22 November 2006
Adwalker Plc
("the Company" or "the Group")
Interim results for the six months ended 31 August 2006
The Board of Adwalker, the AIM listed specialist in wearable media solutions,
is pleased to announce its interim results for the six months ended 31 August
2006.
The Adwalker mobile out-of-home, interactive media platform is an advertising
and media platform which is worn by its operators ('Adwalkers') as a compact
body pack incorporating a LCD screen, wearable computer, touch screen and
printer, enabling services and applications which include brand advertising,
point-of-sale, data capture and promotions.
KEY POINTS
* Turnover for the period was Euro937,756 (2005: Euro186,988);
* Loss before tax of Euro1,597,969 (2005: Euro908,310);
* Cash at bank at period end amounted to Euro402,655;
* Number of Adwalkers available to clients: 330;
* Significant client wins in the last two months including Bank of America,
Nivea (Beiersdorf AG), Unilever plc and AT&T Corp in the USA
* July 2006: agreement with JCDecaux Airport;
* June 2006: access agreement with Brandspace Limited;
Commenting on today's results Adwalker's Chairman, Padraic O'Connor, said:
"The Board is pleased with the Group's performance in the first half of the
fiscal period and since the period end, and is confident that the strategies
being pursued will result in significant growth in 2007.
"A number of client initiatives are currently under negotiation and we expect
to be in a position to announce further agreements in the near future."
Enquiries:
Adwalker plc Tel: +353 (1) 866 9000
Simon Crisp (Group Chief Executive) Mobile: +353 (87)
6622666
John East & Partners Limited (Nomad) Tel: 020 7628 2200
David Worlidge/Simon Clements
KBC Peel Hunt (Broker) Tel: 020 7418 8900
Matt Goode Tel: 020 7562 3350
Bishopsgate Communications Ltd (IR & PR)
Dominic Barretto
Adwalker's shares were admitted to trading on the AIM market of the London
Stock Exchange in August 2005. (Ticker: AWR) Its headquarters are in Dublin,
with offices in New York and London.
Chairman's Statement
I am pleased to present the interim results of the Group for the six months
ended August 2006.
The Group has made considerable progress in the first six months of this fiscal
year resulting in a significant uplift in turnover with contributions made from
all three of our operating territories of the USA, Ireland and UK. We have also
deployed campaigns in Germany, France, Spain and Holland over the period.
Turnover for the period was Euro937,756 (2005: Euro186,988) and gross profits were Euro
445,229 (2005: Euro123,743). The Company generated a loss before tax of Euro1,597,969
(2005: Euro908,310) partly due to an increase in personnel costs relating to the
establishment of fully operational teams within our key regional offices. The
loss per share for the period amounted to 0.95 cents (2005:0.72 cents). As at
31 August 2006 bank balances amounted to Euro402,655.
The majority of Adwalker's revenues to date have been derived mainly from the
UK and Ireland. However, the Board is greatly encouraged by the progress in
recent weeks in the USA, potentially our biggest market. Significant clients
wins in the USA in the last two months have included Bank Of America, Nivea
(Beiersdorf AG), AT&T Corp and Unilever plc. The progress made in the first six
months of the fiscal period has been maintained in the last quarter of the year
and whilst the majority of our order book is short term at present,
cumulatively, September and October were the two largest revenue generating
months in Adwalker's history. The Board is confident of continued growth in the
last four months of the fiscal period.
Independent client research has shown that the use of Adwalker's mobile
out-of-home, interactive media platform is effective across a number of media &
advertising disciplines Blue chip clients using Adwalker in Telecoms, Finance,
Alcohol, Retail and Automotive related campaigns have, to date, achieved very
good results.
In August, Adwalker announced the ability, via its platform, to provide
customers with instant music and video downloads direct to portable digital
audio and video players (i.e. MP3 and iPod) - anywhere and at anytime. The
Directors believe the application will provide music or film rights owners with
a new channel enabling them not only to advertise their artist but, also, by
sending the content to a consumer's personal device, facilitate
real-time-sales.
Whilst the Board believes that the Group's existing clients are amongst the
early adopters within their sectors, it is clear that the lengthy client
adoption cycle that we have encountered to date in the use of new media
platforms and techniques is beginning to shorten. This has resulted in clients
actively considering the Adwalker platform as an alternative to traditional
media, such as TV, Radio or Press.
The Board anticipates that a significant number of its clients, in the
knowledge that the Company has established fully operating teams in a number of
regional offices, will be actively considering and recommending that Adwalkers
play an integral part in their advertising strategies and budgets for 2007.
