Crawshaw Group Regulatory News (CRAW)

28 Feb 2006 07:03

Felix Group PLC28 February 2006 28 February 2006 Felix Group plc Interim Results for the Six Months Ended 30 November 2005 Chief Executive's Statement ATM business model developed The group has been working hard on developing and testing its prototype ATM cashmachines, whilst also refining the supporting strategy and business model. Tothe proven and traditional fee-charging ATM business model, with its singlesource revenue stream, the group has added other potential revenue sources fromdigital content and associated applications. Consequently, the board is veryexcited at the prospective returns this model could generate for the group andits shareholders. New digital services for the new ATMs In addition to the continued 'Everyone's A Winner' ("EAW") prizebankenhancements, following high street retailer agreements with both Comet plc andPRG PowerHouse Limited, the group has been able to complement the standard ATMoffering with a number of digital services. These digital services include theprovision for: • high quality digital photo processing (as demonstrated at last month's major trade show at Earls Court called ATEI) • the ability to top up any mobile phone across all major networks • the provision of a digital juke box facility, which includes every single top 40 UK hit • downloadable mobile phone content for games, ringtones, logos and wallpapers. The group believes these applications will drive increased consumer usage of theATM machines and generate significant revenue and profit opportunities. Whilst progress with the marketing arrangement with Trinity Mirror announced on19 September 2005, has been frustratingly slow, the board believes it will nowbe implemented and we await the promotional launch date from Trinity Mirror. Themain delay has centred upon a requirement during the trial for greatersaturation of prize redemption venues on a national basis and this piece ofadditional work is now complete. New ATM is branded MAX BOX and can overlay existing ATMs The group's ATM offering is now branded 'MAX BOX' and was launched formally atlast month's ATEI trade show. In addition to the traditional sales leads such ashow offers, the launch also showed existing ATM estate owners the range ofcommercial opportunities available from the additional digital consumer serviceswith which to enhance their existing machine networks. The group has developed its offering in such a way that the broadband capabilitynecessary to provide these digital services can overlay existing ATM machines. Changing the shape of the ATM Market The board sees its business model and offering as a catalyst which willfundamentally change the shape of the market and create opportunities toconsolidate the fee-charging ATM market, which has some 26,000 kiosks andapproximately 15 leading players. The business model will allow the group topursue a strategy of digital retail marketing and distribution whilst alsocreating one of the biggest private digital networks in the UK. The board also believes the group's ATM offering presents significant organicand acquisition-led growth opportunities, which will enable Felix to convertlegacy ATM networks into next generation digital kiosks. The first of these new multi-function machines will be deployed by the middle ofthis year with a progressive 2006 roll-out plan being developed now. The groupalso continues to develop, test and, where the best expertise and costefficiencies lie elsewhere, outsource additional digital services which willbenefit customers and positively impact on group revenues. In addition the group is also continually enhancing the Prizebank provided tosupport its EAW retail proposition, which will be an integral part of anystandalone MAX BOX. Andrew EganChief Executive Officer Chairman's statement The board is confident for the long term prospects of its strategy and businessmodel. With a substantially different offering to the single revenue stream thetraditional ATM business model has thus far provided, the board believes thegroup's business model and strategy puts it in a strong position to startgenerating revenues and returns for shareholders. Mike NevilleNon-Executive Chairman FELIX GROUP PLCGROUP PROFIT AND LOSS ACCOUNTFOR THE SIX MONTHS ENDED 30 NOVEMBER 2005 6 Months Year 6 Months ended ended ended 30.11.05 31.5.05 30.11.04 £'000 £'000 £'000 Note Turnover 1 35 8Cost of Sales (251) (246) (88) Gross Loss (250) (211) (80) Administrative expenses (1,305) (1,687) (779)Depreciation and amortisation (679) (1,328) (669)Other operating income - 20 10 Operating loss (2,234) (3,206) (1,518) Interest receivable 30 41 9Interest payable (12) (59) (40) Loss on ordinary activities before taxation (2,216) (3,224) (1,549) Taxation - - - Loss on ordinary activities aftertaxation retained for the period (2,216) (3,224) (1,549) Loss per share: Basic (pence) 1 (1.913)p (3.1470)p (1.5874)p 1. Loss per share The calculation of basic loss per share is based upon the loss for the periodand the weighted average number of 115,841,584 (31 May 2005 - 102,458,331, 30November 2004: 97,594,952) shares in issue