Pci-pal Regulatory News (PCIP)

7 Feb 2005 07:00

County Contact Centres PLC07 February 2005 COUNTY CONTACT CENTRES PLC INTERIM STATEMENT OF RESULTSFOR THE SIX MONTHS ENDED 31 DECEMBER 2004 Highlights 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2004 2003 2004 (unaudited) (unaudited) (audited) £ £ £ Turnover 1,367,607 722,560 1,735,475 Profit/(loss) on ordinary activities before tax 2,543 (206,658) (177,681) • A six-month profit to December 2004 of £2,543 compared to a loss of £206,658 for the corresponding prior year period • A profit of £31,520 for the 12 months ending December 2004 • Sales increased by 89% compared to the corresponding prior year period • Sales in the six months achieved 79% of year to June 2004 level • December 2004 billable minutes 98% higher than December 2003 • European language division in Bucharest now running 24/7 • CallScripter Version 3 released at the Call Centre Expo in September Further enquiries: William Catchpole - Managing Director Stuart Gordon - Financial Director Telephone - 01473 321 800 Chairman's statement On a like-for-like basis the company has dramatically moved from a loss of£206,658 in the six months to December 2003 to a small profit with anencouraging underlying trend, as there have been one-off and set-up costs withinthe current half year, which are discussed below. In December 2004 Ansaback achieved a 19% increase in billable minute levels overJune 2004, and a 98% increase when compared with December 2003. Additional newbusiness continues to be won. In the annual accounts we hinted at the possibility of Ansaback expanding its UKclient base service and we have pleasure in confirming the opening of our24-hour European language facility in Romania, providing the main EU languagesof Italian, Spanish, French and German. The office is based in Bucharest, withan initial staff of 30. The Board believes that a professional image is vital,both for visiting clients and for the retention of quality staff, and thebuilding selected and its internal fittings echo this philosophy. The BucharestCall Centre utilises our CallScripter software suite, via Ipswich, and iseffectively part of one single pan-European call centre offering. The first multi-lingual client scripts are now up and running and it is expectedthat this side of the business will quickly develop providing additional revenuestreams as well as further enhancing our software's reputation. All of theoperators speak fluent English (and are fluent in at least one other mainEuropean language), as the ability to record call outcomes in English is key toUK client requirements. We believe that we are the first multi-lingual 24-hour bureau in Romania. Thisprovides additional advantages for a number of the UK order lines as our clientscan elect to overflow from Ipswich to Europe thereby maximising their chances ofhaving 100% of their order calls answered. As the operators are fluent the orderprocess is handled without fuss, avoiding the negativity of the caller thinkingthat an outsourced call centre with a heavy non-European dialect is servicingthem. Excellent telephony links to the language facility have also beenorganised, as the quality of this is vital in ensuring that the service runsclearly and efficiently. The cost of setting up the Romanian facility has been met out of the existingcash flows and profits and it is expected to contribute substantively as itgrows. For the past 4 years we have attended the Call Centre Expo, the UK's premiercall centre showcase at the NEC, but have kept the size of the stand and cost toa minimum. This year we felt sufficiently confident to take a larger stand, bothto introduce Ansaback Europe but more importantly to push CallScripter to theforefront of buyer's minds. This was well received, with the increased presenceprompting a number of larger client leads. CallScripter has had a satisfactorysix-months with a number of interesting prospects continuing to be negotiated. The Company, along with the rest of the world, was deeply moved by the effectsof the recent Tsunami disaster. We have, in collaboration with a fulfilmenthouse, agreed to handle at cost orders for the sale of a UNICEF Charity DVD "TheBest Comedy DVD In The World". When compared with the six months to June 2004, the NEC show costs and theinitial investment in opening the Bucharest operation have reduced our profitsfor the half-year. However these initiatives have successfully created a majorstep-change for the business, building a larger platform for future expansion.The Directors remain confident about the Group's future prospects. Peter M. BrownChairman 7 February 2005 CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE 6 MONTHS ENDED 31 DECEMBER 2004 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2004 2003 2004 Note (unaudited) (unaudited) (audited) £ £ £ Turnover 1,367,307 722,560 1,735,475 Cost of sales (764,493) (431,510) (953,631) ----- ----- ----- Gross profit 602,814 291,050 781,844 Administrative expenses (604,951) (496,643) (951,739) ----- ----- ----- Operating Loss (2,137) (205,593) (169,895) Other interest receivable and similar income 3 11,018 1,424 3,124 Interest payable and similar charges (6,338) (2,489) (10,910) ----- ----- ----- Profit/(loss) on ordinary activities before taxation 2,543 (206,658) (177,681) Tax on loss on ordinary activities - - - ----- ----- ----- Profit/(loss) on ordinary activities after taxation deducted from reserves 2,543 (206,658) (177,681) ======== ========= ========= Basic profit/(loss) per share 2 0.01p (0.69p) (0.60p) There are no recognised gains or losses for the period other than the lossdisclosed above. CONSOLIDATED BALANCE SHEETAS AT 31 DECEMBER 2004 31 December 31 December 30 June 2004 2003 2004 (unaudited) (unaudited) (audited) £ £ £ Fixed assets Tangible assets 55,909 67,339 49,147 ----- ----- ----- Current assets Debtors 482,282 358,636 455,526 Cash at bank and in hand 198,459 229,824 265,227 ----- ----- ----- 680,741 588,460 720,753 Creditors: amounts falling due within one year (394,987) (245,652) (405,776) ----- ----- ----- Net current assets 285,754 342,808 314,977 ----- ----- ----- Creditors: amounts falling due after more than one year (136,663) (236,667) (161,667) ----- ----- ----- Total assets less liabilities 205,000 173,480 202,457 ======= ======= ======= Capital and reserves Share capital 297,908 297,908 297,908 Share premium account 6,045,563 6,045,563 6,045,563 Merger reserve 18,396 18,396 18,396 Profit and loss account (6,156,867) (6,188,387) (6,159,410) ----- ----- ----- Shareholders' funds 205,000 173,480 202,457 ======= ======= ======= CONSOLIDATED CASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 31 DECEMBER 2004 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2004 2003 2004 (unaudited) (unaudited) (audited) £ £ £ Net cash outflow from operating activities (2,103) (249,389) (176,173) Returns on investments and servicing of finance Interest received 3 11,018 1,424 3,124 Interest paid (6,338) (2,489) (10,910) ----- ----- ----- Net cash inflow/(outflow) from returns on investments and servicing of finance 4,680 (1,065) (7,786) ----- ----- ----- Taxation 4 - 51,499 51,499 Capital expenditure and financial investment Purchase of fixed assets (44,685) (3,164) (9,256) Proceeds from sale of tangible fixed assets 340 - - ----- ----- ----- Net cash outflow from capital expenditure and financial investment (44,345) (3,164) (9,256) ----- ----- ----- Financing Receipt of Bank Loan - 150,000 150,000 Repayments of Borrowings (25,000) (10,000) (35,000) ----- ----- ----- Net cash (outflow)/inflow from financing (25,000) 140,000 115,000 ----- ----- ----- Decrease in cash (66,768) (62,119) (26,716) ======= ======= ======= Notes 1. Basis of preparation of financial information The financial information contained in this statement does not constitutestatutory accounts as defined in section 240 of the Companies Act 1985. Theunaudited financial information has been prepared on the basis of the accountingpolicies set out in the Group's statutory accounts for the year ended 30 June2004. The financial information relating to the 12 months ended 30 June 2004has been extracted from the audited financial statements, which have beendelivered to Companies House. 2. Profit/(loss) per ordinary share The calculation of loss per ordinary share is based on the loss on ordinaryactivities after taxation deducted from reserves divided by the weighted averagenumber of ordinary shares in issue during the relevant period: 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2004 2003 2004 (unaudited) (unaudited) (audited) Profit/(loss) on ordinary activities after £2,543 £(206,658) £(177,681)taxation deducted from reserves Weighted average number of ordinary shares In issue during the period 29,790,743 29,790,743 29,790,743 3. Interest Received The terms of the ten-year Ipswich office lease, which has a five-year breakclause and rent review due in May 2005, have been agreed and this review gaverise to the settlement and payment of the cumulative interest arising on thedeposit held by the landlord of £9,486. 4. Tax on loss on ordinary activities The tax credit represents UK corporation tax in previous years and is in respectof a repayment to the Group arising from a Research and Development claim forthe period to 30th June 2003. 5. Availability of interim statement Copies of this interim statement are being sent to the Company's shareholdersand will also be available from the Company's head office at Melford Court, TheHavens, Ransomes Europark, Ipswich, Suffolk IP3 9SJ. This information is provided by RNS The company news service from the London Stock Exchange