The Board is pleased with the Group's performance in the first half of the
fiscal period and since the period end and is confident that the strategies
being pursued will result in significant growth in 2007.
A number of client initiatives are currently under negotiation and we expect to
be in a position to announce further agreements in the near future.
PADRAIC O'CONNOR
CHAIRMAN
22 November 2006
Interim Consolidated Balance Sheet - Unaudited
As at 31 August 2006
Notes 31 August 31 August 28 February
2006 2006
2005
(unaudited) (audited)
Restated
(unaudited)
Euro Euro Euro
Assets
Non-current assets
Plant and equipment 889,868 898,555 1,081,117
Intangible assets 408,134 370,052 470,370
1,298,002 1,268,607 1,551,487
Current assets
Inventories - 3,193 5,390
Trade and other receivables 3 637,638 196,385 516,604
Bank and cash balances 402,655 4,155,548 1,892,892
1,040,293 4,355,126 2,414,886
Total assets 2,338,295 5,623,733 3,966,373
Equity and liabilities
Capital and reserves
Share capital 3,372,664 3,372,664 3,372,664
Capital reserves 5,392,689 5,392,689 5,392,689
Share Options 464,617 331,685 434,684
Accumulated losses (7,608,284) (4,076,016) (6,010,316)
Total equity 1,621,686 5,021,022 3,189,721
Non current liabilities
Obligations under finance 82,146 - 101,405
leases - due after one year
82,146 - 101,405
Current liabilities
Trade and other payables 494,370 472,169 584,413
Bank overdrafts and loans - 25,769 32,603 28,805
due within one year
Tax liabilities 75,806 97,939 23,511
Obligations under finance 38,518 - 38,518
leases - due within one year
634,463 602,711 675,247
Total equity and liabilities 2,338,295 5,623,733 3,966,373
Interim Consolidated Income Statement - Unaudited
For the six months ended 31 August 2006
Notes 6 months 6 months Year ended
ended
ended 28 February
31 August 2006
31 August 2005
2006 (audited)
restated
(unaudited)
(unaudited)
Euro Euro Euro
Revenue - continuing operations 937,756 186,988 627,639
Cost of sales (492,527) (63,245) (328,608)
Gross profit 445,229 123,743 299,031
Other operating income - 200 -
Distribution costs (29,191) - (14,265)
Administrative and other (2,042,887) (1,035,881) (3,154,575)
operating expenses
Loss from operations - continuing (1,626,849) (911,938) (2,869,809)
operations
Finance costs (1,691) (2,074) (6,175)
Income from investments 34,518 5,702 8,006
Exchange (loss)/profit (3,947) - 25,368
Loss before tax - continuing (1,597,969) (908,310) (2,842,610)
operations
Income tax expense - - -
Net Loss for the year - (1,597,969) (908,310) (2,842,610)
continuing operations
Loss per share
Basic loss per share (0.95 (0.72 (1.92
cents) cents) cents)
Diluted loss per share (0.95 (0.72 (1.92
cents) cents) cents)
Interim Consolidated Statement of Changes in Equity - Unaudited
For the six months ended 31 August 2006
Share Share Share Accumulated Total
capital Premium losses equity
Options
Euro Euro Euro Euro
Euro
Balance at 1 March 2006 3,372,664 5,392,689 434,684 (6,010,316) 3,189,721
Net loss for the period - - - (1,597,969) (1,597,969)
Share Options - - 29,933 - 29,933
Shares Issued
Balance at 31 August 2006 3,372,664 5,392,689 464,617 (7,608,284) 1,621,686
Interim Consolidated Cash Flow Statement - Unaudited
For the six months ended 31 August 2006
6 months 6 months ended Year ended
ended 31
August 2006 31 August 2005 28 February
2006
(unaudited) Restated
(audited)
(unaudited)
Euro Euro Euro
Operating activities
Cash receipts from customers 745,211 76,056 172,376
Cash paid to suppliers and (2,150,104) (539,390) (2,432,623)
employees
Cash generated by operations (1,404,893) (463,334) (2,260,247)
Interest paid (1,691) (2,074) (6,175)
Net cash outflow from (1,406,584) (465,408) (2,266,422)
operating activities
Investing activities
Interest received 34,518 5,702 8,006
Purchase of plant and (82,056) (502,901) (1,214,000)
equipment and ACOMS
Purchase of patents and (13,820) (138,920) (27,892)
trademarks
Net cash used in investing (61,358) (636,119) (1,233,886)
activities
Financing activities
Shares issued - 5,026,385 5,026,385
(Decrease)/Increase in (19,259) - 139,923
finance leases
(Decrease)/Increase in bank (3,036) 30,692 26,894
overdrafts
Net cash (outflow)/inflow (22,295) 5,057,077 5,193,202
from financing activities
Net (decrease)/increase in (1,490,237) 3,955,550 1,692,894
cash and cash equivalents
Cash and cash equivalents at 1,892,892 199,998 199,998
beginning of year
Bank balances and cash 402,655 4,155,548 1,892,892
Operating activities
Net loss before taxation (1,597,969) (908,310) (2,842,610)
Adjustments for:
Depreciation 273,305 138,268 384,601
Share options 29,933 105,313 208,312
Amortisation of ACOMS system 76,056 52,865 124,262
and patents
