RNS Number:6192S
Documedia Solutions PLC
28 November 2003
28 November 2003
Documedia Solutions plc
Interim results
CHAIRMAN'S STATEMENT
Our primary business is providing high impact marketing support material for the
property, retail and leisure sectors. We are excited by the developments in the
business and the opportunities in this area and recommend that our shareholders
visit our web site www.documedia.co.uk
As mentioned in the Chairman's statement in the last Annual Report, our strategy
is to improve corporate processes and costs by creating, publishing and
controlling their personalised marketing campaigns. We are specifically
targeting good quality long-term business that is either contracted or defined
within an ongoing supply agreement. We continue to extend our pipeline prospects
within our target sectors. It is encouraging to note that 60 per cent of our
revenues are now generated through our e-commerce system.
The results for the half-year to 31 August 2003 are a substantial improvement
over previous periods although a loss before taxation of #365,386 (2002:
#1,053,333) was incurred. This was much in line with expectations after the
substantial restructuring that took place earlier in the year.
It is important to note that, while the decrease in cash in the period was
#365,048, #233,275 of this related to the reorganisation, business integration
and other exceptional costs.
At the end of the period we sold the freehold interest in our Cheltenham
property whilst still retaining a lease on enough space to continue our business
there. The consideration was #765,000 of which #165,000 is deferred for 21
months.
After reflecting the sale of the Cheltenham property, the net current assets as
at 31 August were #497,395 compared to #173,593 as at 28 February 2003.
We recently announced the absorption of our small Birmingham operation into our
Bury St Edmunds stationery business which will allow us to sell our freehold
premises in Solihull. After moving costs and some redundancy payments we expect
to release further capital without any reduction in our trading position.
The first tranche of three of stock acquired in Triple Arc for the sale of our
software business has been sold in excess of our book cost and we have decided
to continue our remaining investment for the time being.
The second six months period has started encouragingly and we expect to continue
the improvement shown in the last period.
If in future you would like to receive results by email, please email us at
investor@documedia.co.uk.
J W Tayler
Chairman
Documedia Solutions plc
GROUP PROFIT AND LOSS ACCOUNT
(unaudited) (unaudited) (audited)
6 month 6 month 12 month
period period period
ended ended ended
31-Aug 31-Aug 28-Feb
2003 2002 2003
# # #
TURNOVER
Continuing operations: 4,073,671 4,624,694 8,517,149
Acquisitions - - 425,500
Discontinued operations - 126,090 139,508
GROUP TURNOVER 4,073,671 4,750,784 9,082,157
Cost of sales (2,428,343) (2,949,847) (6,387,684)
Gross profit 1,645,328 1,800,937 2,694,473
Administrative expenses - normal (2,019,407) (2,584,193) (4,364,859)
Administrative expenses - exceptional - (100,000) (820,925)
OPERATING LOSS
Continuing operations: (374,079) (597,050) (2,001,595)
Acquisitions - - (111,553)
Discontinued operations - (286,206) (378,163)
GROUP OPERATING LOSS (374,079) (883,256) (2,491,311)
Reorganisation and business integration costs - (185,592) (185,592)
Gain on sale of property 27,388 - -
Loss on disposal of trading division - - 133,830
LOSS ON ORDINARY ACTIVITIES BEFORE INTEREST (346,691) (1,068,848) (2,543,073)
Net interest receivable/(payable) (18,695) 15,515 13,443
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (365,386) (1,053,333) (2,529,630)
Taxation - - 7,479
LOSS FOR THE PERIOD (365,386) (1,053,333) (2,522,151)
LOSS PER SHARE
Basic
(1.05p) (3.04p) (7.28p)
Diluted
(1.05p) (3.04p) (7.28p)
The Group had no recognised gains and losses other than those included in the
profit and loss account above.
