Innovative Software Direct plc
LSE : ISDP

September 30, 2009 08:03 ET

Half year report

30 September 2009
                                                 
                                  INNOVATIVE SOFTWARE DIRECT PLC
                                                 
CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2009

The  Directors  of  Innovative Software Direct Plc ("ISD" or "the Group") announce  the  unaudited
financial  results for the six months ending 30 June 2009. The comparative figures  to  June  2008
cover 12 months as the final results to 31 December 2008 were for an eighteen month period.

Financial review
Turnover  for the six months to 30 June 2009 was £849,000. The gross profit was £464,000 (a  gross
margin  of  54.6%)  and  the loss for the period was £214,000 after amortisation  of  goodwill  of
£64,000.

Operational  costs  have  been  substantially reduced and the  latest  figures  available  to  the
Directors  indicate  a  return to a trading profit on a monthly basis. This  reduction  should  be
reflected in the final results to 31 December 2009.

Liquidity  during  the period under review has been under pressure. However concerted  action  has
been  taken  and  the debtor collection for the main trading subsidiary Powerdial Systems  Limited
("Powerdial") has been successful with few accounts over forty five days.

Sales and Marketing
The executive team has been concentrating on high margin, high growth contracted annuity sales  as
well as growing its network hardware revenues.

An  effect  of the recessional cycle is that customers have been holding back orders or buying  on
monthly  terms  rather than the payment of annual fees. Since the end of the period  under  review
however three significant contracts have been won in addition to the usual monthly results.

Summary
The executive team are focused on growing sales & profits & increasing Gross and Net Margin. There
is evidence that recessional pressures are easing as evidenced by the recent contract wins.

ISD  is  looking  to  secure further funding. This when concluded, together  with  an  anticipated
operational improvement is expected to see the Group returning to profitability.


Douglas Johnson-Poensgen
Chairman
30 September 2009




CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2009
                                                                            6 months      12 months ended
                                                                               ended              30 June
                                                                        30 June 2009                 2008
                                                                         (Unaudited)          (Unaudited)
                                                                               £'000                £'000
                                                                                                         
Revenue                                                                          849                1,036
                                                                                                         
Cost of sales                                                                  (385)                (407)
                                                                                                         
Gross profit                                                                    464                  629
Administrative expenses                                                        (608)                (858)
Amortisation of intangible                                                      (64)                 (59)
                                                                                                         
                                                                                                         
Operating loss                                                                 (208)                (288)
Interest receivable                                                               -                    2
Finance costs                                                                    (6)                   -
                                                                                                         
                                                                                                         
Loss before tax                                                                (214)                (286)
                                                                                                         
Taxation                                                                          -                    -
                                                                                                         
Loss for the period                                                            (214)                (286)
                                                                                                         
                                                                                                         
                                                                                                         


The  interim report and accounts are unaudited and have not been reviewed by ISD's auditors.  They
do not constitute Statutory Accounts as defined in section 240 of the Companies Act 1985.


The Directors of the Issuer accept responsibility for this announcement.

                                            --- ENDS---



Contact Information

  • Innovative Software Direct plc