Rslts to 30-06-00-Replacement
IBNet PLC
25 September 2000
The issuer has made the following amendment to the 'Results to 30th June 2000'
announcement released today at 07:00 under RNS No 4294R.
Note 5. The Company's registered office is '11 High Street' and not '1 High
Street' as previously stated.
The full corrected version is shown below.
All other details remain unchanged.
IBNET PLC
Preliminary Results Announcement
For the period ended 30 June 2000
IBNet PLC, ('IBNet'), the Internet surveillance and
competitive intelligence gathering service, is pleased to
announce its maiden results since its flotation on the
Alternative Investment Market ('AIM') in March.
Key points :
* Turnover £14,000
* Loss before tax £595,000
* Cash balance of £4 million
* Rebranding of product range - Netdetec
* Major clients signed
-Bayer - German-based multinational pharmaceutical
company
-A world class manufacturer of toys and games
-Old Mutual Securities - institutional stock broker
* Marketing agreements signed with
-ArmorGroup
-Brand Experience
-Chubb
David Heynes, Chairman of IBNet PLC, commented :
'IBNet has made giant strides. We have established it as
a commercially viable service. The infrastructure is in
place and we have built awareness of our business and the
urgent need it meets. We are all looking forward to an
exciting year in which the Company can begin to reap the
rewards of all the hard work that has gone into launching
Netdetec at a stage when the importance of Internet
integrity is beginning to dawn.'
_________________________________________
For further information, please contact :
IBNet
Mark Ommanney, Chief Executive 01784 221 221
Buchanan Communications
Tim Anderson /Isabel Petre 020 7466 5000
Chairman's Statement
INTRODUCTION
As our first preliminary results since IBNet successfully
joined the Alternative Investment Market ('AIM') in
March, this is a chance to take stock of progress. I am
delighted to say that we have come a very long way in
this short time.
In March the product was largely complete, but there was
much to do in terms of its branding, identification of
target markets and establishing awareness of our service.
In addition we needed to build the infrastructure both in
terms of resources and people and IBNet needed to build
its sales. On all these counts we have made giant
strides.
IBNet provides continuous surveillance of the Internet
enabling companies to watch for activity which could be
damaging to them. In this unregulated environment, abuses
are now commonplace, from share price manipulation to the
sale of fake or stolen goods. IBNet's sophisticated
spidering technology automatically monitors the Internet
for any reference to a company which its executives
should be aware.
FINANCIAL RESULTS
The financial results include only four full months of
trading following the flotation on AIM when we had the
funds to build our infrastructure and begin marketing.
The escalation in our revenue, along with the growth of
our client base, has taken place since the completion of
our financial period to the end of June.
In the period ended 30th June 2000, turnover was £14,000
and the loss before tax, £595,000 which was in line with
our budgets. The balance sheet showed a cash balance of
£4 million which is more than ample to fund working
capital until the Company moves into profitability.
The Directors clearly cannot consider a dividend at this
stage of IBNet's development.
BUSINESS REVIEW
We are building a client base which ranges from
multinational corporations through international
accounting firms to insurance companies and banks. Many
of the customers are still in the start-up stage with us
and others are currently assessing how comprehensive a
service they require.
Internet security is a new area of concern for all
companies. Initially, companies have to go through an
education process to appreciate that the problems exist
at all. Typically, once they appreciate the need for our
service, organisations find a fast escalating requirement
for our help. It then becomes a process of prioritisation
and rationalisation. This can be a fairly lengthy
process, but several months since we launched our sales
drive, revenue is growing rapidly.
The nature of client relationships demands
confidentiality. Customers do not want their concerns
made public as it would expose them to competitive
pressures. At other times our intelligence can provide
them with a competitive advantage and again it is
important to maintain confidentiality. However, we have
two clients which have kindly agreed to us outlining why
they have chosen IBNet.
Bayer AG, the German-based multinational pharmaceutical
company has retained IBNet to detect sales on the
Internet of certain of its products by unauthorised
distributors and the sale of products which are
erroneously said to be manufactured by Bayer. We believe
this is a service which is applicable across the whole of
the global pharmaceutical industry.
Old Mutual Securities, the institutional broker, has
retained IBNet to monitor the manipulation of its
clients' share prices on the Internet. Commonly called
pumping and dumping' the Internet is used by the
unscrupulous to drive share prices up or down via rumours
published on the Internet. Very often these rumours prove
to be entirely fictitious. Brokers at Old Mutual
Securities now have an icon on their screens which
flashes if reference to one of their clients appears in
designated parts of the Internet. We are currently in
discussions with a number of companies and institutions
which have similar concerns within the financial services
arena.
