Interim Results

14th September, 2004 Totally Plc ('Totally' or 'the Company') Interim announcement of results for the six month period ended 30th June 2004 Totally Plc, the publishing and communications group, which targets distinct Jewish communities around the world, today announces its interim results for the 6 months ended 30th June 2004. Summary • Acquisition of The Jewish Advocate, New England's (USA) leading weekly Jewish newspaper. • UK & US publishing businesses now integrated under single management structure. • Company turnover up 36 per cent. to £1.26 million, reflecting the addition of The Jewish Advocate. • One-off integration costs push operating loss to £220,000. Steve Burns, CEO of Totally Plc commented: '2004 is proving to be a very exciting year. Acquiring The Jewish Advocate has transformed the Company and it now has the foundation and people to become the market leader in its field.' Chairman's Statement Acquisition of Jewish Advocate Publishing Corporation On 29th January 2004 the Company announced its acquisition of Jewish Advocate Publishing Corporation, which owns The Jewish Advocate, New England's leading weekly Jewish newspaper. The two businesses are now under a single management structure. To facilitate this rapid integration, during the period under review the Company made a number of one-off investments in management, systems and infrastructure. Results The results for the period under review include 5 months of the combined operation. The Company's turnover grew by 36 per cent. to £1.26 million reflecting the acquisition of The Jewish Advocate. Turnover across the UK businesses increased by 5 per cent. when compared to the same period last year. Expenses increased by 40 per cent. to £1.48 million, again reflecting the acquisition of The Jewish Advocate. As already stated, to support the rapid integration of its publishing operations, during the period under review the Company made a number of one-off investments in management, systems and infrastructure at an approximate cost of £110,000. These one-off costs have led to an increase in the Company's operating loss to £220,000, from £130,000 for the same period last year. Prospects As a result of the investments already made in integrating the Company's publishing businesses, a substantial improvement in the Company's operating performance is expected in the second half of the financial year. The UK operation already has a strong order book for the rest of this financial year. Discussions with other Jewish publishers and media owners in the United States and Europe are ongoing and the Directors believe the Company is well placed to continue its international development. Dr Michael Sinclair Chairman 14th September, 2004 Profit and loss account For the 6 months ended 30th June 2004 Note 6 months 6 months Year ended ended ended 31st December 30th June 30th June 2003 2004 2003 (audited) (unaudited) (unaudited) £ £ £ Turnover 1,260,418 925,713 1,951,680 Cost of sales (103,680) (100,108) (245,919) Staff costs (798,396) (549,741) (1,143,135) Depreciation (15,380) (11,447) (24,297) Other operating charges (562,984) (395,216) (746,361) -------- -------- -------- Total expenses (1,480,440) (1,056,512) (2,159,712) -------- -------- -------- Operating loss (220,022) (130,799) (208,032) Interest receivable - 124 - Interest payable (19,102) (8,482) (15,368) -------- -------- -------- Loss on ordinary activities (239,124) (139,157) (233,400) before taxation Taxation 41,618 - 44,448 Prior Year Adjustment - 55,800 - -------- -------- -------- Retained loss for the period (197,506) (83,357) (178,952) ======== ======== ======== Loss per share - 3 (0.26)p (0.16)p (0.33)p basic and diluted ======== ======== ======== Balance sheet As at 30th June, 2004 As at As at As at 30th June 30th June 2003 31st December 2004 (unaudited) 2003 (unaudited) (audited) £ £ £ Fixed assets Tangible fixed assets 46,530 49,100 46,606 Intangible fixed assets - 875,474 - - Investments Current assets Newsprint inventory 5,111 - - Debtors and prepayments 459,745 368,288 390,171 Cash at bank and in hand 62,525 1,804 - -------- -------- -------- 527,381 370,092 390,171 Creditors Trade creditors (235,077) (277,389) (214,326) Loans and overdrafts (467,298) (270,242) (204,995) Accruals and deferred income (214,839) (74,665) (149,321) Finance leases - (184) - Other taxation and social (74,468) (62,124) (78,358) security -------- -------- -------- (991,682) (684,604) (647,000) Net current liabilities (464,301) (314,512) (256,829) Total assets less current 457,703 (265,412) (210,223) liabilities -------- -------- -------- Net liabilities 457,703 (265,412) (210,223) ======== ======== ======== Capital and reserves Called up Share capital 786,897 527,897 518,897 Share premium account 2,915,849 2,158,217 2,255,417 Profit and loss account (3,245,043) (2,951,526) (3,047,537) -------- -------- -------- Equity shareholders' funds 457,703 (265,412) (210,223) ======== ======== ======== Notes to the Interim Results 1. Basis of preparation The Interim Accounts for the six months ended 30th June 2004 are unaudited and do not constitute statutory accounts in accordance with section 240 of the Companies Act 1985. 2. Dividends No dividend is proposed for the six months ended 30th June 2004. 3. Loss per share The basic loss per share has been calculated by dividing the retained loss for the period of £197,506 (2003:£83,357) by the weighted average number of ordinary shares of 75,423,225 (2003: 52,789,709) 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. 4. 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. Full accounts for the period ended 31 December 2003, 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. Enquiries Totally Plc Steve Burns Tel: 020 7692 6929 John East & Partners Limited David Worlidge Tel: 020 7628 2200 Simon Clements

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