annual report & accounts for the year ended 30 … · annual report & accounts for the year...

11

ANNUAL REPORT & ACCOUNTSFOR THE YEAR ENDED 30 JUNE 2015

AIM STOCK CODE: IPP

Annual Reports and AccountsFor the year ended 30 June 2015

2 3

04 CHAIRMAN’S STATEMENT

06 STRATEGIC REPORT

10 REMUNERATION COMMITTEE REPORT

12 DIRECTORS AND ADVISORS

13 DIRECTORS’ REPORT

16 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF IPPLUS PLC

17 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

18 CONSOLIDATED STATEMENT OF FINANCIAL POSITION

20 CONSOLIDATED STATEMENT OF CASH FLOWS

21 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

22 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

51 COMPANY BALANCE SHEET

52 NOTES TO THE FINANCIAL STATEMENTS

CONTENTS FINANCIAL HIGHLIGHTS

• SuccessfulsaleofAncoraSolutionsdivisioninDecember2014for£500,000• Ansabackdivisionalrevenuesreducedto£5,441,094(2014:£7,292,026)• Ansabackdivisionalrevenues(excludingtheterminatedmajorutilityclient)grewby

8.5%to£4,668,472(2014:£4,301,171)• Ansabackdivisionaloperatingprofitof£424,508(2014:£1,262,185)• CallScripterrevenuesslightlydownto£1,045,847(2014:£1,099,867),butoperating

lossreducedbyover95%to£31,466(2014:£678,653)• Grouplossbeforetaxationoncontinuingactivitiesof£258,244(2014:profitof

£297,189)• Deferredtaxassetof£280,000writtenoffastheutilisationoftheassetunlikelyinthe

nearfutureduetoR&Dtaxcredits• Grouplossaftertaxationoncontinuingactivitiesof£538,022(2014:profitof

£301,890)• Closingcashandcashequivalentsbalanceof£1,040,822(2014:£459,693)• Dividendproposedof0.15pencepersharefortheyearended30June2015(subject

toshareholderapproval)

• Longtermclientsandrecurringrevenuesincreasedto74%(2014:51%)oftotal continuingturnover• NewChairmanandnon-executiveDirector• PCI-PALwinstwoprestigiousinternationalcontractspostyearend• SignificantnewAnsabackcontractwonfrommajorUKretailerpostyearend

OPERATIONAL HIGHLIGHTS


4 5

CHAIRMAN’S STATEMENTFinancial SummaryTheBoardisdisappointedtoreportthattheGrouphasnotbeensuccessful inattractingsufficientnewrevenuetocompensatefortheutilitycontractwhichsubstantiallyconcludedlastyear.Asaresult,theGroupgeneratedalossoncontinuingactivitiesbeforetaxof£258,244(2014:profitof£297,189)oncontinuingrevenueof£6,486,941(2014:£8,391,893).

The Board appreciates the importance of an establishedbusinessdeliveringaprofitandhasthereforebeenpleasedtoannounce in recentweeks that, since the year end, PCI-PAL,our compliant credit card solution, has won two prestigiousinternational contracts within the Jewellery and Logisticssectors.Inaddition,theAnsabackcallcentrehasalsosecureda significant contract with one of London’s most prestigiousdepartmentstores.Revenuefromthiscontract isexpectedtobesubstantialinthecomingyear.

An increase in revenues from recurringand long-termclientsfrom51%to74%intheyear,combinedwiththesenewbusinesswins and an attractivepipelineof furtheropportunities givesthe Board confidence that the Group will again generate apositivereturntoshareholdersinthecomingyear.

DisposalAsstatedinthe2014AnnualReportandAccounts,theBoardhad been actively reviewing the Ancora Solutions divisionand concluded that it was non-core to the Group’s businessoperations and that, as it was relatively small in scale, anownerwithastrongerpresencein itssectorcouldpotentiallyderivemore value from thebusiness.On 31December 2014Restore PLC purchased the entire fixed assets, payroll andexistingcontractsofAncoraSolutionsforacashconsiderationof£500,000.

In the 6 months to 31 December 2014, Ancora Solutionsreported revenues of £362,803 and a loss on discontinuedactivities of £53,856. This loss comprised a trading loss of£36,387, reorganisation costs of £100,166, onerous leaseprovisions (estimated outstanding lease costs on warehouserentals)of£121,000andaprofitondisposalof£203,697.Thenetbookvalueoftheassetsdisposedofat31December2014was£286,313. Group OverviewSubsequent to the disposal of Ancora Solutions the Groupoperates through two divisional segments, namely Ansaback(which includes IP3 Telecom, PCI-PAL and Suffolk DisasterRecovery)andCallScripter.

Ansabackisa24hoursaday,7daysaweekbureautelephonyservice providing overflow and out of hours call handling,emergency cover, dedicated phone resources, as well asdisaster recovery lines and facilities, and other ancillarytelecommunicationservices.

IP3Telecomprovidesarangeofnetwork level interactivecallservices including non-geographic and Freephone telephonefacilities. With options for self-sufficiency or fully managedservices, the platform gives the user the ability to run aprofessional callhandlingoperationwithout thenecessity forexpensive hardware, installation, and on-going maintenancecosts. PCI-PAL is a hosted telephony Level 1 compliant creditcard solution designed to prevent card fraud by eliminatingcreditcarddatabeinghandledorstoredataclients’premises.

SuffolkDisasterRecoveryistheGroup’sdisasterrecoveryunit,access to which is also sold to clients and third parties. Itscapacityincreasedfrom60seatsto90seatsduringtheyear.

CallScripter is an enhanced customer interaction softwaresuite specificallydeveloped for contact centres, telesales andtelemarketing operations. Our clients gain major benefits byintroducing CallScripter’s dynamic scripting environment intotheirorganisationas the software facilitates the rapid set-up,handlingandreportingofsophisticatedinbound,outboundande-mailcampaigns.

Review of OperationsAnsaback DivisionAnsaback call centreThe Ansaback call centre had an extremely testing year andsufferedsomedifficultieswiththeadjustmentsrequiredafteritslargestclientsubstantiallyendeditscontractinAugust2014.This contract ending created more upheaval than originallyenvisaged,whichwascompoundedbytougheconomicconcernsforcinganotherclienttotakenearlyhalfofitsbusinessbackin-house.Ateamof350temporarycallhandlerswasstooddownandmanagersweremaderedundantorredeployedelsewherewithinthebusiness.

IP3 Telecom (including PCI-PAL)IP3 Telecom had a strong year winning some excellent newclientsandexpandingitsvariousPaymentCardIndustry(“PCI”)services, and the Directors believe that the potential of thisbusiness continues to be exciting on both a domestic andinternationalbasis.OurexistingPCI-PALclientportfolioprimarilycomprises blue chip household names that have chosen ourpackage after evaluating various competing solutions. Theseclients, for the most part, are happy to be reference sitesand provide testimonials to our newprospective clients. Thenumber of transactions and the values passing through oursecurenetworkisnowgrowingdramatically.

AlthoughnewPCI-PALcompetitorsareemerging,theDirectorsbelievethattheGrouphasadegreeoffirstmoveradvantageandanexcellentbrandwhichiseasilyunderstoodbythetargetmarket.Asa result,wecontinuetobeparticularlyexcitedbytheprospectsforPCI-PAL.

CallScripter DivisionCallScripter,despitesignificantlyreducingitssegmentallossby95%attheendofthefinancialyear,fellslightlyshortofreachingdivisional profitability by £31,466, on a similar turnover tothe prior year. The new4.6 version release of its software isanticipatedattheCallCentreExpoinSeptember2015.

DividendEach year the Board decides whether to declare a dividend,returncapitaltoshareholdersorpurchasesharesinthemarkettobeheldas treasurystock.Thisdecision is takenprincipallyin the light of: the Group’s present and future expectedperformance; its net cash balance; and its future workingcapital requirements taking into account its investmentplansforthefuturedevelopmentoftheGroup.

Taking these factors into consideration, although the Grouphad a disappointing year, Ancora Solutions was successfullydisposedof providing anuplift in cash, andwith thepositiveexpectations for thecomingyearon thebackof the recentlyannouncednewbusiness, theBoard isproposing tomaintainthepaymentofadividendof0.15pencepershareinrespectoftheyearended30June2015.

Board Changes On1January2015ItookovertheroleofChairmanfromPhilipDayer, who stepped down from the Board on 31 December2014, and, on 1 January 2015, the Group appointed JasonStarr as a non-executive Director, replacing BernardWaldronwho stepped down from the Board on 30 September 2014.JasonisChiefExecutiveOfficerofDillistoneGroupplc,theAIMquotedInternationalsupplierofsoftwareandservicesfortherecruitmentsector.

The Boardwishes to thank both Philip and Bernard for theirwisecounselandsignificantcontributiontotheGroup.

PeopleIwouldliketothankeachoftheDirectorsandemployeesforalloftheireffortsduringthepastyear.Theircommitment,loyaltyandsupportareappreciatedinwhattranspiredtobeatestingyear.

OutlookThe Group has worked hard during the year to compensateforthelossoftheutilitycontract.Howevernewbusinesswasnot sufficient to deliver a profit. The Board recognises thefundamental importance of profit in an established businessandisencouragedbythenewbusinesswonsincetheyearend.It isalsopleasedtoreportthattheGrouphas,sincetheyearendtradedatbroadlybreakeven,whereasatthispointlastyearitwasinloss,thereforeprovidingtangibleevidenceofthefruitsofitseffortscomingtobear.

TheBoard therefore looks forward toproducingmuchbetterresultsinthefirsthalfofthecomingyear.

Chris Fielding Non-ExecutiveChairman26August2015


6 7

STRATEGIC REVIEWBusiness SummarySubsequenttothedisposalofAncoraSolutionstheIPPlusPLCGroup operates two divisions, namely Ansaback (which alsoincludes IP3 Telecom, PCI-PAL and Suffolk Disaster Recovery)andCallScripter.

Ansaback divisionTheAnsaback call centre is a 24 hours a day, 7 days aweekbureautelephonyserviceprovidingoverflowandoutofhourscallhandling,emergencycover,dedicatedphoneresource,non-geographic,lowcallandFreephonetelephonefacilitiesaswellasdisasterrecoverylinesandotherancillarytelecommunicationservices.

The necessity for businesses to offer better services aroundthe clock, seven days a week, lends itself to an outsourcedmodel suchasAnsaback.Ansaback continues towinprestigeaccountswhichseekacosteffectiveyetfriendlyUKcustomerfacingsolution. Wehave increasedourdedicatedfixedseatsandwecontinuetoprospectforlargerclientswhoseekamixofdedicatedandbureaudesks.Newclientsseekevergreaterservices as the rise in new media channels for customersincrease.

We have seen significantmovement in themarket as clientssearch for increasingly complex services to ensure customersatisfactionacrosscoordinatednewmediachannelsisachieved.AnsabackisinvestingtomeetOmniChanneldemandandhassignedseveralnotablenewclients,reaching400clientsforthefirsttimeintheyear.

The Omni Channel is the name used to describe multiplechannels of communicationwhere people engage via e-mail,webchat,instantmessagingandpostingonsocialmedia.ThechallengefacingAnsabackisforourcallcentreagentstoopenormonitoreachof thesecommuniqués, readthem,decipherthem,andthenprocesstheminaprescriptivefashiondemandedby the client.We can envisage that in a few years time thiswill becomeakeypartof a revisedoutsource contact centreoffering,includingsmartmobiledeviceswhichassisttheclient’scustomertoparticipateinthismultichannelengagementfromwhereverandwhatevertimeofdaytheycaretochoose.

The rise of Omni-Channel

TheAnsabackcallcentresawitsunderlyingsales(excludingthefixedtermutilitycontract)andminutesincreaseyearonyearby4.8%and7.1% respectively.Outbound revenueshave startedto rise, reflecting the recent investment in this area, whilstProfessionalServicesarenowbeingmoreaggressivelychargedfor which should result in increased Professional Servicesrevenuesinthefuture.

Inaddition,postyearend,theAnsabackcallcentrehassecureda significant contract with one of London’s most prestigiousdepartmentstores.Revenuefromthiscontract isexpectedtobesubstantialinthecomingyear.

Excluding the major utility contract, our sales mix ispredominatelyunchanged,providingadegreeofstability.Thesplitbyclienttypeisshownbelow:

Wehaverecruitednewsalesandseniorsalespersonneltofocusonourcoresectorsforbothbureauandfixedseatbusinessaswellasanoutboundmanagertoassistinpushingthispotentiallymorerapidgrowthbusinesssectorforwards.

Thecallcentreiswellpositionedforstafftransportationandwehavetwo4x4vehiclesforuseduringextremeadverseweatherconditions.

TheAnsabackwebsitehasbeenupdatedandre-launchedwiththe aim of appealing to corporate business prospects, whilstretaininginterestforsmaller,potentialbureauclients.

The Ansaback division also comprises IP3 Telecom, thetelecommunicationsarmofAnsaback,whichisacuttingedgeprovider of hosted “Cloud” telephony technology, providingbespokeautomatedIVR(IntegratedVoiceResponse)solutionsto the banking and financial sectors, hosted contact centresinfrastructurefornewbusinesses,telephonenumbers,campaignresponse,callrecording,reportingandloneworkerstafflines.Thetriplesitednetworkensuresarobustinfrastructurecapableofhandlinghighvolumesandpeaksincalltraffic,withinoneofthemostreliableintelligenttelephonynetworksintheUK.

IP3 Telecom (including PCI-PAL)The IP3 Telecombusiness has experienced significant growthintheperiod,withsales increasingby48%yearonyear. Thebusiness has been successful in increasing existing accountrevenues,aswellassignificantnewaccountswinsthroughbothourCloudContactCentreandpaymentservices.

