3rd Quarter Results
365 Corporation PLC
7 March 2002
7 March 2002
365 Corporation plc
Third Quarter and Nine Months Results
'Continuing consumer operations move into profitability(1) as restructuring
nears completion'
RESTUCTURING
• Sale of internet content operation to Rivals Digital Media Ltd
• Integration of profitable fixed line and mobile services into ongoing
speech solutions business
• Intended exit from loss-making Business Division hardware operations
RESULTS
• Third quarter operating profit(1) from continuing consumer operations ('
speech solutions') of £0.4m (Q2: loss £0.2m)
• Third quarter group turnover of £13.7m (2001: £13.6m), operating loss
(2) of £2.3m (2001: £3.9m), goodwill charges of £5.7m (2001: £6.8m) and loss
before tax of £8.6m (2001: £10.2m)
• Reducing cash burn: £15.3m of cash and short term deposits as at 31
December 2001
FUTURE STRATEGY
Proposed change of name to Eckoh Technologies plc(3)
• Strategic focus on provision of Speech Solutions to third parties
• New contracts with Virgin Mobile, Static and the Royal National Institute
for the Blind
• New partnering agreement with Philips Speech Processing
Analysis of Turnover, Operating Loss(2) and Net Loss (£'000)
Accounting Period 3 months 3 months 9 months 9 months
ended ended ended ended
31 Dec 2001 30 Sep 31 Dec 2001 31 Dec 2000
2001 (4)
Group Turnover 13,661 14,063 41,676 35,615
Consumer Division - continuing operations (speech solutions) 7,035 6,312 19,654 16,534
Consumer Division - discontinued operations 773 1,245 3,361 4,894
Business Division 5,853 6,506 18,661 14,187
Operating Profit/(Loss) (2) (2,278) (3,419) (9,818) (9,720)
Consumer Division - continuing operations (speech solutions) 397 (218) 330 1,172
Group overhead (648) (584) (2,026) (2,386)
Business Division (946) (1,451) (4,144) (2,569)
Consumer Division - discontinued operations (1,081) (1,166) (3,978) (5,937)
Loss for the period (8,553) (11,737) (27,397) (26,690)
(1) before goodwill charges
(2) before goodwill charges and restructuring and other one-off charges
(3) an EGM will be held to seek shareholders' approval for the change of
name. Notice of the meeting will be issued in due course.
(4) restated following a reclassification of costs
Martin Turner, Chief Executive Officer, commented today:
'Our speech solutions business continues to exceed our expectations as we move
the business forward in developing hosted interactive voice applications and
speech recognition services for clients as a Speech Application Service
Provider. We are already a European leader in this field, and our growing
blue-chip client list is evidence of our ability to deliver large-scale speech
solutions.
The impending completion of the Business Division restructuring and proposed
change of name to Eckoh Technologies plc is the final stage of a major programme
of change that is designed to move 365 into profitability and safeguard its
financial future. We have significantly reduced our cost base, successfully '
ring-fenced' our financial exposure to any future operating losses in our
internet business, are completing the integration of our profitable fixed line
and mobile services into our Continuing Operations, and will shortly exit from
hardware activities. Eckoh Technologies plc will operate as a unified, fully
integrated business from our primary location in Hemel Hempstead.
The company is fully funded and positioned to profitably exploit the anticipated
growth in demand for speech solutions across Europe.'
For further enquiries, please contact
365 Corporation plc Tel: 01442 458 355
Martin Turner, Chief Executive Officer
Nik Philpot, Chief Operating Officer
www.365corp.com
Financial Dynamics Tel: 020 7831 3113
Ben Atwell / Sam Robbins
Interim Report for the Quarter and Nine Months ended 31 December 2001
Consumer Division - Continuing Operations (Speech Solutions)
365 is a European market leader of hosted interactive voice applications and
speech recognition services to large corporations and organisations. A key
strength is the ownership of one of the largest speech recognition enabled call
processing platforms in Europe on which mass-access client applications can be
hosted, such as speech-enabled voice portals, ticketing, timetabling,
multi-lingual information, data capture, home banking, order processing and
tracking, caller verification, games etc. We are seeing strong demand for
speech solutions from clients looking to significantly reduce call centre costs,
create competitive market advantages through innovative interaction with their
customers, or implement value added applications to drive incremental revenue.
