Final Results
Embargoed, not to be released until 7.00a.m. on
13 May 2004
TOTALLY PLC ('Totally', 'the Company' or 'the Group')
Preliminary results for the year ended 31 December 2003
Totally Plc, the international publishing and communications Group that serves
distinct Jewish communities around the globe, announces its preliminary results
for the year ended 31 December 2003.
Financial Highlights:
* Turnover up 16 per cent. to £1.95 million (2002: £1.69 million)
* Operating loss reduced by 48 per cent. to £208,000 (2002: 401,000)
* Pre-tax loss reduced by 46 per cent. to £223,000 (2002: £415,000)
* London Jewish News turnover up 9 per cent. to £1.11 million (2002: £1.02
million)
* Totally Communications turnover up 250 per cent. to £550,000 (2002: £
157,000)
Post Year End Highlights:
* Expansion in to the United States through the acquisition of The Jewish
Advocate, New England's leading Jewish newspaper
* Successful re-launch of newly named 'The Jewish News'
Steve Burns, Chief Executive Officer Commented:
'During 2003 we continued to experience material growth in the Company's
turnover with only a marginal increase in expenses. The net effect has been to
substantially decrease our operating and pre-tax losses when compared to 2002.
I am pleased to report that the integration of The Jewish Advocate is going
extremely well. The enlarged Company is already benefiting from cost-based
economies of scale and, an improved advertising sales proposition. This
acquisition has led to a number of meaningful conversations with the owners of
other Jewish newspapers in the United States.
Looking forward to 2004 and beyond, we hope to report ongoing improvements to
our trading performance and the execution of further deals to help develop the
Company's international portfolio of publications and services.'
Chairman's Statement:
I am pleased to report the results for the year ended 31 December, 2003. The
Company's financial performance was much improved compared to that for the
previous year, with turnover growth of 16 per cent. to £1.95 million (2002: £
1.69 million) and a 46 per cent. reduction in pre-tax losses to £223,000 (2002:
£415,000).
Publishing Activities
As reported in the Interim Statement, London Jewish News won the Free Newspaper
Of The Year award at the 2003 Press Gazette Regional Awards. At the time, I
commented that this top industry accolade added important credibility and
visibility to the paper. I am now pleased to report that the 7 per cent.
advertising growth reported in the first half of the year, had increased to 9
per cent. at the year end (to £1.11 million from £1.02 million).
During the second half of the year, the publishing team focussed its energies
on further product development, to help ensure that the positive momentum of
the paper continued. This culminated in the re-launch of the newly named 'The
Jewish News' in February of this year. The new design incorporates a number of
new sections, all of which are designed to help drive reader retention and
advertising revenues. The name change, whilst relatively subtle, enables the
management to concentrate on potential opportunities for further growth outside
London.
The website totallyjewish.com continued to suffer from a poor online
advertising climate. With this in mind, the management has recently initiated a
project to re-launch the site, with a greater focus placed on subscription
based revenues and classified advertising. This re-launch is expected towards
the end of the third quarter of 2004.
The website totallyjewishtravel.com has fast become a leading portal for the
global Jewish travel market. Its turnover in its first full year of trading was
approximately £100,000. Given its size and potential, this is a market that the
Company is looking to further develop.
Communications Services
Totally Communications Ltd experienced significant growth during 2003, with
turnover up from £157,000 in 2002 to £550,000 in 2003, an increase of 250 per
cent.
This increase is attributable to two key achievements: the first relates to the
partial implementation of the previously reported £650,000 contract with one of
the UK's largest Jewish communal organisations; the second relates to the
exponential growth experienced by the marketing services arm of Totally
Communications.
At the beginning of 2003, the marketing services arm had one retained client,
three further project-based clients and future bookings of approximately £
30,000. Over the course of the year the number of retained clients grew to
eight, the number of other project-based clients grew to 18 and future bookings
grew to approximately £220,000.
Totally Communications has fast become one of the largest suppliers of
technical and marketing services to the UK's Jewish communal marketplace. It is
intended that this level of success be replicated in Boston and, ultimately,
wherever the Company owns a Jewish publication. Additionally, the Company has
now recruited a sales person in the UK to start selling Totally Communications'
products and services into the general charitable sector.
Strengthening The Board
Towards the end of 2003, the company announced the appointment of Shimon Cohen
as a non-executive director. Shimon, who recently resigned as a long standing
non-executive director of Jewish Chronicle Newspapers Ltd, one of Totally's
primary competitors in the UK, is an expert in the field of communications and
media relations and has extensive knowledge of, and contacts within, the
world's major Jewish communities. Shimon has already added significant value to
the Company and his appointment represents a significant endorsement of the
current strategy and focus of the business.
Post Year End
In January of 2004, Totally Plc acquired Jewish Advocate Publishing
Corporation, which, through a subsidiary, owns The Jewish Advocate, New
England's leading weekly Jewish newspaper. The Jewish Advocate, which serves a
250,000-strong Jewish community, has been in circulation for more than 100
years. By acquiring one of the oldest East Coast weekly Jewish newspapers, the
Company now has a springboard from which to expedite its US based and
international development.
The prior owner, The Zvhil-Mezbuz Rebbe, Grand Rabbi Y.A Korff of Boston once
served as a Director and Executive Vice-President of media-entertainment
company Viacom, Inc. and Viacom International. He has now been appointed a
non-executive director of the Company.
The integration of the two businesses is going extremely well and the Company
is already benefiting from cost-based economies of scale and an enhanced
advertising proposition.
Prospects
The Directors are encouraged by the level of trading for the current year to
date. They anticipate that the performance improvement achieved in 2003 will
continue into the current year.
