Final Results
Embargoed: not to be released until 7.00a.m. on
25 May 2006
TOTALLY PLC
("Totally", "the Company" or "the Group")
Preliminary results for the year ended 31 December 2005
Totally Plc, the AIM quoted (ticker `TLY') international publisher and Internet
services provider today announces its preliminary results for the year ended 31
December 2005.
Highlights:
* Launch of new Internet based services in the high growth sectors
* Creation of a new proprietary online publishing software suite
* Re-launch of the Group's primary print and online publications
* Gross turnover of £2.77 million (2004: £2.7 million)
* Operating loss of £0.27 million (2004: loss £0.30 million)
Post Year End Highlights
* Launch of new joint venture with the London Greek Radio
* Unaudited first quarter 2006 trading: modest operating profit (2005: loss £
130,000)
Steve Burns, CEO, commented:
"As a result of last year's product development we are confident that Totally
is well placed to achieve sustained growth in revenue and operating profit. We
now have a much larger and more comprehensive portfolio of products and
services targeting the global Jewish community and, through the launch of the
London Greek Radio joint venture, we have demonstrated our ability to use our
proprietary technology and Internet expertise to successfully target other
niche communities. We are excited by trading in the first quarter of 2006 and
hope to be able to release further positive news during the second half of
2006."
For further information:
Totally Plc www.totallyplc.com T: 020 7692 6929
Steve Burns
CEO
John East & Partners Limited T: 020 7628 2200
David Worlidge / Simon Clements
Conduit PR T: 0207 429 6606
Abigail Singleton M: 07739 461 061
Chairman's Statement
I am pleased to report the results for the year ended 31 December 2005. During
the period under review the Company's gross turnover grew by 3 per cent. to £
2.77 million (2004: £2.7 million) and its operating loss reduced by 10 per
cent. to £0.27 million (2004: £0.30 million).
In order to drive future growth and profitability, during 2005 the Group
undertook a considerable amount of product development across all its media and
technology platforms. I am extremely pleased to report that this activity has
culminated in:
* the launch of new Internet based services in the high growth sectors of
dating and directories;
* the creation of a new proprietary online publishing software suite which is
already supporting new joint ventures with third party media owners and a
fast growing web design agency; and,
* the re-launch of the Group's primary print and online publications with a
focus on reducing operating expenses whilst also improving product quality
and advertising revenue.
In particular, during 2005, the Group:
* launched www.totallyjewishdating.com into the Jewish online dating market
estimated to be worth in excess of $25 million pa;
* launched www.totallyjewishdirectory.com, a new white and yellow page
directory service, with aspirations for it to become the global standard
for online Jewish directories around the globe;
* re-launched www.totallyjewish.com, the Group's flagship website, with a
primary focus on driving subscription based services and advertising;
* re-launched www.totallyjewishtravel.com in both English and Hebrew, with a
new global restaurant directory and other value added services;
* re-launched the www.thejewishadvcoate.com to support online newspaper
subscriptions and classified advertising;
* re-launched both the Jewish News and The Jewish Advocate newspapers with a
greater emphasis placed on classified advertising and a sharper editorial
focus;
* launched a new 100 page glossy annual called Totally Jewish Simcha, which
targets the UK's Jewish wedding and celebrations market;
* created a new proprietary online publishing software suite to support the
efficient and expedient creation of new websites for third party media
partners and clients direct.
Current Developments
Since the year end, the Group has launched a new joint venture with the UK's
leading Greek broadcaster, London Greek Radio ("LGR"). Totally and LGR have
launched a new LGR web portal promoting a raft of new online services including
dating, directory, property and recruitment targeting the UK's Greek community.
The launch of the new LGR portal demonstrates the Group's ability to use its
new online publishing software suite and general Internet expertise to
successfully target other niche communities, which your directors believe will
help build new revenue streams and create long term value.
Trading Prospects
Having completed this product development activity, the Group is now well
positioned to take advantage of the opportunities for increased profits and
growth. This is reflected in the Group's unaudited operating performance for
the first quarter of 2006 during which the Group made a modest operating profit
versus a £130,000 loss for the same period in 2005.
Your Directors believe that this trading improvement should continue throughout
2006 and look forward to a positive outcome for the full year.