Following completion of the restructuring of the Business Division discussed
below, 365 will operate a single integrated speech solutions business and
dispense with a 'divisional' organisational structure.
During the quarter, revenue from continuing consumer operations increased by 11%
to £7.0m compared to the previous quarter (Q2: £6.3m) with gross margin
increasing from 33% to 35%. These increases were due to the effect of the
previously announced contracts with Virgin Mobile, Granada, and Static, which
all performed strongly during the quarter.
In December we announced a second deal with Static to provide its newly launched
interactive community channel 'YoYo' with extensive voice response and speech
recognition applications. The deal is for a minimum of 18 months and generates
call termination revenues based on usage in addition to guaranteed monthly
hosting and development fees.
We are in active discussions with a number of other large businesses and
organisations seeking speech recognition solutions, and in January we delivered
the first phase of a revolutionary telephone service, powered by speech
recognition, for the Royal National Institute for the Blind ('RNIB'). Expected
to be launched in the Spring, the service will allow blind and partially sighted
people dramatically increased access to their Talking Books library, by enabling
them to use their telephones to browse and order from an initial catalogue of
over 2,500 publications.
Today we are announcing a partnering agreement with Philips Speech Processing.
Under this agreement Philips have appointed us as their partner for hosting
speech recognition applications on behalf of their clients. The agreement also
enables us to aggressively expand our speech recognition capabilities, for
example we are now able to host applications in most European languages, and
gain early access to new advances in speech technology.
Continuing consumer operations generated an operating profit (before goodwill
charges) of £0.4m for the quarter, and £0.3m for the nine months ended 31
December 2001, which included significant start-up costs relating to the
development of our speech technology.
During the quarter our continuing operations generated 23.9 million minutes* of
voice traffic (Q2: 18.8 million).
Consumer Division - Discontinued Operations
On 24 December 2001, 365 and Chrysalis Group plc ('Chrysalis') completed the
sale and transfer of their respective internet content businesses and related
assets to Rivals Digital Media Limited ('Rivals'). The merged business provides
its large audience with access to a broad, fan-based sports network and premium
sports content. Following completion of the transaction, we retain a
non-controlling 40% minority interest in Rivals. The remaining shares are owned
by Chrysalis (40%) and by Rivals' management (20%). The investment is being
treated as a trade investment as we do not have significant influence over the
operations or management of the new business, and is carried on our balance
sheet as at 31 December 2001 at £2.0m.
Operating funds of £2.0m have been jointly provided to Rivals by 365 (£0.7m) and
Chrysalis (£1.3m) and are considered sufficient to support Rivals' operations
for the next eighteen months. In addition, 365 and Chrysalis will each make
available a further £0.25m, if necessary, to Rivals for future acquisitions.
Neither 365 nor Chrysalis will have further funding obligations to Rivals beyond
these investments.
We completed the closure of our television and broadband departments during
December.
During the quarter, 365's discontinued operations incurred an operating loss
(before goodwill charges) of £1.1m on turnover of £0.8m. The profit on disposal
of the internet operations of £0.3m has been disclosed as an exceptional item.
Business Division
We are in the final stage of a major restructuring of our Business Division,
which is expected to eliminate related operating losses going forward. This
restructuring will involve the separation of the Business Division into two
distinct operations - Network Services (fixed line and mobile services) and
Hardware Services (telephone systems and related services).
Network Services will be integrated into the speech solutions operation of the
Consumer Division as a complementary activity, and will operate from our
recently expanded head office in Hemel Hempstead. Back office functions such as
billing, customer care, IT, and finance will combine to deliver significant
operating improvements and cost efficiencies of benefit to both 365 and its
customers. Within this integrated business, we believe that Network Services
will generate annual turnover in excess of £15m and make a significant
contribution to Group operating profits and cash flow. During the nine months
to 31 December 2001, Network Services generated turnover of £13.2m and a gross
profit of £3.6m.