Documedia Solutions plc
GROUP BALANCE SHEET
(unaudited) (audited)
31-Aug 28-Feb
2003 2003
# #
FIXED ASSETS
Intangible assets 149,078 165,642
Tangible assets 757,696 1,667,924
Investments 11,533 11,533
918,307 1,845,099
CURRENT ASSETS
Stocks 329,955 315,373
Debtors-amounts due in more than one 165,000 -
year
Debtors-amounts falling due within one 2,307,739 1,984,357
year
Cash at bank and in hand 31 25,048
2,802,725 2,324,778
CREDITORS: amounts falling due within (2,305,330) (2,151,185)
one year
NET CURRENT ASSETS 497,395 173,593
TOTAL ASSETS LESS CURRENT LIABILITIES 1,415,702 2,018,692
CREDITORS: amounts falling due in more (9,071) (13,400)
than one year
Provision for liabilities and charges (225,815) (459,090)
1,180,816 1,546,202
CAPITAL AND RESERVES
Called up share capital 401,133 401,133
Share premium account 7,859,888 7,859,888
Merger reserve 1,162,400 1,162,400
Profit and loss account (8,242,605) (7,877,219)
SHAREHOLDERS' FUNDS
Equity interests 1,180,816 1,546,202
Documedia Solutions plc
GROUP STATEMENT OF CASH FLOWS
(unaudited) (unaudited) (audited)
6 month 6 month 12 month
period period period
ended ended ended
31-Aug 31-Aug 28-Feb
2003 2002 2003
# # #
NET CASH OUTFLOW FROM OPERATING ACTIVITIES (291,539) (1,124,060) (1,856,015)
Interest paid (18,695) - -
Interest received - 15,515 13,443
(18,695) 15,515 13,443
CAPITAL EXPENDITURE
Payments to acquire tangible fixed assets (50,213) (162,671) (120,459)
Receipt from sale of tangible fixed assets - - 6,949
Net cash outflow on capital expenditure (50,213) (162,671) (113,510)
ACQUISITIONS
Purchase of subsidiary undertakings - - (98,641)
Net overdraft acquired with subsidiary - - (26,669)
Sale of trade and assets - - 71,925
NET CASH OUTFLOW FROM ACQUISITIONS - - (53,385)
FINANCING
Repayment of bank loan (4,329) - (2,886)
Capital element of hire purchase contracts (272) - (28,401)
Net cash outflow from financing (4,601) - (31,287)
DECREASE IN CASH (365,048) (1,271,216) (2,040,754)
Documedia Solutions plc
RECONCILIATION OF NET CASH FLOW TO MOVEMENTS IN NET FUNDS
(unaudited) (unaudited) (audited)
6 month 6 month 12 month
period period period
ended ended ended
31-Aug 31-Aug 28-Feb
2003 2002 2003
# # #
Decrease in cash in the period (365,048) (1,271,216) (2,040,754)
Cash outflow from decrease in debt 4,601 - 31,287
Change in debt resulting from cash flows (360,447) (1,271,216) (2,009,467)
Bank loan acquired with subsidiary - - (24,945)
Hire purchase obligations acquired with subsidiary - - (28,673)
Movement in net (debt)/funds in year (360,447) (1,271,216) (2,063,085)
Opening net funds (437,355) 1,625,730 1,625,730
Closing net funds (797,802) 354,514 (437,355)
RECONCILIATION OF SHAREHOLDER FUNDS
(unaudited) (unaudited) (audited)
6 month 6 month 12 month
period period period
ended ended ended
31-Aug 31-Aug 28-Feb
2003 2002 2003
# # #
Loss for the period (365,386) (1,053,333) (2,522,151)
Loss for the period (365,386) (1,053,333) (2,522,151)
SHAREHOLDERS' FUNDS AT START OF PERIOD 1,546,202 4,068,353 4,068,353
SHAREHOLDERS' FUNDS AT END OF PERIOD 1,180,816 3,015,020 1,546,202
Documedia Solutions plc
Notes to the Interim Statement
1 Basis of preparation
The interim financial statements have been prepared on the basis of the
accounting policies set out in the Group's statutory accounts for the period
ended 28 February 2003 and have not been audited or reviewed by the Group's
auditors. The financial information contained in this interim statement does
not constitute statutory accounts as defined in Section 240 of the Companies Act
1985.
The statutory accounts for the year ended 28 February 2003, on which the
auditors have given a qualified opinion, have been filed with the Registrar of
Companies. The auditors' report did not include a statement under Sections 237
(2) or (3) of the Companies Act 1985. The auditors' report included the
following qualification of their opinion:
"Included in provisions for liabilities and charges of the Group is an amount of
#226,000 in respect of redundancy payments made to employees in March 2003. The
directors have included the provision on the basis that the board passed a
resolution on 27 February 2003 approving these costs. In our opinion no
provision should have been made against these costs as the Group did not have an
actual or constructive obligation to make these payments at 28 February 2003.
The loss before tax should be reduced by the same amount".
2 Basis of consolidation
The group accounts consolidate the accounts of Documedia Solutions
plc and its subsidiary undertakings.
3 Loss per ordinary share
The calculation of basic and diluted loss per ordinary share is based on the
loss of #365,386 for the six months (six months to 31 August 2002 - #1,053,333)
and on 34,660,000 ordinary shares, (2002 - 34,660,000 shares) being the weighted
average number of ordinary shares in issue during the period, after excluding
the shares owned by the employee share trust.
Shares that could potentially dilute basic earnings per share in the future
include share options and warrants. However as the issue of these shares would
not increase the loss per share there is no dilutive effect.
4 Reconciliation of operating loss to net cash outflow from
operating activities:
(unaudited) (unaudited) (audited)
6 month 6 month 12 month
period period period
ended ended ended
31-Aug 31-Aug 28-Feb
2003 2002 2003
# # #
Operating loss (374,079) (883,256) (2,491,311)
Reorganisation and business integration costs (226,000) (185,592) (185,592)
Payments on onerous lease of former premises (7,275) - -
Provision for impairment in value of freehold property - 100,000 210,000
Provision for impairment in value of goodwill - - 326,835
Amortisation of goodwill 16,564 38,406 -
Provision for impairment in value of investments - - 3,750
Profit on disposal of fixed assets - - (5,449)
Depreciation of tangible fixed assets 251,002 271,897 524,083
Increase in stock (14,582) (86,910) (39,884)
Decrease/(increase) in debtors 276,618 (576,294) (208,226)
(Decrease)/increase in creditors (213,787) 197,689 9,779
Net cash flow from operating activities (291,539) (1,124,060) (1,856,015)
5 This interim statement will be posted to all shareholders of the
company and is available at Documedia Solutions plc's registered office at
Truscott House, 32-42 East Road, London N1 6AD.
This information is provided by RNS
The company news service from the London Stock Exchange
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