In addition, a world class manufacturer of toys and games
is using IBNet to evaluate the extent of piracy of its
products on the Internet.
BRANDING
At the time of our flotation we had developed the Homer
brand, but have subsequently decided to rename our
principal product Netdetec, which we feel is more
evocative of the service we provide. This has also given
us the opportunity to develop sub-brands aimed at
specific markets such as Sharedetec for the financial
services industry and Branddetec for the multi-billion
dollar trademark and brand licensing industry.
MARKETING
In April we signed a milestone marketing agreement with
ArmorGroup, the global risk management services division
of Armor Holdings Inc. This has been followed by two
more cornerstone marketing agreements with Brand
Experience, which over 20 years has worked on some of the
most prominent global brands, and Chubb, the
international security company.
ArmorGroup - In 1999 it was included in FORTUNE
magazine's list of 'America's 100 Fastest Growing
Companies'. We have jointly marketed with Armor to
multinationals in the US and Europe resulting in our
contract with Bayer. We are jointly in discussions with a
number of other companies which we are confident of
turning into orders.
Brand Experience - Its prominent role in most, if not all
branding issues with a reputation and range of contacts,
has proved invaluable. Brand Experience has been a
catalyst for the development of Branddetec.
Chubb - Our most recent partnership is with Chubb
Information Security, a new venture from the Chubb
Security Group. It has been established to provide its
existing customers with security on the Web.
Other partnerships are being discussed with major
accounting firms and global insurance companies.
Raising our profile generally has been very important.
IBNet and Netdetec were unknown this time last year. An
energetic programme of attendance at conferences and
exhibitions has built awareness and has generated
valuable sales leads.
We have made over 200 presentations to companies across
Europe. Our level of activity has begun to build
awareness of the threats the Internet has brought. This
is supported by greater interest in the media which in
turn is leading to an increased level of inquiries
regarding our service.
The Report and Accounts include illustrations of Web
pages which detail abuses in one form or another of major
companies' names or brands which have been found by
IBNet.
It was important that we concentrated our sales resources
to maximum effect over the last few months to ensure that
our sales effort was turned into tangible contracts.
Trademark and licensing and financial services through
Branddetec and Sharedetec have seen maximum focus
during this initial phase. However, we believe our
service has applicability across the commercial spectrum
and as resources permit, we will broaden our marketing
efforts accordingly.
INFRASTRUCTURE
In March we operated from serviced offices in Staines,
Middlesex. Since then we have established our own offices
in Egham, Surrey, which complement our sales office in
Piccadilly, London.
We have recruited a dedicated sales force which is
spearheading our marketing programme. Elsewhere in the
Company we have strengthened product development and
customer support. However, we remain a lean organisation
with a tight control on overhead.
FUTURE PROSPECTS
In conclusion, since March, IBNet has made giant strides.
We have established it as a commercially viable service.
The infrastructure is in place and we have built
awareness of our business and the urgent need it meets.
We are all looking forward to an exciting year in which
the Company can begin to reap the rewards of all the hard
work that has gone into launching Netdetec at a stage
when the importance of Internet integrity is beginning to
dawn.
I would like to thank all my colleagues at IBNet for
their great enthusiasm and hard work. We look forward to
the year ahead with confidence, our aim being to achieve
profitability on a monthly basis before the year is out.
David Heynes
Chairman
22 September 2000
2000
£'000
Turnover 14
Cost of sales -
Gross profit 14
Administrative expenses (694)
Operating loss (680)
Net interest 85
Loss on ordinary activities before
taxation (595)
Tax on loss on ordinary activities -
Loss on ordinary activities after taxation (595)
deducted from reserves
Basic and fully diluted loss per share 1.5p
There are no other recognised gains or losses
other than the loss for the period.
All operations are continuing and were acquired
in the period.