Hardware Services continues to under perform due to poor market conditions and
competitive pressures, despite management changes and a significant reduction in
its cost base over the past nine months. During the nine months to 31 December
2001, Hardware Services generated turnover of £5.5m and a gross profit of only
£0.7m, which is not considered sufficient to support ongoing operating costs.
We are therefore looking at a number of options to exit or eliminate financial
exposure to Hardware Services (while protecting any related Network Services
business), which may include the sale or a joint venture with a third party.
On 4 March 2002 we announced that we had decided not to pursue discussions with
Convergent Communications plc regarding a possible sale of the Business
Division. Estimated costs of £0.6m were incurred in respect of these
discussions, which will be expensed as restructuring and other one-off charges
in the fourth quarter.
Demand for new hardware installations remained weak during the quarter, and
largely accounted for a fall in revenues to £5.9m compared to £6.5m for the
previous quarter. Revenue for the same quarter last year was £6.1m.
Gross margin was stable at 23% compared to the previous quarter, and has been
depressed in recent months by a largely fixed engineering cost base which had
been scaled for further growth. Margin is expected to improve as the Business
Division restructures itself as detailed above.
Administrative expenses (before goodwill charges and restructuring and other
one-off charges) reduced by 22% to £2.3m compared to £3.0m for the previous
quarter, reflecting the financial impact of the Business Division's ongoing cost
reduction programme. As at 31 December 2001 staffing levels had reduced to 166,
compared to 195 as at 30 September 2001.
A further goodwill impairment write-down of £3.8m (Q2: £3.7m) was recorded
during the third quarter to reflect our best estimate of the current value of
the Business Division.
As at 31 December 2001, 365's Business Division had 6,071 customers* (Sept 2001:
5,984), generating 67.0 million minutes* (Q2: 65.2 million) of traffic during
the quarter.
Corporate, liquidity and cash resources
Corporate overheads (excluding restructuring and other one-off charges) for the
quarter were £0.6m. It is expected that these costs will reduce in future
periods as our corporate activities are adjusted to fit our new requirements
moving forward. We incurred restructuring charges of £1.0m during the quarter
as we continued to reorganise both our internet operations and the Business
Division, which included significant headcount reductions.
The Group remains in a strong financial position with cash reserves of £15.3m at
the end of the quarter, and continues to reduce its operating cash consumption.
The cash balance was favourably improved by working capital movements, which
subsequently reversed in January 2002.
Changes to the Board
Ian Martin has expressed his intention to stand down as a director and Chairman
of 365 in October of this year. During his three-year tenure, Ian has seen the
Company through its flotation and its successful transformation into a focused
speech solutions provider.
Current Trading And Outlook
Together with the internet disposal, the final stage of the restructuring of the
Business Division will help secure 365's financial future, and allow the Group
to focus on the continued development of its growing speech solutions business.
We believe that demand for speech solutions will accelerate as a result of an
increasing adoption of speech recognition technology throughout Europe, and that
365 is well positioned to profitably exploit this. Since the launch of its
innovative voice portal in June 2001, 365 has secured contracts with Virgin
Mobile, Granada, the RNIB and other businesses. We expect to continue to
attract new clients, and are in active discussions with a number of large
businesses and organisations.
Based on the current financial performance of 365's speech solutions business,
recent commercial contract successes and ongoing discussions with a number of
new potential clients, the Directors are confident about the Group's future
prospects.
