Chairman’s Statement
This is the first set of results announced under IFRS with comparisons against 2006 interim results. The
adoption of IFRS represents an accounting change only and does not affect the operations or cash flows
of the Group.
In the six months to 30 June 2007 the Group achieved increased sales of £678,000 (H1 2006: £654,000)
and an increased pre-tax profit of £70,000 (H1 2006: profit £3,000). All of the Group’s trading subsidiaries
reported operating profits.
The IT and related services division made an operating profit of £27,000 (H1 2006: profit £95,000) on
sales of £287,000 (H1 2006: £345,000). This division comprises Cognito Software and Integrated
Publishing Systems. Cognito Software, the provider of application software and services to the legal
profession, continues to be the major contributor to this division and is being supported by the recruitment
of a stronger management team.
The Other products division contributed an operating profit of £24,000 (H1 2006: profit £10,000) on sales
of £391,000 (H1 2006: £309,000). This division solely comprises UTN Solutions (North) and has found
continuing success with its PowaCycle branded range of electric bicycles, which are complemented by
the regular introduction of new models and are increasingly being sold through a growing number of
appointed dealers throughout the UK.
As stated above, pre-tax profit of the Group was £70,000 (H1 2006: profit £3,000). The taxation credit of£12,000 (H1 2006: taxation charge £23,000) was due to the release of a provision of £17,000, which was
made at 31 December 2006 and is no longer required. The profit for the financial period after taxation
was £82,000 (H1 2006: loss £20,000), being a significant improvement.
The Group remains debt free and had cash at bank of £907,000 at 30 June 2007. Any balance of cash
funds not required for working capital purposes is being placed on bank deposit to try and maximize
interest receivable. Our main objective continues to be the profitable expansion of the Group through a
mixture of organic growth and the acquisition of complementary businesses. Our focus remains on the IT
and related services division to achieve this objective.
Prof. Humayun Akhter Mughal
Chairman and Chief Executive Officer
28 September 2007
Directors’ Additional Information
Humayun Mughal
Current Directorships
Ultima Networks PLC
Cognito Software Limited
Integrated Publishing Systems Limited
UTN Solutions (North) Limited
Akhter Group PLC
Akhter Computers Public Limited Company
Silicon CPV PLC
U.K. Limited
The Afghan Educational Trust
Akhter Solar Limited - incorporated in Pakistan
Netsol Connect (Private) Limited - incorporated in Pakistan
Akhter Computers Pakistan (Private) Limited - incorporated in Pakistan
Past Directorships (last 5 years)
IP Datanet Limited
Telesquare Limited
IP Datacom Limited
Freebird Communications Limited
Micrology Limited
Microsales Distribution Limited
Polo Media Limited
Project Assyst Limited
UTN Solutions Limited
UTN Solutions (South) plc
Pakistan Foundation
Peter Barron
Current Directorships
Ultima Networks PLC
Past Directorships (last 5 years)
Vocalex Inc
Mancom Technologies Limited
Richard Bearpark
Current Directorships
Ultima Networks PLC
Richard Bearpark Limited
Business Link Surrey
Past Directorships (last 5 years)
AIM Group Holdings
Limited
AIM Holdings Limited
AIM Solutions Limited, AIM Data Systems Limited
AIM Commercial Systems Limited
AIM Professional Systems Limited and SharpOWL
Additional information as required by Schedule Two paragraph (f) of the AIM Rules.
As part of a significant restructuring of Ultima Networks plc (“UTN”), UTN and certain of its subsidiaries underwent company voluntary arrangements (“CVA”s) in November 2001, as detailed in the published accounts for the year end 31 December 2001 available at www.ultima-networks.co.uk/accounts.html. UTN completed its CVA on 24 April 2002. Humayun Mughal and Peter Barron were directors of UTN during this period.
Humayun Mughal was also a director of UTN’s subsidiaries, SilCom Manufacturing Technology Inc (which completed its CVA in February 2002), Integrated Publishing Systems Limited and Cognito Software Limited (which both completed CVAs on 24 February 2004), UTN Solutions (North) Limited (which completed its CVA on 30.3.04) and UTN Solutions (South) plc which was put into a creditors voluntary liquidation in April 2002 as part of the restructuring.
Substantial Interests
At the date of this report the following parties had notified the Company of a beneficial interest that represents 3%
or more of the Company's issued ordinary share capital at that date:
No. of shares % held
Akhter Group plc and related parties 100,075,176 48.9%
No nominee shareholder held 10% or more of the Company's issued share capital on 29 May 2007.
Directors’ Remuneration for 2006
H.
A. Mughal is a director of Akhter Group plc. No remuneration is paid directly by the Company for the services of
the two Executive Directors. However, a charge to the Company from Akhter Group plc of £50,000 (2005: £nil) for
executive management services, disclosed in Note 26 of the financial statements, is for the services of the
Company’s finance director and Akhter’s marketing director. There is currently no pension provision for any of the
directors and therefore no pension is accrued to them.
Other Information
There are no patents or other IP rights, licences, or particular contracts, which are of fundamental importance to UTN’s business. There are no legal or arbitration proceedings, active, pending or threatened against, or being brought by, UTN or any member of its group which are having or may have a significant effect on UTN’s financial position. Back to top
