RNS Number:4197R
Ambient PLC
29 October 2003
FOR IMMEDIATE RELEASE
29 OCTOBER 2003
PRESS RELEASE
AMBIENT PLC
INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 JULY 2003
INTENTION TO DEMERGE AND FLOAT MONEYBOX SUBSIDIARY
MONEYBOX ANNOUNCES CONDITIONAL ACQUISITION OF G2 LTD
Ambient plc ('Ambient'), the business and marketing services group, today
announces its interim results for the 6 months ended 31 July 2003 and also its
intention to demerge and float its Moneybox subsidiary into a separately quoted
UK PLC. Moneybox also announces the conditional acquisition of G2 Ltd.
The period under review has shown a continued increase in group turnover, and a
substantial decrease in group operating loss. The Moneybox UK operating
business has achieved its first reported six-month period of sustained
profitability, and all of the businesses within the group have greatly improved
their cashflow position, with both EMP and BBL achieving positive cashflow in
July.
Summary
* Group turnover on continuing activities for the 6 months ended
31 July 2003 up 14% to #18.4 million (H1 2002: #16.1 million).
* Group operating loss on continuing activities down 30% to
#3.0 million (H1 2002: #4.3 million loss).
* Disposal of WMRC business intelligence unit in April 2003 gave rise
to exceptional profit on disposal of #0.2 million.
* Moneybox UK has achieved its first reported six-month period of
sustained profitability, and since May 2003, the Moneybox Group, which comprises
Moneybox UK and the operations in Holland and Germany, has also moved into
monthly profitability at the retained earnings level.
* Moneybox has today announced the conditional acquisition of G2 Ltd,
a UK based developer and operator of ATM, cashless payment and access control
systems showing strong profits growth. This acquisition will be earnings
enhancing and strategically important in supporting the expanding bank
outsourcing function of Moneybox. The acquisition is conditional, inter alia,
upon the proposed flotation of Moneybox.
* Touch,the online marketing services and local directory/ portal
business, grew its revenue by 32% during the period, achieving its best
operating result to date and had 2.2 million monthly users of its network of
portal/directories in September compared with 376,000 for January 2003. This
growth was driven by achieving a prominent position on the Google search engine
for city-specific searches.
Commenting on the results for the year, Vincent Isaacs, Chairman of Ambient plc,
said:
"Trading since 31 July 2003 has continued to reflect the positive achievements
of the first six months. The Board of Ambient therefore views the future for
each of its businesses with realistic confidence.
Whilst the Board's focus is to continue to deliver improved value for
shareholders by pursuing its strategy announced earlier this year and seeing
Moneybox floated as a separate business, we must also take full advantage of the
significant opportunity that Touch now presents."
-Ends-
For further information, please contact:
Ambient plc
Vincent Isaacs, Chairman
Andrew Stimpson, Group Managing Director
020 7452 5200
Merlin Financial
Paul Lockstone / Kirsty Black
020 7606 1244
CHAIRMAN'S STATEMENT
Dear fellow shareholder,
Ambient PLC ("Ambient" or "the Company") today announces its half year results
and also its intention to demerge and float its Moneybox subsidiary into a
separately quoted UK PLC. These actions are planned to take place in Spring
2004.
In April this year we announced our decision to concentrate our resources on
Moneybox, our ATM subsidiary and to drive through cost reductions and trading
improvements to enable all our remaining businesses to become cashflow positive
in the shortest possible time. So you will understand my relief, both as
Chairman and as a major shareholder, to be able to report the progress of each
of these objectives.
All of our companies have been grown from scratch and I apologise that it has
taken longer than we had ever anticipated to bring our smaller businesses to the
point where they can make a positive contribution to Ambient. These positive
trends were established at the beginning of the year when we took over the
direct management of Touch and BBL.