* as defined in Note 2 on page 10
Consolidated profit and loss account
for the quarter and nine months ended 31 December 2001
Quarter ended Quarter ended 9 months ended 9 months
31 December 31 December 31 December 2001 ended 31
2001 2000 December
2000
unaudited unaudited unaudited unaudited
£'000 £'000 £'000 £'000
Note
Turnover 3,4 13,661 13,587 41,676 35,615
Continuing operations 12,888 11,811 38,315 30,721
Discontinued operations 773 1,776 3,361 4,894
Cost of sales (9,420) (8,085) (28,093) (21,270)
Gross profit 4,241 5,502 13,583 14,345
Administrative expenses before goodwill 6,519 9,408 23,401 24,065
charges and restructuring and other one-off
charges
Amortisation and impairment of goodwill 5,668 6,829 15,068 18,973
Restructuring and other one-off charges 1,021 - 3,341 -
Total administrative expenses 13,208 16,237 41,810 43,038
Operating loss before goodwill charges and 3,4 (2,278) (3,906) (9,818) (9,720)
restructuring and other one-off charges
Continuing operations (1,197) (2,062) (5,840) (3,783)
Discontinued operations (1,081) (1,844) (3,978) (5,937)
Operating loss 3,4 (8,967) (10,735) (28,227) (28,693)
Continuing operations (7,318) (4,145) (21,066) (8,766)
Discontinued operations (1,649) (6,590) (7,161) (19,927)
Profit on disposal of internet operations 303 - 303 -
Net interest receivable 142 542 653 1,983
Loss on ordinary activities before taxation (8,522) (10,193) (27,271) (26,710)
Taxation (3) - 6 (26)
Loss on ordinary activities after taxation (8,525) (10,193) (27,265) (26,736)
Minority interests (28) (11) (132) 46
Loss for the period (8,553) (10,204) (27,397) (26,690)
Loss per ordinary share 5
Basic and diluted loss per share (4.2p) (5.1p) (13.5p) (13.4p)
Basic and diluted loss per share before (1.1p) (1.7p) (4.6p) (3.9p)
goodwill charges, restructuring and other
one-off charges and profit on disposal of
internet operations
Statement of total recognised gains and losses
for the quarter and nine months ended 31 December 2001
Quarter ended Quarter ended 9 months ended 9 months ended
31 December 31 December 31 December 31 December
2001 2000 2001 2000
unaudited unaudited unaudited unaudited
£'000 £'000 £'000 £'000
Loss for the period (8,553) (10,204) (27,397) (26,690)
Exchange adjustments (236) (27) 39 (5)
Total recognised losses for the period (8,789) (10,231) (27,358) (26,695)
Prior period adjustment - - - 1,992
Total recognised losses since last period (8,789) (10,231) (27,358) (24,703)
Consolidated balance sheet
as at 31 December 2001
31 December 31 December 31 March 2001
2001 2000
unaudited unaudited audited
£'000 £'000 £'000
Fixed assets
Intangible fixed assets 9,030 36,720 24,985
Tangible fixed assets 2,060 3,026 3,179
Investments 2,000 - -
13,090 39,746 28,164
Current assets
Stock - finished goods 674 1,754 1,401
Debtors 10,550 14,991 14,566
Investments - short term deposits 12,588 28,468 24,250
Cash at bank and in hand 2,754 2,931 1,702
26,566 48,144 41,919
Creditors: amounts falling due within one year (10,602) (11,660) (12,205)
Net current assets 15,964 36,484 29,714
Total assets less current liabilities 29,054 76,230 57,878
Creditors: amounts falling due after more than one year (39) (38) (279)
Provisions for liabilities and charges (1,900) (2,968) (3,371)
Net assets 27,115 73,224 54,228
Capital and reserves
Called up share capital 511 503 505
Shares to be issued 600 1,359 752
Share premium account 72,425 72,320 72,425
Merger reserve 38,795 38,535 38,536
Profit and loss account (85,214) (39,391) (57,856)
Total equity shareholders' funds 27,117 73,326 54,362
Minority interests (2) (102) (134)
Capital employed 27,115 73,224 54,228
Consolidated cash flow statement
for the quarter and nine months ended 31 December 2001
Quarter ended Quarter ended 9 months ended 31 9 months ended 31
