Interim Results
To be embargoed until 7.00am on
9 September, 2005
Totally Plc ('Totally' or 'the Company')
Interim announcement of results
for the six month period ended 30 June 2005
New businesses launched; increased product development & reduced operating
losses.
Totally Plc, the publishing and communications group which targets Jewish
communities worldwide, announces its interim results for the six months to 30
June 2005.
Summary
* www.totallyjewishdating.com, the Group's new global dating portal is
launched in a market now estimated to be worth in excess of $25 million per
annum.
* www.totallyjewishtravel.com, the Group's Jewish travel business is merged
with www.sederolam.co.il, the leading Israeli business travel site,
creating the world's largest Jewish travel portal in a growing market
estimated to be worth in excess of $300 million per annum.
* The Jewish Advocate, the Group's US based newspaper reports 22 per cent.
year on year increase in primary advertising sales to $619,000.
* Core UK titles, The Jewish News and www.totallyjewish.com are successfully
re-launched and UK publishing expenditure is reduced by over £200,000 per
annum.
* 11 per cent. reduction in Group operating losses to £197,000.
* As a result of the extensive product development activity and significant
reduction in UK publishing costs, substantial improvements expected in
second half.
Steve Burns, CEO of Totally Plc commented:
'During the first half of 2005 we continued with our strategy of aggressive
product development. As a result, we have launched, and in some cases
re-launched, several new and improved media and services. We have completed
these revenue generative developments whilst also reducing our UK publishing
costs by over £200,000 per annum. This has created confidence in our ability to
deliver substantially improved results for the second half of this year.'
Chairman's Statement
I am pleased to present the results for the six months ended 30 June 2005.
During the period the Group incurred a loss before taxation of £218,000 (2004:
£239,000) on turnover of £1.33 million, an increase of 5.7 per cent. over the
turnover for the comparable period last year of £1.26 million.
Dating
The Jewish dating services market is now estimated to be worth in excess of $25
million per annum. With this in mind I am pleased to report that in May 2005
the Group launched its new global dating portal, www.totallyjewishdating.com
which we expect to gain market share in this sector in the short to medium
term. Beyond using the Group's own media to drive awareness and ultimately
subscriptions, the intention is to develop and roll out affiliate programs to
propagate this new brand across the global Jewish market place.
At the same time, the Group is planning to utilise its proprietary online
dating technology and online marketing skills to help other niche publishers to
launch their own dating services under partnership agreements.
Travel
In the Group's 2004 accounts I reported that we had entered into an agreement
to merge our online travel business with www.sederolam.co.il, the leading
Israeli travel site which late last year received excellent reviews in the New
York Times business section. I am pleased to report that this transaction has
been completed and that the Group now owns 50 per cent. of a new business,
Totally Jewish Travel Inc., which has been established to exploit the
considerable opportunities within a growing travel market, which is currently
estimated to be worth in excess of $300 million per annum.
In July the new combined site was launched in English under the brand name
www.totallyjewishtravel.com and work is currently underway to launch both the
Hebrew and French versions.
UK Publishing
In January of this year the Group appointed Charles Golding, former Controller
of LBC and deputy editor of the Sunday Express, as its new Editor-In-Chief to
work alongside Dan Assor, the Group's Publishing Director. Their combined brief
has been to develop the Group's existing media and where possible, reduce
publishing expenditure. I am delighted to report that during the period under
review they succeeded in re-launching The Jewish News, the Group's
award-winning London based newspaper, with the result that the publication is
now more upmarket, vibrant and community orientated. At the same time, they
have restructured the UK publishing business and reduced publishing expenditure
by over £200,000 per annum, the benefits of which will begin to be felt in the
last quarter of 2005. Community feedback for the new look paper has been very
encouraging and we expect its increased profile to translate into increased
advertising revenues in the medium term.
In May of this year the Group also re-launched www.totallyjewish.com, the
Group's flagship UK based website, with a far greater emphasis being placed on
advertising and subscription based revenue generation. We are already receiving
increased income, as a result.
Following the end of the period under review, the Group has also launched its
new yellow and white pages Jewish directory service in the UK,
www.totallyjewishdirectory.com. The intention is to create the global standard
for local, national and international Jewish listings.
US Publishing
As previously reported the Group has invested in developing the management,
systems, infrastructure and editorial prowess at The Jewish Advocate, the
Group's first US Jewish newspaper based in Boston, MA. I am pleased to report
that, during the period under review, this investment has started to deliver
meaningful results, with advertising revenues increasing by 22 per cent. to
$619,000 from $516,000 for the same period last year. The directors believe
that this increasing revenue trend is set to continue.
Also following the end of the period under review, the Group re-launched the
www.thejewishadvocate.com website. This new resource, which is modelled on
www.totallyjewish.com, is also focused on driving revenue from newspapers,
subscriptions and ancillary services.
Totally Communications Limited
During the period under review, the technology and marketing teams have spent a
considerable amount of time driving the development and launch of the various
new online media. Whilst this 'internal' focus has impacted on their ability to
drive client revenues, revenues have, nonetheless increased by 4 per cent. to £
233,000 from £224,000 for the same period last year.
