Final Results
TOTALLY PLC
("Totally", "the Company" or "the Group")
Preliminary results for the year ended 31 December 2006
Totally Plc, the AIM quoted (ticker `TLY') international publisher and Internet
services provider today announces its preliminary results for the year ended 31
December 2006.
Highlights
* Strongest trading performance since its admission to AIM
* Turnover increased by 3 per cent. over the previous year to £2,823,000
(2005 - £2,740,000)
* Operating profit increased by £357,000 to £7,000 (2005 - loss £350,000)
* Gross profit increased by 10 per cent. to £2,295,000 (2005 - £2,086,000)
* Following a review of the cost base of the Group, employee related costs
were reduced by 15 per cent
Post Year End Highlights
On 15 January 2007, the Group announced the appointment of Daniel Assor as the
new CEO. He has been with Totally since 2000 and was formerly Group Publishing
Director. Daniel has made an immediate impact following his appointment and the
Board expect him to be instrumental in delivery of the Group's organic and
acquisition growth strategy.
On 31 January 2007, the Group announced a joint venture agreement with Northern
& Shell, publishers of the Daily Express, Daily Star and OK Magazines. Under
the terms of the agreement, Totally will implement its private property
classified system within each of the websites associated with the above
mentioned titles.
On 30 March 2007, the Group raised £500,000 before expenses from the placing by
Hoodless Brennan plc, the Group's newly appointed broker, of 22,222,225 new
ordinary shares in the capital of Totally at 2.25 pence per share. The funds
are to be used for the organic and acquisitive development of the Group's
Internet services & publishing divisions.
On 5 June the Group announced a joint venture agreement with Real City Network
Limited, publishers of the `Real` brand of online city guides including Real
Brighton and Real Manchester.com. Under the terms of the agreement, Totally
will implement its private property classified system across the Real
portfolio.
Daniel Assor, CEO, commented:
`Totally is now in a strong position to execute its stated strategy for
delivering shareholder value through a combination of sustained organic growth
and profit enhancing acquisitions in the areas of Internet services and niche
publishing'
For further information:
Totally Plc www.totallyplc.com T: 020 7692 6929
Daniel Assor
CEO
John East & Partners Limited T: 020 7628 2200
David Worlidge / Simon Clements
HB Corporate T: 020 7510 8654
Jon Levinson
Chairman's Statement
Overview
2006 was a transforming year for the Group in which it recorded the best
financial and operational performance in Totally's history. The Group reported
a maiden profit at an operational level. This was as a direct result of the
efficiencies and cost savings that were introduced at the end of 2005 and in
2006 and the new business opportunities and partnerships that were signed
during 2006. Furthermore, I believe the results also reflect the decision by
the Board and members of the senior management team to focus on consolidation
and driving organic growth within the Group.
Our publishing division, which delivers print and online media and services for
the UK and North American Jewish communities, is now profitable at an
operational level and since the year end has continued the good work started in
2006 to focus on the development of its product portfolio.
During the year under review and since the year end Totally Communications
Limited, our Internet services division, has gone from strength to strength
expanding its operations outside of the Jewish charitable arena and into the
corporate domain. The division now has 5 main business units; website build &
design, application development, consultancy, creative services and development
of corporate partnerships or joint ventures. The Board is particularly pleased
with the progress made in the latter unit where it has entered into a number of
joint ventures with third party publishers providing, on a revenue share basis,
in house classified and dating platforms.
Financial Review
In 2006 the Group experienced its strongest trading performance since its
admission to AIM in 2000 and a year of strong growth across it publishing and
communication divisions. Turnover in the year ended 31 December 2006 increased
by 3 per cent over the previous year to £2,823,000 (2005 - £2,740,000) and
operating profit in the year increased by £357,000 to £7,000 (2005 - loss £
350,000). In the year under review I am pleased to report that gross profit
increased by 10 per cent. to £2,295,000 (2005 - £2,086,000) and following a
review of the cost base of the Group, employee related costs were reduced by 15
per cent compared with 2005.
The results for the year ended 31 December 2006 also reflect the impact of the
introduction of a new accounting standard for share based payments (FRS 20
including accounting for share options). The introduction of FRS 20 resulted in
an additional non-cash charge to the profit and loss account for the year ended
31 December 2006 of £25,000.
Board Changes
On the 15 January 2007, the Group announced the appointment of Daniel Assor as
the new CEO. He has been with Totally since 2000 and was formerly Group
Publishing Director. Daniel has made an immediate impact following his
appointment and the Board expect him to be instrumental in delivery of the
Group's organic and acquisition growth strategy.
Post Balance Sheet Events
On 31 January 2007, the Group announced a joint venture agreement with Northern
& Shell, publishers of the Daily Express, Daily Star and OK Magazines. Under
the terms of the agreement, Totally will implement its private property
classified system within each of the websites associated with the above
mentioned titles.