31 December 31 December December 2001 December 2000
2001 2000
unaudited unaudited unaudited unaudited
£'000 £'000 £'000 £'000
Note
Net cash outflow from operating 8 (1,680) (6,642) (9,083) (14,224)
activities
Return on investments and servicing of
finance
Net interest received 176 658 727 2,052
Taxation - - - (72)
Capital expenditure and financial
investment
Purchase of tangible fixed assets (170) (701) (622) (1,617)
Other fixed asset investments (670) - (670) -
(840) (701) (1,292) (1,617)
Acquisitions
Net cash acquired with subsidiary - 71 - 491
undertakings
Purchase of subsidiaries - (2,682) - (7,803)
Consideration paid in respect of prior (150) - (872) -
period acquisitions
(150) (2,611) (872) (7,312)
Cash outflow before use of liquid (2,494) (9,296) (10,520) (21,173)
resources and financing
Management of liquid resources
Decrease in short-term deposits 3,438 7,967 11,662 21,032
Financing
Issue of shares - - 14
Capital element of finance lease (55) (19) (90) (75)
payments
(55) (19) (90) (61)
Increase/(decrease) in cash in the 889 (1,348) 1,052 (202)
period
Notes to the third quarter and nine months
1. Basis of preparation
The results for the quarter and nine months ended 31 December 2001 have been
prepared using accounting policies consistent with those set out in the
Company's consolidated 2001 statutory accounts. These results do not constitute
statutory accounts within the meaning of section 240 of the Companies Act 1985
and are unaudited.
Financial information for the quarter and nine months ended 31 December 2000 and
2001 has been extracted from the accounting records of the group and is
unaudited.
The balances as at 31 March 2001 have been extracted from the statutory
accounts, which have been filed with the Registrar of Companies. The auditors'
report on those accounts was unqualified and did not contain any statement under
section 237 of the Companies Act 1985.
In previous periods operating loss and loss per share figures were stated before
National Insurance and other similar charges on share options. The charge in
relation to this is now considered to be immaterial and as a result this charge
is not shown separately from administrative expenses. Prior period numbers have
been restated to reflect this change. In addition prior quarter results have
been restated following the reclassification of profit and loss items.
The results for the quarter and nine months ended 31 December 2001 were approved
by the Board on 27 February 2002 and will be posted to shareholders on 28
February 2002.
2. Operating data
Reference is made to unique users, minutes and customers in the quarterly
results. These are defined as follows:
365 defines the number of unique users in a month as the number of people who
telephone one of 365's speech application services during a month.
365 defines the number of user sessions in a month as the number of times that
each 365 service is used. Each incoming call to 365's voice services represents
a user session.
365 defines the number of speech application services in a month as the number
of minutes recorded by 365 and its carriers in respect of calls to 365's speech
applications in that month.
365 defines the number of business customers at each month end as the total
number of customers at that month end who have been billed for that month.
365 defines the number of business minutes in a month as the number of minutes
tracked by the carriers' systems which are billed to the Business Division's
customers in that month.
3. Segmental analysis - for the quarter ended 31 December 2001
Turnover and loss before taxation are classified below by class of business.
Segmental information by geographical area is given by origin, which is not
materially different from geographical area by destination.
