Final Results
Cohen(A.) & Co PLC
30 April 2003
FOR IMMEDIATE RELEASE 30 APRIL 2003
A. Cohen & Co. plc
(the 'Company')
Preliminary Results Statement for the year ended 31 December 2002
Chairman's Statement
Results
In the year ended 31 December 2002, the Company reported an operating loss
before exceptional costs of £411,000 (2001: £505,000 loss) from turnover of
£8.50 million (2001: £9.07 million). In addition to this figure, exceptional
costs and provisions for impairment of investments totalling £1,094,000 (2001:
Nil) were also taken to account.
Following a review of the assets and investments, the directors have revalued
the Company's investment in Scott Tod Developments Limited ('Scott Tod') from
£200,000 to £1,000,000 after capitalising related costs of £20,000.
Trading Activities
The trading activities throughout the year included the international scrap
trading and recycling business of Jacob Metals Limited which operated in a
difficult environment due to the prevailing market conditions during both the
war in Afghanistan and the events leading up to the conflict in Iraq.
Notwithstanding the extremely difficult market conditions, Jacob Metals Limited
made a positive and acceptable return on investment and a contribution to the
results of the Company.
The phosphor copper and associated products sales and production activities of
A. Cohen & Co. (Great Britain) Limited were scaled back to a three day operation
during the latter part of 2001 and remained at that level of activity for most
of 2002. Despite the improved trading performance of A. Cohen & Co. (Great
Britain) Limited in the first quarter of 2002 coupled with the significant
efforts by management, the ability to make profits at this level of activity was
limited and the business made a loss from operations. This has led to the
Board's decision to sell the Woolwich Site and exit the phosphor copper business
as announced on 31 March 2003.
Investments and Exceptional Costs
As indicated above the Group has entered into a conditional contract to dispose
of the Woolwich Site for £750,000, subject to shareholders' approval which will
be sought at an EGM to be held within the next 60 days. The Company expects to
exit the phosphor copper manufacturing and trading activities within this period
through either the sale or closure of the business. A provision for £265,000 on
the closure of these activities has been included in the exceptional costs.
As reported during April 2002, the Company acquired a 20 per cent. interest in
Scott Tod and a 33 per cent. interest in Money Products International
Limited. It was the intention of the Company to increase its investment in both
of these companies, in particular the acquisition of the remaining 80 per cent.
of Scott Tod. Unfortunately, the transaction did not proceed, in part, as a
consequence of poor stock market conditions as a result of which it was not
possible to raise the requisite funds from existing shareholders and new
investors. Costs in excess of £800,000 were incurred as a result. The Company
has managed to negotiate reductions in these costs so that reduced expenses of
£563,000 have been written off and charged within exceptional costs.
The investment in Metal Sales Company (PVT.) Limited in Zimbabwe again made no
contribution during the year and no dividends were received. The Group
investment in Speedmark Industries Limited in South Africa also provided no
return or dividend during the year.
As a consequence of the continual review of the Company's investments by the
Board, the inadequate return from certain investments together with political
and exchange rate considerations, the Board has set aside a further amount of
£235,000 which is shown as a provision for the impairment of certain assets and
investments in addition to the exceptional costs outlined above.
Revaluation of Investment
In order to reflect the true and representative value of the Company's
investment in Scott Tod, the Board has decided to revalue the investment from an
original cost of £200,000 and related costs of £20,000, by £780,000 to a total
of £1,000,000 to better reflect the Board's view of the value of the business.
The Board believes it could realise well in excess of the value it has placed on
this investment.
As announced on 16 April 2003, the Company has sold its investment in ATMs back
to Scott Tod.
