RNS Number : 2656E
Touch Group PLC
25 September 2008
TOUCH GROUP PLC
('Touch' or 'the Group')
Unaudited Interim Report for the Six Months Ended 30 June 2008
Touch Group plc, the international business-to-business publishing group, today announces its unaudited interim results for the
six-month period ended 30 June 2008.
Highlights
2007 2008 Change
Turnover increased �2,551,000 �2,905,000 + 14%
Trading loss reduced * (�635,000) (�386,000) + 39%
Net loss increased (�277,000) (�386,000) (39%)
Orders carried forward increased �1,187,000 �1,465,000 + 23%
* "Trading loss" refers to operating loss before the impact of investment impairments, share based payment charges and credits and other
operating income.
Chairman's Statement
� The Group traded well in the first quarter of this year, with increased sales to the comparable period in 2007. Sales for second
quarter were flat in comparison. Since that time we have experienced a revival with sales steadily increasing.
� Sales orders increased by 24%.
� Gross margin increased by 10%.
� Overheads remain in line.
� Forward order book increasing.
� On 24th September 2008 the Group acquired The American Heart Hospital Journal from Wiley Periodicals Inc., one of the largest
American medical publishers. The journal provides a complementary addition to the Touch Briefings portfolio, providing a clinical title in
an area in which we have deep expertise and a complimentary online revenue stream.
� Consolidation of a focused, growing media business based on its strategy of providing unique publishing opportunities, operating
in highly defensive economic sectors. Touch has focused on:
* The two market sectors it knows best: Pharmaceutical and Energy;
* Development of established relationships with clients drives this business; and
* Alignment of its structure to maximise the most efficient fit with this strategy.
� Near completion of investment programme in infrastructure, operations team, systems capability and product base:
* Touch IT systems are being brought to a level of maximum support and reliability, including a content management system to drive
the online business and a customer relationship management system to support the sales floor; and
* An experienced and stable management and operations team providing the leadership, continuity and direction that keeps the
business united and efficient.
� Alignment of products and processes with market regulatory compliance requirements:
* The regulatory control of the marketing of pharmaceuticals is increasingly rigorous, creating a sizeable barrier to market entry;
and
* Touch has established itself with its pharmaceutical clients as a partner with whom they can have absolute trust with regard to
regulatory compliance in today*s regulatory minefield.
� Leveraging of high-margin intellectual property:
* The value of the business sits with its content. Independently-commissioned, pharmaceutical company-supported editorial and
reprints now account for more than 70% (55% 2007) of our revenue:
- re-prints, a high margin business, now account for 10% (5% 2007); and
- company-supported editorial accounts for 60% (50% 2007)
* Because the content is unbiased and high quality, it is extremely valuable to companies as marketing collateral; and
* Touch is now beginning to harvest the value of this intellectual property in a systematic and sustainable way.
* Touch*s growing re-print revenue is a testament to the residual value of our growing library of editorial content
Some three and a half years ago we set out to establish a web presence for the Clinical side of our business. This turned into years of
research, technical development and false starts, coupled with a massive change of direction. This has been driven by ongoing detailed
discussions with our major clients. We have now moved from a directory concept through to a much more detailed and complex interactive
community model. These websites will be rich in content and easy to navigate. Their commercial potential is inestimable.
Our first site in what we believe to be a unique new format went live on 15th August 2008. We invite you to visit our cardiology
community at www.touchcardiology.com.
Other sites are going live on a scheduled basis, with Neurology expected to launch imminently.
Because of all the above we look forward with confidence!
VINCENT ISAACS
EXECUTIVE CHAIRMAN
25 September 2008
For further information please contact:
Touch Group PLC
Vincent Isaacs
Executive Chairman Tel: 020 7452 5222
Shore Capital and Corporate Limited
Nominated advisor to the company
Dru Danford Tel: 020 7468 7905
CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Unaudited
Six Six Year ended
months months 31 December
ended ended 2007
30 June 30 June
2008 2007
Notes �'000 �'000 �'000
Revenue 3 2,905 2,551 5,677
Cost of sales (1,457) (1,533) (3,436)
GROSS PROFIT 1,448 1,018 2,241
Other operating income - 250 450
Administrative expenses 3 (1,844) (1,410) (3,252)
Other operating expenses - - (121) (555)
investment impairment
OPERATING LOSS (396) (263) (1,116)
Loss on disposal of investment 4 - - (1,188)
Investment revenue 31 26 60
Finance costs (21) (40) (73)
LOSS BEFORE TAX (386) (277) (2,317)
Tax - - -
LOSS FOR THE PERIOD (386) (277) (2,317)
LOSS PER SHARE 5 Pence Pence Pence
Basic (0.34) (0.25) (2.10)