Consumer Division Business Division Group Overhead Total Group
Business Analysis (£'000) Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
ended ended ended ended ended ended ended ended
31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
2001 2000 2001 2000 2001 2000 2001 2000
Turnover 7,808 7,525 5,853 6,062 - - 13,661 13,587
Continuing operations 7,035 5,749 5,853 6,062 - - 12,888 11,811
Discontinued operations 773 1,776 - - - - 773 1,776
Cost of sales 4,934 4,097 4,486 3,988 - - 9,420 8,085
Gross profit 2,874 3,428 1,367 2,074 - - 4,241 5,502
Administrative expenses before 3,558 5,611 2,313 3,001 648 796 6,519 9,408
goodwill charges and restructuring
and other one-off charges
Operating (loss)/profit before (684) (2,183) (946) (927) (648) (796) (2,278) (3,906)
goodwill charges and restructuring
and other one-off charges
Continuing operations 397 (339) (946) (927) (648) (796) (1,197) (2,062)
Discontinued operations (1,081) (1,844) - - - - (1,081) (1,844)
Goodwill amortisation and 1,141 6,103 4,527 726 - - 5,668 6,829
impairment
Restructuring and other one-off 568 - 178 - 275 - 1,021 -
charges
Operating loss (2,393) (8,286) (5,651) (1,653) (923) (796) (8,967) (10,735)
Continuing operations (744) (1,696) (5,651) (1,653) (923) (796) (7,318) (4,145)
Discontinued operations (1,649) (6,590) - - - - (1,649) (6,590)
Profit on disposal of internet 303 - - - - - 303 -
operations
Net interest receivable/(payable) 5 5 (23) 25 160 512 142 542
Loss on ordinary activities before (2,085) (8,281) (5,674) (1,628) (763) (284) (8,522) (10,193)
taxation
Turnover Operating loss before
goodwill charges and
restructuring and other
one-off charges
Geographical analysis (£'000)
Quarter Quarter Quarter Quarter
ended ended ended ended
31 Dec 31 Dec 31 Dec 31 Dec
2001 2000 2001 2000
United Kingdom and Ireland 13,365 13,319 (2,239) (3,059)
France - 91 - (533)
Germany - - - (18)
Chile 45 52 - (26)
South Africa 45 30 (27) (129)
USA 206 95 (12) (141)
13,661 13,587 (2,278) (3,906)
4. Segmental analysis - for the nine months ended 31 December 2001
Turnover and loss before taxation are classified below by class of business.
Segmental information by geographical area is given by origin, which is not
materially different from geographical area by destination.
Consumer Division Business Division Group Overhead Total Group
Business Analysis (£'000) 9 months 9 months 9 months 9 months 9 months 9 months 9 months 9 months
ended ended ended ended ended ended ended ended
31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
2001 2000 2001 2000 2001 2000 2001 2000
Turnover 23,015 21,428 18,661 14,187 - - 41,676 35,615
Continuing operations 19,654 16,534 18,661 14,187 - - 38,315 30,721
Discontinued operations 3,361 4,894 - - - - 3,361 4,894
Cost of sales 13,714 11,813 14,379 9,457 - - 28,093 21,270
Gross profit 9,301 9,615 4,282 4,730 - - 13,583 14,345
Administrative expenses before 12,949 14,380 8,426 7,299 2,026 2,386 23,401 24,065
goodwill charges and restructuring
and other one-off charges
Operating (loss)/profit before (3,648) (4,765) (4,144) (2,569) (2,026) (2,386) (9,818) (9,720)
goodwill charges and restructuring
and other one-off charges
Continuing operations 330 1,172 (4,144) (2,569) (2,026) (2,386) (5,840) (3,783)
Discontinued operations (3,978) (5,937) - - - - (3,978) (5,937)
Goodwill amortisation and 5,443 17,415 9,625 1,558 - - 15,068 18,973
impairment
Restructuring and other one-off 939 - 1,539 - 863 - 3,341 -
charges
Operating loss (10,030) (22,180) (15,308) (4,127) (2,889) (2,386) (28,227) (28,693)
Continuing operations (2,869) (2,253) (15,308) (4,127) (2,889) (2,386) (21,066) (8,766)
Discontinued operations (7,161) (19,927) - - - - (7,161) (19,927)
Profit on disposal of internet 303 - - - - - 303 -
operations
Net interest receivable/(payable) 5 5 (8) 78 656 1,900 653 1,983
