BIDS.L Regulatory News (BIDS)

25 Apr 2007 07:00

ADDleisure PLC25 April 2007 ADDleisure plc / Ticker: ADE.L / Index: AIM / Sector: Leisure 25 April 2007 ADDleisure plc ('ADDleisure' or 'the Company') Interim Statement ADDleisure Plc, the AIM traded company formed to develop products and servicesin the health and leisure sectors, announces its results for the six monthsended 31 January 2007. Overview • Existing investments making significant progress • Movers & Shapers set for expansion following the successful launch of the brand • Fitbug well positioned to benefit from increasing consumer awareness of the importance of healthy living and the shifting responsibility towards corporates and public bodies for encouraging individuals to take appropriate action • Ez-Book increasing market penetration having won a number of new contracts • Considerable prospects for companies involved in the wellness market Chairman's Statement It gives me great pleasure to report on the Company's progress towardsfulfilling its objective of becoming a leading investor in and provider ofhealth and leisure products and services to consumers and organisations in boththe public and private sectors. We are operating in an extremely exciting sectorwith health and wellness being a top criterion driving consumers' spendinghabits; in Europe alone the wellness market is now worth around £140 billionannually. ADDleisure's team has for some time been acutely aware of the healthproblems facing the western world and has reacted accordingly through investmentin pioneering technology and services. Our position as a first mover in thismarket is now standing us in good stead as companies increasingly look to focuson wellness. During the period under review, we have continued to develop our existinginvestments, improving core products and services whilst establishing new marketopportunities. We have an experienced team to drive the business forward anddeliver on these opportunities. Our products and services are innovative, havesignificant potential and the market reaction is encouraging. Your Directors arenow in discussions on a number of fronts with powerful, long-term strategicpartners relating to the funding of the Group and moving the concepts of Fitbugand Movers & Shapers to a new level. Financial Performance In line with the Board's expectations, the results for the six months to 31January 2007 show turnover up 14% to £586,000 (2006: £516,000) and a loss forthe period of £705,000 (2006: loss of £325,000). It should be noted thatturnover for the same period last year included £157,000 in respect of licensefees and product sales as part of our terminated agreement with Brunswick NewTechnologies Inc. Comparable turnover is up 63%. Since the period end, theDirectors have made a facility of £100,000 available to the Company. The Boardis not recommending a dividend. Investments Fitbug Limited ("Fitbug") (75% stake) Fitbug, "your online personal health and well-being coach", continues to makesignificant progress. By combining interactive tracking devices and webtechnology to measure activity and key health indicators, Fitbug is able toprovide personal feedback to members, increasing motivation towards a healthierlifestyle. Fitbug's marketing and sales strategy is aimed at increasing itsexposure to the UK consumer and corporate markets. In the last six months, Fitbug has seen strong sales growth through itsthree-year agreement with PruHealth, a leading innovative private medicalinsurance provider. PruHealth customers who sign up to Fitbug may receive areduction in future premiums or cash back based on achievement of certainactivity levels as measured by Fitbug. With PruHealth's scheme being adopted byan increasing number of companies, we believe there will be an opportunity toleverage our relationship to deliver Fitbug's comprehensive corporate health andwell-being programme to companies on the scheme. Furthermore, Boots recentlyannounced the launch of Boots Health Insurance, its first private healthinsurance product, in partnership with PruHealth. The product will be availableto shoppers in its 1,500 stores, greatly increasing the exposure of Fitbug. The Company continues to develop its core technology and version three (V3) ofthe website was recently launched with significant enhancements to the userinterface. As well as providing more opportunities for member engagement, V3features a greatly enhanced nutrition section together with the ability to trackother activities such as swimming and cycling alongside walking. We believe thatthe improved user experience will increase usage of the service and help us toretain members for longer. Digital Plantation Limited ("Digital") (50.2% stake) Digital's intelligent management software, Ez-Book, continues to deliver bookingand