Final Results
Totally PLC
23 April 2002
23 April 2002
TOTALLY PLC ('Totally', 'the Company' or 'the Group')
Final results for the year ended 31 December 2001
Chairman's statement
I am pleased to present my report for the year ended 31 December 2001.
In financial terms, the Company's performance in the second half of the period
under review did not meet the board's expectations. As a result of the general
economic slowdown leading up to and since September 11, planned advertising
revenue growth for the second half of the year did not materialise. Turnover,
therefore, for the period was £1,460,000 (2000: £507,000), with an operating
loss of £883,000 before the exceptional write-off of £2,160,000 relating to
goodwill on the acquisition of London Jewish News. This resulted in a net loss
before taxation of £3,053,000.
In commercial terms, significant progress has been made on a number of strategic
fronts:
In November 2001, the Company successfully launched a new, paid for, dating
service. At the time of writing, over 10 per cent. of the users of
www.totallyjewish.com's free dating services have converted to the paid for,
premium services. This percentage continues to grow each month.
In February 2002, the Company successfully launched The Jewish Lottery. In
partnership with Littlewoods Leisure Plc, one of the UK's leading gaming
organisations, and Jewish Care, one of the UK's leading Jewish charities, The
Jewish Lottery is broadly based on The National Lottery, but with the proceeds
benefiting the Jewish community directly. The Directors believe that The Jewish
Lottery is well placed to become an institution within the UK's Jewish community
and, with Totally Plc receiving a marketing commission on every pound bet, the
Directors believe that this initiative has the potential to make a significant
contribution to overall turnover.
During the last year, the Company has taken a more proactive approach to
marketing its technical services capabilities. As a result, several technical
services contracts have been won with some of the UK's largest Jewish communal
organisations, as well as with other commercial entities. This has enabled the
Company to enhance its reputation as a quality supplier of technical solutions
and, as such, the Company has plans to grow this part of the business.
Over the last nine months, the Company has been working with a leading Israeli
publisher to assess the opportunities for launching a Jewish media joint venture
in the USA. Significant research and business planning has been undertaken,
potential investors and strategic partners have been approached and, a potential
acquisition to support the creation of this new business has been identified. It
is hoped that further announcements about this will be made in the near future.
The first quarter of the new year has seen a marked increase in advertising
revenues compared with the last quarter of 2001. This, together with the
addition of the new revenue streams described above, and the fact that operating
costs are now significantly reduced (un-audited costs in the first quarter of
2002 are £460,000 compared to last year's first quarter costs of £637,000, a
reduction of 28 per cent.), leads the Directors to believe that the Company's
operations will continue to improve. To ensure that the Company has the funding
resources to achieve this, your Directors expect shortly to announce details of
a placing to raise £275,000, which will take place in May.
Finally I would like to thank my co-directors, all our staff and our advisers
for their efforts during this last year. I would also like to formally welcome
Daniel Assor to the board as Sales Director.
Dr Michael Sinclair
Chairman
23 April 2002
Consolidated profit and loss account
for the year to 31 December 2001
Note Before Before
exceptional Exceptional exceptional Exceptional
items items Total items items Total
2001 2001 2001 2000 2000 2000
£000 £000 £000 £000 £000 £000
Turnover
Continuing operations 1,460 - 1,460 507 - 507
Other external charges (601) - (601) (542) - (542)
Staff costs:
Wages and salaries (1,047) - (1,047) (757) (757)
Social security costs (92) - (92) (66) - (66)
Depreciation and other amounts
written off
tangible and intangible 2 (76) (2,160) (2,236) (55) (1,154) (1,209)
fixed assets
Amounts written off (69) - (69) - - -
Investments
Other operating charges (458) - (458) (399) - (399)
Total expenses (2,343) (2,160) (4,503) (1,819) (1,154) (2,973)
Operating loss (883) (2,160) (3,043) (1,312) (1,154) (2,466)
Interest receivable and similar 7 54
income
Interest payable and similar (17) (4)
charges
Loss on ordinary activities (3,053) (2,416)
before taxation
Taxation - -
Retained loss for the period (3,053) (2,416)
Loss per share - basic 6 (9.81)p (16.08)p
Loss per share - diluted 6 (9.81)p (16.08)p
Loss per share before 6
goodwill amortisation
- basic 6 (2.87)p (8.21)p
Consolidated balance sheet
at 31 December 2001
2001 2000
Note £000 £000 £000 £000
Fixed assets
Intangible assets - goodwill 2 - 2,151
Tangible assets 3 53 112
53 2,263
Current assets
Debtors 4 411 416
Cash at bank and in hand 14 446
425 862
Creditors: amounts falling due within one year 5 (524) (671)
Net current assets/(liabilities) (99) 191
Total assets less current liabilities (46) 2,454
Creditors: amounts falling due after more than one year (2) (8)
Net assets/(liabilities) (48) 2,446
Consolidated cash flow statement
for the year to 31 December 2001
2001 2000
£000 £000 £000 £000
Net cash outflow from operating activities (1,023) (1,054)
Returns on investments and servicing of finance
Interest received 7 54
Bank interest paid (16) (4)
Interest paid under finance leases (1) -
(10) (50)
(1,033) (1,004)
Capital expenditure
Payments to acquire tangible fixed assets (17) (94)
Acquisitions
Purchase of investments (79) (173)
Cash outflow before financing (1,129) (1,271)
Financing
Capital repayments under finance leases (5) (3)
Issue of ordinary share capital for cash 560 2,255
Expenses paid in connection with share issues - (564)
Increase/(decrease) in cash in the period (574) 418
Notes to the financial statements
1. Accounting policies
The following accounting policies have been applied consistently in dealing with
items which are considered material in relation to the Company's financial
statements.
