Thomas International Limited

Operations

The company has the following revenue streams:

1. Royalties and product fees generated from the sales of the company's services through its network of distributors and resellers.
2. Subscription revenue generated from sales of assessments sold to customers. These contracts are generally between one to three years in term. Revenue from subscriptions contracts is recognised pro rata over the term of the contract.

Financials

Statement of comprehensive income (£'000)

Year	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20	21	22	23	24	25	26	27	28	29	30	31	32	33	34	35	36	37	38	39	40
Period end date	31/12/1982	31/12/1983	31/12/1984	31/12/1985	31/12/1986	31/12/1987	31/12/1988	31/12/1989	31/12/1990	31/12/1991	31/12/1992	31/12/1993	31/12/1994	31/12/1995	31/12/1996	31/12/1997	31/12/1998	31/12/1999	31/12/2000	31/12/2001	31/12/2002	31/12/2003	31/12/2004	31/12/2005	31/12/2006	31/12/2007	31/12/2008	31/12/2009	31/12/2010	31/12/2011	31/12/2012	31/12/2013	31/12/2014	31/12/2015	31/12/2016	31/12/2017	31/12/2018	31/12/2019	31/12/2020	31/12/2021
Period duration (days)	365	365	366	365	365	365	366	365	365	365	366	365	365	365	366	365	365	365	366	365	365	365	366	365	365	365	366	365	365	365	366	365	365	365	366	365	365	365	366	365
	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic	Historic
Profit and loss
Turnover																																				6,788	8,777	10,851	7,594	9,947
Cost of sales																																				(1,462)	(1,337)	(1,137)	(954)	(916)
Gross profit																																				5,326	7,440	9,714	6,640	9,031
Administrative expenses																																				(2,788)	(3,429)	(5,189)	(3,049)	(5,019)
Exceptional administrative expenses																																				(2,213)	(708)	(166)	(135)	(15)
Operating profit																																				326	3,303	4,359	3,456	3,997
Income from shares in group undertakings																																				10	0	0	0	0
Interest receivable and similar income																																				0	3	2	4	1
Interest payable and similar expenses																																				0	0	(6)	(14)	(16)
Net interest expense																																				0	3	(4)	(10)	(15)
Profit before tax																																				336	3,305	4,355	3,446	3,982
Tax on profit																																				(449)	(342)	(47)	(207)	(284)
Profit for the financial year																																				(114)	2,963	4,308	3,239	3,698
Balance sheet
Cash flow statement
Other information
Cost of goods sold as a proportion of revenue (%)																																				78.46%	84.77%	89.52%	87.44%	90.79%
Operating expenses as a proportion of revenue (%)																																				95.20%	62.37%	59.83%	54.49%	59.82%
Tax rate (%)																																				133.63%	10.35%	1.08%	6.01%	7.13%
Depreciation and amortisation rate (%)
Fixed Capital Investment (FCInv) as a proportion of revenue (%)
Working Capital Investment (WCInv) as a proportion of revenue (%)
Net borrowing as a proportion of revenue (%)
Interest expense as a proportion of revenue (%)

Risks

The main risks and uncertainties facing the company are:

1. The reliability of the IT operating system delivering the products to the clients which could fail or be subject to date security risks;
2. a competitor could bring out a new product that could impact the company's ability to achieve growth projections;
3. the potential risk that a key distributor/reseller does not perform or represent the Thomas brand in the way that the company would expect and that restricts growth or damages the company's reputation;
4. the impact of external political uncertainty including the UK's exit from the European Union where customer's businesses may be impacted in terms of employee growth plans or available spend for services; and
5. the impact of pandemics such as Covid-19 where customer's businesses may be impacted in terms of employee growth plans or available spend for services.