Digitalbox Regulatory News (DBOX)

8 Mar 2005 07:00

PLUS MARKETS GROUP PLCPRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2004PLUS Markets Group plc (formerly OFEX Holdings plc until 1 November 2004),whose wholly owned subsidiary, OFEX plc, operates the Ofex market in the UnitedKingdom and is authorised and regulated by the FSA, reports its preliminaryresults for the period ended 31 December 2004.KEY POINTS * Successful share placing in November raising GBP3.15m gross of expenses, with broad institutional support; * New executive team following November share placing; * Cost saving measures now implemented; * Turnover at GBP1.14 million 4% up on the previous year (2003: GBP1.1 million); * Operating loss of GBP1.3 million (2003: GBP0.5 million) in line with previously announced expectations. This result included one-off expenditure totalling approximately GBP0.4 million, GBP0.3 million of which was incurred in the fourth quarter of the year, in the areas of restructuring, re-branding and redevelopment;For further information please contact:Conduit PR: 020 7618 8760Laurence Read: 07979 955923 / Amanda Harris: 07900 322022PLUS Markets Group plc: 020 7553 2000Simon BricklesCHAIRMAN'S STATEMENTIn January of this year I joined the board of PLUS Markets Group plc asChairman. I would like to thank John Jenkins, my predecessor, for hiscontribution since the inception of Ofex.My appointment came at a time when the senior directors and management hadrelaunched their strategy to drive forward Ofex as the UK's only independentmarket providing the investment support and liquidity needed by smaller, growthcompanies. In November 2004, the then executive directors stepped down. Simon Bricklestook over as Chief Executive Officer and Darren Francis as Chief FinancialOfficer. I am pleased to report that already the new executive team havecompleted the cost-saving measures set out in the Company's circularaccompanying its successful share placing in November 2004.The result for the year is in line with that set out in the announcement madeby the Company on 6 December 2004. Following restructuring and developmentcosts I believe we have concluded the bulk of our realignment strategy. It isnow PLUS Market Group's task to advance the Ofex market in its new form andincreasingly engage the support of both growth companies and investors. With mybackground as a professional institutional investor in smaller companies Ipersonally look forward to ensuring that our market increases itsattractiveness to the investor community as a whole.Our main task is to demonstrate to companies, advisers and investors that theycan benefit from our cost-effective market. To this end, the period since theappointment of the new executive directors has seen much positive activity. Theprimary market rules have been completely re-written to simplify them and makethem more user friendly for companies. At the same time, the rules introduceadditional measures to protect investors wherever necessary. These new ruleshave been very well received both by investors and the market in general. TheFinancial Services Authority has granted its approval recently and the newrules will come into force on 4 April 2005.When I took over as Chairman I was aware, from my contacts in the investmentcommunity, that there was a limited understanding of the potential tax benefitsavailable from Ofex companies in respect of areas including Capital Gains Tax,Inheritance Tax, Venture Capital Trusts and Enterprise Investment Schemerelief. With this in mind one of our first undertakings in 2005 has been tobridge this knowledge gap through the publication of a new tax guide, inconjunction with BDO Stoy Hayward, which sets out the reliefs available.The re-launched Ofex website, www.ofex.com, will provide additional informationabout our traded companies and will become operational in April. It will alsocontain further information on how to join our market and inform interestedparties about the Ofex advisory community. A new hard copy guide on thebenefits of obtaining a quotation on Ofex should be available shortly. Also inApril, we will launch an improved information service to provide a faster,easier service to both