DHAIS plc
LSE : DHAP

November 30, 2009 11:30 ET

Final Results

                                          DHAIS Plc ("DHAIS" or the "Company")
                                                            
                                     Final Results for the year ended 30th June 2009
        
        Chairman's Statement
        
        I am pleased to report on the first full year of trading since DHAIS was admitted to the PLUS Market in June
        2008.
        
        Historically  the  Company had  operated as a freelance  marketing company,  generating  sales  leads  for    
        digital hearing  aid  retailers, manufacturers and distributors  in  the  United Kingdom.   At the time of
        joining  PLUS,the  directors had   identified new business opportunities within the diverse and fragmented 
        mobility sector which would also act as a platform for the expansion of their lead generation skills and to 
        exploit both vertical and horizontal marketing opportunities.
        
        In  December  2008, the  Company  moved  decisively  forward with  its  business  plan and  announced  two 
        acquisitions: Hearing  Health  and Mobility Limited ("HHML") and a portfolio  of mobility centres owned by
        Cranley  Investments Limited,  both  acquisitions  providing a sound starting  platform for the Company's 
        commercial plans.  Coinciding with  this  was  the  appointment of Amin Kiddy as finance director. Mr Kiddy 
        has  considerable  experience  and skills in corporate transactional and business development work.
        
        HHML  is  based in Northampton and comprised five hearing and mobility stores. The purchase consideration      
        was part  in  cash and part in Dhais Plc shares. Concurrently with this, a further nine mobility tores which
        have been accumulated  by  DHAIS  in  conjunction with an investment vehicle,  Cranley  Investments  Limited,  
        were transferred to HHML.
                   
        Shortly  after  these  acquisitions, the Directors implemented a programme to improve efficiencies  across  the
        fourteen stores, to widen the range of products being sold and to establish hearing centres within each store.
                   
        In  March  2009, having identified a further opportunity to widen the portfolio of stores, the Company acquired
        Keep  Able Limited in Administration. Keep Able Limited may have been slow to react to the onset of the  global
        recession.  Accordingly,  the Company felt that a turnaround opportunity existed.   Following  the  integration
        which  added  thirteen stores to HHML's existing fourteen, six of which were subsequently shut  leaving  a  now
        total of 21.
                   
        These  stores have responded well to the recovery in consumer confidence and to the changes made to bring forth
        better run and better stocked outlets.
                   
        In  a  further  move to exploit sector consolidation opportunities, last June, DHAIS acquired the business  and
        assets  of  Hearsavers  Limited  in  Administration which operated hearing  testing  booths  via  a  concession
        arrangement  in  54 Matalan stores. These booths employed cutting edge technology and the directors  felt  they
        would  respond well to better marketing and more efficient management. The technology would also over  time  be
        integrated within the mobility stores.
                   
        However,  following the acquisition, and having evaluated Matalan's expectations in terms of  concession  rents
        it  was  felt that it would no longer be in the best interests of shareholders to continue with the  concession
        arrangements. Nevertheless, the technology continues to be exploited.
                   
        The  original  lead generation  activities  continue to perform  well having moved  beyond  hearing  aids  to  
        mobility products.  Management continues to drive efficiencies  and to seek  other acquisition candidates  to  
        augment the Company's strategy.
                   
        Financial Overview
                   
        Turnover during the period virtually doubled to GBP4.8m (2008: GBP2.5m) divided almost exactly equally   
        between the lead generation activities and the turnover brought in through the acquisitions.
        
        The  integration  efficiencies  will be felt in the coming period but as is  stands,  the  very  high  level 
        of operating expenses during the year offset profitability resulting in an operating loss for the period of  
        GBP375k. However,  management is confident of reporting on a period of improved profitability and trading in 
        the  current period.
        
        Outlook
        
        We  remain  committed  to  the  substantial commercial opportunity  which DHAIS  has  moved  rapidly  to 
        capture.  Mobility  and the distribution  of health related products,  represents a  huge but fragmented 
        marketplace  and  the past  year  has  enabled  us  to focus on the best strategy for expansion and the 
        exploitation  of  high  margin revenues. We look forward to the year ahead.
        
        Mark Moss
        Chairman
        
        30 November 2009
        
        
        
        Enquiries:
        
        DHAIS Plc                                          029 2066 6888
        Amin Kiddy, Finance Director

        Financial PR:                                      020 7417 8989
        Haggie Financial LLP
        Nicholas Nelson/Kathy Boate

        PLUS Advisor:                                      020 7251 3762
        Alfred Henry Corporate Finance Ltd
        Jon Isaacs/Nick Michaels
        
        The Directors accept responsibility for this announcement.
        
