Last checked at 24 Nov 2006 09:04
BIDTIMES PLC ("Bidtimes" or "the Company") Interim Results for six months ended 31 August 2006
This announcement replaces an earlier announcement that was released at 07.05am. The reason for this correction is minor typographical errors in the Chairman's Statement and in respect of certain column headings in the financial statements. The attached announcement represents the full and corrected text.
Chairman's statement
I am pleased to present the interim results for the Group for the period ended 31 August 2006.
The Company has made a loss for the period of ‚£60,245, before taxation and amounts written off investments, compared with a loss of ‚£50,798 in the corresponding six month period in 2005. The increase in the loss compared to the previous period is due to the reduction in the amount of rental income generated from the freehold property investments following the termination of the Barratt showhome leaseback agreements in the previous year and a sale of two of the freehold properties.
As I reported in my 2006 Annual Chairman's Statement the board had successfully sold two of the freehold properties, with one completing prior to the 2006 year end and the other sale being completed in this interim period. The property sold in this interim period had been revalued in the 2006 year end results to the selling price and therefore the resultant disposal loss recognised on this purely relates to the costs of disposal. The board continues to be successful in letting out three of the remaining four freehold properties to private tenants on short term leases. The sale of the remaining property, which was vacant, in Erdington, Birmingham has completed as announced earlier today for a consideration of ‚£168,000 which resulted in a loss on disposal of ‚£1,950. The directors consider that the carrying value of the remaining three properties of ‚£620,000 is reasonable and therefore the value of the freehold property investments has not been adjusted over the six month period.
The Board has been disappointed with the performance of the investment portfolio during the period having seen a further diminish in carrying values of the investments in SRS Technology Plc and Innobox Plc. These investments have been written down to their market value as at 31 August 2006 and the resultant revaluation has meant that a write down of ‚£20,582 has been incurred for the period. The investments in both SRS Technology Group and Innobox Plc are continuing to be monitored by the Board very closely, and it is hoped that this diminution in value will not continue below the current levels.
As announced on 15 November 2006 an EGM has been called in order to propose a reorganisation of the Company's share capital. As the Company's current share price is currently trading at a price below the nominal value of each ordinary 5p share the reorganisation is proposed to reduce the nominal value to 0.5 pence per share. This will allow the company to raise further equity as in order to comply with the Companies Act 1985, any further shares would have to be issued at a price at or above the nominal value.
A resolution to be proposed at the forthcoming EGM will also consider the sale of the three remaining freehold investment properties. This sale is subject to shareholder approval in accordance with s320 of the Companies Act 1985, and an appropriate resolution has been included in the notice of EGM. Subject to the resolution being passed then the proceeds will be applied in extinguishing the outstanding mortgage debt.
The property disposals, if successful, will result in a fundamental change in the business of the Company. Under AIM rule 15, the Company will be classified as an investing Company in which it will have to complete a reverse takeover by 8 December 2007. The board are currently reviewing potential acquisitions and will endeavour to keep shareholders up to date with any such developments. We, as a board believe this will be beneficial for the outlook of the Company in the medium term.
Russell StevensChairman and Chief Executive24 November 2006Consolidated Profit and Loss Accountfor the six months ended 31 August 2006 Note Six months Six months Year ended ended ended 31 August 31 August 28 February 2006 2005 2006 (unaudited) (unaudited) (audited) ‚£ ‚£ ‚£ Other income 600 - - Administration expenses (43,892) (41,069) (96,335) Net rental income 11,320 17,755 26,450 Loss on disposal of fixed (3,136) - (6,893)assets Interest receivable 1,610 4,217 9,356 Interest payable (26,747) (31,701) (58,412)
Loss before exceptional items (60,245) (50,798) (125,834)
Exceptional items Amounts written off (20,582) - (129,969)investments Loss on ordinary activities (80,827) (50,798) (255,803) Loss on ordinary activities (80,827) (50,798) (255,803)before and after taxation
Basic loss per share (pence) 5 (0.47) (0.29) (1.47)
The Company has no recognised gains or losses other than the losses for the periods.
