Mobile Tornado Regulatory News (MBT)

28 Sep 2005 07:00

TMT Group PLC28 September 2005 TMT Group Plc ("TMT" or the "Company") These accounts cover the period to 30 June 2005. The Company has yet to make anacquisition, and therefore generated no income during the period. The Companymade an operating loss of £207,907, and had net assets of £922,273, includingcash of £938,389 at the period end. Since I last reported to you, the Directors have continued to pursue TMT'sstrategy of identifying and acquiring businesses within the TMT sector. Despiteconsidering many opportunities within this sector, as at the balance sheet date,the Board had yet to identify a suitable target. Subsequent to the balance sheetdate, on 19 August 2005, TMT announced it had made a commitment of €375,000 toMobile Tornado International Limited ("Tornado") as part of a proposed €2.4million fundraising by Tornado through the issue of redeemable loan stock ("LoanStock"). Tornado has developed a business model based on "push to talk"technology that, among other things, enables a mobile phone to be used as awalkie-talkie without roaming charges. The Loan Stock, which is unsecured,carries interest of 20 per cent per annum and is convertible into ordinaryshares of Tornado, inter alia, immediately prior to the acquisition of theissued and to be issued share capital of Tornado. It was also announced that TMT had entered into non-binding heads of agreementsetting out the proposed terms for the acquisition of Tornado (the "ProposedAcquisition"). TMT has been granted an exclusivity period of 90 days from 19August 2005 during which to conduct the acquisition process. The Proposed Acquisition, which will constitute a reverse takeover under the AIMRules, is conditional, inter alia, on satisfactory due diligence beingundertaken on Tornado, the approval of TMT's shareholders in general meeting,the negotiation and execution of formal legally binding documentation settingout the terms of the transaction and admission of the enlarged entity to tradingon AIM. Consequently the Company's ordinary shares have been suspended fromtrading on AIM pending confirmation that the Company will proceed with theProposed Acquisition and publication of an admission document in respect of theproposed enlarged entity, detailing the terms of the Proposed Acquisition. Chris Akers Non-executive Chairman Note £ Turnover - Cost of sales - Gross profit - Administrative expenses (207,907) Operating loss (207,907) Interest receivable 37,008 Loss on ordinary activities before taxation (170,899) Tax on profit on ordinary activities - Loss for the period (170,899) Loss per share 2 (3.03p) All transactions arise from continuing operations. There are no recognised gains or losses other than the loss for the period. Note £Current assetsDebtors 26,234Cash at bank and in hand 938,389 964,623 Creditors: amounts falling due within one year (42,350) Net current assets 922,273 Capital and reservesCalled up share capital 118,750Share premium account 974,422Profit and loss account (170,899) Equity shareholders' funds 922,273 Note £ Net cash outflow from operating activities (165,557) Returns on investments and servicing of financeBank interest received 10,774 Management of liquid resourcesCash on deposit (200,000) FinancingIssue of new shares 1,200,000Costs of share issue (106,828)Net cash inflow from financing 1,093,172 Increase in cash 738,389 1 BASIS OF PREPARATION The financial statements have been prepared in accordance with applicableaccounting standard and under the historical cost convention. The company'sprincipal accounting policies are set out below. 2 LOSS PER SHARE The calculated of the basic loss per share is based on the loss attributable toordinary shareholders of £170,892 divided by the weighted average number ofshares in issue during the year. The weighted average number of shares used in the calculations are set outbelow: 3 DIVIDEND The Directors do not propose a payment of a dividend. The Preliminary Announcement was approved by the board of directors on 27September. The full set of accounts will be sent to shareholders in due courseand will be available from the offices of Corporate Synergy Plc, 30 Old BroadStreet, London EC2N 1HT. This information is provided by RNS The company news service from the London Stock Exchange