As a result of the board and management changes reported in the 2004 report and
accounts, work has now started on developing Totally Communications' products
and services and significant growth is expected over the coming months.
Prospects
During the first half of 2005, the Group has focused on extensive product
development, which has led to significant improvements being made in a number
of our existing titles and the launch of a number of new and exciting products
and services. As a result of this and the reduction in UK publishing costs, the
Group is now well positioned to take advantage of opportunities for growth in
the second half of 2005 and beyond.
Dr Michael Sinclair, Non-Executive Chairman
9 September 2005
Profit and loss account
For the six months ended 30 June 2005
6 months 6 months ended Year ended
ended 30 June 31 December
30 June 2004 2004
2005 (unaudited) (audited)
(unaudited)
£ £
£
Turnover 1,332,535 1,260,418 2,698,000
Cost of sales (138,041) (103,680) (285,000)
Staff costs (760,761) (798,396) (1,540,000)
Depreciation (20,441) (15,380) (33,000)
Other operating charges (610,179) (562,984) (1,144,000)
-------- -------- --------
Total expenses (1,529,422) (1,480,440) (3,002,000)
-------- -------- --------
Operating loss (196,887) (220,022) (304,000)
Interest payable (20,758) (19,102) (28,000)
-------- -------- --------
Loss on ordinary activities (217,645) (239,124) (332,000)
before taxation
Taxation - 41,618 68,000
-------- -------- --------
Retained loss for the period (217,645) (197,506) (264,000)
======== ======== ========
Loss per share (pence) - (0.25)p (0.26)p (0.34)p
basic and diluted
======== ======== ========
Balance sheet
As at 30 June, 2005
As at As at 12 months ended
31 December 2004
30 June 2005 30 June 2004 (audited)
(unaudited) (unaudited)
£ £ £
Fixed assets
Tangible fixed assets 267,996 46,530 184,000
Intangible fixed assets - 941,000 875,474 941,000
Investments
Current assets
Newsprint inventory 5,400 5,111 3,000
Debtors and prepayments 383,325 459,745 391,000
Cash at bank and in hand 13,981 62,525 48,000
-------- -------- --------
402,706 527,381 442,000
Creditors
Trade creditors (250,588) (235,077) (295,000)
Loans and overdrafts (561,301) (467,298) (596,000)
Accruals and deferred income (256,726) (214,839) (174,000)
Other taxation and social (66,141) (74,468) (77,000)
security
-------- -------- --------
(1,134,756) (991,682) (1,142,000)
Net current liabilities (732,050) (464,301) (700,000)
Total assets less current 476,946 457,703 425,000
liabilities
-------- -------- --------
Net liabilities 476,946 457,703 425,000
======== ======== ========
Capital and reserves
Called up share capital 898,647 786,897 788,000
Share premium account 3,106,167 2,915,849 2,947,000
Revaluation reserve 1,000 - 1,000
Profit and loss account (3,528,868) (3,245,043) (3,311,000)
-------- -------- --------
Equity shareholders' funds 476,946 457,703 425,000
======== ======== ========
Cashflow Statement
For the six months ended 30 June 2005
6 months to 6 months to
30 June 30 June
2005 2004
(unaudited) (unaudited)
£ £
Net cash outflow from operating (143,125) (202,379)
activities
Return on investments and servicing of
finance
Interest paid (20,758) (19,102)
-------- --------
(163,883) (221,481)
Taxation
R&D tax credit - 41,618
Capital expenditure and financial
investments
Payments to acquire tangible fixed assets (104,437) (15,910)
Acquisitions
Purchase of investments in subsidiary - (31,000)
undertakings
Cash acquired with subsidiary - 27,000
-------- --------
Net cash inflow/(outflow) before (268,320) (199,773)
financing
Financing
Issue of ordinary share capital for cash 275,000 -
Expenses paid in connection with share (6,000) -
issues
-------- --------
269,000 -
(Decrease)/increase in cash 680 (199,773)
======== ========
Reconciliation of operating loss to net cash flow from operating activities
Operating loss (196,887) (220,022)
Depreciation 20,441 15,380
(Increase) in inventory (2,400) (5,111)
Decrease/(increase) in debtors 7,675 (68,745)
Increase in creditors 28,046 76,119
-------- --------
(143,125) (202,379)
======== ========
Reconciliation of net cash flow to movements in net debt
At 31 At 30 Cash At 31 At 30 Cash
flows flows
December June December June
2004 2003
2005 2004
£ £
£ £
Cash at bank and 48,000 13,981 (34,019) - 62,525 62,525
in hand
Overdrafts (596,000) (561,301) 34,699 (205,000) (467,298) (262,298)
(548,000) (547,320) 680 (205,000) (404,773) (199,773)
Notes to the Interim Results
1. Basis of preparation
The Interim Accounts for the six months ended 30 June 2005 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 2004, 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. Dividends
No dividend is proposed for the six months ended 30 June 2005.
3. Loss per share
The basic loss per share has been calculated by dividing the retained loss for
the period of £217,645 (2004:£197,506) by the weighted average number of
ordinary shares of 86,233,632 (2003: 75,423,225) 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.
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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