during the period. Given the loss for the period, no fully diluted earnings per share is disclosed. FELIX GROUP PLCGROUP BALANCE SHEETAS AT 30 NOVEMBER 2005 As at As at As at 30.11.05 31.5.05 30.11.04 £'000 £'000 £'000 Fixed assetsTangible assets 103 92 82Intangible assets 10,700 11,348 11,997 10,803 11,440 12,079Current assetsStock 17 33 35Debtors 307 245 217Cash at hand and in bank 2,750 879 1,885 3,074 1,157 2,137 Creditors: amounts due within one year (320) (702) (717) Net current assets 2,754 455 1,420 Total assets less current liabilities 13,557 11,895 13,499 Creditors: amounts due after more than one year (8) (17) (36) Total assets less liabilities 13,549 11,878 13,463 Capital and reservesCalled up share capital 1,264 1,088 1,070Share premium account 18,558 14,847 14,775Profit and loss account (6,273) (4,057) (2,382) Equity shareholders' funds 13,549 11,878 13,463 1. Basis of preparation The interim financial information has been prepared on the basis of theaccounting policies set out in previous statutory and interim accounts. The interim financial information is unaudited. The financial information doesnot constitute statutory accounts as defined by section 240 of the Companies Act1985. Full accounts of the company for the year ended 31 May 2005 on which theAuditors gave an unqualified report, have been delivered to the Registrar ofCompanies. These accounts consolidate the accounts of Felix Group Plc and all ofits wholly owned subsidiaries. 2. Copies of report Copies of this interim statement will be despatched to shareholders weekcommencing 27th February 2006 and will be available to the public at theRegistered Office, Cherry Tree House, Cherry Tree Lane, Rostherne, Cheshire,WA14 3RZ. 3. Approval of Interim Statement The interim statement was approved by the Board on 30 January 2006. FELIX GROUP PLCGROUP CASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 30 NOVEMBER 2005 6 Months 12 Months 6 Months ended ended ended 30.11.05 31.5.05 30.11.04 Note £'000 £'000 £'000 Net cash outflow from operating activities 1 (1,602) (2,157) (1,077) Returns on investment and servicing of finance Interest received 30 41 9 Interest paid (12) (59) (65) 18 (18) (56)Capital expenditure and financial investment Payments to acquire tangible assets (36) (22) (4) Receipts from sale of tangible fixed assets - 12 12 (36) (10) 8 Net cash outflow before financing (1,620) (2,185) (1,125) Financing Issue of shares (net of costs) 3,887 2,933 2,843 Repayment of loans (387) (415) (395) Repayment of finance lease and hire purchase contract (9) (20) (4) Net cash inflow from financing 3,491 2,498 2,444 Increase in cash 1,871 313 1,319 FELIX GROUP PLCNOTES TO THE GROUP CASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 30 NOVEMBER 2005 1. Reconciliation of operating loss to net cash outflow from operatingactivities 6 Months 12 Months 6 Months ended ended ended 30.11.05 31.5.05 30.11.04 £'000 £'000 £'000 Operating loss (2,234) (3,206) (1,518)Depreciation 25 31 20(Profit)/loss on sale of fixed assets - (1) 1Amortisation 648 1,297 648Movement in stocks 16 (6) (8)Movement in debtors (62) (28) -Movement in creditors 5 (244) (220) Net cash outflow from operating activities (1,602) (2,157) (1,077) 2. Reconciliation of net cashflow to movement in net funds £'000 £'000 £'000 Increase in cash in period 1,871 313 1,319Cash outflow from decrease in debt 387 435 395 Change in net debt arising from cashflows 2,258 748 1,714Hire purchase 9 (4) 6 2,267 744 1,720Opening net funds/(debt) 458 (286) - Closing net funds 2,725 458 1,720 3. Analysis of changes in net funds Non cash At 31.05.05 At 30.11.05 At 1.12.04 Cashflows Movements £'000 Cashflows £'000 £'000 £'000 £'000 £'000 Cash at bank and in hand 1,885 (1,006) - 879 1,871 2,750 Debt due within one year:Loans (127) - (260) (387) 387 -Hire purchase (8) - (9) (17) - (17) (135) - (269) (404) 387 (17)Debt due after morethan one year:Loans (280) 20 260 - - -Hire purchase (36) 16 3 (17) 9 (8) (316) 36 263 (17) 9 (8)Net funds 1,434 (970) (6) 458 2,267 2,725 Enquiries:Felix Group plc Mike Wallwork Tel: 01565 831 100 Mob: 07795 613 844 e-mail: mike@felixcorp.com Holborn David Bick Tel: 020 7929 5599PR for Felix Group plc e-mail: info@holbornpr.co.uk Note to Editors Felix Group plc (Reuters FLX.L Bloomberg FLX LN) www.felixgroupplc.com Felix Group's ordinary shares were admitted to trading on AIM on 8 March 2004.Felix Group initially developed a new form of sales promotion through a directconsumer interactive medium called Everyone's A Winner. Felix has now combinedthis retail innovation with a traditional ATM machine and included a (growing)range of digital consumer services (photo processing, mobile top-up and contentand music downloads) to form MAX BOX, a kiosk designed to dispense cash, vendsales promotions and provide additional consumer services. By utilising retailers' advertising and sales promotion budgets, Everyone's AWinner enables participants to be allocated a non-cash prize guaranteed to havea retail value of at least twice the cost of participating. This information is provided by RNS The company news service from the London Stock Exchange