RNS Number:1198G
VirtualInternet.net PLC
24 February 2000



Contact   Jason Drummond, Chief Executive            0171 460 4060
          VirtualInternet.net plc            jason.drummond@vi.net

          David Bick/John Bick                       0171 929 5599
          Holborn Public Relations      david_bick@holbornpr.co.uk


                          VIRTUALINTERNET.NET PLC

                  PRELIMINARY ANNOUNCEMENT OF RESULTS
                FOR THE 13 MONTHS ENDED 31 OCTOBER 1999

 Revenue up 370% over 12 months; hosted and managed domains up by 250%

The  Group  is  an  international  provider   of  domain  based  Internet 
services, offering a diverse range of  products and services, from domain
registration and web hosting  to  brand  and  trademark protection on the
Internet.

Highlights

* Group  turnover increased by 370% over the  previous  12 months. Pro-forma
  revenue for the year ended 31st October 1999 was #2.1m

* 250%  growth  in the number of hosted domains  over  the previous 12 months.
  Over 25,000 hosted and managed domains at the year end 31st October 1999

* Successful launch of the wholesale services business  in the fourth quarter
  providing substantial growth in income to the Group

* Completed the acquisition of Virtual Internet Limited and two further
  acquisitions

* Provided services to over half of the FTSE 100 companies

* Awarded domain name registry licence for .com, .net, and .org by ICANN


Building strong foundations for growth

* New offices opened in France, the US, Italy and Australia

* Management  team  strengthened to  sustain  and  control growth.
  Appointment of a new non-executive chairman,  chief financial officer, chief
  operating officer and non-executive director

* Employee numbers increased from 14 to 70 at 31st October 1999


Formed strategic relationships

* AOL France and CompuServe France

* Microsoft Networks (MSN) in the UK

* European co-location agreement with Level 3 Communications

Commenting  on  today's results announcement, Jason  Drummond,
Chief Executive of VirtualInternet.net said:

"This  year  has seen a major step change in our business,  we
have  built a strong base and infrastructure on which  we  can
continue  to  achieve significant levels of  growth.  We  have
successfully completed and integrated a number of acquisitions
and  have opened a further four international offices. We have
strengthened the team through a number of key appointments and
revenues continue to grow rapidly.

"As  more  and more businesses continue to want a presence  on
the  Internet,  Virtual  Internet's reputation  and  range  of
products  and  services ensures that we  are  well  placed  to
benefit from this growth".



                    VIRTUALINTERNET.NET PLC

              PRELIMINARY ANNOUNCEMENT OF RESULTS
            FOR THE 13 MONTHS ENDED 31 OCTOBER 1999

Revenue up 370% over 12 months; hosted and managed domains up
by 250%

Introduction

The Board of VirtualInternet.net plc ("VI.net" or "the Group")
is  pleased to announce the preliminary results of  the  Group
for  the  13  months ended 31 October 1999.  VI.net  has  made
significant progress over the past year.  The Group is now  an
international  provider  of domain  based  Internet  services,
offering a diverse range of products and services, from domain
registration and web hosting to brand and trademark protection
on the Internet.

Results

The  Group has developed its customer base in each of the main
areas  of operations.  As at 31 October 1999, VI.net had  over
25,000 hosted and managed domains and provided brand and trade
mark   protection  services  to  over  2,500  customers.    In
addition, the Group provided services to over half of the FTSE
100 companies.

The  acquisitions of VI.net are described below. The basis for
the  pro-forma  results  discussed in the  next  paragraph  is
explained in the accounting policies note.

In  the  year ended 31 October 1999, VI generated turnover  of
#2.1m  (#0.4m in 1998) with EBITDA before the employee benefit
trust charge being a loss of #1.16m (#0.03m in 1998).

