Zeta Compliance Group Plc
LSE : ZCGP

September 01, 2011 02:00 ET

Interim Results

                                         ZETA COMPLIANCE GROUP plc


                                          (PLUS-Quoted Code: ZCG)
                                                     


                     UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31ST JULY 2011


The  Board  of  Zeta Compliance Group plc ("Zeta" or "the Company") is pleased to announce   its  unaudited
results for the six months ended 31st July 2011:

HIGHLIGHTS


    *       Increased H1 revenues up 22.2% to £1,636,000 (H1 2010: £1, 338,000)
    *       Includes contribution of £123,000 (H1 2010: £76,000) from The Fire Strategy Company Limited
    *       H1 EBITDA increased by 3.6 % to £180,000 (H1 2010: £174,000)
    *       H1 Profit before tax increased by 64.2 % to £112,000 (H1 2010: £68,0000)

John Caines, Chairman of Zeta, commented:


"The  year so far has been one of continued growth. Company turnover increased by 22.2% from £1,338k in  H1
2010  to £1,636k in H1 2011. Removing the effect of the acquisition of The Fire Strategy Company Ltd, which
contributed for only 10 weeks in 2010, the increase was  19.9% (H1 2011: £1,513k; H1 2010: £1,262k).


As previously announced the Company has invested in operational management and sales and marketing capacity
and  this inevitably impacted  growth in EBITDA,  which fell by 10% (H1 2011: £179k; H1 2010: £198k)  on  a
like for like basis but rose 3.6% overall (H1 2011: £180k; H1 2010: £174k).


Profit  before  Tax  increased by 64.2% (H1 2011: £112k; H1 2010: £68k). The reduction  in  the  difference
between  EBITDA  and  PBT  was  primarily due to a reduction in amortisation charges  and  the  absence  of
acquisition  expenses incurred in May 2010 in respect of The Fire Strategy Company Ltd. EPS increased  from
0.54p in H1 2010 to 0.88p in H1 2011.


It  is  particularly pleasing to see that The Fire Strategy Company Limited has achieved a positive  EBITDA
for  the first time. The directors feel confident that the ability to sell any combination of water,  fire,
air,   energy  reduction  and  business  continuity  compliance  services  will  open  up  materially  more
opportunities for the enlarged sales team now in place."


UNAUDITED CONSOLIDATED                                     
INCOME STATEMENT FOR                                                                   
THE SIX MONTHS ENDED
31 JULY 2011                                               31.7.11                                        31.7.10
------------------------------------------------------------------         --------------------------------------
                                           The Fire                                       The Fire          
                                           Strategy                                       Strategy
                            'Like for       Company                        'Like for       Company
                                 Like'          Ltd          Total             Like'           Ltd          Total
------------------------------------------------------------------         --------------------------------------
                              £              £             £                 £              £             £
------------------------------------------------------------------         --------------------------------------
Turnover                    1,513,080       123,433      1,636,513         1,261,957        76,339      1,338,296
------------------------------------------------------------------         --------------------------------------
Gross Profit                  948,918        49,917        998,835           784,078        69,382        853,460
------------------------------------------------------------------         --------------------------------------
Administrative                770,113        48,361        818,473           585,542        93,868        679,410
Expenses
------------------------------------------------------------------         --------------------------------------
Earnings before                                                                                     
Interest,
 Depreciation,                178,805         1,557        180,362           198,536      (24,486)        174,050
Taxation
 and Amortisation                                                                                   
------------------------------------------------------------------         --------------------------------------
Share of Minority                                          (6,000)                                        (4,994)
Interest loss/
(profit)
Interest payable                                             2,980                                          3,606
                                                                        
Depreciation                                                12,708                                          7,686
                                                                        
Amortisation:                                                                                                    
                                                                        
- Software                                                  48,246                                         69,626
                                                                        
- Goodwill                                                   1,020                                          1,020
                                                                        
Cost of acquisition                                              -                                         24,204
                                                                        
Finance cost of                                              9,383                                          4,692
deferred consideration                                                  
------------------------------------------------------------------         --------------------------------------
Profit before Taxation                                     112,025                                         68,210
------------------------------------------------------------------         --------------------------------------
Taxation                                                    35,000                                         20,000

------------------------------------------------------------------         --------------------------------------
Profit after Taxation                                       77,025                                         48,210
                                                                                                  
------------------------------------------------------------------         --------------------------------------
Basic EPS (p)                                                 0.88                                           0.54
                                                                                      
------------------------------------------------------------------         --------------------------------------







UNAUDITED Consolidated Balance Sheet
                                                                   31 July 2011                 31 January 2011
                                                                              £                               £
ASSETS                                                                                                         
NON-CURRENT ASSETS                                                                                             
Goodwill                                                                473,419                         473,961
Intangible Assets                                                       430,747                         367,450
Property, plant and Equipment                                            55,320                          64,960
Interest in associate                                                    15,687                           9,687
Trade and Other receivables                                              55,382                          55,382
                                                                      1,030,555                         971,440
CURRENT ASSETS                                                                                                 
Trade and other receivables                                             972,862                         969,373
Cash                                                                     72,353                          66,723
                                                                      1,045,215                       1,036,096
LIABILITIES                                                                                                    
CURRENT LIABILITIES                                                                                            
Trade and other payables                                                720,948                         699,901
Interest bearing loans & borrowings                                      17,981                          14,753
Tax payable                                                              67,531                          32,531
                                                                        806,460                         747,185
NET CURRENT ASSETS                                                      238,755                         288,911
                                                                                                               
NON-CURRENT LIABILITIES                                                                                        
Deferred tax                                                              8,752                           9,992
Other loans                                                                   -                          25,201
Deferred consideration accrual                                          164,767                         164,767
                                                                        174,759                         199,960
NET ASSETS                                                            1,094,551                       1,060,391
                                                                                                               
SHAREHOLDERS EQUITY                                                                                            
Called up share capital                                                  87,732                          87,732
Share premium                                                           512,185                         512,185
Share based payment reserve                                              14,661                          13,660
Retained earnings                                                       563,839                         486,814
Dividend paid                                                          (43,866)                               -
Other Reserves                                                         (40,000)                        (40,000)
TOTAL EQUITY                                                          1,094,551                       1,060,391
                                                                                                               
                                                                                                               
The interim results for the six months ended 31 July 2011 are unaudited and do not constitute accounts within
the meaning of section 435 of the Companies Act 2006. The interim results have been drawn up using accounting
policies and presentation consistent with those applied in the audited accounts for the year ended 31 January
2011. The comparative information contained in this report for the period ended 31 July 2010 does not
constitute statutory accounts for that financial period.


The information contained in this announcement has not been reviewed by the Company's auditor.



The Directors of Zeta are responsible for the contents of this announcement.

Contact Details:


Zeta Compliance Group Plc

Graham Brown - Finance Director                      Tel: 01869 326000



Hybridan LLP, Corporate Adviser                      Tel: 0207 947 4350

Claire Noyce / Deepak Reddy

_______________________________

About Zeta:

Zeta   provides  products,  services  and  technologies  that  enable  organisations  with  large   estates
systematically  meet their Environmental, Health and Safety obligations. Zeta carries out  Risk  Assessment
and  Monitoring  services in respect of fire and water risk management and air hygiene.  Zeta  also  has  a
Carbon  and  Energy  division providing technical and strategic consultancy services to clients  addressing
increasing regulatory obligations such as Air Conditioning Inspections, Energy Performance Certificates and
a  full  range of Energy Management Consultancy Services (CRC). Zeta's Technology division has developed  a
complete web-based statutory compliance system (ZetaSafe®).





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