Innovative Software Direct plc

March 28, 2008 07:53 ET

Interim Results for the 6 Months Ended 31 December 2007

LONDON, UNITED KINGDOM--(Marketwire - March 28, 2008) - Innovative Software Direct plc (the 'Company' or 'ISD') -

Powerdial Acquisition and Trading Update

ISD successfully completed the acquisition of Powerdial Systems Limited ('Powerdial') on 21 December 2007.

Powerdial are established telecommunications specialists with a proven track record in supplying telephone systems, computer networks and network services. Powerdial's particular expertise is in Voice over Internet Protocol ('VoIP') telephony. VoIP is the next big development in telecommunications.Over the next five years, the entire telephone network is changing to Internet Protocol technology. Powerdial are ideally positioned to access the immense opportunities for VoIP that this will bring.

Powerdial's financial period commenced on 2 January 2008 and the first three months are ahead of expectation. The Group now has the infrastructure and management team to pursue growth in VoIP telephony, in network capacity reselling, and from exploiting its IT asset discovery engine. It has access to a significant customer base in a market that is becoming focused on outsourcing the management and supply of the entire communications process, to third parties such as ISD/Powerdial.

The industry expectation is for a 20% movement from in-house to outsourced voice and data services. Powerdial has positioned itself to profit from both areas; from its traditional business of equipment supply and from the nascent market for outsourced services.

Notes on Trading Results

ISD's interim results do not contain any trading contribution from Powerdial. They include professional costs associated with fundraising for the acquisition, amounting to GBP 21,461. All these parties had previously agreed to work on a success only fee basis.

The balance sheet does not include Powerdial, which was acquired as the interim period ended. It does however include those funds raised for the acquisition that were not contingent on successful completion. It also shows, as prepayments, GBP 54,000 invoiced in connection with the acquisition that will be charged in the present 6-month accounting period when the trading of Powerdial will also be brought into account.

Post Balance Sheet Events

Powerdial's trading from 2 January 2008 will reflect in the results for the full year to June 2008, as will any associated professional fees and the additional funds that were contingent upon the completion of the acquisition.

Consolidated Profit and Loss Account for the 6 month period ended 31
December 2007

6 months to 6 months to
31 December 2007 31 December 2006
GBP 000's GBP 000's

TURNOVER 5.2 0.2
Cost of sales (5.0) (0.5)
GROSS PROFIT 0.2 (0.3)
Administrative expenses (23.0) (15.3)
Write off of goodwill for DCM acquisition - (62.5)
Costs associated with acquisition of
Distributorships, Powerdial and fundraising (21.5) (54.8)

OPERATING LOSS (45.2) (132.9)
Interest receivable 0.9 -
Interest payable - (1.5)

(44.3) (134.4)
Extraordinary items - -
Loss before tax after extraordinary items (44.3) (134.4)
Taxation - -
Loss after tax and extraordinary items (44.3) (134.4)

Retained deficit for the financial period
(44.3) (134.4)

Loss per ordinary share
Basic (like for like) (1.2p) (3.7p)

Consolidated Balance Sheet

as at 31 December 2007

As at
31 December 2007
GBP 000's
Intangible assets 187.5
Tangible fixed assets 2.2
Stocks -
Debtors and prepayments 69.4
Cash at bank and in hand 212.8

Creditors (110.6)
Accruals (22.1)
CREDITORS: amounts falling within one year (132.7)


Creditors falling due after 1 year -


Called up share capital 204.3
Share premium account 886.3
Profit and loss account (751.4)


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

The Directors of the Company accept responsibility for the above announcement.

Contact Information

  • Innovative Software Direct plc