Additionally, as a direct result of the acquisition of The Jewish Advocate, a
number of discussions have started with other Jewish newspapers in the United
States. The directors believe that the Company is extremely well place to
continue its international development and ultimately to become an
international market leader within its field.
Finally, I would once again like to thank all our staff and advisers for all
their hard work over the year.
Dr Michael Sinclair
Non-Executive Chairman
13 May 2004
Consolidated profit and loss account
for the year to 31 December 2003
Note Total Total
2003 2002
£000 £000
Turnover
Continuing operations 1 1,952 1,690
Other external charges (680) (505)
Staff costs:
Wages and salaries (1,031) (913)
Social security costs (112) (89)
(1,143) (1,002)
Depreciation and other (24) (26)
amounts written off
tangible and intangible
fixed assets
Other operating charges (313) (558)
Total expenses (2,160) (2,091)
Operating loss (208) (401)
Interest payable and (15) (14)
similar charges
Loss on ordinary activities (223) (415)
before taxation
Taxation 44 -
Loss after tax for the year (179) (415)
Loss per share - basic 5 (0.33)p (0.91)p
Loss per share - diluted 5 (0.33)p (0.91)p
The group has no recognised gains or losses during the period other than those
included in the profit and loss account above. Accordingly, no statement of
total recognised gains and losses has been prepared.Consolidated balance sheet
at 31 December 2003
2003 2002
Note £000 £000 £000 £000
Fixed assets
Tangible assets 2 46 53
Current assets
Debtors 3 391 317
Cash at bank and in hand - 12
391 329
Creditors: amounts falling due within 4 (647) (564)
one year
Net current liabilities (256) (235)
Total assets less current liabilities (210) (182)
Net liabilities (210) (182)
Capital and reserves
Called up share capital 582 528
Share premium account 2,255 2,158
Profit and loss account (3,047) (2,868)
Shareholders' deficit - equity (210) (182)
interests
Consolidated cash flow statement
for the year ended 31 December 2003
2003 2002
£000 £000 £000 £000
Net cash outflow from operating (175) (171)
activities
Returns on investments and servicing of
finance
Interest received - -
Bank interest paid (15) (14)
(15) (14)
(190) (185)
Taxation
R&D tax credit 44 -
Capital expenditure
Payments to acquire tangible fixed (17) (26)
assets
Acquisitions - -
Cash outflow before financing (163) (211)
Financing
Capital repayments under finance leases (2) (6)
Issue of ordinary share capital for 155 275
cash
Expenses paid in connection with share (4) (9)
issues
(Decrease)/Increase in cash in the (14) 49
period
Notes to the financial statements
1. Basis of preparation
The financial statements are prepared on a going concern basis which the
Directors believe to be appropriate for the following reasons. The Group meets
its day to day working capital requirements through an overdraft facility which
is repayable on demand. The Group have confirmed the availability of a facility
of £500,000 with Bank Hapoalim. As security for the facility, the bank has
obtained the unlimited joint and several guarantees of Dr. Michael J. Sinclair
(non-executive Director), Mr Leo Noe and Grand Rabbi Y.A. Korff of Boston
(non-executive Director).
In addition, a working capital facility of £150,000 has been agreed with
Natwest, which is secured on the Group's debtor book.
2. Tangible fixed assets
Short Computer Fixtures Total
and
leasehold equipment fittings
property
£000 £000 £000 £000
Cost
At beginning of year 54 88 29 171
Additions - 17 - 17
At end of year 54 105 29 188
Depreciation
At beginning of year 19 81 18 118
Charge for year 10 9 5 24
At end of year 29 90 23 142
Net book value
At 31 December 2003 25 15 6 46
At 31 December 2002 35 7 11 53
Included above are assets under finance lease contracts. The net book value of
these assets at 31 December 2002 is £nil (2001: £7,000) and the depreciation
charged for the period was £7,000 (2001: £6,000).
3. Debtors
31 December 31 December
2003 2002
£000 £000
Trade debtors 254 227
Other debtors 34 30
Other taxation and social security 52 8
Prepayments and accrued income 51 52
391 317
Included in other debtors is £25,620 due after more than one year, representing
£21,500 deposit paid on 23 March 2000 and £4,120 deposit paid on 18 December
2003 when a property leasehold was signed.
4. Creditors: amounts falling due within one year
31 December 31
December
2003
2002
£000 £000
Bank loans and overdrafts 205 203
Trade creditors 211 189
Net obligations under finance leases - 2
Other creditors including taxation and social 78 65
security
Accruals and deferred income 153 105
647 564
5. Loss per share
The calculation of the basic loss per share is based on the loss of £179,000
(2002: £415,000) and on 53,943,682 (2002: 45,656,263) ordinary shares being the
weighted average number of shares in issue during the period. The diluted loss
per share is the same as the basic loss per share, in accordance with FRS 14
which prescribes that potential ordinary shares should only be used as dilutive
when, and only when, their conversion to ordinary shares would decrease net
profit or increase net loss per share from continuing operations.
6. Dividends
The Directors are not proposing the payment of a dividend in respect of the
year ended 31 December 2003.
7. Publication of non-statutory accounts
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985.
The consolidated balance sheet as at 31 December 2003 and the consolidated
profit and loss account, consolidated cash flow statement and associated notes
for the year then ended have been extracted from the Group's financial
statements. Those financial statements have not yet been delivered to the
Registrar of Companies, nor have the auditors reported on them. The 2002
accounts have been delivered to the Registrar of Companies and the auditors
have reported on them.
8. Copies of accounts will be sent to shareholders shortly and will also be
available at the Company's registered office.
Enquiries
Totally PLC
Steve Burns Tel: 020 7692 6929
John East & Partners Limited
John East/David Worlidge / Simon Clements Tel: 020 7628 2200
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