Dr Michael J Sinclair
Chairman
Consolidated profit and loss account
for the year to 31 December 2005
Note Total Total
2005 2004
£000 £000
Gross Turnover 2,771 2,698
Less: share of joint ventures 31 -
Group Turnover 2,740 2,698
Cost of Sales (654) (733)
Gross profit 2,086 1,965
Administrative expenses (2,359) (2,269)
Operating Loss (273) (304)
Share of operating loss joint (13) -
venture
Interest payable (40) (28)
Loss on ordinary activities (326) (332)
before taxation
Taxation 31 68
Loss after tax for the year (295) (264)
Loss per share - basic 5 (0.34)p (0.34)p
Loss per share - diluted 5 (0.34)p (0.34)p
Consolidated statement of total recognised gains and losses
for the year to 31 December 2005
Year to Year to
31 31
December December
2005 2004
£'000 £'000
Loss for the financial year (295) (264)
Currency translation differences on foreign currency 2 1
net investments
Total gains and losses recognised since last annual (293) (263)
report
Consolidated balance sheet
at 31 December 2005
2005 2004
Note £000 £000 £000 £000
Fixed assets
Intangible assets 941 941
Tangible assets 2 297 184
1,238 1,125
Investment in Joint Ventures
Share of gross assets 18 -
(29) -
(11) -
Total fixed assets 1,227 1,125
Current assets
Stock 4 3
Debtors 3 408 391
Cash at bank and in hand 43 48
455 442
Creditors: amounts falling due within 4 (1,282) (1,142)
one year
Net current liabilities (827) (700)
Total assets less current liabilities 400 425
Net Assets 400 425
Capital and reserves
Called up share capital 898 788
Share premium account 3,106 2,947
Revaluation reserve 2 1
Profit and loss account (3,606) (3,311)
Shareholders' funds - equity interests 400 425
Consolidated cash flow statement
for the year ended 31 December 2005
2005 2004
£000 £000
Net cash outflow from operating activities (238) (215)
Returns on investments and servicing of finance
Bank interest paid (40) (28)
(278) (243)
Taxation
R&D tax credit 33 70
Foreign tax on subsidiary profit (2) (2)
Capital expenditure
Payments to acquire tangible fixed assets (184) (164)
Acquisitions
Purchase of investments in subsidiary undertakings - (31)
Cash acquired with subsidiary - 27
Cash outflow before financing (431) (343)
Financing
Issue of ordinary share capital for cash 269 -
Decrease in cash in the period (162) (343)
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
currently meets its day to day working capital requirements through two
overdraft facilities which are repayable on demand.
The Group has confirmed the availability of a facility of £650,000 with Bank
Hapoalim which was renewed on 29 April 2006 until 28 April 2007. As security
for the facility, the bank has obtained the unlimited Joint and Several
Guarantees of Dr. Michael J. Sinclair (non-executive Chairman), 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. This facility is due for
renewal on 31 October 2006.
The Directors have prepared projected cash flow information for the period
ending twelve months from the date of their approval of these financial
statements.
On the basis of cash flow forecasts and discussions with the group's bankers,
the Directors consider that the group will be able to operate within the
facilities currently agreed.
Inherently, there can be no certainty in relation to these matters, but the
directors believe that the going concern basis of preparation continues to be
appropriate.
2. Tangible fixed assets
Short Computer Fixtures Total
leasehold equipment and
property fittings
£000 £000 £000 £000
Cost
At beginning of year 54 260 73 387
Additions - 178 6 184
Disposals - -
At end of year 54 438 79 571
Depreciation
At beginning of year 39 103 61 203
Charge for year 10 50 11 71
Disposals - - - -
At end of year 49 153 72 274
Net book value
At 31 December 2005 5 285 7 297
At 31 December 2004 15 157 12 184
3. Debtors
31 31
December December
2005 2004
£000 £000
Trade debtors 305 247
Other debtors 27 26
Other taxation and social security - 5
Prepayments and accrued income 76 113
408 391
4. Creditors: amounts falling due within one year
31 31
December December
2005 2004
£000 £000
Bank loans and overdrafts 754 596
Trade creditors 312 295
Other creditors including taxation and social 74 77
security
Accruals and deferred income 142 174
1,282 1,142
5. Loss per share
The calculation of the basic loss per share is based on the loss of £295,000
(2004: £264,000) and on 87,841,901 (2004: 77,133,270) 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 2005.
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 2005 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 received an unqualified report from
the auditors but have not yet been delivered to the Registrar of Companies. The
2004 accounts have been delivered to the Registrar of Companies and the
auditors gave an unqualified report on them.
8. Copies of accounts will be sent to shareholders shortly and will also be
available at the Company's registered office, Unit 611, Highgate Studios, 53-79
Highgate Road, Kentish Town, London NW5 1TL.
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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