PCI-PAL, part of IP3 Telecom, offers a PCI solution whichallowscall centresand telephoneagents to takepayments inaPCIcompliantfashionwithcustomerserviceunaffectedandexisting operational processes maintained. PCI-PAL makescontactcentrepaymentcollectioneasyandsecure,de-scopingtheoperationfromtherequirementsofPCIDSS(DataSecurityStandard).

ThePCImarket is startingtoemergeasanewarea formanybusinesses driven by compliance facing a risk of being finedheavilyforadatabreach.Theoperationalriskisthatcompanieslosetheirpaymentprocessingcontractsandarethenforcedtopay largepremiums tobecomecompliantby themain creditcardprocessors.Therearesomerecentexamplesofhighprofiledatalosseswhichallleadcompanieshandlingcreditcarddatatoreviewtheirpaymentprocesses.

Having completed our third full year of Level 1 accreditationto the Payment Card Industry Data Security Standard (PCIDSS),whichhelpspreventcreditcardfraud,PCI-PALhasgrownstronglywithtransactionvolumesincreasingby204%yearonyear.

The PCI-PAL client base includes a growing number ofinternational, blue chip organisations for whom we areprovidingpaymentservicesnotonly in theUK,butalso fromusersacrosstheglobe.ThePCI-PALbrandremainsoneofthestrongestinthespaceduetoourlongevityofinvolvementandin-house expertise around the relevant security standards.Wearecommittedtothecontactcentrepaymentsspace,andinvest significant efforts to differentiate ourselves by offeringtrulycloud,on-demandsolutionstothePCIchallengefacedbymanycontactcentresglobally.ThePCI-PALnetworkcomprisesmulti-redundant telephony systems housed in secure clouddatacentres.Utilisingmultiple telephonyanddata feeds, thenetwork infrastructure is designed to handlemanymultiplesof the present call volume traffic enabling the handling ofhundredsofthousandsofpaymentsperday.

PCI-PALentersthenewfinancialyearwithastrongdevelopedpipelineoflargecorporateandbluechipbusinessopportunitiesasorganisationsfeelgreaterpressuretobecomecompliantwiththePCIDSSduetothe increasedcoverageofdata loss inthemedia, growing public knowledge of data risk, and increasedpressurefromthirdpartystakeholders.

Additionally, since the year end, PCI-PAL, has won two

prestigious international contracts within the Jewellery andLogisticssectors.TheDirectorsbelievethatthesecontractwinsdemonstratethestrongandgrowingdemandforourPCIDSScompliantpaymentsolutions.Thenewcontractsareexpectedtogeneraterevenueinthe2015/16financialyear,supportinggrowthwithinthis tradingdivisionandhelpingtoelevateourprominenceinthissector.

Itisworthnotingthat,whilstoursolutionistriedandtestedanddoesnotrequiresignificantcapitalexpenditure,thetimetakenfromdecision to activation for a large business or enterpriseremainssignificant.

Ourgrowingnetworkofbusinesspartnersacrossthepayments,applications, and telecommunication space, will supportour goals to continue to grow the PCI-PAL business stream,maintaining footholds in theUKandnewlydevelopingglobalcontactcentrepaymentsmarkets.

Suffolk Disaster RecoverySuffolk Disaster Recovery, the final business within theAnsabackdivision,providesphysicalworkstationstoanumberof businesses in the Ipswich area from its two locations. Thefacilitieshave theirowngeneratorsandareavailableona24hourbasis,7daysaweek.TheIpswichregionispoorlyservedwith Disaster Recovery providers and with our call centreand telephony knowledgewe arewell placed to assist thosecompanies that need to have a backup facility in place. Thisfacilityhas90seatsandwiththenewspaceinthemainbuildingprovidesatotalof150seatsreadyandavailable.AsignificantnewclienthasbeensignedtothisserviceinJulywithagolivedateofSeptember2015.

Overall the Ansaback division made a segmental profit of£424,508 (2014:£1,262,185),beingadverselyaffectedby thesubstantial conclusion of the utility contract. Whilst agentheadshavebeenreduced,newbusinesscouldnotbewon intimetoreplacesuchalargereduction.Howevertheprospectsgoingintothenewyearareencouraging.

CallScripter divisionCallScripter is an enhanced customer interaction softwaresuite specificallydeveloped for contact centres, telesales andtelemarketing operations. Our clients gain major benefits byintroducing CallScripter’s dynamic scripting environment andadvanced reporting software into their organisations. Thesoftware facilitates the rapid set-up, handling and reportingof sophisticated inbound calls, outbound calls and e-mailcampaigns.


8 9

TheCallScriptermarketisnotlimitedtotheUK,with62%ofourbusinessnowconductedabroad,mainlyintheUnitedStates.

In the latter stages of the year ended June 2014, CallScripterdramaticallyreducedcostswithoutreducingcapacity.Revenuesintheyearwere£1,045,847(2014:£1,099,867).Thisis,inpart,as a result of our OEM (Original Equipment Manufacturer)partnershipwithInteractiveIntelligenceInc.whichhasextendedour relationship to allowCallScripter tobeofferedwithin theirCommunications as a Service platform (“CaaS”). This providesCallScripter with increased opportunities within their growinghosted customer base, whilst building an ongoing monthlyrevenuestreamviaasubscriptionpricingmodel.

As a result of the 2014 restructuring, the divisionwas able toreduce its segmental loss to £31,466 (2014: loss of £678,653including£322,974ofintangibleassetimpairment).

Thedivisionalsounderwentasuccessfulrebrand inadvanceoftheimminentreleaseofanewandimprovedCallScriptersolution.The new version has been specifically redeveloped to deliverfunctionalityandscalabilityimprovementstoenableustobettersupportnewandexistingChannelpartners.Webelievethiswillenable us to continue to beoneof the leading agent scriptingtoolsandincreaseoursalesteams’abilitytosecurenewbusinessinthecomingfinancialyear.

RisksPrincipal business risks and uncertaintiesTheprincipalrisksfacingtheGrouprelatebroadlytoitsintellectualproperty, its technology, the market place and competitiveenvironment,dependenceonkeypeople,informationtechnologyanditsacquisitionstrategy.

Intellectual property rights (‘IPR’): The Group is reliant on IPRsurrounding its internally generated and licensed-in software.WhilstitreliesuponIPRprotectionsincludingpatents,copyrights,trademarks and contractual provisions it may be possible forthirdpartiestoobtainandusetheGroup’sintellectualpropertywithout its authorisation. Third partiesmay also challenge thevalidity and/or enforceability of the Group’s IPR, although thedirectorsdonotenvisagethis risk tobesignificant. Inaddition,thedirectorsareawareofthesupplyriskoflosingkeysoftwarepartners.Asthesearenotasignificantpartofthecoreproducts,this would only have a short-term impact on the Group as itsoughttoidentifyandthentrainstaffinalternativeproducts.

Information technology: Data security and business continuityposeinherentrisksfortheGroup.TheGroupinvestsinandkeepsunderreviewformaldatasecurityandbusinesscontinuitypolicieswhichareindependentlyaudited.

Marketplaceandcompetition:The sectors inwhich theGroupoperates in and/or routes to market may undergo rapid and

unexpected changes or not develop at a pace in linewith thedirectors’ expectations. It is also possible that competitorswilldevelop similar products; theGroup’s technologymay becomeobsolete or less effective; or that consumers use alternativechannels of communications, which may reduce demand forthe Group’s products and services. In addition, the Group’ssuccess depends upon its ability to develop new, and enhanceexistingproducts,onatimelyandcosteffectivebasis,thatmeetchanging customer requirementsand incorporate technologicaladvancements. The directors review the market movements,clientrequirementsandcompetitivesupplierstoensurethatthecurrentportfolioisasrequired.

Thedirectorsensurethattheteamareproperlydirected,trainedandmotivatedtoaddressthisissue.

Key personnel: The Group depends on the services of its keytechnical,operations,salesandmanagementpersonnel.Thelossoftheservicesofanyoneormoreofthesepersonscouldhavea material adverse effect on the Group’s business. The Groupmaintains an active policy to identify, hire, train,motivate andretainhighlyskilledpersonnelinkeyfunctions.

Acquisitions: TheGroup’s strategy includes seekingacquisitionsof companies or businesses that are complementary to itsbusinesses.Asaconsequencethereisariskthatmanagement’sattention may be diverted and the Group’s ongoing businessmaybedisruptedor theGroupmay fail to retain key acquiredpersonnel, or encounter difficulties in integrating acquiredoperations. The directors remain aware of this disruption andplantoensurethatthemainbusinessisnotaffected.

Financial risk management objectives and policiesTheprincipalfinancialinstrumentsusedbytheGroup,fromwhichfinancialriskarises,aretradereceivables,cashatbankandtradeand other payables. The Group has no significant net foreigncurrencymonetaryassetsorliabilitiesnoranysignificanthedgedtransactions or positions. The Board has overall responsibilityforthedeterminationoftheGroup’sfinancialriskmanagementobjectivesandpoliciesand,whileretainingultimateresponsibilityforthem,ithasdelegatedtheauthorityfordesigning,operatingand reporting thereof to the Group’s finance function. TheoverallobjectiveistosetpoliciesthatseektoreduceriskasfaraspossiblewithoutundulyaffectingtheGroup’scompetitivenessandflexibility.Furtherdetailsregardingthesepoliciesaresetoutbelow:

Creditrisk:CreditriskistheriskoffinanciallosstotheGroupifacustomeroracounterparty toafinancial instrument fails tomeetsitcontractualobligations.TheGroupismainlyexposedtocreditriskfromcreditsales.ItisGrouppolicytoassessthecreditriskofnewcustomersbeforeentering intocontractsand ithasafrequentandproactivecollectionsprocess.Theconcentrationofcreditriskislimitedduetothelargeandunrelatedcustomerbase comprising mainly blue chip companies and publicsector organisations. Credit risk also arises from cash and cashequivalentsanddepositswithbanksandfinancialinstitutions.Attheyear-endtheGroup’scashatbankwasheldwithtwomajorUKclearingbanks.

Market risk: The directors consider that exposure to marketrisk,arisingfromtheGroup’suseofinterest-bearingandforeigncurrencyfinancialinstruments,isnotsignificant.Thisisassessedinnote21tothesefinancialstatements.

Liquidityrisk:LiquidityriskarisesfromtheGroup’smanagementof working capital. It is the risk that the Groupwill encounterdifficultyinmeetingitsfinancialobligationsastheyfalldue.Thedirectorsreviewanannual12monthcashflowprojectionaswellas information regarding cash balances on amonthly basis. Atthebalance sheetdate, liquidity riskwas considered tobe lowgiven the fact theGroup is cash generative and cash and cashequivalentsarethoughttobeatacceptablelevels.

Additional risks include the technology utilised in the contactcentre and we have a modern telephone switch. This switchincludes fail-over systems to further increase our businesscontinuity/disaster recovery readiness whilst also enabling ustooffer additional services to clients. It is also split across twolocationstofurtherreducetheriskoffailure.

To reduce the operational risks we have a Disaster RecoveryandDataCentrefacilityatanoffice5milesawayfromthemainbuilding. This office has independent telephone lines, phoneswitch and computer data systems synchronised to the mainbuildingthatcanautomaticallyfail-overintheeventofamajorincident occurring. Looking at other risks within the contactcentre,to loweroursusceptibilitytopoweroutages,wehaveastandbygeneratorincaseofpowercuts,whileourmaincomputersystems have been upgraded to improve their resilience andminimiseanydown-timeshouldaproblemarise.

Key performance indicatorsThe Group monitors a number of key performance indicators,using both financial and non-financial metrics, on a daily andmonthlybasis.Themostimportantoftheseareasfollows:

• Cashonadailybasis• Callcentrebillableminutesonadailybasis• Dedicateddeskmarginsonadailybasis• Divisionalsalesandresultsagainstbudgetona monthlybasis• Divisionalsalespipelineonamonthlybasis

Employee Relations and Social ResponsibilitiesThe Group continues to advocate a healthy staff policy via itsparticipation in Investors in People together with pursuing aHealthandWell-beingpolicy forencouraginghealthypractices.The IT team is activelyengagedwithCarbonChampions for itsecologicalandgreeninitiativesregardingtechnologyandwehavepolicies including a Low Carbon and Environmental PurchasingPolicy,whiletheGroupcontinuestoencouragecarsharing,bususageandthecycletoworkinitiative.

TheGroup’semployees supportadesignatedcharityeachyearandraised£2,711.

NVQ Qualification and apprenticesAfter 17 of our employees successfully completed NVQqualifications last year it was an easy decision to repeat thisoffering again. We have 12 employees studying for level 3customer services NVQ, which has been designed around ourCallCentre.Thissupportsourcommitmenttoouremployeestoensure that theyareequippedwith the relevant skills requiredtomakethemconfidentwithintheirjobroles. WeareworkinginpartnershipwithCatch22anationalcharitywhichworkswithyoungpeoplewhofindthemselvesindifficultsituations,helpingthem to stayhealthy, findopportunities to learn, earna living,andfindasafeplacetoliveandtogivesomethingbacktotheircommunity.

Summary and outlookTheGrouphasworkedhardduringtheyear tocompensate forthe lossof theutility contract.Howevernewbusinesswasnotsufficienttodeliveraprofit.TheBoardrecognisesthefundamentalimportanceofprofitinanestablishedbusinessandisencouragedbythenewbusinesswonsincetheyearend.ItisalsopleasedtoreportthattheGrouphas,sincetheyearend,tradedatbroadlybreakeven,whereasatthispointlastyearitwasinloss,providingtangibleevidenceofthefruitsofoureffortscomingtobear.

