DataSMS Holdings plc
LSE : DSHP

July 15, 2008 09:31 ET

FINAL RESULTS FOR THE PERIOD ENDED 31 MARCH 2008




15/07/2008
                                                                           GB00B1VYCD45/GBP/PLUS/ex


                             DATASMS HOLDINGS PLC ("the Company" or "DataSMS")
                                                     
                             FINAL RESULTS FOR THE PERIOD ENDED 31 MARCH 2008



CHAIRMAN'S STATEMENT

This is my first report for DataSMS which has undergone many changes over the last 12 months.

The  Board  remains  committed to creating value for our shareholders through the  growth  of  our  primary
product portfolio. We have successfully launched our newest product suite into the market and made progress
in many of our target industries.

The  Company  has  taken significant steps towards becoming an established leader in the child  safety  and
personal security market.

FINANCIAL PERFORMANCE

The  period  under review was a time of transition as the Company introduced a new range  of  products  and
moved  its focus to the child safety and personal security markets as the strategy of the business  changed
but  now  that the transition is complete the performance since the end of the period has improved  and  we
expect this trend to continue to develop as demand for our product increases.

DELIVERING OUR STRATEGY

With  the  completion of the new Communication Engine (CE) software platform in early 2007, the  Tag  n  Go
child  safety system was launched in September 2007. Tag n Go has three separate systems within  the  suite
Tripsafe,  Swift-e and Tag n Go Active. Further developments have ensured all three products  can  be  used
around the world where mobile phone coverage exists. This added compatibility provides greater access to  a
global market.

Sales  of  our  Tripsafe  child  safety system developed specifically for schools  were  the  first  to  be
implemented and we now have a growing client base in the education sector.

Swift-e  is  our  retail product which is purchased by parents online and offline. Since  the  website  was
launched  in  2008 the online shop has received sales from around the world for the international  Swift-e.
Sales  of  the Swift-e have increased since entering the travel and leisure markets and we see  significant
growth  potential  through travel related industries. The Swift-e wristband is currently  on  sale  through
branches of the Co-operative Travel in the North East as part of a trial. Early results are encouraging and
after  a  successful trial we anticipate making the Swift-e wristband available through all of the branches
in the UK.

Tag  n Go Active is currently being trialled by several companies both here and abroad and after completion
of the trials would hope to secure an order for the system.

Earlier  this  year the Company appointed Kids Reunited as their UK distributor and granted a  licence  for
them to sell the Swift-e under the brand name Safe@Play. Since then they have successfully sold the Swift-e
into nurseries throughout the UK.

The  Company  has  recently been granted a Secured By Design product licence issued by the  Association  of
Chief  Police  Officers (ACPO) for the entire Tag n Go suite of products. DataSMS are 1  of  400  companies
holding a licence and the only company who hold a licence for a child safety product. As a direct result of
this  achievement we have received orders from UK police forces for our Swift-e wristband made from a Tyvek
material  instead of silicon. These wristbands expire after 1 day and are given away by Police Officers  at
outdoor events.


SUMMARY

The  Company  has  successfully moved through this period of transition and  are  focused  on  growing  the
business.

We have increased our product portfolio, which continue to present significant opportunities for growth. We
are progressing in positioning our products as a leader in the child safety and personal security market in
relation to our product.

I  would  like  to  thank  all  our  people for their efforts and for the  continued  support  of  all  our
stakeholders.

Keith Robinson,
Chairman



GROUP PROFIT AND LOSS ACCOUNT
PERIOD FROM 13 DECEMBER 2006 TO 31 MARCH 2008

                                                                                                Period from
                                                                                               13 Dec 06 to
                                                                                                  31 Mar 08
                                                                                                      £

GROUP TURNOVER                                                                               20,378

Cost of sales                                                                                11,397
                                                                                             --------------
                                                                                               -----------
GROSS PROFIT                                                                                 8,981

Administrative expenses                                                                      237,791
Other operating income                                                                       (2,835)
                                                                                             --------------
                                                                                               -----------
OPERATING LOSS                                                                               (225,975)

Interest receivable                                                                          1,528
Interest payable and similar charges                                                         (188)

                                                                                             --------------
                                                                                               -----------
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION                                                  (224,635)

Tax on loss on ordinary activities                                                                       -

                                                                                             --------------
                                                                                               -----------
LOSS FOR THE FINANCIAL PERIOD                                                                (224,635)
                                                                                             =============
                                                                                                       ===

Earnings per share (pence)

Basic                                                                                        (2.31)
                                                                                             =============
                                                                                                       ===

Diluted                                                                                      (2.31)
                                                                                             =============
                                                                                                       ===

All of the activities of the group are classed as continuing.

