ACC.L Regulatory News (ACC)

24 Feb 2005 07:01

Access Intelligence PLC24 February 2005 FOR RELEASE 7.00AM 24 February 2005 Access Intelligence plc ("Access Intelligence") Provision of information and services on a subscription basis PRELIMINARY RESULTS FOR THE PERIOD 13 JUNE 2003 TO 30 NOVEMBER 2004 2004 £000's Turnover 543Loss before tax and goodwill amortisation (259)Loss before tax (381)Loss per share (.016p)Adjusted loss per share (.01p) Dividend Nil * Successful fundraising of £2.8m (net) in equity in December 2004* Operating companies showing strong organic growth* Potential acquisitions identified* Solid platform for future growth For further information: Jeremy Hamer (Chairman) 01904 520840Brendan Austin (Chief Executive) 01904 520840Colin Davies (Finance Director) 01904 520840Brian Coleman-Smith / Grace Marriner / Jo Clewlow 020 7398 3300Beattie Financial Background Note: The group consists of subscription-based businesses: The Marketing GuildThe Marketing Guild provides practical marketing help and advice aimed at smalland medium sized businesses. This is delivered through regular newsletters, ahelp line and training seminars for which members pay a fee based on the levelof service they require. In addition, members have access through the helplineto "MAGiCTM", a database containing ideas and tactics, which offers strategiesto members. Many new members subscribe to the top level service which includesregular consultancy, taking members through a structured marketing developmentprogramme called Spectral Marketing TM. Wired GovWired Gov provides its subscribers with immediate press releases from thegovernment and other public sector organisations via its website and e-mailalert system. Income is derived from subscriptions and sponsorship. Subscribersto the service can specify from which organisations they wish to receiveinformation and using the systems advanced filtering techniques receive only theinformation they want. An archive system is also available. Wired Gov has agrowing base of 10,000 plus registered users. Backup and RunningBackup and Running provides small and medium sized organisations with on lineback-up and disaster recovery . The software is made available under a licencefrom Novastor Corporation, an American company. The software allows users toconfigure an operating system to specify which files are to be backed up and thefrequency of the routine. The specified information is encrypted then sent viamodem to a remote storage facility. The software has several facilitiesincluding an archive facility which allows the user to retrieve all back upsmade over a five year period. Backup and Running has approximately 175customers. StrategyThe Group's strategy is to establish a portfolio of companies which provideinformation, advice and services to small and medium sized businesses and othercommunities on a subscription basis. The Directors believe that this modelprovides high levels of repeat business with clear visibility of high qualityrevenues, together with cross selling opportunities within the Group. Access Intelligence plc PRELIMINARY RESULTS FOR THE PERIOD 13 JUNE 2003 TO 30 NOVEMBER 2004 Chairman's Statement I am pleased to announce the first set of results for Access Intelligence plcfor the 18-month period ending 30 November 2004. Our three operatingsubsidiaries were acquired on 28 November 2003 and the results reflect a fullyear's trading for the subsidiaries together with initial losses for the groupin the period prior to November 2003. In the period turnover was £543,000 producing an operating loss beforeamortisation of goodwill of £251,000 and a loss per share of .016p. With the exception of The Marketing Guild the other subsidiaries are in theearly stages of development. Turnover in the month of November 2004 was £60,000clearly demonstrating the upward growth potential of the companies. Alloperating businesses produced a monthly profit by the end of the period, albeitnot enough to cover the central costs. Over the past eighteen months the group has raised cash on three occasions. Aninitial fundraising of approximately £750,000 gross in September 2003 therebysetting up the cash shell. A second fundraising of approximately £200,000 grosswas completed in November 2003 to facilitate the reverse into ReadymarketLimited. In December 2004 the Group completed a further fundraising of £3m grossto provide funds for further acquisitions and also to fund organic growth. The capital base of your group has now been strengthened significantly and willprovide a solid platform for expansion. A proforma balance sheet incorporatingthe impact of the recent fundraising is set out below: As per accounts Adjustment Proforma £000's £000's £000'sFixed assets 2,516 - 2,516Current assets 135 - 135Cash 31 2,598 2,629Creditors within one year (361) 112 (249)Creditors after one year (142) 115 (27) ------- ----- ------Net Assets 2,179 2,825 5,004 ======= ===== ======Share Capital and reserves 2,179 2,825 5,004 ======= ===== ====== Note: The adjustment represents the amount raised net of costs in December 2004 less the repayment of £227,000 of bank loans. Dividend At this stage of the Group's development the board does not intend to declare adividend. As recurring revenues build from subscriptions the group shouldproduce strong cash flow and this should enable the group to pay dividends. Strategy The Strategy of the group is to establish a portfolio of companies, whichprovide information, advice and services to small and medium sized businesses orother 'communities' on a subscription basis. The ability to cross sell existingservices to an established customer base would be particularly attractive in anypotential acquisition. The Marketing Guild The Marketing Guild has significantly increased and improved the level ofservice to its member base. Annual subscriptions have recently increased from£474 to £1,800 for the top-level service, which includes regular consultancytaking members through a structured marketing development programme calledSpectral Marketing TM. The key challenge is to migrate existing members to thishigher level service. Wired Gov Wired Gov has firmly established itself as the pre-eminent independent site toaccess government and public sector press releases. The subscription payingclient base continues to expand and currently consists of leading professionalpractices and finance sector companies in the UK. Many public sector employeesalso receive bespoke feeds. As the registered user base increases, now in excessof 10,000, we are attracting increasing levels of sponsorship income, which is ahighly attractive additional revenue stream. Backup