The Board therefore looks forward to producing much betterresultsinthefirsthalfofthecomingyear.

William A Catchpole26August2015


10 11

REMUNERATION COMMITTEE REPORTRemuneration CommitteeTheRemunerationCommitteeconsistsofnon-executivedirectorsJasonStarr(CommitteeChairman)andChrisFielding.

Remuneration PolicyThe objective of the Group’s remuneration policy is to attract,motivate,andretainhighqualityindividualswhowillcontributesignificantlytoshareholdervalue.TheRemunerationCommitteedecideson the remunerationof theDirectorsandother seniormanagement.

Annual Performance Bonus For Board executives, a bonus will be paid dependant on thelevelofachievementagainstannualkeyperformanceindicatorsfor the group,whichwill be set annually by theRemunerationCommittee,with achievement assessedat theendof the year.Anybonuswillbepaidascash,companysharesoracombinationof the two, also to be decided annually by the RemunerationCommittee. Under normal circumstances, a bonus will not bepayableiftargetsarenotmet.

Executive Directors’ remunerationTheremunerationpackageoftheExecutiveDirectorsincludesthefollowingelements:

Basic salarySalaries are normally reviewed annually taking into accountinflationandsalariespaidtoDirectorsofcomparablecompanies.Pay reviews also take into account Group and personalperformance.

Additional benefitsTheExecutiveDirectorsreceiveanannualcarallowance,personalhealth insuranceandacontributiontotheirpensionschemeof10%oftheirbasicsalarypaidannuallyinadvance.Therearealsotwoperformancerelatedpayschemes.Oneoftheseisbasedonperformanceintheyear,whileoneisdesignedtorewardlongertermperformance.

Annual Bonus SchemeTheExecutiveDirectorsparticipate in anannual bonus schemewhich is based upon the achievement of certain quantifiableprofitandcommercialtargetsfortheGroup,asappropriate.

Long Term Incentive PlanLongTermIncentiveswillcontinuetobesetunderthe2012LongTermIncentivePlan(“LTIP”).ThekeyelementsofthisLTIPareasfollows:

• TheGroupwillreviewitsmediumandlongtermstrategyonanannualbasis,towardstheendofeachfinancialyear.Theoutputofthisannualreviewwillbeanupdatedsetofactionstoimplementormodifyexistingornewstrategicimperatives,andanupdatedfinancialplan rolling forward3years,withtheupcomingfinancialyearasYear1.

• DesignatedexecutiveswillparticipateintheLTIP.AtthestartofeachfinancialyeartheRemunerationCommitteewillagreetheparticipants fortheupcomingcycle.Usingtherolling3yearplanasinput,theRemunerationCommitteewillgrantanumberofshareoptionstoparticipantswhichwillvestafterthe endof Year 3, depending on the level of performanceagainstthethreeyearkeyperformanceindicators.

• Inorder toalign shareholderandexecutives’ interests, theremainingvestedoptionsfromanycyclemayonlyberealised(i.e.sold)iftheBoardannounces,aspartofthereleaseoftheYear3financialresults,thatitwillreturnfundstoshareholdersbymeansofeitheradividendpaymentorasharebuyback.ThelevelofanydividendorsharebuybackwilldependupontheoverallfinancialstatusoftheGroupatthatpointintimeandwillbeatalevelappropriatetothatstatus.Ifnodividendorsharebuybackisannounced,executiveswillberequiredtoholdtheremainingvestedoptionsuntilthenextdividendorsharebuybackisannounced.

OptionsthatmaybegrantedundertheLTIParecappedat20%oftheGroup’sequity.

ForthelastLTIPcyclecoveringJuly2013-June2016,conditionaloptionswereissuedatanoptionpriceof1pencetoexecutivesandmanagementover2%oftheGroup’sequity.

TheLTIPcyclecoveringJuly2012-June2015hasnowconcluded.Thetargetswerenotmet,andthereforenooptionswillbeissued.

Theservicecontractsandlettersofappointmentofthedirectorsincludethefollowingterms:

Note3oftheDirectors’Reportsetsoutthedetailedremunerationandshareoptionsgrantedtoeachdirectorwhoservedduringtheyear.

Executive Directors Date of appointment Notice period

WACatchpole 27October1999 12months

RSMGordon 13April2000 12months

GForsyth 27November1999 12months

Non-Executive Directors

ChristopherMFielding 1September2014AnnualServiceContract

JasonSStarr 1January2015AnnualServiceContract

Jason S Starr26August2015


12 13

DIRECTORS and ADVISORS

Company registration number: 03869545

Registered office: MelfordCourt TheHavens RansomesEuropark Ipswich Suffolk IP39SJ

Telephone: +44(0)1473321800

Directors: ChristopherMichaelFielding JasonStuartStarr WilliamAlexanderCatchpole GeoffreyForsyth RobertStuartMcWhinnieGordon

Secretary: RobertStuartMcWhinnieGordonBAFCMACGMA

Bankers: NationalWestminsterBankPLC BarclaysBankPLC

Auditors: GrantThorntonUKLLP

Nominated advisers and brokers: N+1Singer

Registrars: CapitaAssetServicesTelephone: (UK):08716640300 (Overseas):+44(0)2086393399

Lawyers: ShepherdandWedderburnLLP

Financial statements are available at: www.ipplusplc.com

DIRECTOR’S REPORTThe directors present their report together with the financialstatementsfortheyearto30June2015.

1. Principal activitiesTheCompany(companynumber03869545)operatesprincipallyasaholdingcompany.Themainsubsidiariesareengagedintheprovisionofa24hoursaday,7daysaweekoutofhoursandoverflowtelephonyservice,PCIsolutions,thedevelopmentandsaleofcontactcentrecallrelationshipmanagementsoftwareandtheprovisionofsecurestorageanddestructionofdocuments.

2. Results, dividends, future prospectsThe trading results of the Group are set out in the annexedaccountsandaresummarisedasfollows:

The Strategic Report contains the financial risk managementobjectives and policies of the Group due to their strategicsignificance.

Thedirectorsrecommendpaymentofadividendof0.15pencepershare(2014:0.15pencepershare).

Thedirector’sremunerationwasasfollows:

3. DirectorsThemembershipoftheBoardissetoutbelow.

The beneficial and other interests of the directors and theirfamiliesinthesharesoftheCompanyat30June2015and1July2014wereasfollows:

The above interests include 33,220 (2014: 33,220) ordinarysharesheldbyoronbehalfofW.A.Catchpole’swife.

2014/15Salary

£Benefits

£Total

£Pension

£

WACatchpole 156,940 5,502 162,442 14,734

RSMGordon 121,496 3,204 124,700 11,191

GForsyth 109,050 3,488 112,538 9,946

CMFielding(non-executive) 29,301 - 29,301 -

JSStarr(non-executive) 12,500 - 12,500 -

PJDayer(non-executive) 18,000 - 18,000 -

BJWaldron(non-executive) 6,750 - 6,750 -

2013/14Salary

£Benefits

£Total

£Pension

£

WACatchpole 157,207 5,772 162,979 14,734

RSMGordon 121,496 3,112 124,608 11,191

GForsyth 109,049 2,929 111,978 9,946

PJDayer(non-executive) 35,500 - 35,500 -

BJWaldron(non-executive) 26,000 - 26,000 -

2015 2014

£ £

Revenueoncontinuingactivities 6,486,941 8,391,893

(Loss)/profitbeforetaxationoncontinuingactivities (258,244) 297,189

30 June 1July

2015 2014

Ordinary shares of 1p each

Ordinarysharesof1peach

WACatchpole 2,742,884 2,585,838

GForsyth 1,077,098 991,456

RSMGordon 1,045,688 968,180

CMFielding(non-executive)(appointed1September2014) - -

JSStarr(non-executive)(appointed1January2015) - -

PJDayer(non-executive)(resigned31December2014) 293,619 293,619

BJWaldron(non-executive)(resigned30September2014) - -

http://www.ipplusplc.com


14 15

On4November2013,directorsweregrantedoptionstosubscribeforordinarysharesintheCompanyasfollows:

Number of shares

Exercise price (pence)

WACatchpole 100,000 1.00

RSMGordon 100,000 1.00

GForsyth 100,000 1.00

Optionsare conditionalon certainvestingcriteria includinganannualGroupProfitbeforetaxtargetfortheyearended30June2016.

4. Share price and substantial shareholdingsDuring the year, the share price fluctuated between 20 penceand14penceandclosedat15penceon30June2015.

The beneficial and other interests of other substantialshareholdersandtheirfamiliesinthesharesoftheCompanyat30June2015and1July2014wereasfollows:

30 June 2015Ordinary shares

of 1p each

1July2014Ordinaryshares

of1peach

PWildey 5,500,000 5,650,000

ACatchpole 2,860,000 2,860,000

PMBrown 1,601,000 1,701,000

RClement 1,930,435 1,930,435

DHamilton 975,000 1,000,000

5. Directors’ responsibilities for the financial statements

ThedirectorsareresponsibleforpreparingtheStrategicReport,theDirectors’Reportandthefinancialstatementsinaccordancewithapplicablelawandregulations.

Company law requires the directors to prepare financialstatements for each financial year. Under that law thedirectors have elected to prepare Group financial statementsinaccordancewith International FinancialReportingStandardsas adoptedby theEuropeanUnion (“IFRSs”) andhaveelectedto prepare Company financial statements in accordance withUnited Kingdom Accounting Standards (United KingdomGenerally Accepted Accounting Practice). Under company lawthedirectorsmustnotapprovethefinancialstatementsunlesstheyaresatisfiedthattheygiveatrueandfairviewofthestateofaffairsandprofitandlossoftheCompanyandtheGroupforthatperiod.Inpreparingthesefinancialstatements,thedirectorsarerequiredto:

• select suitable accounting policies and then apply themconsistently;

• make judgements and accounting estimates that arereasonableandprudent;

• statewhether applicable Accounting Standards have beenfollowed,subjecttoanymaterialdeparturesdisclosedandexplainedinthefinancialstatements;and

• preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethattheCompanywillcontinueinbusiness.

Thedirectorsare responsible for keepingadequateaccountingrecords that are sufficient to showandexplain theCompany’stransactions,disclosewithreasonableaccuracyatanytimethefinancial position of the Company and enable them to ensurethat the financial statements comply with the Companies Act2006. They are also responsible for safeguarding the assets ofthe Company and hence for taking reasonable steps for thepreventionanddetectionoffraudandotherirregularities.

Thedirectorsconfirmthat:

• so faraseachdirector isaware, there isnorelevantauditinformationofwhichtheCompany’sauditorisunaware;and

• thedirectorshave takenall steps that theyought tohavetakenasdirectorsinordertomakethemselvesawareofanyrelevantauditinformationandtoestablishthattheauditorsareawareofthatinformation.

Thedirectorsareresponsibleforthemaintenanceandintegrityof the corporate and financial information included on theCompany’swebsite.LegislationintheUnitedKingdomgoverningthepreparationanddisseminationoffinancialstatementsmaydifferfromlegislationinotherjurisdictions.

6. Qualifying third party indemnity provision During the financial year, a qualifying third party indemnityprovisionforthebenefitofthedirectorswasinforce.

7. Research and developmentThe Group continues to develop CallScripter, a web basedworkflow management software suite for modern contactcentres.

8. Employee policyThe Group operates a policy of non-discrimination in respectof ethnicity, sexual orientation, gender, religion and disabilityand encourages the personal and professional developmentof all personsworkingwithin theGroupby giving full and fairconsiderationforallvacanciesinaccordancewiththeirparticularaptitudesandabilities.

9. Corporate governanceThe Group recognises the requirement for high standards ofcorporategovernancebutisrestrictedbyhavingasmallboardofdirectors,40%ofwhomarenon-executivedirectors.

As an AIM listed Company, we do not comply with the UKCorporateGovernanceCode,butwedoacknowledgetheoverallimportanceoftheguidelinesandapplyasmanyoftheprinciplesthereinasappropriatetoaGroupofoursizeandnature.

Internal financial controlThe board is responsible for establishing and maintaining theGroup’ssystemofinternalcontrolandreviewingitseffectiveness.InternalcontrolsystemsaredesignedtomeetparticularneedsoftheGroupconcernedandtheriskstowhichitisexposedandbytheirnaturecanprovidereasonable,butnotabsolute,assuranceagainst misstatement or loss. The directors confirm that theyhaveestablishedsuchproceduresasnecessarytoimplementtheGroup’sinternalcontrols.

Thefullboardmeetsonatleastsixoccasionseachyeartoreviewtrading performance and discuss strategy and policy issues.Budgets are approved annually andmanagement accounts areproducedonamonthlybasis.Alldirectorsreviewtheseaccounts.The executive board meets on a regular basis to discuss theGroup’s performance, inviting input from the non-executivedirectorsasappropriate.TheGroupreportstoshareholderstwiceayear.TheboardconsidersthataseparateinternalauditfunctionisnotjustifiedhavingregardtothesizeoftheGroup.

TheChairman,whocarriesouthisdutiesonapart-timebasis,isprimarilyresponsibleforrunningtheboard.TheChiefExecutiveis responsible for the day-to-day running of theGroup and forimplementingGroupstrategy.

All directors are aware of their right to seek independentprofessionaladviceattheCompany’sexpensetoassistthemintheirdutiesandtohaveaccesstotheservicesoftheCompanySecretary.

Audit CommitteeWhilst the Audit Committee formally consists of Chris FieldingandJasonStarr,duetothesizeoftheGroup,anybusinessrelatingtotheaudithasbeenconsideredbythefullboard.