IBNET PLC
CASH FLOW STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2000
£'000
Fixed assets
Investment 21,976
Tangible fixed assets 266
22,242
Current assets
Debtors: amounts recoverable in one year 228
Debtors: amounts recoverable in more than one
year 564
Cash at bank and in hand 4,044
4,836
Creditors: amounts falling due within one year (316)
Net current assets 4,520
26,762
Capital and reserves
Called up share capital 13,738
Share premium account 13,619
Profit and loss account (595)
Shareholders' funds 26,762
£'000 £'000
Net cash outflow from operating activities (668)
Returns on investments and servicing of
finance
Interest received 86
Interest paid (1)
Net cash inflow from returns on investments
and servicing of finance 85
Capital expenditure and financial investment
Purchase of tangible fixed assets 169
Net cash outflow from capital expenditure
and
financial investment (169)
Acquisitions and disposals
Net cash acquired with subsidiary 3
Net cash outflow from acquisitions and
disposals 3
Net cash outflow before financing (749)
Financing
Issue of shares 6,050
Repayment of loan capital (594)
Expenses paid in connection with share
issues (669)
Net cash inflow from financing 4,787
Increase in cash 4,038
1 LOSS PER SHARE
The calculation of the basic loss per share is based
on the loss attributable to ordinary shareholders
divided by the weighted average number of shares in
issue during the period.
Reconciliation's of the loss and weighted average
number of shares used in the calculations are set
out below:
Computation of loss per share:
Weighted Amount
Loss average pence
£'000 number per
of share
shares
Basic and diluted loss per share
Loss attributable to ordinary
shareholders 595 38,530,543 1.5
There was no dilutive effect of the options in place
at 30 June 2000.
2 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET
FUNDS
2000
£'000
Increase in cash in the period 4,038
Cash to repurchase debentures 594
Change in net debt resulting from cashflows 4,632
Debentures acquired with subsidiary (594)
Net funds at 30 June 2000 4,038
3 DIVIDEND
The Directors do not recommend the payment of a
dividend.
4 The financial information set out in this
announcement does not comprise statutory
accounts of the Company within the meaning of Section
240 of the Companies Act. The statutory accounts for the
period ended 30 June 2000 will be filed with the
Registrar of Companies in due course.
5 Copies of the statutory accounts are available
from the Company's registered
office, 11 High Street, Egham, Surrey TW20 9EA.
REPORT OF THE AUDITORS TO THE MEMBERS OF
IBNET PLC
We have audited the financial statements on pages 15
to 28 which have been prepared under the accounting
policies set out on pages 15 to 16.
Respective responsibilities of directors and
auditors
The directors are responsible for preparing the
Annual Report. This includes responsibility for
preparing the financial statements in accordance
with applicable United Kingdom law and accounting
standards. Our responsibilities, as independent
auditors, are established in the United Kingdom by
statute, the Auditing Practices Board and by our
profession's ethical guidance.
We report to you our opinion as to whether the
financial statements give a true and fair view and
are properly prepared in accordance with the
Companies Act. We also report to you if, in our
opinion, the directors' report is not consistent
with the financial statements, if the company has
not kept proper accounting records, if we have not
received all the information and explanations we
require for our audit, or if information specified
by law regarding directors' remuneration and
transactions with the company is not disclosed.
We read the other information contained in the
Annual Report, including the corporate governance
statement, and consider whether it is consistent
with the audited financial statements. We consider
the implications for our report if we become aware
of any apparent misstatements or material
inconsistencies with the financial statements. We
are not required to consider whether the board's
statement on internal control cover all risks and
controls, or form an opinion on the effectiveness of
the company's corporate governance procedures or its
risks and control procedures.
Basis of opinion
We conducted our audit in accordance with Auditing
Standards issued by the Auditing Practices Board.
An audit includes examination, on a test basis, of
evidence relevant to the amounts and disclosures in
the financial statements. It also includes an
assessment of the significant estimates and
judgements made by the directors in the preparation
of the financial statements, and of whether the
accounting policies are appropriate to the company's
circumstances, consistently applied and adequately
disclosed.
We planned and performed our audit so as to obtain
all the information and explanations which we
considered necessary in order to provide us with
sufficient evidence to give reasonable assurance
that the financial statements are free from material
misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion, we
also evaluated the overall adequacy of the
presentation of information in the financial
statements.
Opinion
In our opinion the financial statements give a true
and fair view of the state of affairs of the company
at 30 June 2000 and of its loss for the period then
ended and have been properly prepared in accordance
with the Companies Act 1985.
GRANT THORNTON
REGISTERED AUDITORS
CHARTERED ACCOUNTANTS
LONDON THAMES VALLEY OFFICE
SLOUGH
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