ROO Media Europe Limited
As announced on 12 December 2002, the Company acquired 30 per cent. of ROO Media
Europe Limited ('ROO Media Europe') from ROO Media Corporation, a media
syndication company. ROO Media Europe has an exclusive 5 year licence with the
right to sell, syndicate and operate the full range of ROO Media products and
services in the UK and Europe. This includes content syndication and the supply
of streaming video, services for the reproduction of video content on the
Internet and advertising services on the www.rootv.co.uk Internet video portal
as well as future content developments of ROO Media Corporation. The terms of
the licence provide ROO Media Europe with a revenue percentage of all ROO Media
Corporation revenues from the UK and Europe.
I am pleased to announce that the www.rootv.co.uk site was activated during the
month of April and, in the last week, the ROO Alert is now operational in the UK
and Europe and has commenced providing feedback for the development of the UK
and European activities. This is expected to commence generating income and
revenue from May 2003.
Outlook
During 2002 the Company entered the ATM market through its investment in Scott
Tod, a market segment and asset class which the Board believes will have a
higher growth rate than metals recycling at Woolwich which the Company will exit
by 30th June 2003 together with the sale of the Woolwich Site, the latter being
subject to shareholder approval.
Jacob Metals Limited continues to operate as an independent business unit in the
traditional fields of the Company and has made in the first quarter, and is
expected to continue to make, a profitable contribution to the activities of the
Company.
The Company has also entered the rapidly developing digital media and broadband
market segments through its investment in ROO Media Europe which is expected to
commence generating revenue shortly. All statistics and market reports indicate
continuing rapid growth in this market segment in which the Company is reviewing
its options for expansion. ROO Media Europe has a number of rapid growth
opportunities before it and the Company expects to outline to shareholders its
intentions in relation to this investment prior to the EGM to approve the sale
of the Woolwich Site.
The Board
During the year Jim Ferguson, formerly a non-executive director, was appointed
to the role of Managing Director of metals and recycling activities. Robert
Petty and Michael Neistat were appointed as non-executive directors concurrently
with the investment in ROO Media Europe.
R.B. Ritchie
Executive Chairman
Enquiries:
A. Cohen & Co. plc
Royce Ritchie
Executive Chairman 00 61 417 500 979
Beattie Financial
Brian Coleman-Smith / Amanda Sheehy 020 7398 3300
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year ended 31 December
2002 2001
Total Total
Unaudited
£'000 £'000
Turnover 8,502 9,066
Cost of sales (7,725) (7,426)
------------------------------- -------------------------------
Gross profit 777 1,640
Distribution costs (171) (375)
Administrative expenses (1,084) (1,870)
Other operating income 67 100
------------------------------- -------------------------------
Operating loss before (411) (505)
exceptional costs
Exceptional costs (859) -
------------------------------- -------------------------------
Operating loss after (1,270) (505)
exceptional costs
Interest receivable 3 12
Interest payable (64) (153)
Profit on sale of current asset - 222
investments
Profit on sale of fixed assets 1 -
Provision for impairment of (235) -
investments ------------------------------- -------------------------------
Loss on ordinary activities (1,565) (424)
before taxation
Tax charge on loss on ordinary - -
activities ------------------------------- -------------------------------
Loss on ordinary activities (1,565) (424)
after taxation
Equity minority interests - -
------------------------------- ------------------------------
Loss for the financial year (1,565) (424)
attributable to shareholders
=============== ===============
Losses per share (pence) both (11.4p) (7.8p)
basic and diluted
All amounts derive from continuing activities.