OurauditorscanhoweverraiseanyissuesandrequestameetingoftheCommitteeifitisfeltthatanygovernanceorotherissuesneedtobediscussedwithouttheexecutivedirectors’attendance.

Remuneration CommitteeTheRemunerationCommitteeconsistsof JasonStarr andChrisFielding.

The Committee is responsible for setting the terms andconditions of employment for the executive directors andmeton two occasions during the year. The current policy is to setremuneration inaccordancewithmarketconditions inorder toattract,retainandmotivatetheexecutiveboard.TheCommitteereviewsGroupperformanceand,arisingfromthosereviews,maydetermineperformancerelatedbonuses.

Thefeesfornon-executivedirectorsaresetatsmallerturnoverAIMquotedmarketratestoattractindividualswiththenecessaryexperienceandabilitytomakeasubstantialcontributiontotheGroup’saffairsanditscontinueddevelopment.

10. Financial risk managementThe financial risk management policies and objectives aredisclosed in the Strategic Report and in note 21, along withinformation regarding exposure to credit risk, interest rate riskandliquidityrisk.

11. Treasury sharesTheGroupholdsa totalof167,229ordinarysharesas treasuryshares.

12. Going concernAfter making enquiries and preparing forecasts, which take abalancedviewofthefuturegrowthprospects,thedirectorshaveareasonableexpectationthattheGrouphasadequateresourcestocontinue inoperationalexistence for the foreseeable future.For these reasons, the directors continue to adopt the goingconcernbasisinpreparingtheaccounts.

13. AuditorsGrantThorntonUKLLPhaveexpressedwillingnesstocontinueinoffice. InaccordancewithS489(4)of theCompaniesAct2006,aresolutiontoreappointGrantThorntonUKLLPasauditorswillbe proposed at the Annual GeneralMeeting to be held on 15October2015.

MelfordCourtTheHavensRansomesEuroparkIpswich,SuffolkIP39SJ

BY ORDER OF THE BOARD

R S M GordonSecretary26August2015


16 17

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF IPPLUS PLCWehave audited the financial statements of IPPlus plc for theyear ended 30 June 2015 which comprise the consolidatedstatementofcomprehensiveincome,theconsolidatedstatementof financial position, the consolidated statementof cashflows,the consolidated statement of changes in equity, the companybalance sheet, and the related notes. The financial reportingframeworkthathasbeenappliedinthepreparationoftheGroupfinancialstatementsisapplicablelawandInternationalFinancialReportingStandards(IFRS’s)asadoptedbytheEuropeanUnion.The financial reporting framework that has been applied inthe preparation of the parent company financial statements isapplicablelawandUnitedKingdomAccountingStandards(UnitedKingdomGenerallyAcceptedAccountingPractice).

ThisreportismadesolelytotheCompany’smembers,asabody,in accordancewithChapter 3of Part 16of theCompaniesAct2006.Ourauditworkhasbeenundertakensothatwemightstateto the Company’s members those matters we are required tostate to them in an auditor’s report and fornootherpurpose.To the fullest extent permitted by law, we do not accept orassume responsibility to anyone other than the Company andtheCompany’smembers,asabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.

Respective responsibilities of directors and auditorAs explained more fully in the Directors’ ResponsibilitiesStatementsetoutonpages14,thedirectorsareresponsibleforthepreparationofthefinancialstatementsandforbeingsatisfiedthattheygiveatrueandfairview.OurresponsibilityistoauditandexpressanopiniononthefinancialstatementsinaccordancewithapplicablelawandInternationalStandardsonAuditing(UKand Ireland). Those standards require us to comply with theAuditingPracticesBoard’sEthicalStandardsforAuditors.

Scope of the audit of the financial statementsAdescriptionofthescopeofanauditoffinancialstatementsisprovidedontheFinancialReportingCouncil’s(FRC’s)websiteatwww.frc.org.uk/auditscopeukprivate

Opinion on financial statementsInouropinion:• thefinancialstatementsgiveatrueandfairviewofthestate

oftheGroup’sandoftheparentcompany’saffairsasat30June2015andoftheGroup’slossfortheyearthenended;

• theGroupfinancialstatementshavebeenproperlypreparedinaccordancewithIFRSsasadoptedbytheEuropeanUnion;

• theparentcompanyfinancialstatementshavebeenproperlyprepared in accordance with United Kingdom GenerallyAcceptedAccountingPractice;and

• thefinancialstatementshavebeenpreparedinaccordancewiththerequirementsoftheCompaniesAct2006

Opinion on other matter prescribed by the Companies Act 2006In our opinion the information given in the Strategic Reportand Directors’ Report for the financial year for which thefinancialstatementsarepreparedisconsistentwiththefinancialstatements.

Matters on which we are required to report by exceptionWehave nothing to report in respect of the followingmatterswheretheCompaniesAct2006requiresustoreporttoyouif,inouropinion:• adequate accounting records have not been kept by the

parentcompany,orreturnsadequateforouraudithavenotbeenreceivedfrombranchesnotvisitedbyus;or

• the parent company financial statements are not inagreementwiththeaccountingrecordsandreturns;or

• certain disclosures of directors’ remuneration specified bylawarenotmade;or

• wehavenot receivedall the informationandexplanationswerequireforouraudit.

David NewsteadSeniorStatutoryAuditorforandonbehalfofGrantThorntonUKLLP

MILTONKEYNES26August2015

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMENote 2015

£2014

£

Revenue 6,486,941 8,391,893

Costofsales (4,077,461) (5,152,692)

Grossprofit 2,409,480 3,239,201

Impairmentofintangibleassets 12 - (322,974)

Profitonleasesurrender 5 - 352,367

Tradingadministrativeexpenses (2,629,023) (2,926,123)

Administrativeexpenses (2,629,023) (2,896,730)

Administrativeexpenses (2,629,023) (2,896,730)

Operating(loss)/profit (219,543) 342,471

Financeincome 6 2,323 3,439

Financeexpenditure 7 (41,024) (48,721)

(Loss)/profit before taxation 5 (258,244) 297,189

Taxation 11 (279,778) 4,701

(Loss)/profit for year from continuing activities (538,022) 301,890

Lossfortheperiodfromdiscontinuedactivities 28 (53,856) (84,706)

(Loss)/profit and total comprehensive income attributable to equity holders of the parent company (591,878) 217,184

Basic and diluted earnings per share 10 (1.88)p 0.69p

Theaccompanyingaccountingpoliciesandnotesformanintegralpartofthesefinancialstatements.


18 19

CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAsat30June2015

Note 2015£

2014£

ASSETS

Non-current assets

Landandbuildings 14 1,653,304 1,692,769

Plantandequipment 13 224,333 421,256

Intangibleassets 12 - 221,167

Deferredtaxation 18 - 280,000

Non-current assets 1,877,637 2,615,192

Current assets

Tradeandotherreceivables 15 1,199,628 1,678,166

Currenttaxassets - 30,131

Cashandcashequivalents 1,040,822 459,693

Current assets 21 2,240,450 2,167,990

Total assets 4,118,087 4,783,182

LIABILITIES

Current liabilities

Tradeandotherpayables 16 (1,042,266) (994,272)

Currentportionoflong-termborrowings 16 (51,762) (85,274)

Current liabilities 21 (1,094,028) (1,079,546)

Non-current liabilities

Longtermborrowings 17 (1,111,818) (1,152,185)

Non-current liabilities (1,111,818) (1,152,185)

Total liabilities (2,205,846) (2,231,731)

Net assets 1,912,241 2,551,451

CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAsat30June2015

Note 2015£

2014£

EQUITY

Equity attributable to equity holders of the parent

Sharecapital 20 317,212 317,212

Sharepremium 89,396 89,396

Otherreserves 18,396 18,396

Profitandlossaccount 1,487,237 2,126,447

Total equity 1,912,241 2,551,451


TheBoardofDirectorsapprovedandauthorisedtheissueofthefinancialstatementson26August2015.

W A Catchpole Director

R S M Gordon Director


20 21

CONSOLIDATED STATEMENT OF CASH FLOWSFortheyearended30June2015

2015£

2014£

Cash flows from operating activities

(Loss)/profitaftertaxation (591,878) 217,184Adjustmentsfor:Depreciation 209,722 235,990Amortisationofintangibleassets - 134,074Impairmentofintangibleassets - 322,974Interestincome (2,323) (3,439)Interestexpense 35,974 38,674Interestelementoffinanceleases 4,490 6,675Otherinterest 560 3,372Incometaxes (222) (32,701)Deferredtaxwriteoff 280,000 28,000Lossonsaleofplantandequipment - 1,625ProfitonSalesofAncoraSolutions (203,697) -Decrease/(increase)intradeandotherreceivables 611,157 (113,531)Increase/decreaseintradeandotherpayables 26,235 113,338

Cash generated from continuing operations 370,018 952,235

Dividendpaid (47,332) (94,661)

Incometaxesreceived 33,214 20,474

Interestelementoffinanceleases (4,490) (6,675)

Interestpaid (35,974) (38,674)

Net cash from continuing operating activities 315,436 832,699

Net cash (used)/generated from discontinued operations (115,906) 87,237

Net cash from operating activities 199,530 919,936

Cash flows from investing activities

ConsiderationforsaleofAncoradivision 500,000 -

DeferredconsiderationfromsaleofCommercialFinanceBrokers(UK)Limited 13,000 16,000Purchaseofland,buildings,plantandequipment (73,304) (1,883,666)Capitalisationofdevelopmentcosts - (157,687)Interestreceived 2,323 3,439Net cash generated/ (used) in investing activities in continuing activities 442,019 (2,021,914)Net cash used in investing activities in discontinued activities (2,000) (24,000)Net cash generated/(used) in investing activities 440,019 (2,045,914)

Cash flows from financing activities

Loanreceived - 1,192,500Repaymentsofborrowings (22,971) (61,212)

Buy-backofTreasuryshares - (29,750)Capitalelementoffinanceleaserentals (35,449) (75,441)

Net cash (used)/generated in financing activities (58,420) 1,026,097

Net increase/(decrease)in cash 581,129 (99,881)

CONSOLIDATED STATEMENT OF CASH FLOWS (continued)Fortheyearended30June2015

2015£

2014£

Cashandcashequivalentsatbeginningofyear 459,693 559,574Netincrease/(decrease)incash 581,129 (99,881)

Cash and cash equivalents at end of year 1,040,822 459,693

Share capital

£

Sharepremium

£

Other reserves

£

Profit and lossaccount

£

Totalequity

£

Balance at 1 July 2013 317,212 89,396 18,396 2,033,674 2,458,678

SharesplacedintoTreasury - - - (29,750) (29,750)

Dividendpaid - - - (94,661) (94,661)

Transactionswithowners - - - (124,411) (124,411)

Profitandtotalrecognisedincomeandexpensefortheyear - - - 217,184 217,184

Balance at 30 June 2014 317,212 89,396 18,396 2,126,447 2,551,451

Dividendpaid - - - (47,332) (47,332)

Transactionswithowners - - - (47,332) (47,332)

Lossandtotalrecognisedincomeandexpensefortheyear - - (591,878) (591,878)

Balance at 30 June 2015 317,212 89,396 18,396 1,487,237 1,912,241


2015£

2014£

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


22 23

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. Authorisation of financial statementsTheGroup’sconsolidatedfinancialstatements(the“financialstatements”)ofIPPlusPLC(the“Company”)anditssubsidiaries(togetherthe“Group”)fortheyearended30June2015wereauthorisedforissuebytheBoardofDirectorson26August2015andtheChiefExecutive,WilliamCatchpole,andtheChiefFinancialOfficer,R.StuartGordon,signedthebalancesheet.

2. Nature of operations and general informationIPPlusPLCistheGroup’sultimateparentcompany.ItisapubliclimitedcompanyincorporatedanddomiciledintheUnitedKingdom.IPPlusPLC’ssharesarequotedandpubliclytradedontheAIMdivisionoftheLondonStockExchange.TheaddressofIPPlusPLC’sregisteredofficeisalsoitsprincipalplaceofbusiness.

TheCompanyoperatesprincipallyasaholdingcompany.Themainsubsidiariesareengagedintheprovisionofa24hoursaday,7daysaweekoutofhoursandoverflowtelephonyservice,thedevelopmentandsaleofcontactcentrecontactrelationshipmanagementsoftwareandtheprovisionofsecurestorageanddestructionofdocuments.

3. Statement of compliance with IFRSThesefinancialstatementshavebeenprepared inaccordancewith InternationalFinancialReportingStandardsasadoptedbytheEuropeanUnion.

TheprincipalaccountingpoliciesadoptedbytheGrouparesetoutinnote4.TheaccountingpolicieshavebeenappliedconsistentlythroughouttheGroupforthepurposesofpreparationofthesefinancialstatements.

Standards and interpretations in issue, not yet effectiveTherearenonewstandardsand interpretationscurrently in issue (asat29 July2015)butnoteffective,basedonEUmandatoryeffectivedatesforaccountingperiodscommencingon1July2014.

4. Principal accounting policies

a) Basis of preparationThefinancialstatementshavebeenpreparedonagoingconcernbasisinaccordancewiththeaccountingpoliciessetoutbelow.ThesearebasedontheInternationalFinancialReportingStandards(“IFRS”)issuedinaccordancewiththeCompaniesAct2006applicabletothosecompaniesreportingunderIFRSasadoptedbytheEuropeanUnion(“EU”).

