driving significant transformation and value within our clients, through high levels of customer service, by managing resource levels and pursuing opportunities for continuous improvement.

 

The business is dependent upon clients' ability to safely access data held on our servers and satisfy data protection legislation. In order to ensure that service availability is not affected by a breakdown in power supplies or by other physical hazards our servers are housed offsite in secure facilities on the premises of a specialist provider of such facilities.  Third party security experts are also regularly engaged to advise on data security and to ensure the company has appropriate defences against "hacking". In addition, we maintain a rigorous, ISO27001 accredited, security management system.

 

Financial risk

The main risk arising from the Company's activities is currency risk. This is monitored by the Board of directors and was not considered to be significant at the balance sheet date.

 

Dividends and Share Buybacks

 

The directors are pleased to recommend the payment of a dividend of 3.5p per share, which is the same as that paid in respect of the previous year. This dividend will be subject to the approval of shareholders at the Annual General Meeting to be held at 5-7 Bridgeworks, The Crescent, London SW19 8DR at 10.30 am, on 14 December 2018, and, if approved, will be payable on 21 December 2018 to shareholders on the register as at 23 November 2018.

 

The Board will be seeking at the Annual General Meeting the extension of the authority granted last year to make market purchases of ordinary shares, within the usual limits for a listed company. In assessing whether in practice to use this authority, the Board will take into account all relevant factors including the effect on earnings per share and assets per share ratios and other benefits to shareholders

 

 

This strategic report was approved on 2 November 2018 by the Board.

 

 

 

 

Charles EH Hipps

Chairman, Oleeo Plc

 

 

 

 

consolidated income statement 

 

For the Year Ended 31 July 2018

 

 
 
2018
2017

 

 

£

£

 

 

 

 

Revenue

 

9,981,563

9,848,048

 

 

 

 

Total administrative expenses

 

9,508,835

9,075,921

 

 

_________

_________

 

 

 

 

Operating profit

 

472,728

772,127

 

 

 

 

Finance income

 

17,776

39,416

 

 

_________

_________

 

 

 

 

Profit on ordinary activities before taxation

 

490,504

811,543

 

 

 

 

Income tax

 

98,233

194,856

 

 

_________

_________

 
 
 
 
Profit for the year
 
392,271
616,687

 

 

_________

_________

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

Basic

 

5.16p

8.15p

 

 

_________

_________

 

 

 

 

Diluted

 

5.10p

8.05p

 

 

_________

_________

 

 

 

 

 

 

 

 

Consolidated Statement of Financial Position

 

 

As at 31 July 2018

 

 

2018

2017

 

 

£

£

Assets

 

 

 

Non-current assets

 

 

 

Property, plant and equipment

 

200,619

170,848

 

 

_________

_________

 

 

 

 

 

 

 

 

Current assets

 

 

 

Trade and other receivables

 

1,712,532

1,454,107

Short term investments

 

7,750,000

-

Cash and cash equivalents

 

3,503,758

11,631,288

 

 

_________

_________

 

 

 

 

Total current assets

 

12,966,290

13,085,395

 

 

_________

_________

 

 

 

 

Total assets

 

13,166,909

13,256,243

 

 

_________

_________

 

 

 

 

Equity

 

 

 

Issued capital

 

7,620

7,586

Share premium

 

1,690,158

1,649,024

Capital redemption reserve

 

708

708

Translation reserve

 

6,409

(1,188)

Retained earnings

 

8,414,702

8,273,990

 

 

_________

_________

 

 

 

 

Total equity

 

10,119,597

9,930,120

 

 

_________

_________

Liabilities

 

 

 

Non-current liabilities

 

 

 

Deferred tax

 

30,148

21,822

 

 

_________

_________

Liabilities

 

 

 

Current liabilities

 

 

 

Trade and other payables

 

2,977,024

3,183,567

Corporation tax

 

40,140

120,734

 

 

_________

_________

 

 

 

 

Total current liabilities

 

3,017,164

3,304,301

 

 

_________

_________

 

 

 

 

Total liabilities

 

3,047,312

3,326,123

 

 

_________

_________

 

