RNS Number:3236I
All New Video PLC
31 August 2006
ALL NEW VIDEO PLC
Preliminary results for the period to 31 May 2006
All New Video Plc ("the Company" or "All New Video") publishes its maiden
preliminary results for the period ended 31 May 2006.
Highlights
2006
Turnover (#) 537,139
Trading loss for the period (750,789)
Exceptional item - impairment of goodwill (3,036,946)
Loss for the period (#) (3,787,735)
Basic loss per ordinary share (p) (6.25)
Chairman's Statement
Review of operations
I am now able to report on the results for our first statutory accounting
period, being the 16 months ended 31st May 2006, incorporating the 9 month
trading period following the acquisition of All New Video Limited on 31 August
2005, which has resulted in a loss before taxation of #3,787,735. The loss for
the period includes goodwill impairment of #3,036,946. The trading loss for the
period, excluding the impairment of goodwill amounted to #750,789. The company
has a current cash position of #129,722. In addition, the original All New
Video Limited shareholders are paying a call to the Company of #160,000 for
share capital unpaid. Whilst this will increase the cash balance by #160,000,
there will be no impact on the net assets of the Company.
A working capital facility of up to #250,000 has been provided by Ruffler Bank
plc to the Company. Under the terms of this facility, the Company will pay
interest on all outstanding amounts to Ruffler Bank plc on their normal banking
terms. In addition, the Company will provide Ruffler Bank plc with warrants
giving Ruffler Bank plc the right to subscribe at any time until 30 August 2009
for 3,500,000 ordinary shares in the Company at a price being the lower of 3
pence per ordinary share and the price of ordinary shares issued at any placing
or raising of new equity until 30 August 2008. The provision of this facility
to the Company may be defined as a related party under the AIM Rules. The
Directors, with the exception of David Barton who is also a director of Ruffler
Bank plc, consider, having consulted with the Company's nominated adviser, that
the terms of the facility are fair and reasonable insofar as shareholders are
concerned.
As advised in the updated trading statement, issued in March this year, the '
take up' of our services has been significantly below what we had projected at
the time of the reversal into Gordian Investments Plc, in August 2005.
As soon as we became aware of this situation, all overheads were critically
reviewed and appropriate measures have been taken to reduce costs.
I am pleased to advise that during the period a number of valuable contracts
have been signed, the most significant of which is with the BBC and announcement
of this has generated significant interest in All New Video's services from
other television broadcasters, both in the UK and abroad.
Investment has been made in increasing the capacity of our network, and we are
now in a position to process significant increased volumes, without the need for
further capital investment in the foreseeable future.
The future
The market in which we operate remains in its infancy and the 'take up' of 3G
services has, to date, fallen well below the expectations of not only your
board, but also the management of leading companies in the telecommunications
sector, worldwide. To put this statement into perspective, the current number of
mobile handsets in the UK is approximately 50m of which, to date, approximately
only 10% have migrated to 3G technology.
All New Video remains at the forefront of mobile video; this is evidenced by the
customer contracts we have won and those we are currently negotiating. It is
for this reason that I remain confident that having established a robust
platform and developed converged services on fixed as well as mobile devices,
our business will steadily grow; albeit at a slower pace than I had originally
hoped.
Your board is actively looking for opportunities to buy other businesses engaged
in the sector, both in the United Kingdom and abroad with the intention of
significantly accelerating our growth rate, improving operating mass and
increasing our standing in the market place.
As a consequence of our performance falling below the performance targets
indicated in the admission document issued by Gordian Investments Plc, I and the
other original shareholders of All New Video Limited have agreed to forgo any
earn-out consideration. Were this consideration to have become due, it would
have been satisfied by the allotment of a further 71,428,571 shares in the
Company, which would as a consequence have diluted all other shareholders. In
recognition of our current performance, this would have not been in the best
interests of our shareholder base, or the best interests of your Company.
I would like to extend my sincere thanks to my colleagues, for agreeing to this
significant variation to their rights.
