Aeorema Comm. Regulatory News (AEO)

29 Mar 2005 07:00

Cheerful Scout PLC29 March 2005 CHEERFUL SCOUT PLC CHAIRMAN'S STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2004 Cheerful Scout plc, the AIM listed multi media specialist, announces its resultsfor the six months ended 31 December 2004. Overview • Turnover more than doubled to £512,343 (2003: £252,142) • EBITDA loss of £7,868 (2003: loss of £89,683) • Core business profitable • New blue-chip clients signed up across all divisions • Company now on Government tender lists • nVision Presenter launched and begins to make breakthrough • Ongoing product development with a second nVision product to be launched later this year Chairman's Statement The Company has made huge strides over the last few months in growing the corebusiness - DVD for the retail sector, and corporate communications, producingprogrammes for blue-chip clients. Furthermore, we continue to develop newinnovative products which will ensure our position as a market pioneer. Our turnover during the period more than doubled to £512,343 (2003: £252,142)thanks to a considerable number of new blue-chip contract wins in our productionbusiness. The DVD side of the business has already delivered more than 300 projects todate, from classic television to feature films, animated classics and corporatework. On the back of this, we believe we now possess one of the most talentedand innovative design and commissioning teams in the UK. We believe it is essential to continue to invest in new technology in order tomaintain our position in what is becoming an increasingly competitive marketplace. The costs involved in research and development impacted on the financialstatements in the first half. The highlight of the period was the launch of a new high-end presentation tool,nVision Presenter. Our sales team has concentrated on launching the product toorganisers of live events for major companies. The system delivers real-time 3Dgraphics and provides an impressive widescreen platform that brings together allmanner of visual media on one highly impressive 'virtual stage'. Unlike other products in the market, it has the power to render graphics inreal-time and thus allows for all kinds of interactive opportunities. Initialfeedback has all been extremely positive. We remain optimistic about the potential of nVision and anticipate it making agrowing contribution to revenues in the months ahead. Furthermore, we hope tolaunch a second nVision product later this year that takes the technology toanother level and into a different market sector. Stuart AppletonChairman 24 March 2005 CHEERFUL SCOUT PLC INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2004 Unaudited Unaudited Audited 6 months to 31 December 2004 6 months to 31 December 2003 Year to 30 June 2004 Pre goodwill Goodwill Total Pre goodwill Goodwill Total Pre goodwill Goodwill Total amortisation amortisation amortisation amortisation amortisation amortisation £ £ £ £ £ £ £ £ £ Turnover 512,343 - 512,343 252,142 - 252,142 607,042 - 607,042 Cost of sales (271,836) - (271,836) (132,437) - (132,437) (431,842) - (431,842) Gross Profit 240,507 - 240,507 119,705 - 119,705 175,200 - 175,200 Administrativeexpenses (315,049) (68,207) (383,256) (289,128) (68,207) (357,335) (446,027) (136,415) (582,442) Operating(Loss) (74,542) (68,207) (142,749) (169,423) (68,207) (237,630) (270,827) (136,415) (407,242) Interestreceived 8,863 - 8,863 8,360 - 8,360 21,284 - 21,284 Interest payable - - - - - - (93) - (93) (Loss) on ordinaryactivities beforetaxation (65,679) (68,207) (133,886) (161,063) (68,207) (229,270) (249,636) (136,415) (386,051) Tax on (loss)on ordinary Activities - - - - - - 16,946 - 16,946 Retained(Loss) for thePeriod (133,886) (229,270) (369,105) Earnings perordinary Shares - Basic (0.0687)p (0.1292)p (0.1982)p - Diluted (0.0679)p (0.1292)p (0.1982)p CHEERFUL SCOUT PLC CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2004 Unaudited Unaudited Audited 31 December 31 December 30 June 2004 2003 2004 £ £ £ Fixed assetsIntangible assets 2,628,823 2,500,935 2,611,152Tangible assets 272,747 398,387 294,136 2,901,570 2,899,322 2,905,288 Current assetsDebtors 246,043 181,126 226,369Stock 1,516 957 1,472Deposits and cash at bank & in hand 405,463 754,766 585,965 653,022 