companies and investors known as Newstrack PLUS.Following recent consultation with the UK business community we know that thereare many companies not only in London and the South East but also in theregions that can benefit from Ofex's offering. Accordingly, our strengthenedbusiness development team has been active across the United Kingdom and thiswill continue apace in the current year.In November 2004, we welcomed our first Israeli company to our market. This ispart of our on-going objective of creating an independent market in the UnitedKingdom focused on servicing the needs of both domestic and internationalsmaller companies. Our commitment to the market making system ensures that ourcompanies benefit from the liquidity that they are seeking. There is a clear role for our independent market dedicated to smaller companiesand based on the market maker system. At PLUS Markets Group, we are approachingthe year ahead with renewed enthusiasm and vigour.Stephen Hazell-SmithChairman7 March 2005PLUS MARKETS GROUP PLCPRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2004CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED 31 DECEMBER 2004 2004 2003 AUDITED AUDITED GBP GBP TURNOVER 1,140,734 1,096,916 Administrative expenses (2,462,190) (1,597,121) OPERATING LOSS (1,321,456) (500,205) Interest receivable 20,514 1,269 Interest payable (20,130) (36,044) LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (1,321,072) (534,980) Tax on loss on ordinary activities - 55 LOSS ON ORDINARY ACTIVITIES AFTER TAXATION AND RETAINED LOSS FOR THE YEAR (1,321,072) (534,925) Basic and diluted loss per share (4.17)p (3.34)pPLUS MARKETS GROUP PLCPRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2004CONSOLIDATED BALANCE SHEETAS AT 31 DECEMBER 2004 2004 2003 AUDITED AUDITED GBP GBP FIXED ASSETS Intangible assets 500,000 500,000 Tangible assets 245,705 77,805 Investments 929 929 746,634 578,734 CURRENT ASSETS Debtors and prepayments 520,540 310,479 Accrued income 1,806 1,805 Cash at bank and in hand 2,351,846 74,292 2,874,192 386,576 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Creditors and accruals (667,403) (166,447) Deferred income (606,730) (552,682) (1,274,133) (719,129) NET CURRENT ASSETS / (LIABILITIES) 1,600,059 (332,553) TOTAL ASSETS LESS CURRENT LIABILITIES 2,346,693 246,181 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE - (703,267) YEAR NET ASSETS/(LIABILITIES) 2,346,693 (457,086) CAPITAL AND RESERVES Called up share capital 4,226,635 789,492 Share premium 1,469,179 781,471 Profit and loss account (3,349,121) (2,028,049) EQUITY SHAREHOLDERS' FUNDS / DEFICIT 2,346,693 (457,086)PLUS MARKETS GROUP PLCPRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2004CONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2004 2004 2003 AUDITED AUDITED GBP GBP NET CASH OUTFLOW FROM OPERATING ACTIVITIES (948,383) (435,661) RETURNS ON INVESTMENTS AND SERVICING OF FINANCE Interest received 20,514 1,269 Interest paid (20,130) (36,044) NET CASH INFLOW/(OUTFLOW) FROM RETURNS ON INVESTMENTS AND SERVICING OF FINANCE 384 (34,775) TAXATION UK corporation tax paid - - CAPITAL EXPENDITURE Payments to acquire tangible fixed assets (274,159) (66,123) Rental Deposit / Cash Cover relating to loan financing (204,250) - NET CASH OUTFLOW FROM CAPITAL EXPENDITURE (478,409) (66,123) FINANCING Net issue of ordinary share capital 3,655,850 1,070,963 Net financing with related party - J P Jenkins Limited (118,555) (471,518) Net loan financing 166,667 - NET CASH INFLOW FROM FINANCING 3,703,962 599,445 INCREASE IN CASH 2,277,554 62,886The financial information contained in this preliminary report does notconstitute the Group's statutory accounts within the meaning of Section 240 ofthe Companies Act 1985. The financial statements for 2004 have been audited andwill be delivered to the Registrar of Companies following the annual generalmeeting. The auditors have reported on the 2004 statements; their report wasunqualified and did not contain a statement under section 237(2) or (3) of theCompanies Act 1985.A copy of the Group's statutory accounts for 2004 will be mailed toshareholders shortly and will also be available for collection from the Group'sregistered office.END