Corporate activity

The  Group  as it is constituted today was established  on  19
January  1999 when VI.net (then Charriol plc) acquired Virtual
Internet  Limited  ("VI").   The Group  further  expanded  and
strengthened its product offerings through the acquisition  in
April  1999  of  Net  Searchers  International  Limited  ("Net
Searchers"), based in the UK, from its two founders,  who  now
form  a  key  part  of the management team that  operates  the
Group's  Internet  brand  and  trademark  protection  services
business.  Also in April 1999, VI.net exercised its option  to
acquire the outstanding 66 per cent. of Virtual Internet  Sarl
based  in  France. The founder of Virtual Internet  Sarl  also
joined VI.net's management team.

These  transactions  have achieved the dual  aims  of  further
enhancing  the Group's products and services, whilst expanding
the geographic area over which these can be marketed.

Business services

The Group provides its customers with the following services:

* Retail   domain-based   services,   such   as  domain   name
  registration, web site hosting, e-mail services,  e-commerce
  solutions, application server hosting and server co-location.

  The  majority of Group revenue has been derived historically
  from   simple  domain  registration,  thereafter   upgrading
  customers over time to e-mail services and providing hosting
  for  their  web  sites.   The Group  increasingly  offers  a
  comprehensive range of packages designed for customers  with
  different levels of Internet requirement.  It is the Group's
  expectation  that  over time the customer will  be  upgraded
  from   the  basic  package  through  to  the  more  advanced
  offerings  such  as managed application servers,  whereby  a
  customer  has its web site hosted on a dedicated,  Internet-
  specific server.

* Wholesale  domain-based  services,  the provision of certain
  of the Group's services (registry and domain services, hosting
  application services and e-commerce services and solutions) to
  a customer who then retails the service to its own, typically
  large, customer base.

  VI.net has for a number of years run the domain registry for
  Gibraltar.   The  Board  has  always  recognised  that   the
  expansion  of this business area would be an important  part
  of the Group's service offering in the future.  During 1999,
  VI.net  was  awarded  a top level domain  name  registration
  license  by  ICANN.   As a result, VI  is  now  entitled  to
  receive  a  significant portion of the relevant registration
  fee  directly for all .com, .net and .org registrations made
  by the Group.

* Internet  brand  and   trade   mark   protection   services,
  offering a range of services to enable customers to  protect
  their  trade marks, brands and intellectual property on  the
  Internet. Services include worldwide domain registrations for
  particular brands or company names and brand monitoring, for
  example for infringement, on the Internet.

  Brand  owners  are increasingly aware of their  exposure  to
  potential  Internet infringement. VI.net's  dedicated  teams
  assist in the reclamation of domain names and/or the closure
  of  infringing  web sites, and undertake,  on  a  world-wide
  basis, domain registration programmes and Internet policing.
  The  acquisition  of  Net  Searchers  International  Limited
  during  the year has improved the Group's capacity  in  this
  increasingly important market.

Business development

The  Group  has  pursued and continues to  pursue  a  strategy
comprising:

International expansion

Since  January  1999,  the Group has expanded  from  its  core
London base and is now represented in France (offices in Paris
and  Beauvais), the US (New York), Italy (Milan) and Australia
(Sydney).   The majority of these offices were opened  in  the
second half of 1999 and, as a result, had a minimal impact  on
Group trading in 1999.  It is the Board's expectation that  it
will  take  up to six months for each new office to build  the
necessary  management  team, administrative  base  and  market
awareness of the VI brand to make a meaningful contribution to
the Group.

VI.net  continues  actively  to  monitor  other  international
markets, to determine the potential for VI's service offerings
as  Internet activity develops.  Further European expansion is
planned,  in combination with development in the Asia  Pacific
region, initially focussed on the new Sydney office.

Strategic Relationships

The   Group   continues  to  see  the  benefit   of   building
partnerships  and/or  revenue  share  agreements  with  direct
Internet channels such as portals and access providers.   Over
the  past  year VI.net has entered into a number of  different
types  of  such arrangements, examples of which  are  set  out
below:

-    AOL France and CompuServe France (through Cegetel, one of
     France's largest telecom providers);

-    Level (3) in UK and other European markets; and

-    Microsoft Networks (MSN) in the UK.