Key Developments During the Period Under Review Include:
v The Moneybox UK operating business has achieved its first reported
six-month period of sustained profitability and since May 2003 the Moneybox
Group, which comprises Moneybox UK and our operations in Holland and Germany,
has also moved into monthly profitability at the retained earnings level.
v Moneybox has today announced the conditional acquisition of G2 Ltd,
a UK based developer and operator of ATM, cashless payment and access control
systems showing strong profits growth. This acquisition will be earnings
enhancing and strategically important in supporting the expanding bank
outsourcing function of Moneybox. The acquisition is conditional, inter alia,
upon the proposed flotation of Moneybox.
v All of the remaining businesses within Ambient greatly improved their
cashflow position with EMP and BBL being cashflow positive in July.
v Touch grew its revenue by 32% during the period, achieving its best
operating result to date and had 2.2 million monthly users of its network of
portal/directories in September compared with 376,000 for January 2003. This
growth was driven by achieving a prominent position on the Google search engine.
I am pleased to set out further details on each of these below.
Group Interim Results, Financial Position and Dividend
The group's results for the six months to 31 July 2003 include the results of
the WMRC business intelligence unit which was disposed of on 25 April 2003.
This has been separately disclosed as a discontinued activity in the Profit and
Loss Account and gave rise to an exceptional profit on disposal of #0.2 million.
Group turnover for the half year period to 31 July 2003 was #19.2 million (2002:
#17.4 million), with turnover on continuing activities increasing by 14% from
#16.1 million to #18.4 million. The group operating loss was reduced from #6.4
million to #3.6 million, and the operating loss from continuing activities was
#3.0 million (2002 loss: #4.3 million). The loss after tax, exceptional item
and minority interests was #3.1 million (2002 loss: #3.9 million).
The group's cash position net of overdrafts as at 31 July 2003 was #3.6 million
(31 July 2002: #6.7 million), of which #1.5 million was available for use
outside of Moneybox. The improving performance of all the group companies
together with the cost reductions that we have implemented means Ambient remains
adequately funded. The net debt position of the Group was #1.1 million which
comprised net funds in Moneybox of #1.0 million and net debt in the remainder
of the Ambient Group of #2.1 million.
The directors do not propose to declare an interim dividend (2002: nil).
Moneybox moneybox.co.uk
Turnover for the half year period was #14.1 million (2002: #11.9 million)
representing growth of 19%. The operating loss for the Group was #0.9 million
(2002 loss: #2.0 million) representing a reduction of 55%. Group earnings before
interest, tax, depreciation and amortisation was a loss of #0.3 million (2002
loss: #1.5 million).
New outsourcing business has been secured, further bank ATMs have been migrated
into the Moneybox estate and good progress has been made in the Netherlands and
Germany. At 31 July 2003, Moneybox operated an estate of 2,564 (31 January
2003: 2,296) ATMs comprising 2,310 (31 January 2003: 2,082) ATMS in the UK, 136
(31 January 2003: 135) in the Netherlands and 118 (31 January 2003: 79) in
Germany.
Moneybox's UK business
This has been an exciting half year for Moneybox, with the UK operating business
moving into sustained profitability and recording its first half-year operating
profit of #0.8 million. This was achieved through increased transaction volumes
and continued focus on driving down direct costs associated with operation of
the network.
Revenue per fully managed ATM in the UK continued to grow to #42.70 per ATM per
day in the current half year period (2002: #37.40 per ATM per day). This is a
function of both increasing transaction volumes and increasing charges per
transaction. Moneybox typically charges #1.50 in the UK, but believes that
there is continued scope to increase the price in line with the practice of
other operators in the market.
Moneybox has 160 ATMs located in UK military bases and has recently re-signed a
contract relating to these ATMs for a further 5 year term. As expected,
transactions at these important locations were slightly reduced during the Iraqi
conflict. However, with service personnel returning to the UK and the normal
summer leave period coming to an end, the transaction volumes have recovered on
these important sites.
New additional outsourcing business has been won during the period, notably with
Bradford and Bingley which awarded Moneybox the contract to operate its estate
of branch and non-branch ATMs. Moneybox has also taken over a number of bank
ATMs in off-premise locations from leading institutions including Abbey plc.
Further contracts are under discussion and the pipeline for this relatively new
area of the business continues to be strong although the sales cycle is proving
slightly longer than expected.