 

 

 

Total equity and liabilities

 

13,166,909

13,256,243

 

 

_________

_________

 

 

 

 

Consolidated statement of cash flows

 

For the Year Ended 31 July 2018

 

 

 

2018

2017

 

 

£

£

Cash flows from operating activities

 

 

 

Profit for the year

 

392,271

616,687

Adjusted for ;

 

 

 

Depreciation

 

112,570

94,104

Share based payments

 

13,951

13,652

(Increase)/decrease in receivables

 

(258,425)

845,076

(Decrease)/increase in payables

 

(206,543)

316,322

Finance income

 

(17,776)

(39,416)

Corporation tax expense

 

98,233

194,856

Loss on disposal of fixed assets

 

10,637

-

Other

 

7,598

(6,783)

 

 

_________

_________

 

 

 

 

 

 

152,516

2,034,498

Taxation

 

(170,501)

(242,047)

 

 

_________

_________

 

 

 

 

Net cash (outflow)/inflow from operating activities

 

(17,985)

1,792,451

 

 

_________

_________

 

 

 

 

Cash flows from investing activities

 

 

 

Interest received

 

17,776

39,416

Purchase of property, plant and equipment

 

(152,978)

(124,778)

Short term investments

 

(7,750,000)

-

 

 

_________

_________

 

 

 

 

Net cash outflow from investing activities

 

(7,885,202)

(85,362)

 
 

_________

_________

 
 
 
 

Cash flows from financing activities

 

 

 

Proceeds from issue of shares

 

41,168

54,027

Purchase of own shares

 

-

(37,050)

Equity dividends paid

 

(265,510)

(264,745)

 

 

_________

_________

 

 

 

 

Net cash outflow from financing activities

 

(224,342)

(247,768)

 

 

_________

_________

 

 

 

 

(Decrease)/increase in cash in the year

 

(8,127,529)

1,459,321

 

 

 

 

Cash and cash equivalents at beginning of year

 

11,631,287

10,171,966

 

 

_________

_________

 

 

 

 

Cash and cash equivalents at end of year

 

3,503,758

11,631,287

 

 

_________

_________

 

 

 

 

 

 

 

Notes

 

1.       The income statement incorporates the consolidated results of Oleeo Plc and its subsidiary for the year ended 31 July 2018. The accounting policies used in the preparation of these audited results are unchanged from those adopted by the company in previously published annual financial statements.

 

2.       Earnings per share

 

Basic earnings per share

 

This is calculated by dividing the profit of £392,271 (2017 - £616,687), being the profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue throughout the year of 7,603,029 (2017 - 7,568,480)

 

Diluted earnings per share

 

          The weighted average number of shares for 2018 for this calculation was 7,688,598 (2017 - 7,662,261).  This is calculated based on the weighted average number of ordinary shares adjusted by 85,569 (2017 - 93,781) to recognise the effect of the potential issue of further ordinary shares as a result of the exercise of share options

 

3.       The directors are recommending the payment of a dividend of 3.5p per share.

 

4.       The preliminary announcement was approved by the board on 2 November 2018. The Company's annual accounts will be sent to shareholders on 21 November 2018 and copies will be available from the company's office at 5-7 Bridgeworks, The Crescent, London SW19 8DR and on the Company's website at www.oleeo.co.uk.

 

5.       The financial information does not constitute the company's statutory accounts, within the meaning of Section 435 of the Companies Act 2006, for the years ended 31 July 2018 or 2017 but is derived from those accounts. Statutory accounts for 2017 have been delivered to the Registrar of Companies and those for 2018 will be delivered following the company's forthcoming annual general meeting. The auditors have reported on those accounts; their reports were unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their reports and did not contain statements under the Companies Act 2006, s498(2) or (3).

 

 

Enquiries

 

Oleeo Plc

Charles Hipps, Managing Director,

Telephone: +44 (0)20 8946 9876

Email:chipps@oleeo.com

 

Panmure Gordon (UK) Limited

Nominated Adviser

Andrew Potts

Telephone: +44 (0)20 7886 2956

 


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END
 
 
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Final Results - RNS