        
        Statutory Information
        
        The  financial information set out below does not constitute the Group's statutory accounts for the  year 
        ended 30 June 2009 but is derived from those accounts.
        
        The  financial  information has been extracted from the statutory accounts of DHAIS Plc and is  presented  
        using the  same  accounting policies, which have not yet been filed with the Registrar of companies, but on 
        which  the auditors, Williams & Co, gave an unqualified report on 30th November 2009.
        
        The  Annual  Report  of  DHAIS  Plc for year ended 30 June 2009 is available upon  request  from  the  
        Company's registered office at 61 Cowbridge Road East, Cardiff, CF11 9AE.
        
        
          CONSOLIDATED PROFIT AND LOSS ACCOUNT
          FOR THE YEAR ENDED 30 JUNE 2009
          
                                                                         2009                            2008
                                                   Notes            GBP              GBP           GBP           GBP
          
          TURNOVER                                                              4,802,490                  2,454,155
           Continuing operations                                 2,460,464                    2,454,155
            Acquisitions                                         2,342,026                            -
                                                                 ---------                    ---------              
                                                                 4,802,490                    2,454,155
                                                                 =========                    =========         
          
          Cost of sales                                                         2,745,202                  1,851,193
                                                                                ---------                  --------- 
          GROSS PROFIT                                                          2,057,288                    602,962
          
          Net operating expenses                                                2,432,428                     31,024
                                                                                ---------                  ---------     
          OPERATING (LOSS)/PROFIT                                                (375,140)                   571,938
          Continuing operations                                    117,393                      571,938
          Acquisitions                                            (492,533)                           -
                                                                   -------                      -------     
                                                                  (375,140)                     571,938
                                                                   =======                      =======     
          
          Flotation costs                                                             -                       85,033
                                                                                --------                   ---------
                                                                                                               
                                                                                (375,140)                    486,905
          
          Interest receivable and similar income                                  31,773                      11,415
                                                                                 -------                   ---------
                                                                                (343,367)                    498,320 
                                                                               
          Interest payable and similar charges                                    94,059                       1,589
                                                                                 -------                     -------     
          (LOSS)/PROFIT ON ORDINARY ACTIVITIES
          BEFORE TAXATION                                                       (437,426)                    496,731
          
          Tax    on    (loss)/profit   on    ordinary                            (24,372)                    171,617
          activities                                                             -------                     -------
                                                                                                               
          (LOSS)/PROFIT FOR THE FINANCIAL YEAR
          AFTER TAXATION                                                        (413,054)                    325,114
                                                                                 =======                     =======   
          
          Earnings per share expressed
          in pence per share:                         2
          Basic                                                                    (0.80)                       5.20
          Diluted                                                                  (0.80)                       5.20
                                                                                 =======                     =======
                                                                                                                          
          TOTAL RECOGNISED GAINS AND LOSSES
          The  group  has  no  recognised gains or losses other than the loss for the current  year  and  the
          profit for the previous year.
          
          
          
          CONSOLIDATED BALANCE SHEET
          30 JUNE 2009
          
                                                                            2009                            2008
                                                                     GBP              GBP            GBP         GBP
          FIXED ASSETS
          Intangible assets                                                     1,934,478                          -
          Tangible assets                                                         462,834                        437
          Investments                                                                   -                          -
                                                                                ---------                    -------
                                                                                2,397,312                        437

                                                                                         
          CURRENT ASSETS
          Stocks                                                   701,920                              -
          Debtors                                                1,929,780                      1,242,315
          Cash at bank and in hand                                 620,008                        128,594
                                                                 ---------                      ---------         
                                                                 3,251,708                      1,370,909
          CREDITORS
          Amounts falling due within one year                    1,916,683                        565,455
                                                                 ---------                      ---------         
          NET CURRENT ASSETS                                                    1,335,025                    805,454
                                                                                ---------                    ------- 
                                                                                                                                 
          TOTAL ASSETS LESS CURRENT
          LIABILITIES                                                           3,732,337                    805,891
          
          CREDITORS
          Amounts falling due after more than one                                             
          year                                                                  1,904,500                          -
                                                                                ---------                    -------  
                                                                                                               
          NET ASSETS                                                            1,827,837                    805,891
                                                                                =========                    =======  
                                              
          
          CAPITAL AND RESERVES
          Called up share capital                                                  59,486                     50,000
          Share premium                                                         1,425,514                          -
          Other reserves                                                           11,210                     11,210
          Profit and loss account                                                 331,627                    744,681
                                                                                ---------                    -------  
                                                                                                       
          SHAREHOLDERS' FUNDS                                                   1,827,837                    805,891
                                                                                =========                    =======  
                                                                                                               