Loss on ordinary activities before (9,722) (22,175) (15,316) (4,049) (2,233) (486) (27,271) (26,710)
taxation
Turnover Operating (loss)/profit
before goodwill charges
and restructuring and
other one-off charges
Geographical analysis (£'000)
9 months 9 months 9 months 9 months
ended ended ended ended
31 Dec 31 Dec 31 Dec 31 Dec 2000
2001 2000 2001
United Kingdom and Ireland 40,964 35,010 (9,470) (7,136)
France 36 258 (99) (1,677)
Germany - - - (23)
Chile 91 136 46 (59)
South Africa 164 49 (133) (442)
USA 421 162 (162) (383)
41,676 35,615 (9,818) (9,720)
5. Loss per ordinary share of 0.25p each
Quarter Quarter 9 months 9 months
ended ended ended ended
31 December 31 December 31 December 31 December
2001 2000 2001 2000
£'000 £'000 £'000 £'000
Loss for the period before goodwill charges, (2,167) (3,375) (9,291) (7,717)
restructuring and other one-off charges and
profit on disposal of internet operations
Goodwill amortisation and impairment (5,668) (6,829) (15,068) (18,973)
Profit on disposal of internet operations 303 - 303 -
Restructuring and other one-off charges (1,021) - (3,341) -
Loss for the period (8,553) (10,204) (27,397) (26,690)
Weighted average number of shares in the period:
Basic and diluted 203,069,562 201,276,455 202,297,838 199,752,896
Basic and diluted loss per share before goodwill (1.1p) (1.7p) (4.6p) (3.9p)
charges, restructuring and other one-off charges
and profit on disposal of internet operations
Goodwill amortisation and impairment (2.8p) (3.4p) (7.4p) (9.5p)
Profit on disposal of internet operations 0.2p - 0.2p -
Restructuring and other one-off charges (0.5p) - (1.7p) -
Basic and diluted loss per share (4.2p) (5.1p) (13.5p) (13.4p)
None of the contingently issuable shares or share options gives rise to a
dilution in the loss per share due to the losses made in the period.
The prior period loss per share figures have been restated due to the reanalysis
of National Insurance and other similar charges on share options, as explained
in Note 1.
6. Share capital and reserves
Ordinary Shares to Share Merger Profit
share be issued premium reserve and loss
capital account account
£'000 £'000
£'000 £'000 £'000
At 1 April 2001 505 752 72,425 38,536 (57,856)
Loss for the period - - - - (27,397)
Exchange adjustments - - - - 39
Contingent share consideration for acquisitions 6 (265) - 259 -
Movement in fair value of contingent share - 113 - - -
consideration
At 31 December 2001 511 600 72,425 38,795 (85,214)
7. Reconciliation of movement in shareholders' funds
Quarter ended Quarter 9 months 9 months
ended ended ended
31 December 31 December 31 December 31 December
2001 2000 2001 2000
£'000 £'000 £'000 £'000
Opening shareholders' funds 35,523 83,010 54,362 94,941
Loss for the period (8,553) (10,204) (27,397) (26,690)
Shares issued for acquisitions - 1,010 - 3,700
Premium on shares issued to employees - - - 87
Net movement in contingent share consideration 383 (463) 113 1,279
Employee share options exercised - - - 14
Exchange adjustments (236) (27) 39 (5)
Closing shareholders' funds 27,117 73,326 27,117 73,326
8. Net cash outflow from operating activities
Quarter ended Quarter 9 months ended 9 months
ended ended
31 December 31 December 31 December 31 December
2001 2000 2001 2000
£'000 £'000 £'000 £'000
Operating loss (8,967) (10,735) (28,227) (28,693)
Depreciation 379 351 1,161 914
Amortisation and impairment of intangible assets 5,728 6,886 16,085 19,114
Decrease/(increase) in stock 285 (530) 504 (920)
Decrease/(increase) in debtors 3,119 (3,052) 2,983 (5,026)
(Decrease)/increase in creditors/provisions (2,297) 438 (1,662) 387
Loss on disposal of fixed assets 73 - 73 -
(1,680) (6,642) (9,083) (14,224)
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 31st May 2024
COMPANIES COVERED:
Latest directors dealings
- 2 days ago FDM Group (Holdings)
- 2 days ago Neo Energy Metals
- 2 days ago DCC (CDI)
- 2 days ago 3i Group
- 2 days ago 3i Group