Aeorema Comm. Regulatory News (AEO)

7 Mar 2006 07:02

Cheerful Scout PLC07 March 2006 Cheerful Scout plc / Epic: CLS / Index: AIM / Sector: Media 7 March 2006 Cheerful Scout plc ('Cheerful' or 'the Company') Interim Results Cheerful Scout plc, the AIM listed multi media specialist, announces its interimresults for the six months ended 31 December 2005. Overview • Turnover more than doubled to £1,120,320 (2004: £512,343) • Pre-tax profits of £73,903 (2004: loss of £133,886) • Cash at bank and in hand of £852,030 (2004: £405,463) • Cancellation of Share Premium account eliminates the negative balanceon the Revenue Account, paving the way for dividends to be paid from futureprofits • Corporate and entertainment markets regaining momentum • Blue-chip client relationships stable and potential for increasedactivity from long standing contacts • nVision Presenter increasingly used by organisers of live events formajor companies in conjunction with dedicated events team • nVision Strategy launched - working with a visualisation company thatdeals in strategy for large retail corporates to develop the product further • New business opportunities positive Chairman's Statement This has been a strong period for Cheerful where we have made very good progressin expanding our activity level. The Company has seen a marked improvement inthe overall performance of the business which has translated into a resolutestrengthening in its financial position. Although the business climate hasremained competitive, your Company has benefited from an improvement inconfidence within the media sector and demand for all its divisions' products.Significantly, the corporate and entertainment markets are regaining momentumand increasingly turning to sophisticated visual, audio, lighting and stagingtechniques - all areas where Cheerful excels. Financial Review Our financial performance has improved dramatically with turnover during theperiod more than doubled to £1,120,320 (2004: £512,343) thanks to a considerablenumber of new blue-chip contract wins in our production business. As a consequence, we are pleased to announce a profit on ordinary activitiesbefore taxation of £73,903 for the six months ended 31 December 2005 comparedwith a loss of £133,886 for the corresponding six month period of 2004. TheCompany has a healthy cash position with cash at bank and in hand of £852,030(2004: £405,463). Post Balance Sheet Events We are also pleased to confirm that the High Court of Justice, Chancery Divisionconfirmed the cancellation of the Company's Share Premium account on 15 February2006. As a consequence, the negative balance on the Company's Revenue Accountwill be eliminated and this will pave the way for dividends to be paid fromfuture profits. Operations Our production division, which builds entire projects such as Risk ManagementTraining Tools for corporate clients, and DVD production for the retail sectorincluding front end menu and navigation systems, remains a cornerstone of theCompany. Our major client relationships remain stable and there is potentialfor increased activity from our long standing contacts. The whole team's desire for ongoing success means the drive for new businesscontinues and we are seeing an increase in the number of opportunities that weare being invited to pitch for. Importantly we have invested substantially intraining our team and on the back of this we believe we now possess one of themost talented and innovative design and commissioning teams in the UK. While the core production business is performing well, the market is alsoembracing our new nVision products. nVision Presenter, the high-endpresentation software package which provides the seamless and high speedintegration of several live event elements, is being increasingly used byorganisers of live events for major companies in conjunction with our dedicatedevents team. Furthermore, nVision Strategy, which is focussed at organisations requiringcomplex problem solving tools, has now also been launched and is also beginningto make inroads into the market. Ongoing development is necessary to address the different markets requirements.In this respect I am pleased to report that we are working with a visualisationcompany that deals in strategy for large retail corporates to grow the productfurther. Additionally, the opportunities for further expansion through acquisitions thatenhance the services that Cheerful Scout can offer its clients are constantlybeing reviewed. Prospects New business opportunities remain positive, especially with regards to then-Vision products and services. We have a team in place with the ability togrow the business organically and I am confident that Cheerful Scout is nowpositioned to increase the value of its business and enhance shareholder value.Finally, I would like to thank the staff for all their efforts over the last sixmonths and hope that their continued enthusiasm will help Cheerful Scout achieveits long term ambitions. Stuart AppletonChairman7 March 2006 Profit & Loss AccountFor The Six Months Ended 31 December 2005 Unaudited Unaudited Audited 6 months to 31 December 2005 6 months to 31 December 2004 Year to 30 June 2005 Pre goodwill Goodwill Pre