Last checked at 24 Dec 2008 10:49
THIS ANNOUNCEMENT REPLACES THE EARLIER RELEASE TODAY AT 7.00AM UNDER RNS 7391K. THIS IS DUE TO A TYPOGRAPHICAL ERROR IN THE CASH FLOW STATEMENT. NO OTHER CHANGES WERE MADE.
24 December 2008
Baydonhill plc
("Baydonhill" or "the Company")
Interim results for the six month period ended 30 September 2008
Key Points
Net loss for the period of £658,451 (six month period to 30 September 2007: loss £845,967)
Gross profit (foreign exchange commission) up 36 per cent. to £1,366,256
Operating loss for the period down 32 per cent. to £633,854 (2007: loss £932,842)
'BH Online', the Company's new corporate trading system, fully operational for the period
Contacts
Baydonhill plc Tel: 020 7594 0584
Eric Peacock, Chairman
Wayne Mitchell, Chief Executive
John East & Partners Limited Tel: 0207 628 2200
Bidhi Bhoma
Chairman's Statement
Overview
For the six months ended 30 September 2008 the Company made a loss before tax of £658,451 (2007: loss £845,967) on gross turnover of £220,720,675 (2007: £131,669,000).
During the period, the Company announced that it had entered into a new £500,000 loan facility with Wallich & Matthes Holdings B.V., a wholly owned subsidiary of Ekwienox Limited ("Ekwienox"), the Company's largest shareholder. The Company remains dependent on Ekwienox to support its working capital requirements in the short to medium term and, when necessary, will enter into discussions with Ekwienox during 2009.
Review
The launch of the Corporate Division contributed £136 million to gross turnover, helping to increase the Company's overall gross turnover to £221 million (2007: £132 million). Gross profit (representing foreign exchange commission earned) for the period increased by 36 per cent. to £1,366,256.
The Private Client Division performed relatively well in difficult market conditions for foreign exchange providers, with gross revenues only 13 per cent. lower than those reported for the same period last year. We believe this is a reassuring performance in light of the market decline which has been widely reported in the financial press.
Having experienced a delay in the implementation of its online payment platform for its Corporate Division in the previous financial year, the Company benefited from having the platform fully operational during the period. The positive impact on the Company's revenue has been demonstrated by the results of the Corporate Division, which the Board expect to continue to improve, despite difficult market conditions.
Board
With the exception of Ian Collins, the composition of the Board remains unchanged. Mr Collins resigned on 11 August 2008.
Outlook
The Directors believe that 2009 will be a challenging year for the Private Client Division with limited growth opportunities in the current economic climate, but expect significant continued growth from the Corporate Division.
In light of the positive results from the Corporate Division, the Company recently expanded its sales force to take advantage of opportunities in the current climate. The Company expects to continue to increase its personnel base, when justified to do so by an increase in business.
Given the promising growth of the Corporate Division combined with the existing revenue stream from the Private Client Division, the Company is now better equipped to deliver revenue growth and make significant progress towards profitability.