Moneybox was managing 133 (31 January 2003: 29) ATMs on behalf of UK banks and
building societies at the end of the half year period and continues to be the
only independent ATM operator to be significantly involved in this area of
outsourcing solutions to major financial institutions. We continue to view it
as an important growth area for the future.
Moneybox's Dutch business
Significant improvements have been made to the Dutch business including the
winning of important contracts with both Shell and McDonalds where 60 ATMs have
been installed and contracted. The Dutch business had 136 ATMs installed (31
January 2003: 135) at the end of the half year and a pipeline of 50 contracted
sites to the end of the year. Revenue per ATM per day has increased by 54%
since the start of the year, as a result of deploying ATMs in fundamentally
better locations, continuing estate maturity and also a small rise in the
verage withdrawal fee.
Moneybox's German business
Steady progress continues in Germany with the estate up to 118 ATMs (31 January
2003: 79) at the end of the half year. These are deployed primarily in travel
and transport locations. German bank implementation of EEC Payment Services
Legislation has created improved transaction revenue opportunities across the
Moneybox German ATM estate. Transaction performance over the summer months was
strong and re-enforced independent analysis of our choice of ATM locations.
Supply contracts are now in place with the major petrol retailers and additional
ATM installations are scheduled for the second half of the year. We remain
confident of the prospects in the German market.
Demerger and Flotation of Moneybox
The Board of Ambient is working with its advisers to facilitate a demerger and
flotation of Moneybox into a separately listed UK PLC. It is planned that this
process will be completed in Spring 2004. We will continue to keep shareholders
apprised of developments in this regard.
Conditional Acquisition of G2 Ltd
Moneybox today announced the conditional acquisition of G2 Ltd ("G2"), a UK
based developer and operator of ATM, cashless payment and access control systems
showing strong profits growth. G2 has a growing outsourcing business as a
managed services and payment processing provider and currently has direct
relationships with over 650 UK and European clients - including major financial
and retail institutions. In the UK G2 provides on site maintenance and support
services to more than 2,100 sites. Moneybox and G2 have worked together for over
3 years in the deployment of offline ATMs in the workplace and have a thorough
understanding of each others businesses.
The acquisition of G2, which is, inter alia, conditional on the flotation of
Moneybox prior to 30 June 2004, will provide Moneybox with the following
benefits:
O Expert banking grade software development capability including a new
generation ATM software platform and ATM management platform; significant
payment processing capacity; existing relationships with, and interfaces to,
several major UK acquirers; in-house ATM operations expertise; existing
relationships with major retailers, corporations and public sector
organisations, representing a target market for Moneybox ATMs; an existing
network of 50 fully and partially managed off-line ATMs in corporate locations
both in the UK and Netherlands; and, an established and rapidly expanding
outsourcing business.
O Substantial cost savings to the combined group estimated to be
#1 million per annum on Moneybox's existing UK ATM base as a consequence of G2's
nationwide team of service engineers taking over the maintenance of Moneybox's
ATM estate.
O Enhanced earnings and cash generation. Excluding Moneybox revenues,
for the 6 months to 30 September 2003, G2 reported unaudited turnover of
#4.7 million, operating profits of #0.54 million and net assets of #2.3 million
including net cash of #1 million due to G2's strong cash generation. Excluding
Moneybox revenues in the 15 months ended 31 March 2003 G2 reported audited
operating profits of #0.5 million and net assets of #1.7 million.
The purchase consideration will be satisfied by the payment of cash and the
issue of Moneybox ordinary shares on the intended flotation with an aggregate
consideration equivalent to 23.5% of the enlarged equity of Moneybox prior to
listing. Against this consideration must be set an anticipated G2 free net cash
balance approaching #2 million by 31 March 2004 and an existing debt due from
Moneybox to G2 of #2 million which was provided for as an exceptional item in
the accounts of Moneybox in the year ended 31 January 2003.
Business Briefings ("BBL") Bbriefings.com
Turnover for the 6 months ended 31 July 2003 was #1.3 million (2002: #1.2
million) and the operating loss was #0.2 million (2002: #0.7 million), a
reduction of 64%. BBL was cashflow positive in July and is expected to be so
for the fourth quarter. This follows a significant uplift in sales over the
last 10 weeks ended 22 October 2003 by 18% over the #63,000 per week reported
in our Annual Report.