Thefinancialstatementsarepresentedinpoundssterling(£),whichisalsothefunctionalcurrencyoftheparentcompany,andunderthehistoricalcostconvention.

b) Basis of consolidationTheGroupfinancialstatementsconsolidatethoseoftheCompanyanditssubsidiaryundertakings(seenote19)drawnupto30June2015.AsubsidiaryisacompanycontrolleddirectlybytheGroupandallofthesubsidiariesare100%ownedbytheGroup.ControlisachievedwheretheGrouphasthepowertogovernthefinancialandoperatingpoliciesoftheinvesteeentitytoobtainbenefitsfromitsactivities.

Allintra-Grouptransactions,balances,incomeandexpensesareeliminatedonconsolidation.

UnrealisedgainsontransactionsbetweentheGroupanditssubsidiariesareeliminated.Unrealisedlossesarealsoeliminatedunlessthetransactionprovidesevidenceofanimpairmentoftheassettransferred.AmountsreportedinthefinancialstatementsofsubsidiarieshavebeenadjustedwherenecessarytoensureconsistencywiththeaccountingpoliciesadoptedbytheGroup.

TheGrouphasutilisedtheexemption(withinIFRS1)nottoapplyIFRStopre-transitionbusinesscombinations.TheresultsofIPPlus(UK)Limitedareconsolidatedusingmergeraccountingprinciples.Allothersubsidiariesareaccountedforusingtheacquisitionmethod.

c) RevenueRevenue ismeasuredby reference to the fair valueof consideration receivedor receivableby theGroup for servicesprovided,excludingVATandtradediscounts.Revenueisrecognisedupontheperformanceofservicesorthetransferofrisktothecustomer.

Contactcentreturnoverisrecognisedbasedonbillableminutesinthemonth,alongwithstandingmonthlychargesandanyspecificsupplementaryservicecharges.

Softwareturnoverisrecognisedatthepointofsaleforcontractssoldinperpetuity,asitisatthispointthattheGrouphasperformedallofitsobligations.Turnoverfromannualsoftwarelicencesandmaintenancecontractsmaybereceivedinasingleamountorinmonthlyinstalments.Suchturnoverisrecognisedevenlyovertheperiodtowhichitrelates,reflectingtheperformanceofobligationsovertime.

Ancoraturnoverisrecognisedbasedontheservicesprovidedinthemonth,alongwithstandingmonthlychargesandanyspecificsupplementaryservicecharges.

d) Significant judgements and estimatesTheGroupmakesestimatesconcerningthefutureinassessingthecarryingamountsofcapitaliseddevelopmentcosts.TosubstantiatethecarryingamountthedirectorshaveappliedthecriteriaofIAS38andconsideredthefutureeconomicbenefitlikelyasaresultoftheinvestment.IntheprioryearDirectorsfullyimpairedthecarryingvalueoftheCallScripterintangibleasset.

Careful judgementbythedirectors isappliedwhendecidingwhethertherecognitionrequirements fordevelopmentcostshavebeenmet.Thisisnecessaryastheeconomicsuccessofanyproductdevelopmentisuncertainandmaybesubjecttofuturetechnicalproblemsatthetimeofrecognition.Judgementsarebasedontheinformationavailableateachbalancesheetdate.Inaddition,allinternalactivitiesrelatedtotheresearchanddevelopmentofnewsoftwareproductsarecontinuouslymonitoredbythedirectors.Nocostsareconsideredtomeetthecriteriainthecurrentyear.

Thecalculationofthedeferredtaxassetinvolvedtheestimationoffuturetaxableprofits.DirectorshaveassessedthecarryingvalueoftheDeferredTaxassetanddecidedtowriteoffthebalance,astheutilisationoftheassetsisunlikelyinthenearfutureduetoResearchandDevelopmenttaxcredits.

ManagementappliedjudgementsregardingtheprofitbasedperformancecriteriaoftheEmployeeShareOptionsanddonotexpectthesetovest.

ManagementappliedjudgementsregardingthesaleoftheAncoraSolutionsdivisionbeingadiscontinuedactivityintheyear.

e) Intangible assetsGoodwillGoodwillwascreatedonthepurchaseofAncoraSolutions.ThisGoodwillisnotamortisedbutissubjecttoannualimpairmentreviewtoensurethevalueisrecoverable.

Customer contractsCustomercontractsareincludedatcost,andcost lessestimatedresidualamount isamortisedonastraight-linebasisovertheirusefuleconomiclives.Theamortisationchargeisshownwithinadministrativeexpenses.Theratesapplicableare:

• Customercontracts 20%• Ancoraclientrelationships 10%• Ancorabrand 10%


24 25

e) Intangible assets (continued)Research and developmentExpenditureonresearch(ortheresearchphaseofaninternalproject)isrecognisedasanexpenseintheperiodinwhichitisincurred.

Developmentcostsincurredarecapitalisedwhenallofthefollowingconditionsaresatisfied:

• completionoftheintangibleassetistechnicallyfeasiblesothatitwillbeavailableforuseorsale• theGroupintendstocompletetheintangibleasset• theGroupisabletouseorselltheintangibleasset• theintangibleassetwillgenerateprobablefutureeconomicbenefits.Amongotherthings,thisrequiresthatthereisa marketfortheoutputfromtheintangibleassetitself,or,ifitistobeusedinternally,theassetwillbeusedingenerating suchbenefits• thereareadequatetechnical,financialandotherresourcestocompletethedevelopmentandtouseorselltheintangible asset• theexpenditureattributabletotheintangibleassetduringthedevelopmentcanbemeasuredreliably

Thecostofaninternallygeneratedintangibleassetcomprisesalldirectlyattributablecostsnecessarytocreate,produceandpreparetheassettobecapableofoperatinginthemannerintendedbymanagement.Directlyattributablecostsincludedevelopmentengineer’ssalaryandon-costs incurredonsoftwaredevelopment.Thecostof internallygeneratedsoftwaredevelopmentsarerecognisedasintangibleassetsandaresubsequentlymeasuredinthesamewayasexternallyacquiredsoftware.However,untilcompletionofthedevelopmentproject,theassetsaresubjecttoimpairmenttestingonly.

Amortisationcommencesuponcompletionoftheasset,andisshownwithinadministrativeexpensesinthestatementofcomprehensiveincome. Amortisation is calculated towrite down the cost less estimated residual value of all intangible assets by equal annualinstalmentsovertheirexpectedusefullives.Theratesgenerallyapplicableare:

• Developmentcosts 33%

Ancora Customer Relationships

UponreviewoftheAncoraSolutions’businessthedirectors’opinionwasthattheClientSalesRelationships,oncewon,werelikelytoremainforthelongtermdueto:

• Oncetheboxeswereputintostorageandnotonviewtotheclient,theservicestendedtorollalong• Amajorityoftheclientshavelongtermstoragerequirements(legalandhealthrecords)whichrequiredocumentstobe retainedandthencalledoutofstorageasrequired• Therearesignificantcostsinmovingtheboxestoanotherstorageunit.Assuchcustomersaremorelikelytostartusingan othersupplierwhilstmaintainingtheexistingoperationratherthancompletelytransferringthebusiness

At acquisition, the sales andon-going costs of the existingoperationwere forecast andwerediscountedbackusing theGroup’sWeightedAverageCostofCapital.Thisgaveavaluationof£280,000,whichisamortisedover10yearsonastraight-linebasis,beingtheestimatedlifeoftheseassets.Theamortisationchargeisshownwithinadministrativeexpenses.

Ancora Solutions Brand Valuation

TherelieffromroyaltyvaluationmethodassumesthatifabusinessdidnotowntheAncoraSolutions’branditwouldhavetopayaroyaltytotheownersofthebrandforitsuse.Thevalueofthebrandisthecapitalisedvalueoftheroyaltiesthattheownerisrelievedfrompayingasaresultoftheownershipoftheasset.TheroyaltyattributedtothepurchasewasvaluedusingasimilarbasistotheCustomerRelationshipsandapplyinga0.25%royaltyrate.Atacquisitionthisgaveavaluationof£3,000,whichisamortisedover10yearsonastraight-linebasis,beingtheestimatedlifeoftheseassets.Theamortisationchargeisshownwithinadministrativeexpenses.

f) Land, building, plant and equipment

Land,buildings,plantandequipmentarestatedatcost,netofdepreciationandanyprovisionforimpairment.Leasedplantisincludedinplantandequipmentonlywhereitisheldunderafinancelease.

Disposal of assetsThegainorlossarisingondisposalofanassetisdeterminedasthedifferencebetweenthedisposalproceedsandthecarryingamountoftheassetandisrecognisedinprofitorloss.

DepreciationDepreciation iscalculatedtowritedownthecost lessestimatedresidualvalueofallplantandequipmentassetsbyequalannualinstalmentsovertheirexpectedusefullives.Theratesgenerallyapplicableare:

• Land notdepreciated• Buildings 2%• Motorvehicles 33%• Fixturesandfittings 20%to50%• Plant 20%to50%• Computerequipment 33%

Materialresidualvalueestimatesareupdatedasrequired,butatleastannually.

g) Impairment testing of goodwill, other intangible assets, plant and equipmentForthepurposesofassessingimpairment,assetsaregroupedatthelowestlevelsforwhichthereareseparatelyidentifiablecashflows(“cash-generatingunits”).Asaresult,someassetsaretestedindividuallyforimpairmentandsomearetestedatcash-generatingunitlevel.

Goodwillandintangibleassetsnotyetavailableforusearetestedforimpairmentatleastannually.Allotherindividualassetsorcash-generatingunitsaretestedforimpairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountmaynotberecoverable.

Animpairmentlossisrecognisedfortheamountbywhichtheasset’sorcash-generatingunit’scarryingamountexceedsitsrecoverableamount.Therecoverableamountisthehigheroffairvalue,reflectingmarketconditionslesscosttosell,andvalueinusebasedonaninternaldiscountedcashflowevaluation.Anyimpairmentlossisfirstappliedtowritedowngoodwilltonilandthenischargedproratatotheotherassetsinthecash-generatingunit.Withtheexceptionofgoodwill,allassetsaresubsequentlyreassessedforindicationsthatanimpairmentlosspreviouslyrecognisednolongerexists.

h) Leased assetsInaccordancewithIAS17,theeconomicownershipofaleasedassetistransferredtothelesseeifthelesseebearssubstantiallyalltherisksandrewardsrelatedtotheownershipoftheleasedasset.Therelatedassetisrecognisedatthetimeofinceptionoftheleaseatthefairvalueoftheleasedassetor,iflower,thepresentvalueoftheminimumleasepaymentsplusincidentalpayments,ifany,tobebornebythelessee.Acorrespondingamountisrecognisedasafinanceleasingliability.

Theinterestelementofleasingpaymentsrepresentsaconstantproportionofthecapitalbalanceoutstandingandischargedtoprofitorlossovertheperiodofthelease.

Allotherleasesareregardedasoperatingleasesandthepaymentsmadeunderthemarechargedtoprofitorlossonastraight-linebasisovertheleaseterm.Leaseincentivesarespreadoverthetermofthelease.


26 27

i) TaxationCurrenttaxisthetaxpayablebasedontheprofitfortheyear.

Deferredincometaxesarecalculatedusingtheliabilitymethodontemporarydifferences.Deferredtaxisgenerallyprovidedonthedifferencebetweenthecarryingamountsofassetsandliabilitiesandtheirtaxbases.However,deferredtaxisnotprovidedontheinitialrecognitionofgoodwill,northeinitialrecognitionofanassetorliability,unlesstherelatedtransactionisabusinesscombinationoraffectstaxoraccountingprofit.Inaddition,taxlossesavailabletobecarriedforwardaswellasotherincometaxcreditstotheGroupareassessedforrecognitionasdeferredtaxassets.

Deferredtaxliabilitiesareprovidedinfull,withnodiscounting.Deferredtaxassetsarerecognisedtotheextentthatitisprobablethattheunderlyingdeductibletemporarydifferenceswillbeabletobeoffsetagainstfuturetaxableincome.Currentanddeferredtaxassetsandliabilitiesarecalculatedattaxratesthatareexpectedtoapplytotheirrespectiveperiodofrealisation,providedtheyareenactedorsubstantivelyenactedattheyearend.

Changesindeferredtaxassetsorliabilitiesarerecognisedasacomponentoftaxexpenseinthestatementofcomprehensiveincome,exceptwheretheyrelatetoitemsthatarechargedorcreditedtoothercomprehensiveincomeordirectlytoequityinwhichcasetherelatedtaxchargeisalsochargedorcrediteddirectlytoothercomprehensiveincomeorequity.

j) DividendsDividenddistributionspayabletoequityshareholdersareincludedin“othershorttermfinancialliabilities”whenthedividendsareapprovedingeneralmeetingpriortotheyearend.

k) Financial assets and liabilitiesTheGroup’sfinancialassetscomprisecashandtradeandotherreceivables,whichunderIAS39areclassedas“loansandreceivables”.Financialassetsarerecognisedon inceptionatfairvalueplustransactioncosts.Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Loansandreceivablesaremeasuredsubsequenttoinitialrecognitionatamortisedcostusingtheeffectiveinterestmethod,lessprovisionforimpairment.Anychangeintheirvaluethroughimpairmentorreversalofimpairmentisrecognisedinprofitorlossintheyear.

ProvisionagainsttradereceivablesismadewhenthereisobjectiveevidencethattheGroupwillnotbeabletocollectallamountsduetoitinaccordancewiththeoriginaltermsofthosereceivables.Theamountofthewrite-downisdeterminedasthedifferencebetweentheassets’carryingamountandthepresentvalueofestimatedfuturecashflows.