The group has no recognised gains or losses other than the results for the period as set out above.




GROUP BALANCE SHEET
AS AT 31 MARCH 2008

                                                                                                  31 Mar 08
                                                                                       £                  £

FIXED ASSETS
Intangible assets                                                                             37,112
Tangible assets                                                                               2,438
                                                                                              --------------
                                                                                               -----------
                                                                                              39,550
CURRENT ASSETS
Stocks                                                                        10,353          
Debtors                                                                       12,892          
Cash at bank                                                                  51,811          
                                                                              --------------  
                                                                                -----------
                                                                              75,056          
CREDITORS: Amounts falling due within one year                                26,065          
                                                                              --------------  
                                                                                -----------
NET CURRENT ASSETS                                                                            48,991
                                                                                             --------------
                                                                                               -----------
TOTAL ASSETS LESS CURRENT LIABILITIES                                                        88,541
                                                                                             =============
                                                                                                       ===
CAPITAL AND RESERVES
Called-up equity share capital                                                                97,200
Share premium account                                                                         215,976
Profit and loss account                                                                       (224,635)
                                                                                              --------------
                                                                                               -----------
SHAREHOLDERS' FUNDS                                                                           88,541
                                                                                              =============
                                                                                                       ===




GROUP CASH FLOW
PERIOD FROM 13 DECEMBER 2006 TO 31 MARCH 2008

                                                                                                Period from
                                                                                               13 Dec 06 to
                                                                                                  31 Mar 08
                                                                                                          £
NET CASH OUTFLOW FROM OPERATING ACTIVITIES                                                    (222,450)

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE                                               1,340

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT                                                  (3,103)

ACQUISITIONS AND DISPOSALS                                                                    4,097

                                                                                              --------------
                                                                                               -----------
CASH OUTFLOW BEFORE FINANCING                                                                 (220,116)

FINANCING                                                                                     271,927

                                                                                              --------------
                                                                                               -----------
INCREASE IN CASH                                                                              51,811
                                                                                              =============
                                                                                                       ===






NOTES

1.   ACCOUNTING POLICIES

     Basis of accounting

     The  financial  statements have been prepared under the historical cost convention and  in  accordance
     with applicable accounting standards.

     Basis of consolidation

     The  consolidated  financial statements incorporate the financial statements of the  company  and  all
     group  undertakings.  These are adjusted, where appropriate, to conform to group accounting  policies.
     Acquisitions  are  accounted  for  under  the acquisition method  and  goodwill  on  consolidation  is
     capitalised  and written off over eight years from the year of acquisition. The results  of  companies
     acquired or disposed of are included in the group profit and loss account after or up to the date that
     control  passes respectively. As a consolidated group profit and Loss Account is published, a separate
     profit  and  loss  account  for the parent company is omitted from the group financial  statements  by
     virtue of section 230 of the Companies Act 1985.

     Turnover

     The turnover shown in the group profit and loss account represents amounts invoiced during the period,
     exclusive of Value Added Tax.

     Goodwill

     Positive  purchased goodwill arising on acquisitions is capitalised, classified as  an  asset  on  the
     Balance  Sheet  and amortised over its estimated useful life.  Goodwill is reviewed for impairment  at
     the  end  of  the first full financial year following each acquisition and subsequently  as  and  when
     necessary if circumstances emerge that indicate that the carrying value may not be recoverable.

     Amortisation

     Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value,
     over the useful economic life of that asset as follows:

     Goodwill                     -   8 years

     Fixed assets

     All fixed assets are initially recorded at cost.

     Depreciation

     Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value,
     over the useful economic life of that asset as follows:

     Office equipment             -   25%-50% reducing balance

     Stocks

     Stocks  are  valued  at  the lower of cost and net realisable value, after making  due  allowance  for
     obsolete and slow moving items.

     Operating lease agreements

     Rentals  applicable to operating leases where substantially all of the benefits and risks of ownership
     remain  with  the lessor are charged against profits on a straight line basis over the period  of  the
     lease.

