Half-yearly Report
17 September 2007
Totally Plc
("Totally" or "the Company")
Interim unaudited results for the six month period ended 30 June 2007
Totally Plc, the AIM quoted (ticker `TLY') international publisher and Internet
services provider announces its interim results for the six months ended 30
June 2007.
Summary
* EBITDA in period improves by 21 per cent. compared with same period in 2006
* Total expenses down 5 per cent. compared with 2006
* All divisions profitable at an operating level
* Internet joint ventures launched in partnership with other media owners
* Search for complementary acquisitions ongoing
Daniel Assor, CEO of Totally commented;
`Totally is now in a strong position to move forward and deliver on its
strategy of targeting profit growth and increasing shareholder value through a
combination of sustained organic growth and targeted acquisitions. The Board
remains confident that 2007 will follow the trend of the previous year and
deliver improved financial performance.
The search for earnings enhancing acquisitions has commenced and the Board
remains confident of delivering positive news flow in this area in the final
quarter of the current year.
Prior to the year end Totally intends to rebrand and reposition its Jewish
publishing divisions with a view to offering advertisers and readers multi
platform access to both the UK and North American Jewish communities through a
combination of its newspapers, magazines and Internet platforms.
Totally Communications, Totally's Internet services division, continues to
deliver strong revenue and operating profit growth and in the first half of the
current year this division was also restructured and rebranded with a view to
exploiting the significant growth being experienced in Internet marketing in
the wider marketplace."
For further information:
Totally Plc T: 020 7692 6929
Daniel Assor
CEO
John East & Partners Limited T: 020 7628 2200
David Worlidge / Simon Clements
Hoodless Brennan Plc T: 020 7510 8654
Jon Levinson
Chairman's Statement
I am pleased to present the results for the six months ended 30 June 2007.
During the period the Group made an operating profit of £27,791 (2006: £21,704)
and a profit before taxation of £2,540 (2006: loss £11,662) on turnover of £
1.32 million (2006: £1.39 million).
Internet Services Division (Totally Communications, `TCL')
In the reporting period Internet services revenue grew by 20 per cent. compared
to the same period last year. Moreover, TCL expanded its client base
significantly reducing its reliance on any one client and thus improving the
long-term stability of this division.
During the first six months of 2007 Totally Communications was re-structured,
introducing a clear strategy to support aggressive organic growth. Operational
areas were re-defined to ensure TCL's assets in the form of its employees and
its technology were used to ensure the business could be scaled. This also
included the introduction of flexible software development and freelance design
resource.
Furthermore a sales and marketing strategy was defined with increased emphasis
on performance based lead generation including improved search engine
optimisation and pay per click advertising. As a direct result significant
growth was achieved in the website and web-based application developments
division.
The on-going strategy of utilising in-house developed Internet platforms by
combining with third party publishers has seen the Company sign agreements with
The Express Group and Real City Networks in the first six months of the year.
The Board anticipates further partnerships with major portals who command
significant and high-profile audiences will be signed in the short to medium
term. Additionally, a US-based flat share portal targeting the 6 million strong
US Jewish community was also launched as an in-house product.
TCL recently became a re-seller for VCAB's (Virtual Catalogue and Brochures)
Flexipage technology and now offer a superb online display of `offline
publications' so they can be read and `pages turned' similar to a magazine or
newspaper offline. There has already been significant interest in this product.
Other re-seller opportunities are currently being reviewed.
Publishing Division
Totally's Jewish publishing divisions in the UK and US remain profitable
entities at an operating level. Significant work has been done to enable these
divisions to provide relevant offerings to maintain profitability against the
backdrop of a fast changing media landscape.
A new bi-monthly lifestyle glossy magazine has been launched in the UK and the
first issue was both well received and profitable. When this is combined with
the weekly Jewish News newspaper, the website TotallyJewish.com and Totally's
annual Jewish celebrations magazine the division is the single largest
publisher of Jewish media in the UK. In order to reflect this growth the UK
Jewish publishing operation will be re-branded before the year end and will
trade under the umbrella brand `The Jewish News & Media Group'.
Similar expansion plans are planned for the US division.
Prospects
Through the continued development of its media group and Internet services
divisions Totally is now well placed to take advantage of opportunities for
growth in both revenues and profit.