Board changes

The  Group  is  pleased  to announce a  number  of  new  Board
appointments with effect from 23rd February 2000:

William  Slee (59)  -  has  been  appointed  as  non-executive
Chairman

He  has  over 30 years' experience in international investment
banking,  having most recently been a Group Managing  Director
of  Schroders plc and Vice Chairman of J Henry Schroder  &  Co
Ltd.     He    is   currently   Chairman   of   De   Nationale
Investeringsbank, a leading wholesale bank in the Netherlands;
Vice  Chairman of Singulus Technologies AG, a German  company,
quoted on the Neuermarkt, which manufactures machinery for the
optical  disc  storage  industry;  non-executive  director  of
Charles  Vogele  Holdings AG, a publicly  quoted  Swiss  based
European  outwear  retailer; and a member  of  the  Investment
Committee  of Algemeen Burgerlijk Pensioenfonds,  one  of  the
world's largest pension funds.

Frederick Mostert (40) - has been appointed as a non-executive
director.

He  is  a  widely published international expert in trademarks
and intellectual property and currently serves on the Industry
Advisory   Commission  of  the  World  Intellectual   Property
Organisation  in  Geneva.   He is  the  Intellectual  Property
Counsel  and executive director of Richemont SA which includes
Cartier, Montblanc, Alfred Dunhill and Van Cleef & Arples.  He
is   Honorary   Chairman   of   the  International   Trademark
Association.

Jonathan  Wales  (43) - has been appointed  as  Group  Finance
Director

He  was  a senior Partner at Wise and Co., a leading  firm  of
Chartered  Accountants based in Surrey. In addition  to  being
responsible for a range of clients within the practice he  has
led  the  corporate  finance department handling  a  range  of
corporate  acquisitions, disposals and  MBOs.  Jonathan  first
worked  in  the Internet industry in 1997 when he  became  the
Partner responsible for the affairs of Virtual Internet, being
involved in a range of acquisition work on its behalf.

In  addition to these appointments Tom Turcan joined the Board
as Chief Operating Office in November 1999.

Tom Turcan (38) - Chief Operating officer

Tom  Turcan  joined VirtualInternet.net plc in November  1999.
Prior  to  this he was Business Development Director  at  News
International plc, the European arm of News Corporation  where
he played a central role in a series of investment initiatives
in  magazines, newspapers, radio, telemarketing and new  media
in  the  UK and Continental Europe.  After completing  an  MBA
from London Business School in 1991, Tom worked for a year  as
a  Strategy  Associate for Gemini Consulting, and  then  spent
four  years as a key member of the corporate development  team
at  Capital Radio plc.  His career began in 1982 as a  systems
consultant and project manager for Logica plc, specialising in
television  and real-time communication systems.  He  holds  a
first  class honours degree in Computational Science  from  St
Andrews University.

These  Board appointments reflect the changing nature  of  the
Group's  business and, in particular, the progression  of  the
Virtual  Internet  Limited business since its  acquisition  by
Charriol  plc  during 1999.  Chris Akers, Peter  Williams  and
David  Rogers have all resigned from the Board effective  from
23rd  February  2000. The Board would like to thank  them  for
their  contributions to the development of the Group and their
consistent support and encouragement.

Current trading and prospects

Over  the coming months, management focus will continue to  be
applied  to  the Group's strategy.  The growth in the  Group's
established markets is continuing and the prospects  for  both
the  existing and new offices are encouraging.  As part of the
Group's strategy, the Board will continue to appraise suitable
acquisition targets.

It  is  also expected that, as soon as practicable, the  Group
will  seek  to  move  to a full listing on  the  London  Stock
Exchange.