TheGrouphasanumberoffinancialliabilitiesincludingtradeandotherpayablesandbankborrowings.Theseareclassedas“financialliabilitiesmeasuredatamortisedcost”inIAS39.Thesefinancialliabilitiesarecarriedoninceptionatfairvaluenetoftransactioncosts,andarethereaftercarriedatamortisedcostundertheeffectiveinterestmethod.

l) Cash and cash equivalentsCashandcashequivalentscomprisecashonhandanddemanddeposits,togetherwithothershort-termhighlyliquidinvestmentsthatarereadilyconvertibleintoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.

m) Equity• Equitycomprisesthefollowing:• “Sharecapital”representsthenominalvalueofequityshares• “Sharepremium”representsthedifferencebetweenthenominalandissuedshareprice• “Otherreserves”representstheMergerReserveresultingfromthedemergerfromKDMInternationalPLCinNovember

1999andrepresentsthedifferencebetweenthevalueofthesharesacquired(nominalvalueplusrelatedsharepremium)andthenominalvalueofsharesissued

• “Profitandlossaccount”representsretainedprofits• “Treasuryshares”representsordinarysharesownedbythecompanyandthecostoftreasurysharesaredeductedfromthe

ConsolidatedStatementofComprehensiveIncome

n) Contribution to defined contribution pension schemesThepension costs chargedagainstprofits represent theamountof the contributionspayable to the schemes in respectof theaccountingperiod.

o) Foreign currenciesTransactionsinforeigncurrenciesaretranslatedattheexchangeraterulingatthedateofthetransaction.Monetaryassetsandliabilitiesinforeigncurrenciesaretranslatedattheratesofexchangerulingattheyearend.

Anyexchangedifferencesarisingonthesettlementofmonetaryitemsorontranslatingmonetaryitemsatratesdifferentfromthoseatwhichtheywereinitiallyrecordedarerecognisedintheprofitorlossintheperiodinwhichtheyarise.

p) Share optionsThedirectorsdonotconsiderthattheamountsinvolvedarematerialand,astheperformancecriteriaarenotexpectedtobemet,nochargehasbeenrecognisedasexplainedinNote20.

q) Capital managementThe capital structureof theGroup consists of debt, cash, loans and equity. TheGroup’s objectivewhenmanaging capital is tomaintainthecashpositiontoprotectthefutureon-goingprofitablegrowthwhichwillreflectinshareholdervalue.

At30June2015theGrouphadaclosingcashbalanceof£1,040,822(2014:£459,693)andanoutstandingmortgageof£1,137,484(2014:£1,160,455).

5. Profit before taxation

Profitonordinaryactivitiesisstatedafter:2015

£2014

£

Auditors’ remuneration

Feespayabletothecompany’sauditorsfortheauditofthecompany’sannualaccounts 9,000 9,000

Fees payable to the Group’s auditors for other services 13,500 -

Theauditofthecompany’ssubsidiariespursuanttolegislation 12,000 12,000

Taxationservices 5,000 6,250

Allotherservices 1,680 1,100

Depreciation and amortisation – charged in administrative expenses

Buildings 49,743 49,265

Intangibleassets-amortisation - 162,374

Intangibleassets-impairment - 322,974

Plantandequipment–owned 121,122 126,125

Plantandequipment–leased 38,856 53,890

Rentspayable 216,775 75,483

Foreignexchangegain/(loss) 829 (22,403)

Profitonearlysurrenderoflease - 352,367

Profit/(loss)onsaleoffixedasset - (1,625)

Amountsofresearchanddevelopmentwrittenoff 136,128 -


28 29

6. Finance income 2015

£2014

£

Bankinterestreceivable 2,323 3,439

7. Finance expenditure 2015

£2014

£

Interestonbankborrowings 35,974 38,674

Financechargesinrespectoffinanceleases 4,490 6,675

Other 560 3,372

41,024 48,721

8. Directors and employeesStaffcostsoftheGroup,includingthedirectorswhoareconsideredtobepartofthekeymanagementpersonnel,duringtheyearwereasfollows:

2015£

2014£

Wagesandsalaries 4,694,213 6,056,388

Socialsecuritycosts 361,326 473,500

Otherpensioncosts 90,533 85,278

5,146,072 6,615,166

2015 Heads

2014Heads

Averagenumberofemployeesduringtheyear 255 302

Remunerationinrespectofdirectorswasasfollows:

2015£

2014£

Emoluments 466,231 461,065

Pensioncontributionstomoneypurchasepensionschemes 35,871 35,871

502,102 496,936

Duringtheyear3(2014:3)directorsparticipatedinmoneypurchasepensionschemes.

Theamountssetoutaboveincluderemunerationinrespectofthehighestpaiddirectorasfollows:

2015£

2014£

Emoluments 162,442 162,979

Pensioncontributionstomoneypurchasepensionschemes 14,734 14,734

AdetailedbreakdownoftheDirectors’Emoluments,inlinewiththeAIMrules,appearsintheDirectors’Report.

8. Directors and employees (continued) Keymanagementcompensation:

2015£

2014£

Shorttermemployeebenefits 721,095 754,178

Postemploymentbenefits 52,996 51,871

774,091 806,049

9. Segmental information IPPlusPLCoperatesthreebusinesssectors,Ansaback,CallScripterandAncoraSolutions(thediscontinuedactivity).ThesedivisionsarethebasisonwhichtheGroupreportsitssegmentinformation.IP3TelecomandPCI-PALarepartoftheAnsabackdivision.Theresultsofthesetwoactivitiesarenotreportedseparatelytomanagementandarenottreatedasseparatesegments.Theinter-segmentsalesareinsignificant.Segmentresults,assetsandliabilitiesincludeitemsdirectlyattributabletoasegmentaswellasthosethatcanbeallocatedonareasonablebasis.Unallocatedassetscompriseitemssuchascashandcashequivalents,taxationandborrowings.Allliabilities,otherthanthebankloan,areunallocated.Segmentcapitalexpenditureisthetotalcostincurredduringtheyeartoacquiresegmentassetsthatareexpectedtobeusedformorethanoneperiod.

2015Ansaback

£CallScripter

£Central

£

Continuing Activities

£

DiscontinuedActivities

£Total

£

Revenue 5,441,094 1,045,847 - 6,486,941 362,803 6,849,744

Segmentresult 424,508 (31,466) (612,585) (219,543) (53,856) (273,399)

Financeincome - - 2,323 2,323 - 2,323

Financecosts - - (41,024) (41,024) - (41,024)

Profit/(loss)beforetax 424,508 (31,466) (651,286) (258,244) (53,856) (312,100)

Segmentassets 2,715,970 256,894 1,145,223 4,118,087 - 4,118,087

Segmentliabilities (1,189,246) - (1,016,600) (2,205,846) - (2,205,846)

Othersegmentitems:

CapitalExpenditure

-PlantandEquipment 58,443 962 - 59,405 3,784 63,189

Depreciation(note13) 146,696 13,282 - 159,978 20,674 180,652

Amortisationofintangibleassets(note12) - - - - 14,150 14,150

Depreciationofbuildings(note14) 49,743 - - 49,743 - 49,743


30 31

2014Ansaback

£CallScripter

£Central

£

Continuing Activities

£

DiscontinuedActivities

£Total

£

Revenue 7,292,026 1,099,867 - 8,391,893 731,494 9,123,387

Segmentresult* 1,262,185 (678,653) (241,061) 342,471 (84,706) 257,765

Financeincome - - 3,439 3,439 - 3,439

Financecosts - - (48,721) (48,721) - (48,721)

Profit/(loss)beforetax 1,262,185 (678,653) (286,343) 297,189 (84,706) 212,483

Segmentassets 3,280,204 411,242 257,938 3,949,384 833,798 4,783,182

Segmentliabilities (1,160,455) - (1,071,276) (2,231,731) - (2,231,731)

Othersegmentitems:

CapitalExpenditure

-PlantandEquipment 224,370 2,069 - 226,439 31,181 257,620

-IntangibleAssets - 157,687 - 157,687 - 157,687

Depreciation(note13) 171,534 8,481 - 180,015 44,782 224,797

Amortisationofintangibleassets(note12) - 134,074 - 134,074 28,300 162,374

Impairmentofintangibleassets(note12) - 322,974 - 322,974 - 322,974

Depreciationofbuildings(note14) 49,265 - - 49,265 - 49,265

*includedwithinthesegmentresultofCentralistheprofitonleasesurrenderof£352,367andofCallScripteristhelossonimpairmentofIntangibleAssetsof£322,974.

9. Segmental information (continued)

9. Segmental information (continued)

Revenuecanbesplitbylocationofcustomersasfollows:

2015£

2014£

Ansaback division

UnitedKingdom 5,396,625 7,246,356

UnitedStates 2,793 5,360

Ireland 3,129 5,476

HongKong 2,203 9,505

France 4,779 4,783

Australia 27,428 115

Luxembourg - 9,880

Othercountries 4,137 10,551

5,441,094 7,292,026

CallScripter division

UnitedKingdom 404,313 480,270

UnitedStates 522,941 521,797

Ireland 6,109 12,557

Australia 47,500 50,817

Belgium 12,136 16,857

France 3,535 -

Netherlands 36,838 3,416

Denmark 7,637 8,237

Cyprus 4,838 5,916

1,045,847 1,099,867

Continuingactivities 6,486,941 8,391,893

Discontinued activities

Ancora Solutions division

UnitedKingdom 362,803 731,494

6,849,744 9,123,387

Onesingleexternalcustomergenerates14%-£772,622(2014:41%-£2,990,855)oftheAnsabackdivision’srevenues.

Allnon-currentassetsarelocatedintheUnitedKingdom.


32 33

10. Earnings per shareThecalculationoftheearningspershareisbasedontheprofitaftertaxationaddedtoreservesdividedbytheweightedaveragenumberofordinarysharesinissueduringtherelevantperiod.Nodilutedprofitpershareisshownbecausealloptionsarenon-dilutiveasthevestingconditionsarenotmetattheyearend.Detailsofpotentialshareoptionsaredisclosedinnote20.

12 monthsended

30 June2015

12monthsended

30June2014

(Loss)/profitaftertaxationaddedtoreserves £(591,878) £217,184

Weightedaveragenumberofordinarysharesinissueduringtheperiod 31,553,949 31,579,732

Basicanddilutedearningspershare (1.88)p 0.69p

11. Taxation2015

£2014

£

Analysis of charge in the year

Currenttax:

Inrespectoftheyear:

UKCorporationtaxbasedontheresultsfortheyearat20.75%(2014:22.5%) 222 (222)

Adjustmentsinrespectofpriorperiods - 32,923

Totalcurrenttaxcredited 222 32,701

Deferredtax:

Originationandreversaloftemporarydifferences - (28,000)

Movementoncapitalisedintangibles (280,000) -

Totaldeferredtaxcharged (280,000) (28,000)

(Charge)/credit (279,778) 4,701

11. Taxation (continued ) Factors affecting current tax chargeThetaxassessedontheprofitonordinaryactivitiesfortheyearwaslowerthanthestandardrateofcorporationtaxintheUKof20.75%(2014:22.5%).

2015£

2014£

(Loss)/profitonordinaryactivitiesbeforetax (312,100) 212,483

(Loss)/profitonordinaryactivitiesmultipliedbystandardrateofcorporationtaxintheUKof20.75%(2014:22.5%) 64,762 (47,809)

Expensesnotdeductiblefortaxpurposes (3,462) (11,148)

Depreciation(lessthan)/inexcessofcapitalallowancesfortheyear (23,177) 6,155

Utilisationoftaxlosses (34,161) (98,600)

Unrelievedtaxlosses 614 -

Other (4,576) 46,304

ResearchandDevelopmentclaim - (33,207)

Movementondeferredtaxtimingdifferences (280,000) (28,000)

Prioryearadjustment 222 -

Totaltax(charge)/creditfortheyear (279,778) 4,701

Duringthepreviousyearto30June2014theGroupsubmittedaResearchandDevelopmentclaimtoHMRCrelatingtotheyearended30June2013of£33,207.ThiscreditwasrecognisedintheIncomeStatementandincludedinDebtors.

Thecompanyhasunrecognisedtaxlossescarriedforwardof£2million.


34 35

12. Intangible assetsIncalculatingthevalueinuseofthecapitalisedinternalsalariesintheCallScripterdivision,managementmakejudgementsandestimatesoffuturecashflows.Inthepreviousyear,duetothesenegativecashflowforecasts,thedirectorsfullyimpairedtheIntangibleAssetsinthisdivision.