          
          CONSOLIDATED CASH FLOW STATEMENT
          FOR THE YEAR ENDED 30 JUNE 2009
          
                                                                           2009                          2008
                                                                     GBP             GBP          GBP            GBP
          Net cash (outflow)/inflow
          from operating activities                                             (297,249)                    577,742
          
          Returns on investments and
          servicing of finance                                                   (62,286)                      9,826
          
          Taxation                                                              (168,498)                   (184,056)
          
          Capital expenditure                                                 (2,394,773)                       (524)
                                                                               ---------                     ------- 
  
                                                                              (2,922,806)                    402,988
          
          Financing                                                            3,414,220                    (813,823)
                                                                               ---------                     ------- 
      
          Increase/(Decrease) in cash in the period                              491,414                    (410,835)
                                                                               =========                     =======  
                                                                                                               
          
          
          NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
          FOR THE YEAR ENDED 30 JUNE 2009
          
          1.    ACCOUNTING POLICIES
          
                Accounting convention
                The financial statements have been prepared under the historical cost convention and are  in
                accordance with applicable accounting standards.
          
                Basis of consolidation
                The  group financial statements consolidate the accounts of DHAIS Plc and all its subsidiary
                undertakings  made  up  to 30th June 2009.  The group profit and loss account  includes  the
                results  of  all  subsidiary undertakings.  Turnover and profits arising on trading  between
                group companies are excluded.
          
                Turnover
                Turnover represents net invoiced sales of goods, excluding value added tax.
          
                Goodwill
                Goodwill,  being  the  amount paid in connection with the acquisition  of  several  business
                during the year, is being amortised evenly over its estimated useful life of twenty years.
          
                Tangible fixed assets
                Depreciation  is  provided at the following annual rates in order to write  off  each  asset
                over  its  estimated  useful life or, if held under a finance lease, over  the  lease  term,
                whichever is the shorter.
          
                Fixtures and fittings          - 25% on cost
                Motor vehicles                 - 25% on cost
                Computer equipment             - 25% on cost
          
                Stocks
                Stocks  are valued at the lower of cost and net realisable value, after making due allowance
                for obsolete and slow moving items.
          
                Foreign currencies
                Assets  and liabilities in foreign currencies are translated into sterling at the  rates  of
                exchange  ruling  at  the  balance  sheet  date.  Transactions  in  foreign  currencies  are
                translated  into  sterling  at  the rate of exchange ruling  at  the  date  of  transaction.
                Exchange differences are taken into account in arriving at the operating result.
          
                Hire purchase and leasing commitments
                Assets  obtained  under  hire purchase contracts or finance leases are  capitalised  in  the
                balance  sheet.  Those  held  under  hire  purchase contracts  are  depreciated  over  their
                estimated  useful  lives.   Those  held under finance  leases  are  depreciated  over  their
                estimated useful lives or the lease term, whichever is the shorter.
          
                The  interest  element of these obligations is charged to the profit and loss  account  over
                the relevant period. The capital element of the future payments is treated as a liability.
          
                Rentals  paid  under  operating  leases are charged to the profit  and  loss  account  on  a
                straight line basis over the period of the lease.


          2.    EARNINGS PER SHARE
          
                Basic  earnings  per share is calculated by dividing the earnings attributable  to  ordinary
                shareholders  by  the  weighted  average number of ordinary shares  outstanding  during  the
                period.
          
                Diluted  earnings  per  share  is calculated using the weighted  average  number  of  shares
                adjusted to assume the conversion of all dilutive potential ordinary shares.
          
                 Reconciliations are set out below.
          
          
                                                                                                   2009
                                                                                               Weighted
                                                                                                average
                                                                                                 number     Per-share
                                                                                 Earnings            of        amount
                                                                                      GBP        shares         pence
                Basic EPS
                Earnings attributable to ordinary shareholders                   (413,054)    51,896,494       (0.80)
                Effect of dilutive securities                                           -              -           -
                                                                                  -------     ----------      ------  
                Diluted EPS
                Adjusted earnings                                                (413,054)    51,896,494       (0.80)
                                                                                  =======     ==========      ======   
                                                                                                           
          
          
                                                                                                    2008
                                                                                                Weighted
                                                                                                 average
                                                                                                  number    Per-share
                                                                                 Earnings             of       amount
                                                                                      GBP         shares        pence
                Basic EPS
                Earnings attributable to ordinary shareholders                    325,114      6,250,087         5.20
                Effect of dilutive securities                                           -              -            -
                                                                                  -------      ---------       ------
                                                                                                                
                Diluted EPS
                Adjusted earnings                                                 325,114      6,250,087        5.20
                                                                                  =======      =========       ====== 
                                                                                                                
          

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