VIRTUALINTERNET.NET PLC
GROUP PROFIT AND LOSS ACCOUNT
for the 13 month period ended 31 October 1999

                                   13 month   Unaudited  Unaudited
                                     period    Proforma   Proforma
                                      ended  Year ended Year ended
                                 31 October  31 October 31 October
                                       1999        1999       1998
                                          #           #          #
Turnover
Continuing operations:
    ongoing                               -   1,515,417    438,566
    acquisitions                  1,885,553     555,801          -
                                  ---------   ---------   --------
                                  1,885,553   2,071,218    438,566
Cost of sales                       695,819     721,700     20,390
                                  ---------   ---------   --------
Gross profit                      1,189,734   1,349,518    418,176
                                  ---------   ---------   --------
Selling and distribution costs      640,862     700,693    127,035
Administrative expenses:
  Before goodwill amortisation
    and exceptional items         1,792,123   1,901,457    351,602
  Goodwill amortisation           2,511,523   2,511,523          -
  Employee Benefit Trust charge     635,500     635,500          -
                                  ---------   ---------   --------
                                  4,939,146   5,048,480    351,602
                                  ---------   ---------   --------
                                 (4,390,274) (4,399,655)   (60,461)
Other operating income               12,728      22,003      9,600
                                  ---------   ---------   --------
Operating loss
Continuing operations:
  ongoing                        (3,528,136) (4,072,832)   (50,861)       
  acquisitions                     (849,410)   (304,820)         -
Group operating loss             (4,377,546) (4,377,652)   (50,861)
Share of profit/(loss)
  of associated undertaking           2,483      (7,817)   (35,295)
                                  ---------   ---------   --------
Total operating loss: Group and
  share of associate             (4,375,063) (4,385,469)   (86,156)
Interest receivable and similar
  income                             13,105      13,105         37
Interest payable and
  similar charges                   (44,385)    (56,202)   (42,658)
                                  ---------   ---------   --------
Loss on ordinary activities
  before taxation                (4,406,343) (4,428,566)  (128,777)
Tax on loss on ordinary activities        -           -         35
                                  ---------   ---------   --------
Retained loss for the
  period/year                    (4,406,343) (4,428,566)  (128,812)
                                  ---------   ---------   --------
                                  ---------   ---------   --------

Loss per share - basic and diluted    25.61p

Note: The basis of preparation of the Proforma information  is explained
      in note 2.



VIRTUALINTERNET.NET PLC
GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the 13 month period ended 31 October 1999


                                   13 month   Unaudited   Unaudited
                                     period    Proforma    Proforma
                                      ended  Year ended  Year ended
                                 31 October  31 October 31  October           
                                       1999        1999        1998
                                          #           #           #
Loss for the financial period/year
 attributable to members of the
 parent company                  (4,406,343) (4,428,566)   (128,812)
Exchange difference on
 retranslation of net assets
 of subsidiary undertakings          (5,593)     (2,444)          -
                                  ---------   ---------    --------
Total recognised loss relating
 to the period/year              (4,411,936) (4,431,010)   (128,812)
                                  ---------   ---------    --------
                                  ---------   ---------    --------



GROUP BALANCE SHEET
at 31 October 1999
                                                          Unaudited
                                                           Proforma
                                             31 October  31 October           
                                                   1999        1998
                                                      #           #
FIXED ASSETS
Intangible assets                            13,912,103           -
Tangible assets                                 770,598     415,088
Investments                                           -       1,698
                                             ----------   ---------
                                             14,682,701     416,786
                                             ----------   ---------
CURRENT ASSETS
Stocks                                           20,000           -
Debtors                                         751,860     121,830
Cash at bank and in hand                        828,815         808
                                             ----------   ---------
                                              1,600,675     122,638
CREDITORS: Amounts falling due
  within one year                             1,595,411     471,315
                                             ----------   ---------

NET CURRENT ASSETS/(LIABILITIES)                  5,264    (348,677)
                                             ----------   ---------