2015

Cost Goodwill

£

Purchased intangibles

£

Capitalised development costs

£Total

£

Goodwill 32,500 - - 32,500

Ancorabrand - 3,000 - 3,000

Ancoraclientrelationships - 280,000 - 280,000

CallScripterinternalsalaries - - 1,083,711 1,083,711

Costat1July2014 32,500 283,000 1,083,711 1,399,211

Goodwill - - - -

Ancorabrand - - - -

Ancoraclientrelationships - - - -

CallScripterinternalsalaries - - - -

Additions - - - -

Goodwill (32,500) - - (32,500)

Ancorabrand - (3,000) - (3,000)

Ancoraclientrelationships - (280,000) - (280,000)


Disposals (32,500) (283,000) - (315,000)

Goodwill - - - -

Ancorabrand - - - -



Costat30June2014 - - 1,083,711 1,083,711

12. Intangible assets (continued )

2015

Amortisation and impairment(included within administrative expenses):

Goodwill£


£


£Total

£

Goodwill - - - -

Ancorabrand - 700 - 700



Amortisationat1July2014 - 94,333 1,083,711 1,178,044

Goodwill - - - -




Chargefortheyear - 14,150 - 14,150

Goodwill - - - -

Ancorabrand - (850) - (850)

Ancoraclientrelationships - (107,633) - (107,633)


Writtenoutintheyear - (108,483) - (108,483)

Goodwill- - - -

Ancorabrand - - - -



Amortisationat30June2015 - - 1,083,711 1,083,711

Goodwill - - - -

Ancorabrand - - - -



Net book amount at 30 June 2015 - - - -


36 37


2014

Cost Goodwill

£


£


£Total

£

Goodwill 32,500 - - 32,500



CallScripterinternalsalaries - - 926,024 926,024

Costat1July2013 32,500 283,000 926,024 1,241,524

Goodwill - - - -

Ancorabrand - - - -



Additions - - 157,687 157,687

Goodwill - - - -

Ancorabrand - - - -



Disposals - - - -

Goodwill 32,500 - - 32,500




Cost at 30 June 2014 32,500 283,000 1,083,711 1,399,211


2014

Amortisation(included within administrative expenses): Goodwill

£


£


£Total

£

Goodwill - - - -




Amortisationat1July2013 - 66,033 626,663 692,696

Goodwill - - - -

Ancorabrand - - - -



Chargefortheyear - 28,300 134,074 162,374

Goodwill - - - -

Ancorabrand - - - -



Writtenoutintheyear - - 322,974 322,974

Goodwill- - - -



CallScripterinternalsalaries-amortisation - - 760,737 760,737

CallScripterinternalsalaries-impairment - - 322,974 322,974

Amortisation at 30 June 2014 - 94,333 1,083,711 1,178,044

Goodwill 32,500 - - 32,500




Net book amount at 30 June 2014 32,500 188,667 - 221,167


38 39

13. Plant and equipment

2015Plant

£Motor vehicles

£

Fixtures and fittings

£

Computer equipment

£Total

£

Cost:

At1July2014 172,502 62,108 447,218 606,529 1,288,357

Additions 3,784 - 2,846 56,559 63,189

Disposals (151,132) (3,000) (26,634) (151,986) (332,752)

At 30 June 2015 25,154 59,108 423,430 511,102 1,018,794

Depreciation (included within administrative expenses):

At1July2014 85,200 42,577 358,170 381,154 867,101

Chargefortheyear 18,698 7,451 37,640 116,863 180,652

Disposals (93,694) (3,000) (26,008) (130,590) (253,292)

At 30 June 2015 10,204 47,028 369,802 367,427 794,461

Net book amount at 30 June 2015 14,950 12,080 53,628 143,675 224,333

2014Plant

£Motor vehicles

£

Fixtures and fittings

£

Computer equipment

£Total

£

Cost:

At1July2013 135,621 58,113 400,238 448,038 1,042,010

Additions 36,881 9,995 51,053 159,691 257,620

Disposals - (6,000) (4,073) (1,200) (11,273)

At 30 June 2014 172,502 62,108 447,218 606,529 1,288,357


At1July2013 56,426 36,003 298,425 261,098 651,952

Chargefortheyear 28,774 11,199 63,568 121,256 224,797

Disposals - (4,625) (3,823) (1,200) (9,648)

At 30 June 2014 85,200 42,577 358,170 381,154 867,101

Net book amount at 30 June 2014 87,302 19,531 89,048 225,375 421,256

Includedwithinthenetbookamountof£224,333(2014:£421,256)is£36,015(2014:£109,315)relatingtoassetsheldunderfinanceleases.Thedepreciationchargedtothefinancialstatementsintheyearinrespectofsuchassetsamountedto£42,863(2014:£61,903).

14. Land and buildings

2015

Land£

Buildings£

Total£

Cost:

At1July2014 428,347 1,313,687 1,742,034

Additions - 1,500 1,500

Disposals - (64,667) (64,667)

At 30 June 2015 428,347 1,250,520 1,678,867


At1July2014 - 49,265 49,265

Chargefortheyear - 49,743 49,743

Disposals - (73,445) (73,445)

At 30 June 2015 - 25,563 25,563

Net book amount at 30 June 2015 428,347 1,224,957 1,653,304

2014Land

£Buildings

£Total

£

Cost:

At1July2013 54,182 8,300 62,482

Additions 374,165 1,305,387 1,679,552

At 30 June 2014 428,347 1,313,687 1,742,034


At1July2013 - - -

Chargefortheyear - 49,265 49,265

At 30 June 2014 - 49,265 49,265



40 41

15. Trade and other receivables

2015£

2014£

Tradereceivables 950,449 1,372,920

Otherreceivables 504 16,595

Prepaymentsandaccruedincome 248,675 288,651

Tradeandotherreceivables 1,199,628 1,678,166

Allamountsfallduewithinoneyearandthereforethefairvalueisconsideredtobeapproximatelyequaltothecarryingvalue.AlloftheGroup’stradeandotherreceivablesaredenominatedinpoundssterling.Themaximumexposuretocreditriskatthereportingdateisthecarryingvalueofeachclassofreceivablesmentionedabove.TheGroupholds£14,618(2014:£27,575)ofdepositsassecurityagainstcertainaccounts.

Tradereceivableshavebeenreviewedforindicatorsofimpairmentandaprovisionhasbeenrecordedasfollows:2015

£2014

£

Openingprovisionat30June2014 17,000 12,697

(Released)/Chargedtoincome (4,100) 4,303

Closingprovisionat30June2015 12,900 17,000

2015£

2014£

0-30dayspastdue 16,312 43,687

30-60dayspastdue 22,700 15,135

Over60dayspastdue 2,630 5,311

41,642 64,133

Inadditionsomeofthenon-impairedtradereceivablesarepastdueatthereportingdate:

Amountswhicharenotimpaired,whetherpastdueornot,areconsideredtoberecoverableattheircarryingvalue.

16. Current liabilities

2015£

2014£

Tradepayables 276,415 286,235

Socialsecurityandothertaxes 319,878 403,656

Otherpayables 445,973 304,381

Tradeandotherpayables 1,042,266 994,272

Bankloans(note17) 32,766 33,284

Amountsdueunderfinanceleases 18,996 51,990

Currentportionoflong-termborrowings 51,762 85,274

1,094,028 1,079,546

Amountsdueunderfinanceleasesaresecuredontherelatedassets.

17. Non-current liabilities

2015£

2014£

Bankloans 1,104,718 1,127,171

Amountsdueunderfinanceleases 7,100 25,014

Longtermborrowings 1,111,818 1,152,185

Borrowings Bankloansarerepayableasfollows:

2015£

2014£

Withinoneyear 32,766 33,284

Afteroneyearandwithintwoyears 33,727 69,695

Aftertwoyearsandwithinfiveyears 107,231 74,084

Overfiveyears 963,760 983,392

1,137,484 1,160,455

On1July2013theGroupobtainedaloanof£1,192,500,securedoverMelfordCourt,TheHavens,RansomesEuropark,IpswichIP39SJrepayableover25yearswitha5yearfixedrateof2.55%abovethethreemonthLIBORratefromtheNatWestBankPLC.

Thiswasremortgagedon15January2015ataloanof£1,145,529,securedoverMelfordCourt,TheHavens,RansomesEuropark,IpswichIP39SJrepayableover25yearswitha5yearfixedrateof2.4%abovethebaseratefromtheNatWestBankPLC.

Interestonthebankloanfallsdueasfollows:2015

£2014

£



Aftertwoyearsandwithinfiveyears 88,967 60,173

Overfiveyears 298,042 318,631

451,314 480,994

Amountsdueunderfinanceleasesaresecuredontherelatedassets.

Amountsdueunderfinanceleasesfalldueasfollows:2015

£2014

£



27,444 81,612

Theabovetableincludesinterestof£1,205(2014:£3,384)duewithinoneyearand£143(2014:£1,224)dueafteroneyearbutwithintwoyears.


42 43

18. Deferred taxation Deferredtaxationiscalculatedatarateof22.5%(2014:22.5%).

Tax losses£

Capitalised intangibles

£Total

£

Openingbalanceat1July2014 373,000 (65,000) 308,000

(Charged)/creditedthroughthestatementofcomprehensiveincomeintheyear

(93,000) 65,000 (28,000)

At30June2014 280,000 - 280,000

Chargedthroughthestatementofcomprehensiveincomeintheyear (280,000) - (280,000)

At 30 June 2015 - - -

2015£

2014£

Unprovideddeferredtaxassets

Acceleratedcapitalallowances (6,000) 4,000

Tradinglosses 398,000 64,000

392,000 68,000

Thedeferredtaxassetof£280,000hasbeenwrittenoffinrespectofcarriedforwardtaxlossesonthebasisthatthedirectorsbelievethatitismorethanlikelynottoberealisedagainstfuturetaxableprofitsoftheGroupintheforeseeablefuture,sincedeclaredprofitshavebecometaxablelossesduetoResearchandDevelopmentclaims.

Theunprovideddeferredtaxassetsarecalculatedatarateof20%(2014:20%).

19. Group undertakings At30June2015,theGroupincludedthefollowingsubsidiaryundertakings,whichareincludedintheconsolidatedaccounts:

NameCountry of

IncorporationClass of share

capital heldProportion

heldNature ofbusiness

IPPlus (UK) Limited England Ordinary 100% Outofhoursandoverflowtelephonyservices,docu-

mentstorageanddestructionandsoftwarecompany

CallScripter Limited England Ordinary 100% Softwarereseller

Suffolk Disaster Recovery Limited (previouslyAncoraSolutionsLimited)

England Ordinary 100% Dormant

Ansaback Limited England Ordinary 100% Dormant

CallScripter (U.K.) Limited

England Ordinary 100% Dormant

EasyScripter Limited England Ordinary 100% Dormant

Fault Solutions 365Limited England

Ordinary 100% Dormant

IP3 Telecom Limited England Ordinary 100% Dormant

PCI-PAL Limited England Ordinary 100% Dormant

The Number Experts Limited England

Ordinary 100% Dormant

Vital Contact (UK) Limited England Ordinary 100% Dormant

20. Share capital

Group2015

Number2015

£2014

Number2014

£

Authorised:Ordinarysharesof1peach 100,000,000 1,000,000 100,000,000 1,000,000

Allottedcalledupandfullypaid:Ordinarysharesof1peach 31,721,178 317,212 31,721,178 317,212

TheGroupowns167,229(2014:167,229)sharesandtheseareheldasTreasuryShares.ThisvalueisdeductedintheConsolidatedStatementofChangesinEquityandisreflectedintheweightedaveragenumberofsharesinissueduringtheperiod(Note10).

Duringtheyear,thesharepricefluctuatedbetween20penceand14penceandclosedat15penceon30June2015.


44 45

20. Share capital (continued)Contingent rights to the allotment of sharesTheGrouphasgrantedthefollowingshareoptions,inrespectofordinarysharesof1peach,whichwerestillvalidandunexercisedat30June2015.

Date of grant Number of shares Exercise price Period exercisable

4November2013 600,000 1.00p Seebelow

Theseoptionsweregrantedatanexercisepriceof1penceeachon4November2013.TheoptionsareconditionaloncertainvestingcriteriaincludinganannualGroupProfitbeforeTaxtargetfortheyearended30June2016.

TheweightedaveragefairvalueoftheNovember2013LTIPgrantedduringtheperiod,determinedusingtheBlack-Scholesvaluationmodel,was14.12penceperoption.Thesignificantinputsintothemodelweremid-marketsharepriceof28penceatthegrantdate;exercisepriceshownabove;anexpected10yeartimetoexpiry;anannualrisk-freeinterestrateof0.5%;dividendyieldofnil;volatilityofsharepriceofnil.

Noshareoptionsarecurrentlyexercisable.TheWeightedAverageExercisePriceofshareoptionsoutstandingat30June2015was1p,withaweightedaveragelifeof12monthsandat30June2014was3.6p,withaweightedaveragelifeof17months.

Noshareoptionchargehasbeenrecognisedduringtheyearbecausemanagementareoftheopinionthattheperformanceconditionswillnotbemet.

2015Share options

2014Shareoptions

Amountsinissueatbeginningofyear 1,725,000 1,884,425

Grantedinperiod - 650,000

Expirationsinperiod (1,125,000) (809,425)

Amountsinissueatyearend 600,000 1,725,000

21. Financial instruments TheGroupusesvariousfinancialinstrumentsincludingcash,tradereceivables,tradepayables,otherpayables,loansandleasingthatarisedirectlyfromitsoperations.ThemainpurposeofthesefinancialinstrumentsistomaintainadequatefinancefortheGroup’sop-erations.TheexistenceofthesefinancialinstrumentsexposestheGrouptoanumberoffinancialrisks,whicharedescribedindetailbelow.Thedirectorsdonotconsiderpricerisktobeasignificantrisk.Thedirectorsreviewandagreepoliciesformanagingeachoftheserisks,assummarisedbelow,andtheseremainunchangedfrompreviousyears.

Financial risk management and objectivesTheGroupseekstomanagefinancialrisktoensuresufficientliquidityisavailabletomeetforeseeableneedsandtoinvestcashassetssafelyandprofitably.Thedirectorsachievethisbyregularlypreparingandreviewingforecastsbasedonthetrendsshowninthemonthlymanagementaccounts.

Interest rate riskThetotalloanbalanceat30June2015is£1,137,484(2014:£1,160,455).Interestispayableat2.4%abovethebase(2014:at2.55%abovethethreemonthLIBORrate)(note17).

TheGroupfinancesitsoperationsthroughamixtureofcashandloansandhassomerisktointerestratemovementswhicharenotdeemedsignificantintheshortterm.

