Aeorema Comm. Regulatory News (AEO)

7 Mar 2007 12:23

Cheerful Scout PLC07 March 2007 CHEERFUL SCOUT PLC ("Cheerful" or "the Company") Amendments to Interim Accounts for 6 months ended 31 December 2006 The Company wishes to have it noted that incorrect figures for the Company'sbasic and diluted earnings per share ("EPS") were included in the Company'sinterim results to December 31 2006, which were released to the market on the6th March 2007. The interim results released 6 March 2007 stated that the Company's basic anddiluted EPS figures were as follows: Unaudited 6 months Unaudited 6 months Audited year to to to 30 June 31 December 2006 31 December 2005 2006Earnings PerShare- Basic 0.053566p 0.037870p 0.079188p-Diluted 0.053555p 0.037862p 0.079171p The above figures were incorrectly calculated, as the basic and diluted EPSfigures were calculated using the weighted average of 195,147,826 (2005:195,147,826) Ordinary Shares in issue during the period. The Company wishes to have it noted that the correct basic and diluted EPSfigures for the period are as follows: Unaudited 6 months Unaudited 6 months Audited year to to to 30 June 31 December 2006 31 December 2005 2006Earnings PerShare- Basic 1.0667p 0.7541p 1.5769p-Diluted 1.0623p 0.7510p 1.5704p The above figures were correctly calculated, as the basic and diluted EPSfigures were calculated using the figure of 9,800,000 (2005: 9,800,000) OrdinaryShares in issue during the period after the share consolidation. A full corrected version of the Company's interim accounts to 31 December 2006is outlined below CHEERFUL SCOUT PLC CHAIRMAN'S STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2006 Cheerful Scout Plc, the AIM-traded multi media specialist, is pleased toannounce its results for the six months ended 31 December 2006. Overview •Pre-tax profit up 57% to £116,281 (2005: £73,903) •Cash at bank £1,020,866 (2005:£852,030) •New contracts with existing and new clients •nVision and Events division gaining momentum •Team strengthened with appointment of new head of events •Several prestigious awards recognising creative excellence, technology and innovation Chairman Statement It gives me great pleasure to report another set of positive results as CheerfulScout continues to deliver creative corporate communication solutions to itsexpanding list of blue-chip clients. Following maiden profits for 31 June yearend results, trading and turnover has continued to develop satisfactorily. The corporate communications market in which the Company principally operateshas seen an improved level of spend and Cheerful Scout is positioned to takeadvantage of this and is building its reputation as a provider of choice to manyleading organisations. In line with this the Company has won a number of new contracts with blue-chip companies within its three main areas of business - Film &Video, nVision/Events and DVD - and it has been recognised through the winningof a number of significant industry awards. Financial Results Targeting of higher margined projects led to a reduction in turnover for the sixmonths ended 31 December 2006 to £1,038,285 (2005: 1,120,320) and a 57% increasein pre-tax profit of £116,281 (2005: £73,903). Cash balances at 31 December 2006were £1,020,866 (2005: £852,030). The Company will not be declaring a dividend, but as a result of the continuinggrowth in profits and following the share consolidation in November 2006, wewill continue to review our dividend policy. Consolidation of Share Capital During the period every 25 issued and unissued ordinary shares of .05 pence eachin the capital of the Company were consolidated into 1 ordinary share of 12.5pence in the capital of the Company. Operations Cheerful Scout has had a good start to 2007 with all three business divisionsperforming well. The Company has secured new pivotal contracts and continued toestablish and build upon existing agreements across its business divisions.Recognition for its creative excellence, technology and innovation has beendemonstrated by winning four prestigious awards. The Film & Video team won anaward for Audio-Visual Communication at The Federation of European BusinessCommunicators Association Grand Prix 2006 in Austria, as well as gold and silvermedals at the International Film & Video Competition at the New York Festivals.The DVD team won an award for its creative excellence in Televisual magazine's'Best of 2006' DVD showcase for the fourth consecutive year, while the nVisionand