CONSOLIDATED BALANCE SHEET
31 December 2002
2002 2001
(Unaudited)
£'000 £'000
Fixed assets
Intangible assets 184 -
Tangible assets 7 1,186
Investments 1,039 235
------------------------------- -------------------------------
1,230 1,421
Current assets
Tangible assets held for resale 857 -
Stocks 256 423
Debtors 1,688 1,972
Cash at bank and in hand 78 72
------------------------------- -------------------------------
2,879 2,467
Creditors: amounts falling due within one year (2,105) (1,812)
------------------------------- -------------------------------
Net current assets 774 655
Total assets less current liabilities 2,004 2,076
Creditors: amounts falling due after more (319) (26)
than one year
------------------------------- -------------------------------
1,685 2,050
Equity minority interests (1) -
------------------------------- -------------------------------
1,684 2,050
=============== ===============
Capital and reserves
Called up share capital 3,032 2,612
Capital redemption reserve 49 49
Share premium account 2 2
Revaluation reserve 1,532 752
Other reserves 385 383
Profit and loss account (3,316) (1,748)
------------------------------- -------------------------------
Equity shareholders' funds 1,684 2,050
=============== ===============
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2002
Note 2002 2002 2001 2001
Total Total
£'000 £'000 £'000 £'000
Net cash 2 (793) (294)
outflow
from
operating
activities
Returns
on
investments
and
servicing
of finance
Interest 3 12
received
Interest (49) (151)
paid
Interest (3) (2)
element
of
finance
lease
rental
payments
----------------------- ------------------------
Net cash (49) (141)
outflow
from
returns
on
investments
and
servicing
of finance
Capital
expenditure
and
financial
investment
Payments (11) -
to
acquire
tangible
fixed
assets
Receipts 1 -
from sale
of
tangible
fixed
assets
----------------------- ------------------------
Net cash (10) -
outflow
from
capital
expenditure
and
financial
investment
----------------------- ------------------------
Net cash (852) (435)
outflow
before
financing
Financing
Issue of - 2,026
ordinary
share
capital
Increase 300 -
in
borrowings
Repayment (212) (1,571)
of
borrowings
Capital (48) (17)
element
of
finance
lease
rental
payments
----------------------- ------------------------
Net cash 40 438
inflow
from
financing
----------------------- ------------------------
Increase/ (812) 3
(decrease)
in cash
=============== ===============
NOTES
Year ended 31 December 2002
1. Basis of Preparation
The above results for the year ended 31 December 2002 are an abridged version of
the Group's statutory financial statements which have not been filed at the
Registrar of Companies and which have not yet been reported on by the auditors.
The consolidated profit and loss account, consolidated balance sheet and
consolidated cashflow statement do not constitute statutory financial statements
within the meaning of Section 240 of the Companies Act 1985 (as amended). These
statements have been prepared on the basis of the accounting policies as stated
in the previous year's financial statements save that Fixed Asset Investments
are now revalued.
The results for the year ended 31 December 2001 have been extracted from the
financial statements of the Group on which an unqualified report from the
auditors has been issued and which have been filed with the Registrar of
Companies.
The Annual Report and Accounts will be sent to shareholders shortly.
2. Reconciliation of operating profit to net cash outflow from operating
activities
2002 2001
£'000 £'000
Operating loss (411) (505)
Exceptional Costs 859
Impairment of fixed assets 265 100
Depreciation 69 85
Net movement in working capital
Stocks 167 (36)
Debtors 284 483
Creditors (308) (421)
------------------------------- -------------------------------
Net cash outflow from operating activities (793) (294)
=============== ===============
3. Cash flow statement: Analysis of net debt
At At
1 January Cash 31 December
2002 flow 2002
£'000 £'000 £'000
Cash in hand and at bank 72 6 78
Overdrafts and bank (33) (818) (851)
advances
------------------------------- ------------------------------- -------------------------------
39 (812) (773)
Debt due within one year (212) (100) (312)
Finance leases (54) 48 (6)
------------------------------- ------------------------------- -------------------------------
Net debt (227) (864) (1,091)
=============== =============== ===============
4. Cash flow statement: Reconciliation of net cash flow to movement in net debt
2002 2002 2001 2001
£'000 £'000 £'000 £'000
Increase/ (812) 3
(decrease)
in cash in
the year
Cash (52) 1,588
inflow
from
increase
in debt
and lease
financing
------------------------ ------------------------
Change in (864) 1,591
net debt
resulting
from cash
flows
------------------------ -------------------------
Movement (864) 1,591
in net
debt in
the year
Net debt (227) (1,818)
at start
of year
------------------------ -------------------------
Net debt (1,091) (227)
at end of
year
=============== ===============
END
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