and Running Backup and Running has significantly improved recurring revenues over the lasttwelve months and is now producing an operating profit on a monthly basis.Enhancements are continually being made to the software to improve customerservice. During the period we have recruited key personnel to generate furthergrowth in the coming year. Acquisitions We have identified a number of potential acquisition targets and discussions areongoing. Despite the need to build the Group quickly leveraging the cash raisedand our paper, we do not intend to overpay. Board I should like to thank Ian Savage, my predecessor as Chairman, who stepped downjust prior to the recent fundraising. His custodianship during the early days ofthis Group has made a significant contribution. He remains a non-executiveDirector, replacing Keith Salisbury who stepped down as a Director at the timeof the fundraising in December 2004. Staff Although still only a small team the staff at all levels have demonstrated anenthusiasm and commitment to grow the business as quickly as possible Thisstatement would not be complete without expressing my warmest thanks, and thoseof the Board, to the employees who have contributed to our first full year ofoperations. Outlook We have continued to see growth in the first few months of our financial yearand are looking to increase personnel particularly on the sales side of thebusinesses. We continue active discussions with potential acquisition targetsand would hope to be announcing some success in this regard in the near future. Jeremy HamerChairman24 February 2005 Access Intelligence plc Group Profit and Loss Account For the period 13 June 2003 to 30 November 2004 Period ended 30 November 2004 (unaudited) £'000 TurnoverContinuing operationsAcquisitions 543 ------------ 543 ------------ LBITDA (212) Depreciation (25)Amortisation of development costs (14)Amortisation of goodwill (122) ------------ Operating LossContinuing operations (291)Acquisitions (82) ------------ (373)Net interest (8) ------------Loss on ordinary activities before taxation (381) Taxation 41 ------------Loss on ordinary activities after taxation (340) Dividends - ------------Retained Loss (340) ------------Basic earnings per share (.016p) ------------Diluted earnings per share (.015p) ------------ Access Intelligence plc Group Balance Sheet 30 November 2004 30 November 2004 (unaudited) £'000 Fixed assetsTangible assets 83Intangible assets 2,433 ------------- 2,516 -------------Current assetsStock 14Debtors 121Cash at bank and in hand 31 ------------- 166 ------------- Creditors: amountsfalling due within one year (361) ------------- Net current liabilities (195) ------------- Total assets less currentliabilities 2,321Creditors: falling due aftermore than one year (142) -------------Net assets 2,179 ------------- Capital and reservesCalled up share capital 332Share premium account 2,186Profit and loss account (339) ------------- 2,179 ------------- Access Intelligence plc Group Cash Flow Statement For the period 13 June 2003 to 30 November 2004 Period ending 30 November 2004 Net cash outflow from operating activities (540) ----------- Returns on investments and servicing financeNet interest (8) -----------Net cash outflow from return on investments and servicingof finance (8) Taxation - ----------- Capital expenditure and financial investmentDevelopment expenditure (98)Purchase of fixed assets (49) -----------Net cash outflow from capital expenditure and financialinvestment (147) ----------- Acquisition and disposalsPurchase of subsidiary undertakings (1,753) -----------Net cash outflow from acquisitions and disposals (1,753) -----------Equity dividends paid - ----------- FinancingIssue of share capital (net of issue costs) 2,519Repayment of term loans (82) -----------Net cash inflow from financing 2,437 -----------Decrease in cash (11) ----------- Access Intelligence plc Group Cash Flow Statement For the period 13 June 2003 to 30 November 2004 Period ending 30 November 2004Reconciliation of operating loss to net cash outflow fromoperating activities Operating loss (373)Depreciation 25Amortisation of development costs 14Amortisation of goodwill 122Increase in stocks (14)Increase in debtors (39)Increase in creditors (275) -----------Net cash outflow from operating activities (540) ----------- Acquisition Note On 28 November 2003 the Group acquired the entire issued share capital of AccessIntelligence Limited a company incorporated in England and Wales whose name wassubsequently changed to Readymarket Limited. At the time of acquisitionReadymarket had three operating subsidiaries, The Marketing Guild Limited, WiredGov Limited and back up and Running plc. The activities of the businesses arethe provision of services and information on a subscription basis. The fair value of assets and liabilities acquired on acquisition was as follows:- £'000 Tangible Fixed Assets 59Intangible Fixed Assets 36Debtors 41Bank Loans and Overdraft (295)Other Creditors (523) ------- Net liabilities acquired (682)Goodwill 2,435 ------- Consideration 1,753 ======= Comprising 15,800,000 ordinary shares @ 9.434p 1,491191,177 Redeemable preference shares issued at £1 per share 191Costs 71 ------- 1,753 ======= The aggregated Profit and Loss accounts of the companies acquired for the yearended 30 November 2003 are set out below: Year ended 30 November 2003 £000's Turnover 445 Operating Loss (180) Net Interest (25) Loss before Tax (205) Notes 1. The preliminary financial results for the period ended 30 November 2004 wereapproved by the directors on 23 February 2005. 2. The financial information set out above does not constitute the company'sstatutory accounts for the period ended 30 November 2004. These will befinalised on the basis of the financial information presented by the directorsin this preliminary announcement. 3. There were no recognised gains or losses other than the result for theperiod. 4. Basic earnings per ordinary share is calculated on the basis of loss for theperiod after tax, divided by the weighted average of ordinary shares in issue inthe period of 21,361,595. 5. The weighted average number of ordinary shares used in the calculation ofdiluted earnings per share is 22,200,095. This has been adjusted for the effectof potentially dilutive share options granted under the Company's share optionschemes. 6. The adjusted loss per share excludes goodwill amortisation. 7. The preliminary statement is available from the Company's registered officeat Regency House, Westminster place, York Business Park, York, YO26 6RW. This information is provided by RNS The company news service from the London Stock Exchange