Diluted (0.34) (0.25) (2.10)
CONSOLIDATED BALANCE SHEET
UnauditedAs at30 UnauditedAs at30 June UnauditedAs at 31 December 2007
June 2008 2007
�*000 �*000 �*000
NON-CURRENT ASSETS
Intangible assets 304 306 294
Property, plant and equipment 426 492 422
Investments 149 3,721 149
879 4,519 865
CURRENT ASSETS
Inventories 344 194 165
Trade and other receivables 3,203 2,790 3,000
Cash and cash equivalents 905 568 1,771
4,452 3,552 4,936
TOTAL ASSETS 5,331 8,071 5,801
CURRENT LIABILITIES
Trade and other payables (1,669) (1,877) (1,650)
Borrowings (500) (150) (650)
(2,169) (2,027) (2,300)
NET CURRENT ASSETS 2,283 1,525 2,636
NON-CURRENT LIABILITIES
Borrowings - (500) -
Obligations under finance (25) - -
leases
NET ASSETS 3,137 5,544 3,501
EQUITY
Issued share capital 1,112 1,112 1,112
Share premium account 3,922 3,922 3,922
Other reserve 300 300 300
Retained (loss) / earnings (2,197) 210 (1,833)
TOTAL EQUITY 3,137 5,544 3,501
CONSOLIDATED CASH FLOW STATEMENT
UnauditedAs at30 UnauditedAs at30 UnauditedAs at 31
June 2008 June 2007 December 2007
�*000 �*000 �*000
Operating loss for the period (396) (263) (1,116)
Adjustments for
Depreciation of property, 49 49 86
plant and equipment
Amortisation of intangibles 30 7 58
Investment impairment - 121 555
Share based payment charge / 24 (229) (230)
(credit)
Operating cash flows before movements in working (293) (315) (647)
capital
Increase in inventories (179) (94) (65)
(Increase) / decrease in (203) 59 (151)
receivables
Increase / (decrease) in 6 (718) (915)
payables
Cash flows from operating (669) (1,068) (1,778)
activities
Investing activities
Interest received 31 26 60
Interest and similar expenses (21) (40) (73)
paid
Disposal of investments - - 1,950
Acquisition of plant, property (8) (3) (11)
and equipment
Acquisition of intangible (40) - -
assets
Net cash (used in) / from (38) (17) 1,926
investing activities
Financing activities
Repayment of borrowings (150) (25) (50)
Capital lease repayments (9) (17) (22)
Net cash used in financing (159) (42) (72)
activities
Net (decrease) / increase in cash and cash equivalents (866) (1,127) 76
Cash and cash equivalents at 1,771 1,695 1,695
beginning of period
Cash and cash equivalents at 905 568 1,771
period end
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
These accounts comply with relevant accounting standards and have been prepared on a consistent basis using the accounting policies set
out in the Annual Report and Accounts 2007.
2. NATURE OF INFORMATION
The interim accounts for the six months ended 30 June 2008 and the comparative figures for the six months ended 30 June 2007 are not
audited by the Company's auditors.
The financial statements for the twelve months ended 31 December 2007 have been reported on by the Company's auditors and delivered to
the Registrar of Companies. The report of the auditors on such accounts was unqualified and did not contain any statement under sections
237(2) or 237(3) of the Companies Act 1985.
3. BUSINESS AND GEOGRAPHICAL SEGMENTS
Business Segments
The revenue and operating loss of the Group are derived solely from continuing operations. The directors consider that the business
operates within one business segment, that of multimedia marketing.
Included within administrative expenses is a share based payment charge of �24,000 (2007 - credit �229,000)
Geographical Segments
UnauditedSix months UnauditedSix months UnauditedAs at 31
ended30 June 2008 ended30 June 2007 December 2007
Revenue by destination: �*000 �*000 �*000
Rest of Europe 1,518 718 1,930
U.S.A 1,130 1,333 2,782
United Kingdom 129 352 738
Rest of World 128 148 227
2,905 2,551 5,677
Operating loss by destination:
Rest of Europe (194) (175) (344)
U.S.A (145) (324) (496)
United Kingdom (41) 272 (236)
Rest of World (16) (36) (40)
(396) (263) (1,116)
Segment assets:
All United Kingdom 5,331 8,071 5,801
NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)
4. PROFIT ON DISPOSAL OF SUBSIDIARIES
There were no exceptional items in the six months to 30 June 2008, nor the six months to 30 June 2007. The loss on part disposal of the
Touch Local business is reflected in the full year results to 31 December 2007.
5. LOSS PER SHARE
The calculation of the basic and diluted earnings per share is based on the following data:
UnauditedSix months UnauditedSix months UnauditedAs at 31
ended30 June 2008 ended30 June 2007 December 2007
�*000 �*000 �*000
The calculation of basic and diluted earnings per
share is based on the following data:
Earnings:
Earnings for the purposes of basic and diluted (386) (277) (2,317)
earnings per share
Number of shares: Shares Shares Shares
Weighted average number of 111,191,921 111,191,921 111,191,921
shares for the purposes of
basic and diluted earnings per
share
Some options granted to employees could potentially dilute basic earnings per share in the future, but were not included in the
calculation of diluted earnings per share as they are anti dilutive for the period presented.
6. AVAILABILITY OF ACCOUNTS
Copies of these interim results are available from Touch Group plc, Cardinal Tower, 12 Farringdon Road, London, EC1M 3NN. Alternatively
a downloadable version is available from the following web address: www.touchbriefings.com/reports.htm.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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