goodwill Goodwill Total Pre goodwill Goodwill Total amortisation amortisation Total amortisation amortisation amortisation amortisation and and and and and and impairment impairment impairment impairment impairment impairment £ £ £ £ £ £ £ £ £ Turnover 1,120,320 - 1,120,320 512,343 - 512,343 898,492 - 898,492 Cost of sales -739,820 - -739,820 -271,836 - -271,836 -631,550 - -631,550 Gross Profit 380,500 - 380,500 240,507 - 240,507 266,942 - 266,942 Adminis-trativeexpenses -310,526 -12,738 -323,264 -315,049 -68,207 -383,256 -504,071 -136,415 -640,486 Operating 69,974 -12,738 57,236 -74,542 -68,207 -142,749 -237,129 -136,415 -373,544Profit/(Loss) Exceptional item - - - - - - - -1,867,467 -1,867,467 Interest received 16,667 - 16,667 8,863 - 8,863 17,268 - 17,268 Interest payable - - - - - - -4 - -4 Profit/(Loss) on ordinaryactivitiesbefore taxation 86,641 -12,738 73,903 -65,679 -68,207 -133,886 -219,865 -2,003,882 -2,223,747 Tax on Profit/ (Loss) on OrdinaryActivities - - - - - - 54,000 - 54,000 Retained Profit /(Loss) for thePeriod 73,903 -133,886 -2,169,747 Earnings perordinary Shares- Basic 0.035616p (0.068659)p (1.045661)p - Diluted 0.035616p (0.068659)p (1.045661)p Consolidated Balance SheetAs At 31 December 2005 Unaudited Unaudited Audited 31 December 2005 31 December 2004 30 June 2005 £ £ £ Fixed assetsIntangible assets 741,726 2,628,823 799,135Tangible assets 174,549 272,747 212,152 916,275 2,901,570 1,011,287 Current assetsDebtors 379,287 246,043 295,946Stock 2,094 1,516 1,211Deposits and cash at bank & in hand 852,030 405,463 721,757 1,233,411 653,022 1,018,914 Creditors:Amounts falling due within one year (165,324) (107,022) (119,742) Net current assets 1,068,087 546,000 899,172 Total assets less current liabilities 1,984,362 3,447,570 1,910,459 Capital & reserves Share capital 1,225,000 975,000 1,225,000Share premium 3,360,169 3,111,419 3,360,169Profit & loss account (2,600,807) (638,849) (2,674,710) Shareholders' funds 1,984,362 3,447,570 1,910,459 The accounts were approved by the board on 7 March 2006 and signed on itsbehalf:- P Litten N J NewmanDirector Director Consolidated Cash Flow StatementFor The Period Ended 31 December 2005 Unaudited 6 months Unaudited 6 months Audited Year to 31 December 2005 to 31 December 2004 to 30 June 2005 £ £ £ Net cash inflow/(outflow) from operating 133,615 (58,202) (136,242)activities Returns on investments and servicing of financeInterest received 16,667 8,863 17,268 Interest paid - - (4) Net cash inflow for returns on investments and 16,667 8,863 17,264servicing of financeTaxation - - - Capital expenditure and financial investmentPayments to acquire intangible assets - (85,878) (191,865)Payments to acquire tangible assets (20,009) (45,285) (52,115) Net cash outflow for capital expenditure (20,009) (131,163) (243,980) Net cash inflow/(outflow) before management ofliquid resources and financing 130,273 (180,502) (362,958) FinancingNet proceeds from issue of ordinary share - - 525,000capitalExpenses relating to issue of share capital - - (26,250) Net cash inflow from financing - - 498,750 Increase/(decrease) in cash in the year 130,273 (180,502) 135,792 Notes To The Financial StatementsFor The Six Months Ended 31 December 2005 1 FINANCIAL INFORMATION The interim results for the six months ended 31 December 2005 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 June2005. A copy of the 2005 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 weighted average of207,500,000 (2004: 195,000,000) Ordinary Shares in issue during the period. 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 DIVIDEND No interim dividend is declared on the ordinary shares. Unaudited 6 months to Unaudited 6 months to Audited Year to 31 December 2005 31 December 2004 30 June 2005 £ £ £ 5 Reconciliation of operating profit/ (loss) tonet cash inflow from operating activities Operating profit/(loss) 57,236 (142,749) (373,544) Depreciation of tangible assets 102,283 66,674 134,099 Amortisation of intangible assets 12,738 68,207 136,415 Increase/(decrease) in debtors (83,341) (19,674) (15,577) (Increase)/decrease in creditors within one year 45,582 (30,616) (17,896) Decrease/(increase) in stock (883) (44) 261 Net cash inflow/(outflow) from operating 133,615 (58,202) (136,242) activities 6 Analysis of net funds At 1 July 2005 Cash Flow At 31 December 2005 £ £ £ Net cash: Cash at bank and in hand - 5,727 5,727 Liquid resources: Bank deposits 721,757 124,546 846,303 Net funds 721,757 130,273 852,030 Unaudited 6 months to Unaudited 6 months to Audited Year to 31 December 2005 31 December 2004 30 June 2005 £ £ £7 Reconciliation of net cash flow to movement in net funds Increase/(decrease) in cash in the 5,727 (16,677) 26,087 year Cash (outflow)/inflow from movement in liquid resources 124,546 (163,825) 109,705 Change in net funds resulting from cash flows 130,273 (180,502) 135,792 Movement in the net fund in the year 130,273 (180,502) 135,792 Opening net funds 721,757 585,965 585,965 Closing net funds 852,030 405,463 721,757 Contacts: Gary Fitzpatrick Cheerful Tel: 020 7291 0444Isabel Crossley St Brides Media Tel: 020 7242 4477 This information is provided by RNS The company news service from the London Stock Exchange