For further information please contact:
David Atkins
All New Video plc +44(0)8702401482
ALL NEW VIDEO PLC
GROUP PROFIT AND LOSS ACCOUNT
For the period ended 31 May 2006
2006
#
TURNOVER 537,139
Cost of sales (376,328)
Gross profit 160,811
Administrative expenses (929,171)
Exceptional item - impairment of goodwill (3,036,946)
LOSS ON ORDINARY ACTIVITIES BEFORE INTEREST (3,805,303)
Interest payable (4,449)
Interest receivable 22,017
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (3,787,735)
Taxation on ordinary activities -
LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (3,787,735)
Basic and diluted loss per share 6.25p
ALL NEW VIDEO PLC
GROUP BALANCE SHEET
As at 31 May 2006
2006
#
FIXED ASSETS
Intangible assets 1,000,000
Tangible assets 328,657
1,328,657
CURRENT ASSETS
Debtors 359,970
Cash at bank and in hand 148,930
508,900
CREDITORS: amounts falling due within one year (576,856)
NET CURRENT LIABILITIES (67,956)
TOTAL ASSETS LESS CURRENT LIABILITIES 1,260,701
CREDITORS: amounts falling due after more than one year (64,210)
TOTAL NET ASSETS 1,196,491
CAPITAL AND RESERVES
Share capital 864,072
Share premium account 4,120,154
Profit and loss reserve (3,787,735)
Shareholders' funds - equity 1,196,491
ALL NEW VIDEO PLC
GROUP STATEMENT OF CASHFLOWS
For the period ended 31 May 2006
2006
#
NET CASH OUT FLOW FROM OPERATING ACTIVITIES (428,286)
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest received 22,017
Interest paid (4,449)
NET CASH INFLOW FROM RETURNS ON INVESTMENTS AND SERVICING OF FINANCE 17,568
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Payments to acquire tangible fixed assets (149,094)
Acquisition of subsidiary undertaking (369,760)
NET CASH OUTFLOW FROM CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT (518,854)
NET CASH OUTFLOW BEFORE FINANCING (929,572)
FINANCING
Issue of ordinary share capital 1,259,500
Expenses paid in respect of share issue (150,275)
Payments in respect of lease agreements (38,974)
1,070,251
INCREASE IN CASH 140,679
ALL NEW VIDEO PLC
NOTES TO THE PRELIMINARY ANNOUNCEMENT
For the period ended 31 May 2006
1. Basis of preparation
The Board approved the preliminary accounts for the period 31 January 2005 to 31
May 2006 on 31 August 2006. The financial information contained in this
Preliminary Report has been prepared using accounting policies and practices
consistent with those used in preparing the statutory accounts.
The financial information set out in the Admission Document issued in relation
to the admission of All New Video PLC to the AIM market ("AIM") on 31 August
2005 was prepared on the basis that the Company had owned a 100% share in All
New Video Limited (incorporated in England and Wales), Sonic Telecom Limited
(incorporated in Ireland) and All New Video LLC (incorporated in USA) and a 99%
share in All New Video France SARL (incorporated in France).
2. Dividends
The Directors do not recommend the payment of a dividend.
3. Group turnover and segmental analysis
Turnover represents the amount derived from the provision of goods and services
falling within the Group's activities exclusive of value added tax. Turnover,
profit before tax and net assets are all attributable to one continuing
activity, being the provision of 3G-related services to the telecoms industry,
as well as more traditional videoconferencing services.
4. Loss per share
The basic loss per share is calculated on the basis of the profits attributable
to ordinary shareholders of #659,315 divided by the weighted average number of
shares during the period of 60,585,268.
Diluted loss per share is the basic earnings per share after allowing for the
dilutive effect of the conversion into Ordinary shares of the weighted average
number of options outstanding during the period. The total number of shares used
to calculate the diluted earnings is 60,585,268.
5. Notes to statement of cashflows
(a) Net cash out flow from operating activities
2006
#
Operating loss (3,805,303)
Depreciation charges 104,238
Amortisation and impairment of goodwill 3,194,230
Increase in debtors (50,171)
Increase in creditors 128,720
(428,286)
ALL NEW VIDEO PLC
NOTES TO THE PRELIMINARY ANNOUNCEMENT (CONTINUED)
For the period ended 31 May 2006
5. Notes to statement of cashflows (continued)
(b) Reconciliation of net cashflow to movement in net funds
2006
#
Increase in cash in the period 140,679
Cash outflow from decrease in lease financing 38,974
Debt acquired on acquisition (149,141)
Movement in net funds in the period 30,312
Net funds at 31 January 2005 -
Net funds at 31 May 2006 30,312
(c) Analysis of net debt
At 31/1/05 Cash flow Acquisitions At 31/05/06
# # # #
Net cash:
Cash at bank and in hand - 140,679 8,251 148,930
Debt:
Finance leases - 38,974 (157,592) (118,618)
- 179,653 (149,141) 30,312
6. Reconciliation of movement in shareholders funds
2006
#
Loss for the financial period (3,787,735)
Share capital issued 864,072
Share premium on new share capital 4,120,154
Movement in shareholders funds 1,196,491
Shareholders funds at 31 January 2005 -
Shareholders funds at 31 May 2006 1,196,491
This information is provided by RNS
The company news service from the London Stock Exchange
END
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