Events team won the Award for Innovation for its new presentation software,nVision Presenter, at the International Visual Communication Association'sLiveCom Awards 2006. The Film & Video division has also been performing strongly. It recently secureda contract to produce an internal video for the Royal Bank of Scotland, designedto present the work of the bank's Electronic Payments Department. A contractwith UK insurance giant Allianz Cornhill to produce an internal film tocommunicate the new FSA compliance regulations has been won - this is still inproduction. Since first securing a contract with the Directorate of Optometric ContinuingEducation & Training 'DOCET' in August 2006, Cheerful Scout has continued tobuild upon this relationship and has recently been awarded a contract by DOCETto produce two further videos. The DVD division maintains its strong performance. As recently announced, ourrelationship with Contender Entertainment Group has been strengthened followinga new contract to provide DVD authoring services to its entire medium tohigh-end film and TV titles, such as BBC's Spooks, for two years. The nVision and Events division is gaining momentum, recently producing twomajor events. In December 2006 it produced an awards ceremony for an audience ofcorporate communications directors (potential buyers for our products) inpartnership with CorpComms magazine at the Royal Horticultural Halls in centralLondon. Additionally, our production team was responsible for the Allen & Overyweek long event entitled 'A World of Difference at Allen & Overy" to launch thelegal firm's new state-of-the-art global headquarters in Bishops Square, London. People We always maintain that our continued success can be attributed to the excellentteam that Cheerful Scout has behind it. We are pleased to announce that this hasbeen further strengthened with the appointment of a new head of events.Furthermore, I intend to take a more active role as Chairman as from May 2007 asI finish my full time executive duties as a Member of the Board of Management ofGetronics NV. Additionally, congratulations to our Managing Director, Gary Fitzpatrick, whohas been named one of the top 100 audio visual people in the UK by Audio Visualmagazine. Outlook Throughout our 10 year history we have focused on producing unique, creative andhigh-quality work. We are now a recognised leader in our field, with thebusiness gaining upward momentum and our blue-chip client base growing rapidly.The strength of our client base and the strong foundations that we have builtgives us confidence of continued growth and that profits for the year will be inline with market expectations. S AppletonChairman5 March 2007 CHEERFUL SCOUT PLCINTERIM RESULTSFOR THE SIX MONTHS ENDED 31 DECEMBER 2006 Unaudited Unaudited Audited 6 months to 31 December 2006 6 months to 31 December 2005 Year to 30 June 2006 Pre goodwill Goodwill Total Pre goodwill Goodwill Total Pre goodwill Goodwill Total amortisation amortisation amortisation amortisation amortisation amortisation and and and and and and eorganisation reorganisation reorganisation reorganisation reorganisation reorganisation costs costs costs costs costs costs £ £ £ £ £ £ £ £ £Turnover 1,038,285 1,038,285 1,120,320 - 1,120,320 2,173,163 - 2,173,163 Cost of (554,797) (554,797) (739,820) - (739,820) (1,308,612) - (1,308,612)sales Gross Profit 483,488 483,488 380,500 - 380,500 864,551 - 864,551 Administrativeexpenses (369,467) (12,738) (382,205) (310,526) (12,738) (323,264) (635,581) (50,499) (686,080) OperatingProfit/(Loss)114,021 (12,738) 101,283 69,974 (12,738) 57,236 228,970 (50,499) 178,471 Interestreceived 15,546 - 15,546 16,667 - 16,667 30,104 - 30,104 Interestpayable (8) - (8) - - - (42) - (42) Profit/(Loss)on 129,559 (12,738) 116,281 86,641 (12,738) 73,903 259,032 (50,499) 208,533ordinaryactivitiesbeforetaxation Tax on Profiton (12,288) - - - - - (54,000)OrdinaryActivities RetainedProfit 104,533 73,903 154,533for thePeriod Earnings perordinary Shares- Basic 1.0667p 0.7541p 1.5769p- Diluted 1.0623p 0.7510p 1.5704p CHEERFUL SCOUT PLCCONSOLIDATED BALANCE SHEETAS AT 31 DECEMBER 2006 Unaudited Unaudited Audited 31 December 2006 31 December 2005 30 June 2006 £ £ £Fixed assetsIntangible assets 806,506 741,726 793,194Tangible assets 100,017 174,549 129,678 906,523 916,275 922,872Current assetsStock 2,757 2,094 2,268Debtors 443,530 379,287 615,914Deposits and cash at bank& in hand 1,020,866 852,030 885,559 1,467,153 1,233,411 