21. Financial instruments (continued)

Credit riskTheGroup’sprincipalfinancialassetsarecashandtradereceivables,withtheprincipalcreditriskarisingfromtradereceivables.InordertomanagecreditriskstheGroupconductsthirdpartycreditreviewsonallnewclients,takesdepositswherethisisdeemednecessaryandcollectspaymentbydirectdebitonallnewAnsabackandAncoraaccounts,limitingtheexposuretoabuildupofalargeoutstandingdebt.TheGroupalsoconductsthirdpartycreditreviewsonCallScripteraccounts,whichalsohaveanagreedpaymentplantailoredtotheriskoftheindividualclient.

Liquidity riskTheGroupaimstomitigateliquidityriskbycloselymonitoringcashgenerationandexpenditure.Cashismonitoreddailyandforecastsareregularlypreparedtoensurethatthemovementsareinlinewiththedirectors’strategy.

Tradepayablesandloansfalldueasfollows:

2014 Less than one year £

One to two years £

Two to five years£

Over five years£

Total £

Tradepayables 286,235 - - - 286,235

Otherpayables 304,381 - - - 304,381

Leasecapitalandinterest 55,374 26,238 - - 81,612

Loans 68,390 136,780 130,047 1,306,142 1,641,359

At 30 June 2014 714,380 163,018 130,047 1,306,142 2,313,587

2015 Less than one year £

One to two years £

Two to five years£

Over five years£

Total £

Tradepayables 276,415 - - - 276,415

Otherpayables 445,973 - - - 445,973

Leasecapitalandinterest 20,200 7,244 - - 27,444

Loans 65,399 65,399 196,197 1,261,802 1,588,797

At 30 June 2015 807,987 72,643 196,197 1,261,802 2,338,629


46 47

21. Financial instruments (continued)

Foreign currenciesDuringtheyearexchangegainsof£829(2014:chargeof£22,403)havearisenandattheyear-end£1,679(2014:£nil)washeldinforeigncurrencybankaccounts.ItistheGroup’spolicytoholdlimitedamountsinforeigncurrencyinordertoreduceexposuretocurrencyrisk.TheGroupdoesnotsellorbuyanycurrencyforwardorenterintoanyhedgingcontracts.

Transactionsinforeigncurrenciesaretranslatedattheexchangeraterulingatthedateofthetransactionandmonetaryassetsandliabilitiesinforeigncurrenciesaretranslatedattheratesrulingattheyearend.Atpresentforeignexchangeisminimalandhedgingandriskmanagementisnotdeemednecessary.

Financial assets by category

2015 Loans and receivables£

Non-financial assets£

Total£

Cashatbank 1,040,822 - 1,040,822

Tradereceivables-current 950,449 - 950,449

Otherreceivables 504 - 504

Prepaymentsandaccruedincome - 248,675 248,675

1,991,775 248,675 2,240,450

2014 Loans and receivables£

Non-financial assets£

Total£

Cashatbank 459,693 - 459,693

Tradereceivables-current 1,372,920 - 1,372,920

Otherreceivables 16,595 - 16,595

Currenttaxasset - 30,131 30,131

Prepaymentsandaccruedincome - 288,651 288,651

1,849,208 318,782 2,167,990

Thefairvaluesofloansandreceivablesareconsideredtobeapproximatelyequaltothecarryingvalues.

21. Financial instruments (continued)Financial liabilities by category

2015 Financial liabilities measured at amortised cost

£Non-financial liabilities

£Total

£

Tradepayables 276,415 - 276,415

Accruals 434,839 - 434,839

Otherpayables 11,134 - 11,134

VATandtaxpayable - 319,878 319,878

Loans 32,766 - 32,766

Leases - 18,996 18,996

755,154 338,874 1,094,028

2014 Financial liabilities measured at amortised cost

£Non-financial liabilities

£Total

£

Tradepayables 286,235 - 286,235

Accruals 290,247 - 290,247

Otherpayables 12,134 - 12,134

VATandtaxpayable - 403,656 403,656

Deferredpayments - 2,000 2,000

Loans 33,284 - 33,284

Leases - 51,990 51,990

621,900 457,646 1,079,546

Thefairvaluesoffinancialliabilitiesareconsideredtobeapproximatelyequaltothecarryingvalues.

22. Capital commitmentsThegrouphasnocapitalcommitmentsat30June2015or30June2014.

23. Contingent assetsThegrouphasnocontingentassetsat30June2015or30June2014.

24. Contingent liabilitiesThegrouphasnocontingentliabilitiesat30June2015or30June2014


48 49

25. Operating Lease Commitments

2015£

2014£

Totalfutureleasepayments:

Lessthanoneyear 140,095 113,296

Afteroneandwithintwoyears 59,383 107,684

Aftertwoandwithinfiveyears 65,742 97,060

Operating lease commitments relate to the following buildings:

Tuddenham expiresDecember2015Martlesham (UnitG) expiresJanuary2016London expiresMay2016Bentwaters expiresJanuary2017Martlesham (AnsonRoad) expiresMarch2017

26. Transactions with directorsTherewerenotransactionswithdirectorsintheyeartoJune2015orJune2014otherthanthedividendsnotedbelow.

27. DividendsThedirectorshaveproposedadividendof0.15pencepersharepostyearend(subjecttoshareholderapproval).Asthiswasproposedpostyearendnoliabilityhasbeenrecognisedintheaccounts.

Thefollowingdirectorsreceiveddividendpaymentsduringtheyearto30June2015asfollows:

Dividend2015

£

Dividend2014

£

WACatchpole 3,878 7,775

RSMGordon 1,452 2,904

GForsyth 1,487 2,974

PJDayer 440 880

28. Disposal of Ancora Solutions divisionAncora Solutions provided secure document removal, archiving, confidential data destruction and librarymove services to themedicalandscientificindustries,aswellasindustrialandprofessionalsectors.

Priortothedisposal,AncoraSolutionswasreorganisedandremovalswereceasedwithaconsequentreductioninstaff,includingthedivisionalManagingDirector.Thisgaverisetoatotalreorganisationcostof£100,166.

Subsequenttothisreorganisation,on31December2014theGroupdisposedofthedivisiontoRestorePLC.UnderthetermsoftheDisposal,RestorePLCpurchasedtheentirefixedassets,payrollandexistingcontractsofAncorainreturnforacashconsiderationof£500,000.

Revenuesandexpenses,gainsandlossesrelatingtothediscontinuanceofthisdivisionhavebeeneliminatedfromthelossfromtheGroup’scontinuingoperationsandareshownasasinglelineitemonthefaceoftheConsolidatedStatementofComprehensiveIncome.

Operatinglossesuntilthedateofdisposalaresummarisedbelow:

2015£

2014£

Revenue 362,803 731,494

CostofSales (286,028) (538,705)

Grossprofit 76,775 192,789

Administrativeexpenses (113,162) (277,495)

Tradingloss (36,387) (84,706)

Reorganisationcosts (100,166) -

Provisionforonerousleases (121,000) -

Operatingloss (257,553) (84,706)

Profitondisposal 203,697 -

Lossforperiodfromdiscontinuedactivities (53,856) (84,706)

TheprovisionforonerousleasesrelatestotheestimatedcostofwarehouseleasesthattheGroupwillcontinuetobearoncethearchivinghasrelocatedtotheRestoreunits.


50 51

28. Disposal of Ancora Solutions division (continued)Thecalculationoftheprofitondisposalisshownbelow:

£

Goodwillandintangibleassets (207,017)

Plantandequipment (79,296)

NetAssetsdisposed (286,313)

Otheritems:

LegalFees (8,300)

Othercosts (1,690)

Totalnetassestsandprovisions (296,303)

Cashreceived 500,000

Profit on disposal 203,697

COMPANY BALANCE SHEETAsat30June2015

Note2015

£2014

£

Fixed assets

Investments 3 201,609 201,609

Tangiblefixedassets:landandbuildings 3 - 1,594,523

201,609 1,796,132

Current assets

Debtors 4 709,334 299,860

Cashatbankandinhand 8,347 38,375

717,681 338,235

Creditors:amountsfallingduewithinoneyear 5 (22,162) (68,801)

Net current assets 695,519 269,434

Total assets less current liabilities 897,128 2,065,566

Creditors:amountsfallingdueaftermorethanoneyear 6 - (1,127,171)

Net Assets 897,128 938,395

Capital and reserves

Calledupsharecapital 7 317,212 317,212

Sharepremiumaccount 9 89,396 89,396

Profitandlossaccount 9 490,520 531,787

Shareholders’ funds 10 897,128 938,395

TheBoardofDirectorsapprovedthefinancialstatementson26August2015.

W A CatchpoleDirector

R S M Gordon Director


52 53

1. Accounting policiesBasis of preparationThefinancialstatementsoftheCompanyhavebeenpreparedinaccordancewithapplicableUnitedKingdomlawandaccountingstandards(UnitedKingdomGenerallyAcceptedAccountingPractice)andunderthehistoricalcostconventionandalsoinaccordancewiththeCompaniesAct2006.

TheprincipalaccountingpoliciesoftheCompanyaresetoutbelow,andareunchangedfromthepreviousyear.

Thedirectorshavecontinuedtoadoptthegoingconcernbasisinpreparingthefinancialstatements.

Merger reliefTheCompanyisentitledtomergerreliefofferedbytheCompaniesAct,andthesharesissuedwhenthesubsidiaryundertaking,IPPlus(UK)Limited,wasacquiredareshownattheirnominalvalue.

Deferred taxationDeferredtaxisrecognisedonalltimingdifferenceswherethetransactionsoreventsthatgivetheCompanyanobligationtopaymoretaxinthefuture,orarighttopaylesstaxinfuture,haveoccurredbytheyearend.Deferredtaxassetsarerecognisedwhenitismorelikelythannotthattheywillberecovered.Deferredtaxismeasuredonanundiscountedbasisusingratesoftaxthathavebeenenactedorsubstantivelyenactedbytheyearend.

Investments Sharesinsubsidiaryundertakingsareincludedatoriginalcostlessanyamountswrittenoffforpermanentdiminutioninvalue.

Share optionsTheCompanypolicyisthesameasthepolicydetailedinGroupaccountingpolicies,asIFRS2isthesameasFRS20.

Land and buildingsLandandbuildingsarestatedatcost,netofdepreciationandanyprovisionforimpairment.

2. Profit for the financial yearTheCompanyhastakenadvantageofsection408oftheCompaniesAct2006andhasnotincludeditsownprofitandlossaccountinthesefinancialstatements.TheprofitfortheCompanyfortheyearwas£6,065(2014:£354,130).

3. Fixed assets

Investments

Subsidiary undertakings£

Total£

Costat1July2014 201,609 201,609

Additions - -

Costat30June2014 201,609 201,609

Disposals - -

Costat30June2015 201,609 201,609

TheGroupisexemptfromtherequirementsofFRS8todisclosetransactionsbetweenwhollyownedmembersoftheGroup.

NOTES TO THE FINANCIAL STATEMENTS

3. Fixed assets – investments (continued)

2015 Land£

Buildings£

Total£

Cost:

At1July2014 346,000 1,296,044 1,642,044

Additions - 1,500 1,500

Transfertosubsidiary (346,000) (1,297,544) (1,643,544)

At 30 June 2015 - - -


At1July2014 - 47,521 47,521

Chargeforyear - 25,923 25,923

Writtenoutinyear - (73,444) (73,444)

At 30 June 2015 - - -

Net book amount at 30 June 2015 - - -



54 55

NOTES TO THE FINANCIAL STATEMENTSFortheyearended30June2015

4. Current assets

2015£

2014£

Otherdebtors 4,213 16,208

AmountowedbyGroupundertaking 700,441 278,741

Prepaymentsandaccruedincome 4,680 4,911

709,334 299,860

5. Creditors: Amounts falling due within one year

2015£

2014£

Tradecreditors 16,852 15,420

Accrualsanddeferredincome 5,310 20,097

Bankloans - 33,284

22,162 68,801

6. Creditors: Amounts falling due after more than one year

2015£

2014£

Bankloans - 1,127,171

- 1,127,171

7. Share capital

2015Number

2015£

2014Number

2014£

Authorised:Ordinarysharesof1peach 100,000,000 1,000,000 100,000,000 1,000,000

Allottedcalledupandfullypaid:Ordinarysharesof1peach 31,721,178 317,212 31,721,178 317,212

Contingent rights to the allotment of sharesTheCompanyhasgrantedoptions,inrespectofordinarysharesof1peach,whichwerestillvalidandunexercisedat30June2015,whicharedetailedinGroupnote20.

8. DividendsThedirectorshaveproposedadividendof0.15pencepersharepostyearend(2014:0.15pencepershare).

Duringtheyeardividendsof0.15pencepershare(2014:0.30pencepershare)werepaid.

Thefollowingdirectorsreceiveddividendpaymentsasfollows:

Dividend2015

£

Dividend2014

£

WACatchpole 3,878 7,775

RSMGordon 1,452 2,904

GForsyth 1,487 2,974

PJDayer 440 880

9. Reserves

11. Reconciliation of movement in shareholders funds2015

£

At1July2014 938,395

Dividendpaid (47,332)

Profit for the year 6,065

At 30 June 2015 897,128

Share premium

account £

Profit and loss account

£

At1July2014 89,396 531,787

Dividendpaid - (47,332)

Profit for the year - 6,065

At 30 June 2015 89,396 490,520


56

IPPlus Plc

Melford Court, The Havens, Ransomes EuroparkIpswich, Suffolk, IP3 9SJ, UK

T: +44 (0)1473 321800E: [email protected]

www.ipplusplc.com

http://www.ipplusplc.com

annual report & accounts for the year ended 30 … · annual report & accounts for the year...

Documents