resource management solutions to the leisure industry. Like-for-liketurnover was up over 50% on last year as a result of public and private sectorwins. Additionally, existing customers such as M-Spa's Mandara spa brand andHollywood Bowl continue to create new sales opportunities as a result of organicgrowth. Since the period end, Digital has won a contract to install Ez-Book at SK:Nclinics, the national network of specialist skin and body clinics backed byGraphite Capital, the private equity fund. SK:N currently operates from 20locations and has an exciting pipeline of potential sites. This contractsignificantly widens our market appeal and takes Ez-Book into the clinicalmarket for the first time. Movers and Shapers Limited ("Movers & Shapers") (90.0% stake) As part of its commitment to focus on consumers' increasing desire for moreaccessible health and fitness facilities, Movers & Shapers has created agroundbreaking retail concept for health and fitness services. Offeringpersonalised training to the public, Movers & Shapers provides an intimate andnon-intimidating environment offering a fast-track fitness programme toconsumers, focussed on body shape and fitness and uniquely combining Power Plateand Fitbug technologies. The first branded studio opened in Stanmore, North London at the end of theperiod under review. Trading has been buoyant and we are encouraged by its earlysuccess. Our original Crawford Street site is being successfully run as a PowerPlate studio whilst management consider its suitability for conversion to thenew brand. We have established three formats to roll-out the Movers & Shapers brand: ownedhigh street studios, franchise studios and in-store concessions. We believethere to be significant opportunities to expand the brand by taking space inexisting retailers and are vigorously pursuing such opportunities. A studio was opened in central Hong Kong in December 2006 as part of our jointventure agreement with a local party in Hong Kong. This has generatedsignificant local interest and will serve as a base from which the Company canexpand the brand into Asia through the establishment of a franchise business. Finally, I would like to thank all of our staff for their hard work in bringingthe Group to this stage, and our shareholders for their continued support. Ilook forward to the coming months with increasing confidence. Allan FisherChairman25th April 2007 Consolidated Profit and Loss Accountfor the six months ended 31 January 2007 Unaudited Audited Unaudited 6 months ended Year ended 6 months ended Note 31 January 2007 31 July 2006 31 January 2006 £000s £000s £000s Turnover 586 852 516Cost of sales (189) (311) (128) _______ _______ _______ Gross profit 397 541 388 Administrative expenses (1,309) (1,828) (812) _______ _______ _______ Operating loss (912) (1,287) (424) Share of operating (loss)/profit in:- Joint venture (23) - -- Associated undertaking - - 7 Profit on disposal of associated - 322 -undertaking _______ _______ _______ Loss on ordinary activities before (935) (965) (417)interest Interest payable (3) -Interest receivable 3 15 6 _______ _______ _______ Loss on ordinary activities before (932) (953) (411)taxation Taxation - 12 - _______ _______ _______ Loss on ordinary activities after (932) (941) (411)taxation Minority interest 227 314 - 86 - _______ _______ _______ Loss for the period (705) (627) (325) Loss brought forward (1,377) (750) (750) _______ _______ _______ Loss carried forward (2,082) (1,377) (1,075) _______ _______ _______ Basic and fully diluted loss per 2 (0.60) (0.60) (0.30)share (pence) _______ _______ _______ All amounts relate to continuing activities.All recognised gains and losses are included in the profit and loss account. Consolidated Balance Sheetat 31 January 2007 Unaudited Audited Unaudited 31 January 2007 31 July 2006 31 January 2006 £000s £000s £000sFixed assets Intangible assets 680 771 730 Tangible assets 126 79 43 Investment in joint venture - Share of gross assets 27 - - - Share of gross liabilities - - - _______ _______ _______ 27 - - Investment in associate - - 31 _______ _______ _______ 833 850 804 Current assets Stock 37 68 91 Debtors 342 221 273 Cash at bank and in hand 106 705 275 _______ _______ _______ 485 994 639 Creditors: amounts falling duewithin one year (519) (363) (260) _______ _______ _______ Net current (liabilities)/assets (34) 631 379 _______ _______ _______ Total assets less current liabilities 799 1,481 1,183 Creditors: amounts falling due after (260) (260) (44)more than one year _______ ______ _______ Net assets 539 1,221 1,139 _______ _______ _______ Capital and reserves Called up share capital 648 606 550 Share premium account 1,783 1,575 1,575 Merger reserve 757 757 250 Profit and loss account (2,082) (1,377) (1,075) _______ ______ _______ Shareholders' funds - equity 1,106 1,561 1,300 Minority interest (567) (340) (161) _______ _______ _______ 539 1,221 1,139 _______ _______ _______ Consolidated Cash Flow StatementFor the six months ended 31 January 2007 Unaudited Audited Unaudited Note 6 months Year 6 months ended ended ended 31 January 2007 31 July 2006 31 January 2006 £000s £000s £000s Net cash outflow from operating activities 3 (757) (888) (296) Returns on investments andservicing of financeInterest received 3 15 6Interest paid - (3) - _______ _______ _______Net cash inflow from returns on investment 3 12 6and servicing of finance TaxationCorporation tax credit received - 12 - Capital expenditure andfinancial investment Purchase of tangible fixed assets (32) (30) (5) Development costs - (70) (70) Proceeds from sales of fixed assets - 5 - _______ _______ _______ Net cash outflow from capital expenditure and (32) (95) (75)financial investment Acquisitions and disposalsPurchase of subsidiary - - -undertakingsCash acquired with subsidiaries - 500 -Acquisition of joint venture (50) - -Disposal of associate - 348 - _______ _______ ______ Net cash (outflow)/inflow from acquisitions (50) 848 -and disposals Cash outflow before financing (836) (111) (365) Financing Issue of ordinary share capital 250 - - Issue costs - (15) - Capital element of finance lease repayments (13) (16) (7) Loan - 200 - _______ _______ _______ Net cash inflow/(outflow) from financing 237 169 (7) _______ _______ ______ (Decrease)/increase in cash (599) 58 (372) _______ _______ ______ Notes 1 Basis of Preparation The results for the six months ended 31 January 2007 and the comparative figuresfor the six months ended 31 January 2006 are unaudited. They have been preparedon accounting bases and policies that are consistent with those used in thepreparation of the financial statements of the Group for the year ended 31 July2006. The financial information contained in this report does not constitute statutoryaccounts within the meaning of Section 240 of the Companies Act 1985 (asamended). The results of ADDleisure Plc for the period ended 31 July 2006 werereported on by the auditors and received an unqualified report and contained nostatement under Section 237(2) or (3) of the Companies Act 1985 (as amended).Statutory accounts for the period ended 31 July 2006 have been delivered to theRegistrar of Companies. Basis of Consolidation The unaudited consolidated accounts for ADDleisure plc incorporate the resultsof Movers and Shapers Limited, Digital Plantation Limited, ADDleisure 2004Limited and its subsidiary undertakings Fitbug Limited and ADDleisure ConsultingLimited, using the acquisition accounting method. 2 Loss per share Basic loss per share for the six months ended 31 January 2006 has beencalculated on the basis of the loss after taxation for the period of £705,000(31 July 2006: loss of £627,000) and the average number of shares in issueduring the period of 121,838,768 (31 July 2006: 110,032,822). The effect of all options and warrants outstanding at 31 January 2007 isanti-dilutive. 3 Reconciliation of operating loss to net cash outflow from operatingactivities 6 months Year 6 months ended ended ended 31 January 2007 31 July 2006 31 January 2006 £000s £000s £000s Operating loss (912) (1,287) (424)Depreciation 25 31 11Amortisation:goodwill 31 51 26 development costs 60 114 54Movement in:stocks 31 135 111debtors (121) (60) (112)creditors 129 128 38 _______ _______ _______ Net cash outflow from operating activities (757) (888) (296) _______ _______ _______ For further information visit www.addleisure.com or contact: Ben Margolis ADDleisure Plc Tel: 020 7449 1000Mark Percy Seymour Pierce Tel: 020 7107 8000Isabel Crossley St. Brides Media & Finance Ltd Tel: 020 7242 4477 About ADDleisure plc • Floated on AIM in October 2004, ADDleisure believes that the increase in awareness of the importance of physical health and well-being has resulted in an opportunity to develop and promote new highly differentiated offerings to the health and leisure sectors. • It has three key investments: Fitbug Limited, developers of an online personal health and well-being coach; Digital Plantation Limited, developers of Ez-Book intelligent booking software; and Movers and Shapers Limited, a groundbreaking retail concept for health and fitness services. • The Company has a highly experienced management team including Allan Fisher, founder and former CEO of Holmes Place plc; David Turner, founder and former director of LA Fitness plc; and David Cummin, founder and former director of Membertrack Limited, a leading club membership software provider. Additionally, Michael Warshaw, former Chairman of Molton Brown, is a consultant to the Company. This information is provided by RNS The company news service from the London Stock Exchange