Interim Results for the 17-week period ended 31 March 2005

India Outsourcing Services plc (AIM: IOS), a company formed to capitalise on acquisition and investment opportunities in the Indian business process outsourcing (BPO) market, is pleased to announce its maiden interim results following its flotation on AIM in December 2004.

 

The Company, which is in the early stages of its development, recorded a pre-tax loss of £101, 633 and a loss per share of (0.68p). Net cash as at 31 March 2005 was £394,527.

 

Haresh Kanabar, India Outsourcing’s Chairman, commented: “Since our successful flotation in December we have pursued our strategy of identifying and evaluating potential acquisitions in the Indian BPO market. We have drawn up a shortlist of potential targets and are in the process of carrying out full due diligence on one of our targets and are considering another closely.”

 

 

 

 

For further information:

 

India Outsourcing Services plc	Tel: 020 7070 7241
Haresh Kanabar, Chairman
Amit Pau, Chief Executive
Panmure Gordon & Co	Tel: 020 7459 3600
Jonathan Retter
Katherine Roe
Buchanan Communications	Tel: 020 7466 5000
Mark Court Elly Williamson

 

 

 

 

 

 

 

 

CHAIRMAN’S STATEMENT

 

 

I am pleased to report India Outsourcing’s maiden interim results. The figures represent the first 17 weeks of trading at the Company. The pre-tax loss for the period was £101,633 and the loss per share was 0.68p. The financial performance of the Company was in line with our expectations.

 

 By far the most significant event for the Company during the half year was its successful flotation on AIM in December, when the Company raised gross proceeds of £500,000. This allowed IOS to conduct a rigorous selection process, the results of which confirmed our view that there is a significant business opportunity for us in creating a leading international outsourcing company that combines the best of Indian and other international BPO companies.

 

Since December, the Company has pursued its strategy of seeking acquisitions in the attractive Indian BPO market. The Indian BPO industry grew by 44.2% to US$5.2 billion between April 2004 and March 2005 (source: NASSCOM). It is expected to continue to grow at a significant rate over the next few years.

 

We have already drawn up a shortlist of potential acquisitions. Our investment criteria include a requirement for annual revenues of approximately $2-15 million; strong, dynamic management; long-term clients producing recurring revenues; and a cash-flow positive and profitable financial profile. We have appointed advisers and are in the process of doing full legal and financial due diligence on one target and are considering another closely.

 

India’s BPO market is dynamic and exciting. It is growing at a formidable pace, largely driven by competitive forces that are making companies look long and hard at their cost bases.

 

We will continue to execute our strategy and look forward to updating shareholders in due course.

 

Haresh Kanabar

Chairman

 

Profit and Loss Account
For the period ended 31 March 2005   (unaudited)
			17 Week Period ended
			31 March 2005
			( unaudited )
	Note		£
Turnover			0
Cost of Sales			0
Gross Profit			0
Administrative Expenses			(106,037)
Operating loss			(106,037)
Net interest ( payable ) / receivable			4,404
Loss on ordinary activities before taxation			(101,633)
Taxation	2		0
Loss after taxation			(101,633)
Loss per share	4		(0.68)	p
All recognised gains and losses are included in the profit and loss account.

 

 

Balance Sheet
As at 31 March 2005 (unaudited)
			31 March 2005
			( unaudited )
	Note		£
Fixed Assets
Tangible Assets			5,162
Total Fixed assets			5,162
Current Assets/ ( Liabilities )
Cash			394,527
Debtors & prepayments			61,541
Creditors: amounts falling due within one year			(113,458)
Total assets less Current Liabilities			347,772
Creditors: amounts falling de after more than one year			0
Net Assets			347,772
Capital and reserves
Share capital issued and fully paid up			150,000
Share premium account			299,405
Profit & loss account			(101,633)
Shareholders' Funds			347,772

 

 

Cash flow statement
For the period ended 31 March 2005   (unaudited)
			17 Week Period ended
			31 March 2005
			( unaudited )
			£
Net cash outflow from operating activities			(53,776)
Returns on investments and servicing of finance
Interest Received			4,404
Net cash flow from returns on investments and			4,404
servicing of finance
Capital expenditure and financial investment
Purchase of tangible fixed assets			(5,505)
Net cash outflow from capital expenditure and
financial investment			(5,505)
Financing
Issue of shares			449,404
Net cash inflow from financing			449,404
Increase in cash			394,527

 

Notes to the interim report

 

1: BASIS OF PREPARATION

 

The interim accounts for the six months ended 31 March 2005 are unaudited and do not constitute statutory accounts in accordance with section 240 of the Companies Act 1985.

 

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

 

2: TAXATION

 

There is no tax charge for the period due to the loss arising.

 

3: DIVIDENDS

 

The Directors are not declaring a dividend for the six months ended 31 March 2005.

 

4: LOSS PER SHARE

 

The calculation of the loss per share is based on the loss for the period of £101,633 and the weighted average number of shares in issue during the period of 15,000,000

 

COPIES OF INTERIM RESULTS

 

Copies of the interim results are available from the Company's office, 22 Soho Square, London W1D 4NS