The company is now profitable at the current level of sales and following
improvements to working capital management is also expected to be cashflow
positive.
EMP emp.tv
Turnover for the 6 months ended 31 July 2003 was #1.5 million (2002: #1.9
million) and the operating loss was #0.8 million (2002: #0.5 million). The
operating loss is after restructuring costs of #0.4 million. Excluding these
non-recurring costs, operating losses for the period would have been #0.1
million lower than the comparable period in the previous financial year.
EMP was cashflow positive in July and is now trading at breakeven. We, in
partnership with management are currently engaged in talks to establish an
appropriate partner for EMP to move the company forward both operationally and
financially. We will update shareholders of any progress in due course.
Touch touchplc.com
Touch owns and manages 124 local business directory portals in the UK, e.g.
touchnottingham.com, and runs an online marketing services company that creates
online campaigns for its client base that has been built over the last 4 years.
Turnover for the 6 months ended 31 July 2003 was #1.4 million (2002: #1.1
million). The operating loss was #0.4 million (2002: #0.6 million). In the
three months ended 31 July 2003 Touch was #168,000 cashflow negative, compared
with #252,000 in the previous quarter.
Recent Significant Developments at Touch
Since January 2003 when we had a realignment of management and Andrew Stimpson,
Group Managing Director of Ambient, took the helm of Touch he has cut costs by
#750,000 and refocused all activities. During the latter part of this year he
brought in Tamer Ozmen as joint CEO to work alongside him. Tamer numbers
amongst his numerous achievements being one of the key players responsible for
Priceline.com's success (a $1.0 billion US corporation) and subsequently he was
CEO of the largest Internet company in Turkey. Key features of the company's
progress are:
* Monthly visits to our network of local portal / directories have
increased from 376,000 per month in January 2003 to 2.2 million and are
increasing rapidly each month due in part to growth in visitors who have found
our directories listed prominently on Google. This makes the Touch network one
of the most visited in the UK and, in itself, an exciting media property which
has recently started to generate new revenues.
* We now receive many emails daily across our network as a result of
our interactive self publishing software from businesses and users with
enquiries relating to business services and additions to our business database.
* We have established a number of local licensees in UK cities to
exclusively sell Touch software and media inventory on our portal directories.
* BT have endorsed the features and benefits of our product range and
described them as "unique".
* Our online marketing services business, Touch NW, which has to date
grown strongly and focussed on campaigns involving the online media of major
operators including large contracts with Lycos is now beginning to sell our own
media alongside our local network licensees. We estimate that Touch NW has
approximately 1.25% of the fast growing UK internet advertising market.
* Touch is in the process of developing further on-line functionality
in its portal / directories to drive further profitable growth in sales revenue
Your Directors believe that Touch is now building rapidly inside a very exciting
and new growth industry, fuelled by advertising from mainstream players and
excellent internet usage dynamics. We would like to support and invest in Touch
to enable it to take full advantage of the growth potential in this sector and
are reviewing the most appropriate means of achieving this.
Board change
Following Ambient's announcement in April that it was focussing its attention on
Moneybox, Kevin Beerling was appointed Chief Financial Officer of Moneybox in
July and is today stepping down from the Board of Ambient to focus on these
duties. I would like to thank Kevin for his contribution to Ambient over the
last four years.
Change of accounting reference date
Ambient will be changing the accounting reference date for the Company and for
all subsidiaries to 31 December. As a result Ambient's next audited accounts
will cover the eleven month period ending 31 December 2003. Ambient and
Moneybox will in future move to a calendar financial year.
In addition to the AGM and the interim and the preliminary results statements,
the Board will in future issue a further pre-close trading statement around 31
December each year. This will ensure that shareholders and the wider market are
given information on current trading on a more regular basis.
Outlook
Trading since 31 July 2003 has continued to reflect the positive achievements of
the first six months. The Board of Ambient therefore views the future for each
of its businesses with realistic confidence.
