Interim Results
11 Novembro 2003 - 10:12AM
UK Regulatory
THE CELLTALK GROUP PLC
INTERIM RESULTS
6 MONTHS ENDED
30 SEPTEMBER 2003
CHAIRMAN'S STATEMENT
I am pleased to report to shareholders that the Group's profitable trading
position as outlined in my last statement has continued. For the six month
period to 30 September 2003 operating profit was �132,000 (2002: �169,000)
before goodwill amortisation of �100,000 (2002: �100,000) and taxation of �
5,000 (2002: �nil). Turnover was �4.568m (2002: �4,435m). Earnings per share
was 0.06p (2002: 0.14p).
The Directors are not recommending the payment of an interim dividend (2002:
nil).
The Company Voluntary Arrangement (CVA) of Celltalk plc, agreed following the
cessation of the administration in May 2002, required total payments of �
200,000 plus half the residual profits to be made to the supervisor over a 24
month period. In return any residual liabilities will be written off at the
end of the period. The schedule of payments to the supervisor has been
maintained and until these are fully met, the liabilities shown in the balance
sheet include the full amount still owed to creditors less the amount already
paid over to the supervisor.
In my last statement, I reported that the target of the Board was to continue
to maintain a profitable business, comply with the conditions of the CVA and
strengthen the balance sheet in order to underpin long term future viability.
I am pleased to report that during the 6 months ended 30 September 2003, all
three of these objectives have continued to be met and this will continue to be
the strategy.
In the period since the completion of the interim accounts, trading has been
significantly ahead of the corresponding period last year. In part this has
reflected improved trading conditions as well as the networks being concerned
to maintain market share in the light of new competition. This has resulted in
commission levels becoming more realistic. The balance has come through the
maturity of cost saving initiatives which we were able to put in place
following the CVA. If these trends continue, we would expect to report an
improved second half and to bring forward some of the financial targets. In
particular, to repay some of the short term debt provided by the Executive
Directors when the company was previously unable to meet its commitments. If
and when the Board are in a position to make this decision, they will report
further to the shareholders.
The improved financial outlook has reduced the day-to-day pressures and allowed
the Board to spend time considering more strategic options. This is critical
for the business to have a long term future. This change has only been
possible with the hard work and commitment of my fellow Directors and staff
during what has been a very difficult period. It is with great pleasure that I
say to all of them that the company now has real prospects for the future.
Derek M Joseph
Chairman
11 November 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003
6 months ended 6 months ended
30 September 30 September
2003 2002
(Unaudited) (Unaudited)
�'000 �'000 �'000 �'000
Turnover from:
continuing operations 4,568 4,435
Cost of sales 3,213 3,151
Gross Profit 1,355 1,284
Administrative expenses:
Goodwill amortisation (100) (100)
Other costs (1,223) (1,115)
(1,323) (1,215)
Operating profit from:
continuing operations and profit on
ordinary activities before interest
and taxation 32 69
Interest receivable and similar income 25 15
Interest payable and similar charges (37) (50)
Profit on ordinary activities before taxation 20 34
Taxation on profit on ordinary activities 5 -
Retained profit for the financial period 15 34
Earnings per share 0.06p 0.14p
There were no recognised gains or losses in the current or previous period
other than those reported
above, and therefore no statement of total recognised gains and losses has been
presented.
CONSOLIDATED BALANCE SHEET FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2003
6 months ended 30 6 months ended 30
September 2003 September 2002
(unaudited) (Unaudited)
�'000 �'000 �'000 �'000
Fixed assets:
Intangible assets - goodwill 700 900
Tangible assets 172 268
872 1,168
Current assets
Stocks 787 231
Debtors 2,615 1,782
Cash at bank and in hand 238 645
3,640 2,658
Creditors: amounts falling due within one year (3,298) (4,035)
Net current assets/(liabilities) 342 (1,377)
Total assets less current liabilities 1,214 (209)
Creditors: amounts falling due after more
than one year (1,423) (10)
Net liabilities (209) (219)
Capital and reserves
Called up share capital 4,862 4,862
Share premium account 1,702 1,702
Merger reserve 18,050 18,050
Profit and loss account (24,823) (24,833)
Equity shareholders' funds (209) (219)
CONSOLIDATED CASH FLOW STATEMENT FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2003
6 months 6 months
ended 30 ended 30
September September
2003 2002
(Unaudited) (Unaudited)
�'000 �'000
Net cash (outflow)/inflow from operating activities (355) 586
Returns on investments and servicing of finance (12) (35)
Taxation - -
Capital expenditure (6) 31
Cash (outflow)/inflow before financing (373) 582
Financing (4) (135)
(Decrease)/increase in cash in the period (377) 447
RECONCILIATIONS OF NET CASH FLOW TO MOVEMENT IN DEBT
6 months 6 months
ended 30 ended 30
September 2003 September 2002
(Unaudited) (Unaudited)
�'000 �'000
(Decrease)/increase in cash in the period (377) 447
Cash inflow from financing 4 135
Cash (outflow)/inflow before financing (373) 582
New finance leases - -
Movement in net debt in the period (373) 582
Net debt at beginning of period (1,251) (1,859)
Net debt at end of period (1,624) (1,277)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
Preparation of the interim financial statements
The interim financial statements have been prepared on the basis of the
accounting policies set out in the statutory accounts of the Group for the year
ended 31 March 2003, which have been filed with the Registrar of Companies.
The interim financial statements, which were approved by the directors on 11
November 2003, are unaudited.
The unaudited results cover the 6 month period ended 30 September 2003 together
with the comparative figures for 6 months to 30 September 2002.
Earnings per share
Earnings and numbers of shares used in the calculations of earnings per
ordinary share are set out below:
6 months ended 30 6 months ended 30
September 2003 September 2002
Profit after tax �'000 15 34
Weighted average number of shares 24,310,000 24,310,000
Earnings per share 0.06p 0.14p
Copies of this interim statement are being sent to shareholders and will be
available from the Company at 24th Floor, Sunley Tower, Piccadilly Plaza,
Manchester M1 4BT for a period of one month from the date of this statement.
END