02 AVESCOGROUPPLC ANNUAL REPORT 2009
www.avesco.com
Chairman’s Statement
Michael Gibbins
Theyearended30September2009hasseen identifiable net assets and the release of the confidence returning in the corporate sector.
AvescoGroupwitnesssomeoftheworsttrading property lease and dilapidation provision) was Having had to live with the unprecedented market
conditionsinitshistory. Thefullimpactofthe £(9.8)m (2008: profit of £1.6m). The operating loss conditions of the last twelve months it would be
globalrecessionhasseenrevenuesfallcompared was £(12.1)m (2008: profit of £7.4m). After taking premature to suggest we are on the verge of an
bothtolastyearandtoourpreviousexpectations, account of net interest costs of £(1.1)m (2008: upturn but we are hopeful that the market may
resultinginasubstantiallossfortheperiod. The £(0.9)m), the loss before income tax was £(13.2)m now at least be stabilising.
focusoftheBoardhasbeentoensurethatthe (2008: £6.5m profit). The basic and diluted loss per
Groupsuccessfullytradesthroughthesedifficult share was (54.9)p (2008: 21.6p earnings).
Although our forward visibility on revenues is
timestoemergeasastrongerbusiness. Wehave
limited, the outlook and the level of customer
maintainedaclearfocusoncashgeneration,cost
Our focus upon cash management has seen enquiry has noticeably improved. With the full
efficiency,maintaininganddevelopingexisting
£2.8m released from working capital during the year effects of the cost savings that we have
clientrelationshipsandincreasingourmarket
year, contributing to the £11.2m of cash (2008: made, continuing strong cash generation
share.Ineachoftheseareaswebelievethatwe
£13.8m) generated from operations. With net from our operations and the inclusion of the
havemadeclearprogress,whichwillbenefitthe
capital expenditure down to £(11.5)m (2008: Vancouver Winter Olympics, FIFA World Cup
Groupaswemoveinto2010.
£(23.8)m), the Group was able to produce a net and the World Expo in Shanghai we are confident
positive cash inflow of £1.6m (2008: £(10.4)m that we are well positioned to benefit as and
FINANCIAL RESULTS outflow) before currency translation effects. when markets recover.
Across the Group revenues were down (5%) at
£90.2m (2008: £94.8m). If the effects of currency
The Group is in a healthy financial position going THE BOARD
movements are taken into consideration, the
into 2010. At the year-end, the Group had net debt Cameron Maxwell and Laurence Blackall both
decline in revenue was in the order of 15%. The
of £21.1m with a further £5.1m available in retired from the Board as Non-Executive Directors
trading loss (which excludes goodwill impairment,
undrawn facilities, leaving gearing at a earlier this year. Cameron has had a long
amortisation of intangible assets on acquisitions,
manageable 55%. During the year the Group association with the Avesco Group and continues to
restructuring costs, impairment of certain job
renegotiated its banking covenants, giving more offer his services as a consultant. I would like to
specific tangible fixed assets, excess of the
covenant headroom going forward. thank both Cameron and Laurence for their valuable
acquirer’s interest in the fair value of acquiree’s
contributions through a period of great change.
On 30 September 2009, the net assets of the
Group were £38.5m (2008: £53.0m), equivalent to PEOPLE
£1.48 per share (2008: £2.04 per share). We have benefited enormously in the past 12
months from the support, sacrifice and day to day
CURRENT TRADING AND OUTLOOK efforts of all the Group’s employees. Despite losing
We are seeing some stability return to the markets a considerable number of their colleagues and
in which we operate. 2010 will include a number of accepting reductions in pay and benefits, their
major global events that will bring additional response has been superb and is greatly
revenue to the Group and there are early signs of appreciated.
CONCLUSION
Having navigated thus far through the economic
downturn, there is now a greater feeling of
confidence throughout the Group and, markets
permitting, we look forward to exploiting the
opportunities that should arise for a return to
profitable growth.
MICHAEL GIBBINS
CHAIRMAN
14 January 2010
Michael Gibbins CHAIRMAN:
there is now a greater feeling of confidence throughout
the Group and, markets permitting, we
look forward to exploiting the opportunities that should arise
for a return to profitable growth.
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