Eric Peacock
Chairman
24 December 2008
PROFIT AND LOSS ACCOUNT
| Six months ended 30 September 2008 (unaudited) £ | Six months ended 30 September 2007 (unaudited) £ | Year ended 31 March 2008 (audited) £ | ||
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| TURNOVER | 220,720,675 | 131,668,803 | 293,792,374 | |
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| Cost of sales | (219,354,419) | (130,665,662) | (291,647,277) | |
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| GROSS PROFIT | 1,366,256 | 1,003,140 | 2,145,097 | |
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| Administrative expenses | (2,000,110) | (1,935,982) | (3,737,519) | |
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| OPERATING LOSS | (633,854) | (932,842) | (1,592,422) | |
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| Interest receivable and similar income | 59,187 | 97,364 | 177,863 | |
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| Interest payable and similar charges | (83,784) | (10,489) | (55,624) | |
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| (LOSS) / PROFIT BEFORE TAX | (658,451) | (845,967) | (1,470,183) | |
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| TAXATION | - | - | - | |
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| (LOSS) / PROFIT FOR THE PERIOD | (658,451) | (845,967) | (1,470,183) | |
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| (Loss) / Earnings per share | - basic | (2.70p) | (3.79p) | (6.29p) |
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| - diluted | (2.70p) | (3.00p) | (6.29p) |
BALANCE SHEET
| At 30 September 2008 (unaudited) £ | At 30 September 2007 (unaudited) £ | At 31 March 2008 (audited) £ | |
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| (as restated) |
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| FIXED ASSETS |
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| Tangible | 676,658 | 421,398 | 590,037 |
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| CURRENT ASSETS |
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| Debtors | 30,628,476 | 12,915,384 | 19,201,359 |
| Cash at Bank | 2,111,983 | 3,466,754 | 3,892,481 |
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| 32,740,460 | 16,382,138 | 23,093,840 |
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| CREDITORS: Amounts falling due within one year | (33,062,508) | (16,413,341) | (22,801,713) |
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| NET CURRENT (LIABILITIES) / ASSETS | (322,048) | (31,203) | 292,127 |
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| TOTAL ASSETS LESS CURRENT LIABILITIES | 354,610 | 390,195 | 882,164 |
| CREDITORS: Amounts falling due after more than one year | (1,306,137) | - | (1,135,732) |
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| NET ASSETS | (951,527) | 390,195 | (253,568) |
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| CAPITAL AND RESERVES |
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| Called up share capital | 243,841 | 243,841 | 243,841 |
| Share premium account | 3,005,551 | 3,005,551 | 3,005,551 |
| Profit and loss account Shares to be issued | (4,261,387) 60,468 | (2,859,197) - | (3,555,398) 52,438 |
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| EQUITY SHAREHOLDERS FUNDS | (951,527) | 390,195 | (253,568) |
CASH FLOW STATEMENT
| Six months ended 30 September 2008 (unaudited) £ | Six months ended 30 September 2007 (unaudited) £ | Year ended 31 March 2008 (audited) £ | |
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| Reconciliation of operating loss to net cash (outflow) from operating activities | |||
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| Operating loss | (633,854) | (932,842) | (1,592,422) |
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| Depreciation of tangible fixed assets | 87,586 | 35,224 | 93,404 |
| (Increase) in debtors | (11,427,117) | (3,668,711) | (9,954,686) |
| Increase in creditors | 10,129,229 | 3,459,642 | 10,010,174 |
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| Share-based payment (credit) | (47,538) | (10,201) | (82,186) |
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| Net cash (outflow) from operating activities | (1,891,694) | (1,116,888) | (1,525,716) |
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| Returns of investment & servicing of finance | (24,597) | 86,875 | 122,239 |
| Taxation | - | - | - |
| Capital expenditure | (174,207) | (113,440) | (340,249) |
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| Cash (outflow) before use of liquid resources | (2,090,498) | (1,143,453) | (1,743,726) |
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| Financing: Other Loans | 160,000 | - | - |
| Convertible Loans | 150,000 | - | 1,026,000 |
| Issue of shares | - | 503,782 | 503,782 |
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| (Decrease) in cash for the period | (1,780,498) | (639,671) | (213,944) |
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| Reconciliation of net cash flow to movement in net funds | |||
| (Decrease) in cash in the year | (1,780,498) | (639,671) | (213,944) |
| Convertible loan note | (141,970) | - | (973,562) |
| Other Loan | (160,000) | - | - |
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| Net funds at 1 April 2008 | 2,918,919 | 4,106,425 | 4,106,425 |
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| Net funds at 30 September 2008 | 836,451 | 3,466,754 | 2,918,919 |
6. Copies of this interim announcement will be available from the Company’s website at www.baydonhill.com.