Moneybox occupies a leading position in its sector. A major difference between
Moneybox and all of its competitors is Moneybox's continuing investment in
establishing and maintaining an infrastructure and technical base that is
designed as a platform for a European network and various outsourcing
arrangements with major UK financial institutions. The benefit of this ongoing
investment is now starting to bear fruit as Europe develops and new outsourcing
contracts come online.
Whilst the Board's focus is to continue to deliver improved value for
shareholders by pursuing its strategy announced earlier this year and seeing
Moneybox floated as a separate business, we must also take full advantage of the
significant opportunity that Touch now presents.
Vincent Isaacs
Executive Chairman
INDEPENDENT REVIEW REPORT TO AMBIENT PLC
Introduction
We have been instructed by the company to review the financial information for
the six months ended 31 July 2003 which comprises the profit and loss account,
the statement of total recognised gains and losses, the balance sheet, the
reconciliation of movements in equity shareholders' funds, the cash flow
statement and related notes 1 to 7. We have read the other information contained
in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.
This report is made solely to the company, in accordance with Bulletin 1999/4
issued by the Auditing Practices Board. Our work has been undertaken so that we
might state to the company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the company, for our review work, for this report, or for the conclusions we
have formed.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are also responsible for ensuring that the accounting policies and presentation
applied to the interim figures are consistent with those applied in preparing
the preceding annual accounts except where any changes, and the reasons for
them, are disclosed.
Review work performed
We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom auditing standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 July 2003.
Deloitte & Touche LLP
Chartered Accountants
London
29 October 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 31 Unaudited Unaudited Audited
July 2003
Six months Six months Year ended
ended ended
31 July 2003 31 July 2002 31 January 2003
Notes #'000 #'000 #'000
TURNOVER 1
Continuing operations 18,360 16,076 34,352
Discontinued operations 832 1,322 3,147
-------- -------- --------
19,192 17,398 37,499
Cost of sales (13,921) (12,892) (27,154)
-------- -------- --------
GROSS PROFIT 5,271 4,506 10,345
Administrative expenses (8,904) (10,919) (23,861)
------------------------------ --- -------- --- -------- --- --------
Administrative expenses before (8,904) (10,919) (21,881)
exceptional item
Exceptional item - - (1,980)
------------------------------ --- -------- --- -------- --- --------
OPERATING LOSS 1
Continuing operations (3,045) (4,254) (10,294)
Discontinued operations (588) (2,159) (3,222)
-------- -------- --------
(3,633) (6,413) (13,516)
Profit on disposal / deemed 2 167 463 463
part disposal of subsidiary
Interest receivable 32 123 173
Interest payable (211) (151) (325)
-------- -------- --------
LOSS ON ORDINARY ACTIVITIES (3,645) (5,978) (13,205)
BEFORE TAXATION
Tax on loss on ordinary - - -
activities -------- -------- --------
LOSS ON ORDINARY ACTIVITIES (3,645) (5,978) (13,205)
AFTER TAXATION
Equity minority interests 540 2,107 3,983
======== ======== ========
RETAINED LOSS FOR THE (3,105) (3,871) (9,222)
FINANCIAL PERIOD ======== ======= ========
LOSS PER ORDINARY SHARE 3
Basic and diluted (6.5)p (9.1)p (21.2)p
Adjusted basic before (6.9)p (10.2)p (19.6)p
exceptional items
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the six months ended 31 July 2003
Unaudited Unaudited Audited
Six months Six months Year ended
ended ended
31 July 2003 31 July 2002 31 January 2003
#'000 #'000 #'000
Retained loss for the financial period (3,105) (3,871) (9,222)
Foreign currency translation movement (37) 71 (53)
======== ======== ========
TOTAL RECOGNISED GAINS AND LOSSES FOR
THE PERIOD
(3,142) (3,800) (9,275)
======== ======== ========
CONSOLIDATED BALANCE SHEET
As at 31 July 2003
Unaudited Unaudited Audited