Dr Michael Sinclair, Chairman
17 September 2007
Consolidated Income Statement
For the six months ended 30 June 2007
6 months 6 months ended Year ended
ended 30 June 2006 31 December
30 June 2007 2006
(unaudited)
(unaudited) (audited)
£
£ £
Gross Sales 1,320,493 1,389,251 2,888,000
Less: Share of Joint 29,681 36,300 65,000
ventures
Group Sales 1,290,812 1,352,951 2,823,000
Cost of sales (225,533) (274,446) (528,000)
Staff costs (668,384) (663,556) (1,407,000)
Depreciation (47,213) (48,074) (97,000)
Other operating charges (321,892) (345,171) (784,000)
Total expenses (1,263,022) (1,331,247) (2,816,000)
Profit from Operations 27,790 21,704 7,000
Share of loss from (2,227) (9,708) (18,000)
operations of joint ventures
Finance costs (23,023) (23,658) (50,000)
Profit/(loss) before 2,540 (11,662) (61,000)
taxation
Taxation - 20,548 17,000
Profit/(loss) for the period 2,540 8,886 (44,000)
Earnings/(loss) per share - 0.01p (0.05)p
(pence) - basic and diluted
Balance sheet
As at 30 June 2007
Assets 6 months ended 6 months ended 12 months ended
31 December 2006
30 June 2007 30 June 2006 (audited)
(unaudited) (unaudited)
£ £ £
Non-current assets
Tangible fixed assets 292,226 312,375 294,000
Other intangible assets 941,000 928,819 941,000
1,233,226 1,241,194 1,235,000
Current assets
Newsprint inventory 4,532 1,945 5,000
Trade and other receivables 407,361 390,640 422,000
Cash and cash equivalents 74,032 69,144 32,000
485,925 461,729 459,000
TotalAssets 1,719,151 1,702,923 1,694,000
Equity and liabilities
Equity
Share capital 1,124,480 900,747 900,747
Share premium 3,349,590 3,107,217 3,107,217
Retained Earnings (3,620,424) (3,595,047) (3,622,964)
853,646 412,917 385,000
Non current liabilities
Long term liabilities 30,941 9,708 27,000
Current liabilities
Trade and other payables 389,689 496,548 527,000
Bank overdrafts and loans 444,875 783,750 755,000
834,564 1,280,298 1,282,000
Total equity and liabilities 1,719,151 1,702,923 1,694,000
Cash Flow Statement
For the six months ended 30 June 2007
6 months to 6 months to 6 months to
30 June 2007 30 June 2006 30 June 2006
(unaudited) (unaudited) (unaudited)
£ £ £
Cash inflow from operating
activities
Profit from operations 27,791 21,704 7,000
Adjustments for:
Depreciation, amortisation and 47,213 48,074 97,000
impairment
75,004 69,778 104,000
Decrease/(increase) in inventory 469 2,055 (1,000)
Decrease/(increase) in debtors 14,640 17,360 (14,000)
Decrease in creditors (137,312) (31,452) (1,000)
Cash generated from operations (47,200) 57,741 88,000
Interest paid (23,023) (23,658) (50,000)
R&D tax credit - 20,548 21,000
Income tax paid - - (5,000)
Net cash (used in)/generated from (70,223) 54,631 54,000
operating activities
Cash flows from investing
activities
Purchase of plant and equipment (45,404) (61,387) (95,000)
Net cash (used in) operating (45,404) (61,387) (95,000)
activities
Cash flows from financing
activities
Issue of ordinary share capital for 467,785 3,150 4,000
cash
Credit on share options and - - 25,000
warrants
Netincrease/(decrease)in cash and 352,159 (3,606) (12,000)
cash equivalents
Cash and cash equivalents at (723,000) (711,000) (711,000)
beginning of period
Cash and cash equivalents at end of (370,842) (714,606) (723,000)
period
Notes to the Interim Results
1. Basis of preparation
The Interim Results for the six months ended 30 June 2007 are unaudited and do
not constitute statutory accounts in accordance with section 240 of the
Companies Act 1985.
Full accounts for the year ended 31 December 2006, on which the auditors gave
an unqualified report and contained no statement under Section 237 (2) or (3)
of the Companies Act 1985, have been delivered to the Registrar of Companies.
2. Adoption of International Financial Reporting Standards (IFRS)
For all periods up to 31 December 2006 Totally plc has prepared its financial
statements in accordance with UK Generally Accepted Accounting Principles (UK
GAAP). AIM Rules require that the annual consolidated financial statements of
Totally plc for the year ended 31 December 2007 be prepared in accordance with
International Financial Reporting Standards (IFRS).
Accordingly, these interim financial statements which are for the six months
ending 30 June 2007 have been prepared for the first time in accordance with
International Financial Reporting Standards and are covered by IFRS1,
First-time Adoption of IFRS.
The information presented within these interim financial statements is in
compliance with IAS 34 `Interim Financial Reporting'.
In preparing these interim financial statements the comparative figures
previously reported under UK GAAP have been restated for the transition to
IFRS. The disclosures required by IFRS 1 regarding the transition for the
relevant periods are given in note 3 below. Unless noted the same accounting
policies and methods of computation have been followed in the interim financial
statements as compared to the most recent annual financial statements.
3. Transition from UK GAAP to IFRS
As required under IFRS 1, the equity reconciliations at 1 January 2006 (the
transition date for IFRS) and at 31 December 2006 (date of last UK GAAP
financial statements) are set out below. For comparative purposes, the equity
reconciliation at 30 June 2006 is also included to enable a comparison of the
2007 published interim figures
The amortisation charged under UK GAAP for the year ended 31 December 2006 was
charged in accordance with UK GAAP policies and was also considered necessary
to bring the goodwill to an accurate carrying value. Under IFRS goodwill cannot
be amortised but an impairment is instead required for the year ended 31
December 2006. The resulting loss for the year ended 31 December 2006 is
therefore the same under IFRS as reported in the audited accounts prepared
under UK GAAP.
4. Reconciliation of UK GAAP equity to IFRS equity
31 December 30 June 1 January
2006 2006 2006
Capital and reserves according to UK GAAP 385,000 412,917 400,000
Effect of adopting IFRS - - -
Equity according to IFRS 385,000 412,917 400,000
In addition the total assets, equity and liabilities reported under UK GAAP
are the same as that reported under IFRS.
5. Earnings/(loss) per share
The basic loss per share has been calculated by dividing the retained profit
for the period of £2,540 (2006: £8,886) by the weighted average number of
ordinary shares of 91,344,986 (2005: 90,014,378) 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
No dividend is proposed for the six months ended 30 June 2007.
7. Copies of Interim Results
Copies of the Interim Results will be available from the Company's website
(www.totallyplc.com) and from the Company's registered office, Unit 611,
Highgate Studios, 53-79 Highgate Road, London, NW5 1TL.
Tuesday, 14th May 2024
COMPANIES COVERED:
Latest directors dealings
- 23 minutes ago OSB Group
- 26 minutes ago RM
- 27 minutes ago Dr. Martens
- 28 minutes ago FirstGroup
- 35 minutes ago RM