Investment income (34,518) (5,702) (8,006)
Interest expense 1,691 2,074 6,175
Operating cash flows before (1,251,502) (615,492) (2,127,806)
movements in working capital
Decrease/(Increase) in 5,390 1,162 (1,134)
inventories
Increase in receivables (121,034) (122,287) (443,920)
Decrease/(Increase) in (37,748) 273,283 312,613
payables
Cash generated by operations (1,404,893) (463,334) (2,260,247)
Interest paid (1,691) (2,074) (6,175)
Net cash outflow from (1,406,584) (465,408) (2,266,422)
operating activities
Notes to the Interim Financial Statements
For the period ended 31 August 2006
1. General
Adwalker is a public limited company incorporated in Ireland. The Company has
subsidiaries located in the United Kingdom, United States and Hong Kong. .
These financial statements are presented in Euro as that is the currency in
which the majority of the Group's transactions are presently denominated.
2. Basis of Preparation of the interim financial statements
The interim financial statements have been prepared on a basis which is
consistent with the accounting policies adopted for the period to 28 February
2006.
The financial information contained in the interim financial statements does
not constitute statutory accounts as defined within the meaning of the
Companies Act 1963 to 2005. Comparative figures for the period to 28 February
2006 have been extracted from the latest financial statements on which the
report of the independent auditors was unqualified.
The interim accounts which are abridged and unaudited, do not include all the
information required for full annual financial statements.
The interim financial statements have been prepared in accordance with the
International Financial Reporting Standards.
Share Options
Under IFRS 2, the company is required to recognise as a charge to the profit
and loss account (and a corresponding entry to other reserves), the amount by
which the value of shares at the date of granting share options to employees
exceeds the value at which employees can exercise the options granted. These
costs are recognised over the vesting period. The charge is included in
administrative expenses in the profit and loss account. The charge is notional
in that there is no underlying cash flow or other financial liability
associated with the charge, nor does it give rise to a reduction in assets or
shareholders' funds.
3. Trade and other receivables
31 August 31 August 28 February
2006 2005 2005
Unaudited Unaudited Audited
Euro Euro Euro
Trade receivables, net of provisions 540,603 121,826 437,468
for doubtful debts
Other receivables 72,407 42,841 46,169
Consumables 24,628 31,718 32,967
637,638 196,385 516,604
The Directors consider that the carrying amount of trade and other receivables
approximates their fair value.
4. Share Options
The company's share option scheme was adopted by the Board of Directors on 28
April 2005. Under the scheme, the Board of Directors of the company may grant
options to certain employees, including directors, to subscribe for shares of
the company.
No consideration is payable on the grant of an option. Options may generally be
exercisable on the first anniversary of the date of grant of the share option
and expiring at the close of business on the eighth anniversary of the date of
grant. The exercise price is determined by the directors of the company.
The Black-Scholes method pricing model has been used to calculate the fair
value of the options granted and these have been recognised over the period of
vesting, which on average is 3 years.
The principal assumptions used are
No dividends.
In total 7,915,000 share options had been granted up to the year ended 28
February 2006 at a weighted average price of 0.107 cent. As at 31 August 2006
all these share options were outstanding. There were no share options granted
during the period ended 31 August 2006.
5. Loss per share
Basic loss per share is based on a loss of Euro1,597,969, 2005: Euro908,310) (Year
ended 28 February 2006: Euro2,842,610) and a weighted average number of shares in
issue of 168,633,087, (2005: 126,966,420 (Year ended 28 February 2006:
147,799,754).
In 2006 the diluted loss per share has been calculated on the same basis as
basic loss per share because the effect of the potential ordinary shares (share
options) reduces the net loss per share and is therefore anti-dilutive.
6. Dividends
The Directors are not proposing the payment of a dividend in respect of the six
months ended 31 August 2006.
7. Copies of accounts will be sent to shareholders shortly and will also be
available at the Company's registered office, The Crescent Building, Northwood,
Santry, Dublin 9.
END
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