31 July 2003 31 July 2003 31 January 2003
#'000 #'000 #'000
FIXED ASSETS
Intangible assets
- goodwill 1,274 1,382 3,379
- other 293 356 315
-------- -------- --------
1,567 1,738 3,694
Tangible assets 6,543 6,426 6,089
Investments 20 20 20
-------- -------- --------
8,130 8,184 9,803
-------- -------- --------
CURRENT ASSETS
Stocks 860 959 790
Debtors : amounts falling due within 4,330 4,377 4,915
one year
Cash at bank and in hand 3,984 6,842 5,214
-------- -------- --------
9,174 12,178 10,919
CREDITORS : amounts falling due (11,431) (10,640) (13,171)
within one year -------- -------- --------
NET CURRENT (LIABILITIES) / ASSETS (2,257) 1,538 (2,252)
-------- -------- --------
TOTAL ASSETS LESS CURRENT 5,873 9,722 7,551
LIABILITIES
CREDITORS : amounts falling due (5,632) (2,960) (6,562)
after more than one year ======== ======== ========
NET ASSETS 241 6,762 989
CAPITAL AND RESERVES
Called-up share capital 510 427 450
Unissued share capital - 70 -
Share premium account 30,538 26,485 28,023
Other reserve 6,536 7,496 7,496
Profit and loss account (37,494) (29,881) (35,334)
-------- -------- --------
EQUITY SHAREHOLDERS' FUNDS 90 4,597 635
Equity minority interests 151 2,165 354
-------- -------- --------
TOTAL CAPITAL EMPLOYED 241 6,762 989
======== ======== ========
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 July 2003
Unaudited Unaudited Audited
Six months Six months Year ended
ended ended
31 July 2003 31 July 2002 31 January 2003
Notes #'000 #'000 #'000
Net cash outflow from
operating activities 4 (2,907) (5,824) (8,435)
Returns on investments and servicing (166) (6) (43)
of finance
Capital expenditure and financial (1,917) (402) (1,179)
investment
Acquisitions and disposals 1,780 1,658 562
-------- -------- --------
Cash outflow before financing (3,210) (4,574) (9,095)
Financing 1,766 (202) 2,661
-------- -------- --------
Decrease in cash in the period 5 (1,444) (4,776) (6,434)
======== ======== ========
RECONCILIATION OF MOVEMENTS IN CONSOLIDATED EQUITY SHAREHOLDERS' FUNDS
For the six months ended 31 July 2003
Unaudited Unaudited Audited
Six months Six months Year ended
ended ended
31 July 2003 31 July 2003 31 January 2003
#'000 #'000 #'000
Retained loss for the financial (3,105) (3,871) (9,222)
period
Foreign currency translation (37) 71 (53)
movement
Share option compensation charge 22 22 44
Issue of share capital 2,683 9 1,500
Share issue expenses (108) - -
-------- -------- --------
Net reduction in equity (545) (3,769) (7,731)
shareholders' funds
Opening equity shareholders' funds 635 8,366 8,366
-------- -------- --------
Closing equity shareholders' funds 90 4,597 635
======== ======== ========
NOTES TO THE INTERIM RESULTS
1. SEGMENTAL INFORMATION
The turnover and operating loss of the group are attributable to the following
activities :
Unaudited Unaudited Audited
Six months Six months Year ended
ended ended
31 July 2003 31 July 2002 31 January 2003
#'000 #'000 #'000
Analysis of turnover by activity
Continuing operations
ATM operations 14,114 11,898 25,144
Business publishing 1,332 1,195 3,263
Digital media solutions 1,478 1,893 3,511
-------- -------- --------
Marketing and web services 1,436 1,090 2,434
-------- -------- --------
18,360 16,076 34,352
Discontinued operations
Business intelligence 832 1,322 3,147
-------- -------- --------
Total 19,192 17,398 37,499
======== ======== ========
Analysis of operating loss by
activity
Continuing operations
ATM operations (891) (1,975) (5,542)
Business publishing (238) (658) (977)
Digital media solutions (835) (484) (1,041)
Marketing and web services (382) (617) (1,508)
Central (699) (520) (1,226)
-------- -------- --------
(3,045) (4,254) (10,294)
Discontinued operations
Business intelligence (588) (2,159) (3,222)
-------- -------- --------
Total (3,633) (6,413) (13,516)
======== ======== ========
2. PROFIT ON DISPOSAL OF SUBSIDIARY
On 25 April 2003, WMRC plc, comprising at that time just the World Markets
Analysis business intelligence division, was sold for $2,600,000 of initial cash
consideration and future possible consideration payable in May 2005 depending on
the achievement of certain revenue targets. This disposal gave rise to a profit
of #167,000 which has been recognised in the consolidated profit and loss
account.