The Directors have prepared the financial statements on a going concern basis.
Having reviewed future funding requirements for the business, they propose a
Placing to raise £275,000 as soon as practicable after the publication of these
financial statements. They have already confirmed the support from major
shareholders. In the event that the Placing does not proceed as planned, the
Group would potentially be in breach of its borrowing facilities and would
additionally be unable to take advantage of opportunities to expand and extend
the business. While the Directors are at present uncertain as to the outcome of
the proposed Placing, they believe that it is appropriate to prepare the
financial statements on a going concern basis.
Basis of preparation
The financial information has been prepared in accordance with applicable
accounting standards and under the historical cost accounting rules.
2. Intangible fixed assets
Year ended
31 December 2001
Goodwill
£000
Cost
At beginning of period 3,332
Additions 9
At end of period 3,341
Amortisation and amounts written off
At beginning of period 1,181
Write-offs 2,160
At end of period 3,341
Net book value
At 31 December 2001 -
At 31 December 2000 2,151
In accordance with the requirement of Financial Reporting Standards 10 and 11
for annual impairment testing of intangible fixed assets, the Directors have
considered the carrying value of goodwill that arose in 2000 on the acquisition
of London Jewish News Limited. They have concluded, following a reassessment of
that Company's future earnings potential, that there has been a permanent
diminution in the attributable goodwill such that it is no longer appropriate to
carry it in the consolidated balance sheet. The Directors have therefore
written off the full carrying value, amounting to £2,160,000. This write-off is
shown as an exceptional item in the profit and loss account for the year.
3. Tangible fixed assets
Short Computer Fixtures and Total
fittings
leasehold equipment
property
£000 £000 £000 £000
Cost
At beginning of period 37 102 24 163
Additions 12 5 - 17
Write-offs - (27) (8) (36)
At end of period 49 80 16 145
Depreciation
At beginning of period 3 40 8 51
Charge for period 6 59 11 76
Write-offs - (27) (9) (36)
At end of period 9 72 10 91
Net book value
At 31 December 2001 40 8 5 53
At 31 December 2000 34 62 16 112
Included above are assets under finance lease contracts. The net book value of
these assets at 31 December 2001 is £7,000 (2000: £13,000) and the depreciation
charged for the period was £6,000 (2000: £1,000).
4. Debtors
31 December 31 December
2001 2000
£000 £000
Trade debtors 334 252
Amounts due from subsidiary undertakings - -
Other debtors 26 64
Prepayments and accrued income 51 99
411 415
Included in other debtors is £21,500 due after more than one year, representing
the remaining part of a deposit paid on 23 March 2000 when a property leasehold
was signed. This is repayable at the end of the six year term of the lease.
5. Creditors: amounts falling due within one year
31 December 31 December
2001 2000
£000 £000
Bank loans and overdrafts 254 112
Trade creditors 180 359
Net obligations under finance leases 6 6
Other taxation and social security 28 34
Accruals and deferred income 56 160
524 671
The Group has an overdraft facility that specifies interest to be charged at a
rate of 2.75 per cent. per annum over the bank's base rate for overdrawn
positions up to £325,000. This facility is available for utilisation until 20
September 2002.
6. Loss per share
The calculation of the basic loss per share is based on the loss of £3,053,000
(2000: £2,416,000) and on 31,107,277 (2000: 15,064,151) ordinary shares being
the weighted average number of shares 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.
7. Dividends
The Directors are not proposing the payment of a dividend in respect
of the period ended 31 December 2001.
8. Publication of non-statutory accounts
The financial information set out in this preliminary announcement
does not constitute statutory accounts as defined in Section 240 of the
Companies Act 1985.
The consolidated balance sheet as at 31 December 2001 and the
consolidated profit and loss account, consolidated cash flow statement and
associated notes for the year then ended have been extracted from the Group's
financial statements. Those financial statements have not yet been delivered to
the Registrar of Companies, nor have the auditors reported on them. The 2000
accounts have been delivered to the Registrar of Companies and the auditors have
reported on them.
9. Copies of accounts will be sent to shareholders shortly and will also
be available at the Company's registered office.
This information is provided by RNS
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