TOTAL ASSETS LESS CURRENT LIABILITIES        14,687,965      68,109

CREDITORS: Amounts falling due
  after more than one year                      165,565     188,405
PROVISIONS FOR LIABILITIES AND CHARGES           75,500      35,295
                                             ----------   ---------
                                             14,446,900    (155,591)
                                             ----------   ---------
CAPITAL AND RESERVES
Called up share capital                       5,330,966      10,000
Share premium account                         1,862,838           -
Other reserves                               11,665,032           -
Profit and loss account                      (4,411,936)   (165,591)
                                             ----------   ---------
Shareholders' funds: Equity                  14,446,900    (155,591)
                                             ----------   ---------



GROUP CASHFLOW STATEMENT
for the 13 month period ended 31 October 1999
                                                           13 month
                                                             period           
                                                              ended
                                                         31 October           
                                                               1999
                                                                  #

NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES      (1,323,427)
                                                         ----------
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest received                                            13,105
Interest paid                                               (44,385)
                                                         ----------
                                                            (31,280)
                                                         ----------
TAXATION
Corporation tax paid                                              -
                                                         ----------
CAPITAL EXPENDITURE
Payments to acquire tangible fixed assets                  (419,486)
                                                         ----------
ACQUISITIONS AND DISPOSALS
Purchase of subsidiary undertaking                         (574,222)
Net overdrafts acquired with subsidiary undertaking         (24,892)
                                                         ----------
                                                           (599,114)
                                                         ----------
NET CASH (OUTFLOW)/INFLOW BEFORE USE OF MANAGEMENT
  OF LIQUID RESOURCES AND FINANCING                      (2,373,307)
                                                         ----------
MANAGEMENT OF LIQUID RESOURCES
Increase in short term deposits                            (279,224)
                                                         ----------
FINANCING
Issue of ordinary share capital                           3,598,836
New short-term loans                                              -
Repayment of short-term loans                                (8,808)
Repayment of long-term loans                                (17,130)
New loan notes issued                                      (650,000)
Repayment of loan notes                                     279,224
                                                         ----------
                                                          3,202,122
                                                         ----------
INCREASE IN CASH                                            549,591
                                                         ----------


1. Publication of Non-Statutory Accounts
   The financial information contained in this preliminary statement
   does not constitute statutory  accounts as defined in section 240
   of the Companies Act  1985.   The  financial information  for the
   thirteen month period to 31 October 1999 is based on the statutory
   accounts for that  financial period. Those accounts,  upon  which
   the auditors issued  an unqualified opinion, have  not  yet  been
   delivered  to  the  Registrar of Companies.
   The proforma financial information  has  not  been  audited.  The
   basis of presentation is explained below.
   Following are extracts from the notes  to  the statutory accounts
   for the period ended 31 October 1999.

2. Accounting Policies
   Basis of preparation
   The financial information has been prepared under the  historical
   cost convention and in accordance with applicable United  Kingdom
   accounting standards.

   Basis of consolidation
   The group accounts consolidate the results of VirtualInternet.net
   plc and its subsidiary undertakings  from  their respective dates
   of acquisition.
   Virtual Internet Limited, Net Searchers International Limited and
   Virtual Internet SarL have been included in the financial information
   using  the  acquisition  method  of accounting.  Accordingly, the
   group profit and loss account and statement of cash flows include
   the results and cash flows of these entities for the periods from  
   acquisition on 19 January 1999, 19  April  1999 and 28 April 1999  
   respectively.  The  purchase consideration  has been allocated to
   assets and liabilities  on the basis of fair value at the date of   
   acquisition.
   Undertakings, other than subsidiary  undertakings, in  which  the
   group  has an  investment and  over which it is in a position  to
   exercise  a   significant  influence  are treated  as  associated
   undertakings.     The   financial   information    includes   the
   appropriate share of these undertakings' results and reserves.