     Deferred taxation

     Deferred  tax is recognised in respect of all timing differences that have originated but not reversed
     at  the balance sheet date where transactions or events have occurred at that date that will result in
     an  obligation  to  pay  more,  or a right to pay less or to receive  more  tax,  with  the  following
     exceptions:

        Deferred tax assets are recognised only to the extent that the directors consider that it  is  more
        likely  than not that there will be suitable taxable profits from which the future reversal of  the
        underlying timing differences can be deducted.

     Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply  in  the
     periods  in  which  timing differences reverse, based on tax rates and laws enacted  or  substantively
     enacted at the balance sheet date.

     Deferred government grants

     Capital grants and contributions receivable are credited to deferred income and released to the income
     and expenditure account over the estimated lives of the relevant assets
     
     Revenue  grants  and contributions received and receivable in respect of specific project  expenditure
     are  credited  to  deferred income and recognised in the income and expenditure account  in  the  same
     period as the related expenditure
     

2.   EARNINGS PER SHARE

     The  basic  earnings per ordinary share is calculated by dividing profit for the year less  non-equity
     dividends  and other appropriations in respect of non-equity shares by the weighted average number  of
     equity shares outstanding during the year.

     The  diluted earnings per ordinary share is calculated by dividing profit for the year less non-equity
     dividends  and other appropriations in respect of non-equity shares by the weighted average number  of
     equity  shares  outstanding during the year (after adjusting both figures for the effect  of  dilutive
     potential ordinary shares).

     The calculation of basic and diluted earnings per ordinary share is based upon the following data:

     Earnings
                                                                                                Period from
                                                                                               13 Dec 06 to
                                                                                                  31 Mar 08
                                                                                                      £
     Earnings for the purposes of basic earnings per share                                   (224,635)

                                                                                             --------------
                                                                                              ------------
     Earnings for the purposes of diluted earnings per share                                 (224,635)
                                                                                             =============
                                                                                                      ====

     Number of shares
                                                                                                Period from
                                                                                               13 Dec 06 to
                                                                                                  31 Mar 08
                                                                                                        No
     Basic weighted average number of shares                                                 9,720,000

                                                                                             --------------
                                                                                              ------------
     Weighted average number of shares
      for the purposes of diluted earnings per share                                         9,720,000
                                                                                             =============
                                                                                                      ====


3.   INVESTMENTS

     Company                                                                                         Total
                                                                                                      £
     COST
     Additions                                                                               41,249
                                                                                             --------------
                                                                                            --------------
     At 31 March 2008                                                                        41,249
                                                                                             =============
                                                                                             =============
                                                                                                        ==

     NET BOOK VALUE
     At 31 March 2008                                                                        41,249
                                                                                             =============
                                                                                             =============
                                                                                                        ==

     Investments represents the following group company:

                                  Country of              Holding               
    Subsidiary undertakings       incorporation

     DataSMS Limited             England           Ordinary shares100%
                                                                                


4.   SHARE CAPITAL

     Authorised share capital:

                                                                                                  31 Mar 08
                                                                                                      £
     10,000,000 Ordinary shares of £0.01 each                                                100,000
                                                                                             =============
                                                                                                      ====

     Allotted, called up and fully paid:

                                                                                         No           £
     Ordinary shares of £0.01 each                                            9,720,000       97,200
                                                                              =============  ==============
                                                                                       ====             ===


5.   RESERVES

                                                                           Share premium    Profit and loss
                                                                                 account            account
                                                                                    £                     £
     Loss for the period                                                               -  (224,635)
     Other movements                                                                      
     New equity share capital subscribed                                215,976                          -
                                                                        -----------------  -----------------
                                                                          --------------     --------------
     Balance carried forward                                            215,976           (224,635)
                                                                        ================  =================
                                                                                    ====                ===


6.   RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

                                                                                                  31 Mar 08
                                                                                       £                  £
     Loss for the financial period                                                            (224,635)
     New equity share capital subscribed                                      97,200          
     Net premium on new share capital subscribed                              215,976         
                                                                                              --------------
                                                                                              ------------
     Net addition to shareholders' funds                                                      88,541
                                                                                             --------------
                                                                                              ------------
     Closing shareholders' funds                                                             88,541
                                                                                             =============
                                                                                                      ====