936,849 813,806 Creditors:Amounts falling due within one year (107,022) (97,934) (137,638) Net current assets 546,000 838,915 676,168 Provision for liabilities and charges - (16,946) - Total assets less current liabilities 3,447,570 3,721,291 3,581,456 Capital & reserves 975,000 975,000 975,000Share capital 3,111,419 3,111,419 3,111,419Share premium (638,849) (365,128) (504,963)Profit & loss account Shareholders' funds 3,447,570 3,721,291 3,581,456 The accounts were approved by the board on 24 March 2005 and signed on itsbehalf:- P Litten N J NewmanDirector Director CHEERFUL SCOUT PLC CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD ENDED 31 DECEMBER 2004 Unaudited Unaudited Audited 6 months to 6 months to Year to 31 December 31 December 30 June 2004 2003 2004 £ £ £ Net cash (outflow) fromoperating activities (58,202) (28,522) (71,311) Returns on investments and servicingof FinanceInterest received 8,863 8,360 21,284Interest paid - - (93) Net cash inflow for returns oninvestments and servicing of finance 8,863 8,360 21,191 Taxation - - 17,375 Capital expenditure and financialinvestmentPayments to acquireintangible assets (85,878) (56,229) (178,426)Payments to acquiretangible assets (45,285) (19,214) (53,235) Net cash outflow forcapital expenditure (131,163) (75,443) (231,661) Net cash outflow before managementof liquid resources andfinancing (180,502) (95,605) (264,406) Management of liquid resourcesBank deposits - (235,442) - FinancingNet proceeds from issue of ordinaryshare capital - 292,819 301,875Expenses relating toissue of share capital - - (9,056) Net cash inflow fromfinancing - 292,819 292,819 (Decrease)/increase incash in the year (180,502) (38,228) 28,413 CHEERFUL SCOUT PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2004 1 FINANCIAL INFORMATION The interim results for the six months ended 31 December 2004 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 June2004. A copy of the 2004 Accounts have been filed with the Registrar ofCompanies. The Auditors opinion on these Accounts was unqualified. 2 SHARE CAPITAL During the period, options over a total of 6,905,000 ordinary shares of 0.5peach have been granted at an exercise price of 0.75p per share exercisablebetween 3 and 10 years after the date of grant, which was 28 October 2004. 3 EARNINGS PER ORDINARY SHARES Basic earnings per share are calculated using the weighted average of195,000,000 (2003: 178,596,000) Ordinary Shares in issue during the period.Diluted earnings per share are calculated assuming conversion of all outstandingdilutive share options and warrants. These adjustments give rise to an increasedweighted average ordinary shares of 197,301,667. 4 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. 5 DIVIDENDNo interim dividend is declared on the ordinary shares. CHEERFUL SCOUT PLC CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD ENDED 31 DECEMBER 2004 Unaudited Unaudited Audited 6 months to 6 months to Year to 31 December 31 December 30 June 2004 2003 2004 £ £ £ 6. Reconciliation of operating(loss) to net cash inflow from operating activities Operating (loss) (142,749) (237,630) (407,242)Depreciation of tangibleassets 66,674 79,740 161,783Amortisation of intangibleassets 68,207 68,207 136,415Decrease in debtors (19,674) 64,073 1,074(Increase)/Decrease increditors within one year (30,616) (2,912) 36,793Increase in stock (44) - (134) Net cash inflow fromoperating activities (58,202) (28,522) (71,311) 7 Analysis of net funds At 1 July Cash Flow At 31 December 2004 2004 £ £ £Net cash:Cash at bank and in hand (26,087) (16,677) (42,764)Liquid resources:Bank deposits 612,052 (163,825) 448,227 Net funds 585,965 (180,502) 405,463 Unaudited Unaudited Audited 6 months to 6 months to Year to 31 December 31 December 30 June 2004 2003 2004 £ £ £8 Reconciliation of net cash flowto movement in net funds(Decrease) in cash in the year (16,677) (38,228) (27,929)Cash (outflow)/inflow frommovement in liquid resources (163,825) 235,442 56,342Change in net funds resultingfrom cash flows (180,502) 197,214 28,413 Movement in net fund inthe year (180,502) 197,214 28,413 Opening net funds 585,965 557,552 557,552 Closing net funds 405,463 754,766 585,965 This information is provided by RNS The company news service from the London Stock Exchange