NOTES TO THE INTERIM RESULTS (continued)
3. Loss Per ORDINARY SHARE
Unaudited Unaudited Audited
Six months Six months Year ended
ended ended
31 July 2003 31 July 2002 31 January 2003
#'000 #'000 #'000
Loss for the financial period (3,105) (3,871) (9,222)
Profit on disposal / deemed part (167) (463) (463)
disposal of subsidiary
Exceptional administrative expense - - 1,980
Exceptional administrative expense - - (789)
attributable to minority interests -------- -------- --------
-------- -------- --------
Loss before exceptional items for the (3,272) (4,334) (8,494)
financial period
-------- -------- --------
Weighted average number of ordinary
shares:
For basic loss per share 47,634,632 42,694,190 43,406,696
---------- ---------- ----------
4. Reconciliation of operating loss to net cash outflow from operating
Activities
Unaudited Unaudited Audited
Six months Six months Year ended
ended ended
31 July 2003 31 July 2002 31 January 2003
#'000 #'000 #'000
Operating loss (3,633) (6,413) (13,516)
Depreciation of tangible assets 1,011 882 1,813
Amortisation of intangible assets 87 66 197
Loss / (profit) on disposal of fixed 37 - (8)
assets
Share option compensation charge 22 22 44
Increase in stocks (70) (402) (233)
Increase in debtors (43) (366) (904)
(Decrease) / increase in creditors (318) 387 4,172
-------- -------- --------
Net cash outflow from operating (2,907) (5,824) (8,435)
activities ======== ======== ========
NOTES TO THE INTERIM RESULTS (continued)
5. ANALYSIS AND RECONCILIATION OF NET (DEBT) / FUNDS
Unaudited Unaudited Audited
Six months Six months Year ended
ended ended
31 July 2003 31 July 2002 31 January 2003
#'000 #'000 #'000
Decrease in cash in the period (1,444) (4,776) (6,434)
Cash inflow from increase in debt and (1,100) - (2,500)
lease financing
Repayment of debt and lease 1,871 211 350
financing
Costs associated with new debt 38 - 82
financing -------- -------- --------
Change in net debt resulting from (635) (4,565) (8,502)
cash flows -------- -------- --------
Costs associated with new debt (51) (22) (58)
financing charged to interest
Translation difference 11 30 73
-------- -------- --------
Change in net debt resulting from (40) 8 15
non-cash flows -------- -------- --------
Change in net debt (675) (4,557) (8,487)
Net (debt) / funds at beginning of (429) 8,058 8,058
period -------- -------- --------
Net (debt) / funds at end of period (1,104) 3,501 (429)
======== ======== ========
6. ANALYSIS OF NET DEBT
At 1 February Cash flows Other At 31 July
2003 2003
#'000 #'000 #'000 #'000
Cash at bank and in 5,214 (1,241) 11 3,984
hand
Overdrafts (174) (203) - (377)
---------
Decrease in cash in (1,444)
the period
Debt due within one - (220) - (220)
year
Debt due after one (5,358) 977 (51) (4,432)
year
Obligations under (111) 52 - (59)
finance leases -------- -------- -------- --------
Net debt (429) (635) (40) (1,104)
======== ======== ======== ========
7. BASIS OF PREPARATION OF INTERIM FINANCIAL INFORMATION
The interim financial information has been prepared on the basis of the
accounting policies set out in the group's statutory accounts for the year ended
31 January 2003. The financial information contained in this interim statement
does not constitute statutory accounts as defined in section 240 of the
Companies Act 1985.
The financial information for the year ended 31 January 2003 has been extracted
from the statutory accounts which have been reported on by the group's auditors
and have been delivered to the Registrar of Companies. The auditors' report was
unqualified and did not contain any statement under section 237(2) or (3) of the
Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DXBDGUSDGGXI