7.   RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM
     OPERATING ACTIVITIES

                                                                                                Period from
                                                                                               13 Dec 06 to
                                                                                                  31 Mar 08
                                                                                                      £
     Operating loss                                                                          (225,975)
     Amortisation                                                                            5,302
     Depreciation                                                                            2,682
     Increase in stocks                                                                      (10,353)
     Increase in debtors                                                                     (9,713)
     Increase in creditors                                                                   15,607
                                                                                             --------------
                                                                                               -----------
     Net cash outflow from operating activities                                              (222,450)
                                                                                             =============
                                                                                                       ===

     RETURNS ON INVESTMENTS AND SERVICING OF FINANCE

                                                                                                Period from
                                                                                               13 Dec 06 to
                                                                                                  31 Mar 08
                                                                                                      £
     Interest received                                                                       1,528
     Interest paid                                                                           (188)
                                                                                                          
     Net cash inflow from returns on investments and servicing of finance                    1,340
                                                                                             =============
                                                                                                       ===

     CAPITAL EXPENDITURE

                                                                                                Period from
                                                                                               13 Dec 06 to
                                                                                                  31 Mar 08
                                                                                                      £
     Payments to acquire tangible fixed assets                                               (3,103)
                                                                                             --------------
                                                                                                 ---------
     Net cash outflow from capital expenditure                                               (3,103)
                                                                                             =============
                                                                                                        ==

     AQUISITIONS AND DISPOSALS

                                                                                                Period from
                                                                                               13 Dec 06 to
                                                                                                  31 Mar 08
                                                                                                      £
     Net cash acquired with trade/business                                                   4,097
                                                                                             --------------
                                                                                                 ---------
     Net cash inflow from acquisitions and disposals                                         4,097
                                                                                             =============
                                                                                                        ==

     FINANCING

                                                                                                Period from
                                                                                               13 Dec 06 to
                                                                                                  31 Mar 08
                                                                                                      £
     Issue of equity share capital                                                           55,951
     Share premium on issue of equity share capital                                          256,050
     Expenses on issue of equity shares                                                      (40,074)
                                                                                             --------------
                                                                                               -----------
     Net cash inflow from financing                                                          271,927
                                                                                             =============
                                                                                                       ===

     RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

                                                                                        31 Mar 08
                                                                                       £                  £
     Increase in cash in the period                                           51,811          

                                                                              --------------  
                                                                                -----------
                                                                                              51,811
                                                                                              --------------
                                                                                               -----------
     Change in net funds                                                                      51,811

     Net funds at 13 December 2006                                                                        -
                                                                                              --------------
                                                                                               -----------
     Net funds at 31 March 2008                                                               51,811
                                                                                              =============
                                                                                                       ===

     ANALYSIS OF CHANGES IN NET FUNDS
                                                                          At      Cash flows            At
                                                                 13 Dec 2006                   31 Mar 2008
                                                                        £                  £          £
     Net cash:
     Cash in hand and at bank                                              -  51,811          51,811
                                                              --------------  --------------  --------------
                                                                       -----    -----------    -----------
     Net funds                                                             -  51,811          51,811
                                                              =============   ============== =============
                                                                                          ==           ===


8.   ACQUISITIONS AND DISPOSALS

                                                                                             Fair value and
                                                                                                 book value
                                                                                                      £
     Intangible fixed assets                                                                 4,648
     Tangible fixed assets                                                                   2,017
     Debtors                                                                                 3,179
     Cash                                                                                    4,097
     Creditors                                                                               (51,706)
                                                                                             --------------
                                                                                              ------------
                                                                                             (37,765)
                                                                                             =============
                                                                                                      ====

     Goodwill acquired                                                                       37,766
                                                                                             =============
                                                                                                      ====
     Satisfied by:
     Consideration paid - Fair value of shares issued                                        1
                                                                                             =============
                                                                                                      ====




Full accounts for the Group for the period, which received an unqualified auditors' report are available
upon request to the company at the registered office.  The directors of the Group do not propose the
payment of a dividend.  The financial information in this announcement has been extracted from the Groups
audited accounts.

The Directors of the Group accept responsibility for the content of this announcement.

ENQUIRIES:

DATASMS HOLDINGS PLC                       TEL: 0845 123 5813
Terry Munley, Managing Director

ST HELEN'S CAPITAL PLC                        TEL: 020 7628 5582
Duncan Vasey

www.datasms.com

www.tagngo.co.uk

Contact Information

  • DataSMS Holdings plc