1,503,741Creditors:Amounts falling duewithin one year (204,151) (165,324) (361,621)Net current assets 1,263,002 1,068,087 1,142,120Total assets less currentliabilities 2,169,525 1,984,362 2,064,992Capital & reservesShare capital 1,225,000 1,225,000 1,225,000Share premium - 3,360,169 -Special reserves 1,747,416 - 1,747,416Profit & loss account (802,891) (2,600,807) (907,424)Shareholders' funds 2,169,525 1,984,362 2,064,992 The accounts were approved by the board on 5 March 2007 and signed on itsbehalf:- P Litten N J NewmanDirector Director CHEERFUL SCOUT PLCCONSOLIDATED CASH FLOW STATEMENTFOR THE PERIOD ENDED 31 DECEMBER 2006 Unaudited Unaudited Audited 6 months to 6 months to Year to 31 December 31 December 30 June 2006 2005 2006 £ £ £Net cash inflow/(outflow)from operating activities 179,994 133,615 231,209 Returns on investments and servicingof financeInterest received 15,546 16,667 30,104Interest paid (8) - (42) Net cash inflow forreturns on investmentsand servicing of finance 15,538 16,667 30,062 Taxation - - - Capital expenditure and financialinvestmentPayments to acquireintangible assets (49,308) - (66,052)Payments to acquiretangible assets (10,917) (20,009) (31,417)Net cash outflow forcapital expenditure (60,225) (20,009) (97,469) Net cash inflow/(outflow)before management ofliquid resources andfinancing 135,307 130,273 163,802 Increase in cash in theyear 135,307 130,273 163,802 CHEERFUL SCOUT PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2006 1 FINANCIAL INFORMATION The interim results for the six months ended 31 December 2006 are un-audited anddo not constitute accounts within the meaning of section 240 of the CompaniesAct 1985. They have been drawn up using accounting policies and presentationconsistent with those applied in the audited accounts for the year ended 30 June2006. A copy of the 2006 Accounts have been filed with the Registrar ofCompanies. The Auditors opinion on these Accounts was unqualified. 2 EARNINGS PER ORDINARY SHARES Basic earnings per share are calculated using the figure of 9,800,000 (2005:9,800,000) Ordinary Shares in issue during the period after the shareconsolidation.Diluted earnings per share are adjusted for warrants and share options grantedto employees where the exercise price is less than the price of the Company'sordinary shares during the period. These adjustments give rise to an increase of40,632 ordinary shares. 3 RESPONSIBILITY The directors of the company accept responsibility for the information containedin this document and to the best of their knowledge and belief (having taken allreasonable care to ensure that such is the case) the information contained is inaccordance with the facts and does not omit anything to affect the import ofsuch information. Copies of this report are available to the public at the registered office at 65New Cavendish Street, London W1G 7LS. 4 DIVIDENDNo interim dividend is declared on the ordinary shares. CHEERFUL SCOUT PLC CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD ENDED 31 DECEMBER 2006 Unaudited Unaudited Audited 6 months to 6 months to Year to 31 December 31 December 30 June 2006 2005 2006 £ £ £ 5 Reconciliation of operating profit/ (loss) to net cash inflow from operating activities Operating profit/(loss) 101,283 57,236 178,471 Depreciation of tangible assets 40,578 55,766 113,891 Amortisation of intangible assets 35,996 59,255 71,993 Decrease/(Increase) in debtors 172,384 (83,341) (373,968) (Increase)/decrease in creditors (169,758) 45,582 241,879 within one year Decrease/(increase) in stock (489) (883) (1,057) Net cash inflow/(outflow) from operating activities 179,994 133,615 231,209 6 Analysis of net funds At 1 July Cash Flow At 31 2006 December 2006 £ £ £ Net cash: Cash at bank and in hand 158,916 108,736 267,652 Liquid resources: Bank deposits 726,643 26,571 753,214 Net funds 885,559 135,307 1,020,866 Unaudited Unaudited Audited 6 months to 6 months to Year to 31 December 31 December 30 June 2005 2006 £ £ £ 7 Reconciliation of net cash flow to movement in net funds Increase/(decrease) in cash in the 108,736 5,727 158,916 year Cash (outflow)/inflow from movement in liquid resources 26,571 124,546 4,886 Change in net funds resulting from cash flows 135,307 130,273 163,802 Movement in net fund in the year 135,307 130,273 163,802 Opening net funds 885,559 721,757 721,757 Closing net funds 1,020,866 852,030 885,559 This information is provided by RNS The company news service from the London Stock Exchange