On 30 March 2007, the Group raised £500,000 before expenses from the placing by
Hoodless Brennan plc, the Group's newly appointed broker, of 22,222,225 new
ordinary shares in the capital of Totally at 2.25 pence per share. The funds
are to be used for the organic and acquisitive development of the Group's
Internet services & publishing divisions.
On 5 June the Group announced a joint venture agreement with Real City Network
Limited, publishers of the `Real` brand of online city guides including Real
Brighton and Real Manchester.com. Under the terms of the agreement, Totally
will implement its private property classified system across the Real
portfolio.
Growth Strategy & Prospects
Having completed a significant turnaround in performance in 2006, I believe the
Group is well positioned to build on the foundations that have been put into
place and generate shareholder value in the short to medium term.
The Group's strategy is to create value for shareholders by building a
portfolio of Internet service and niche digital and print publishing
businesses.
The Board would like to thank the Directors and staff for all their
contributions in 2006. The Board would also like to extend its appreciation to
its former CEO and co-founder Steve Burns for his contribution to Totally.
Dr Michael Sinclair
Non-Executive Chairman
11 June 2007
Consolidated profit and loss account
for the year to 31 December 2006
Note Total Total
2006 2005
£000 £000
As restated
Gross Turnover 2,888 2,771
Less: share of joint ventures (65) (31)
Group Turnover 2,823 2,740
Cost of Sales (528) (654)
Gross profit 2,295 2,086
Administrative expenses (2,288) (2,436)
Operating Profit/(loss) 7 (350)
Share of operating loss of joint ventures (18) (13)
Interest payable (50) (40)
Loss on ordinary activities before taxation (61) (403)
Taxation 17 31
Loss after tax for the year (44) (372)
Loss per share - basic 5 0.05p 0.42p
Loss per share - diluted 5 0.05p 0.42p
Consolidated statement of total recognised gains and losses
for the year to 31 December 2006
Year to Year to
31 December 31 December
2006 2005
£'000 £'000
Loss for the financial year (44) (372)
Currency translation differences on foreign currency - 2
net investments
Credit on issue of share options and warrants 25 77
Total gains and losses recognised since last annual (19) (293)
report
Consolidated balance sheet
at 31 December 2006
2006 2005 as restated
Note £000 £000 £000 £000
Fixed assets
Intangible assets 941 941
Tangible assets 2 294 297
1,235 1,238
Investment in Joint Ventures
Share of gross assets 18 18
Share of gross liabilities (45) (29)
(27) (11)
Total fixed assets 1,208 1,227
Current assets
Stock 5 4
Debtors 3 422 408
Cash at bank and in hand 32 43
459 455
Creditors: amounts falling due within 4 (1,282) (1,282)
one year
Net current liabilities (823) (827)
Total assets less current liabilities 385 400
Net Assets 385 400
Capital and reserves
Called up share capital 901 898
Share premium account 3,107 3,106
Revaluation reserve 2 2
Profit and loss account (3,625) (3,606)
Shareholders' funds - equity interests 385 400
Consolidated cash flow statement
for the year ended 31 December 2006
2006 2005
£000 £000
Net cash inflow/(outflow) from operating activities 113 (238)
Returns on investments and servicing of finance
Bank interest paid (50) (40)
63 (278)
Taxation
R&D tax credit 21 33
Foreign tax on subsidiary profit (5) (2)
Capital expenditure
Payments to acquire tangible fixed assets (95) (184)
Cash outflow before financing (16) (431)
Financing
Issue of ordinary share capital for cash 4 269
Decrease in cash in the period (12) (162)
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 £550,000 with Bank
Hapoalim which was renewed on 29 April 2007 until 28 April 2008. 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 £50,000 has been agreed with Natwest
which is secured on the Group's debtor book. This facility is due for renewal
on 31 October 2007.
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 and Total
fittings
leasehold equipment
property
£000 £000 £000 £000
Cost
At beginning of year 54 438 79 571
Additions - 83 11 94
At end of year 54 521 90 665
Depreciation
At beginning of year 49 153 72 274
Charge for year 5 90 2 97
At end of year 54 243 74 371
Net book value
At 31 December 2006 - 278 16 294
At 31 December 2005 5 285 7 297
3. Debtors
31 December 31 December
2006 2005
£000 £000
Trade debtors 336 305
Other debtors 20 27
Prepayments and accrued income 66 76
422 408
4. Creditors: amounts falling due within one year
31 December 31 December
2006 2005
£000 £000
Bank loans and overdrafts 755 754
Trade creditors 295 312
Other taxes and social security 106 74
Accruals and deferred income 126 142
1,282 1,282
5. Loss per share
The calculation of the basic loss per share is based on the loss of £44,000
(2005: £372,000) and on 90,042,249 (2005: 87,841,901) 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 2006.
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 2006 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
2005 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.
Monday, 13th May 2024
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