   Proforma information
   The underlying ongoing trade of the  group was   carried  out  by
   Virtual  Internet  Limited and its subsidiaries  until 19 January
   1999  and  by   VirtualInternet.net  plc  and  its  subsidiaries,
   including Virtual Internet Limited, thereafter.  Accordingly, the
   directors have  also  presented proforma information for the year
   ended  31  October  1998  and  31  October  1999.  This  proforma    
   information for the year ended 31 October  1998  is  based on the
   results of Virtual Internet Limited.   The  proforma  information
   for  the  year  ended 31 October  1999 is based on the results of
   Virtual  Internet  Limited   for   the   period   prior   to  its        
   acquisition by VirtualInternet.net plc on 19 January 1999 together
   with  the consolidated  results  of  VirtualInternet.net  plc and
   its subsidiary  undertakings, including Virtual Internet  Limited,  
   for  the period from 19 January 1999 to 31 October 1999.      The
   proforma    results    have   been  prepared   under   consistent
   accounting  policies   with  the  current  year.   The  directors
   believe  that  this  additional information provides shareholders
   with   more   meaningful  information  than  that  given  in  the
   statutory accounts alone.

   Goodwill
   Goodwill  arising  on  consolidation  represents   the excess  of
   fair value of the consideration paid over the  fair value of  the    
   identifiable net assets acquired. Goodwill  has been  capitalised
   and amortised on a straight line basis  over its estimated useful
   economic life.  The expected  useful economic life is five years.
  
   Goodwill is reviewed for impairment at the end of  the first full
   financial year following the acquisition  and  in  other  periods
   if  events or changes in circumstances indicate that the carrying
   value may not be recoverable.

   Revenue recognition
   Revenue relating to  time  based  services  which  is invoiced in
   advance is deferred in the balance  sheet  and  released  to  the
   profit and loss account in the periods in which the services  are 
   provided.   All  other  revenue  is recognised on an earned basis.

   Cost of share option scheme and employee benefit trust
   In accordance with Urgent Issues Task Force Statement 17 (UITF 17),
   the  company recognises a charge to the profit  and  loss  account
   for the amount by which the fair market value of any share options
   or benefits likely to be issued exceeds  their respective exercise
   price on the date of  the  grant. These costs  are recognised on a
   straight line basis over the period to  which  they  relate.
   All the employees of the  Company  are potential  beneficiaries of
   shares or share options which may become available to the Employee
   Benefit Trust of the Company established during the year. Although
   no employee has an absolute right to receive any shares or interest
   in  shares, the company has recognised a charge for the full amount
   of all potential entitlements communicated to employees as  at  31
   October 1999. In  addition, provision is made  for the   estimated
   liability for Employer's National Insurance on the expected number
   of shares which will be  issued  using  the market  value  of  the    
   company's shares at the  balance  sheet date.

3. Notes to the statement of cash flows
   (a) Reconciliation of operating loss to net cash  (outflow)/inflow
       from operating activities

                                                         Period ended
                                                           31 October
                                                                 1999
                                                                    #
   Operating loss                                          (4,375,063)
   Depreciation                                                62,884
   Amortisation of goodwill                                 2,511,523
   Share of (profit)/loss in associated undertakings           (2,483)
   Increase in stocks                                          (6,000)
   Increase in debtors                                       (525,934)
   Increase in creditors                                      376,146
   Increase in other provisions                                75,500
   Charge in connection with employee
     benefits trust under UITF 17                             560,000
                                                           ----------
   Net cash (outflow)/inflow from operating activities     (1,323,427)
                                                           ----------

   (b) Analysis of changes in net funds
   
                          As at start                            As at end
                                   of        Cash  Acquisitions/        of
                               Period        Flow     Disposals     Period
                                    #           #             #          #

Cash at bank and in hand            -     549,591             -    549,591
                              -------   ---------      --------   --------
Cash                                -     549,591             -    549,591
Short term deposits*                -     279,224             -    279,224
Loans                               -      25,938      (256,347)  (230,409)
Loan notes                          -     370,776      (650,000)  (279,224)
                              -------   ---------      --------   --------
                                    -   1,225,529      (906,347)   319,182
                              -------   ---------      --------   --------

*  Short term deposits are included within cash at bank and in hand in the
   balance sheet.


END

FR GGGDDDXDGGGS


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