Consolidated Balance Sheetas at 31 August 2006 Note As at As at As at 31 August 31 August 28 February 2006 2006 2005 (audited) (unaudited) (unaudited) ‚£ ‚£ ‚£ Fixed Assets Tangible assets 6 794,200 1,172,200 939,200 Investments 6 90,709 192,550 111,290 884,909 1,364,750 1,050,490 Current assets Investments - 135,000 - Debtors 63,177 17,829 13,268 Cash at bank and in hand 17,734 34 113,716 80,911 152,863 126,984 Current liabilities Creditors (663,855) (938,025) (794,682) Net current liabilities (582,944) (785,162) (667,698) Total assets less current 301,965 579,588 382,792liabilities and net assets Capital and reserves Called up share capital 868,676 868,676 868,676 Share premium 714,948 714,948 714,948 Revaluation reserve 22,944 123,856 22,944 Profit and loss account (1,304,603) (1,127,892) (1,223,776)
Equity shareholders' funds 7 301,965 579,588 382,792
Cash Flow Statementfor the six months ended 31 August 2006 Note Six months Six months Year ended ended ended 31 August 31 August 28 February 2006 2006 2005 (audited) (unaudited) (unaudited) ‚£ ‚£ ‚£
Net cash outflow from operating 8 (82,165) (13,085) (3,189) activities
Return on investments and servicing of finance Net rental income 11,320 17,755 26,450 Interest received 1,610 4,217 9,356 Interest payable (26,747) (28,724) (55,368) Capital expenditure and financial investment Tangible fixed assets - (4,250) (4,250) Proceeds from disposal of freehold 141,863 - 185,607investments Loans repaid by other entities - 10,000 145,000 Net cash inflow/(outflow) before 45,881 (14,087) 303,606financing Financing Term loan reduction from disposal (141,863) - (185,607)proceeds on disposal of freehold investment (Decrease)/increase in cash 9 (95,982) (14,087) 117,999
Other primary statements the six months ended 31 August 2006
Statement of total recognised gains and losses
Note Six months Six months Year ended ended ended 31 August 31 August 28 February 2006 2005 2006 (unaudited) (unaudited) (audited) ‚£ ‚£ ‚£ Loss for the financial year (80,827) (50,798) (255,803) Unrealised (loss)/gain on - (115,379) (107,170)(impairment)/ revaluation of fixed asset investment Total losses recognised for the (80,827) (166,177) (362,973)period
Notes to the interim results
for the six months ended 31 August 2006
1. Accounting policies
The interim financial statements have been prepared in accordance with applicable accounting standards and under the historical cost convention. The principal accounting policies of Bidtimes have remained unchanged from those set out in Bidtimes' 2006 annual report and financial statements.
2. Basis of preparation
The financial information set out in this report does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The figures for the year ended 28 February 2006, have been extracted from the statutory financial statements, which have been filed with the Registrar of Companies. The auditors report on those financial statements was unqualified and did not contain a statement under Section 237(2) of the Companies Act 1985.
3. Dividends
No dividend is proposed for the six months ended 31 August 2006.
4. Taxation
On the grounds that year to date losses have been made there is no taxation charged to the profit and loss account in this period.
5. Loss per share
The calculation of the basic loss per share is based on the loss on ordinaryactivities after tax and on the weighted average number of shares in issueduring the period. The impact of the share options is anti dilutive. The lossand weighted average number of shares used in the calculations are set outbelow Loss Weighted average Loss per share ‚£ number of (pence) shares Basic Loss per share
6 months ended 31 August 2006 (80,827) 17,373,523 (0.47)
6 months ended 31 August 2005 (50,798) 17,373,523 (0.29)
12 months ended 28 February (255,803) 17,373,523 (1.47)2006 6. Fixed assets Six months Six months Year ended ended ended 31 August 31 August 28 February 2006 2006 2005 (unaudited) (audited) (unaudited) ‚£ ‚£ ‚£ Freehold property (see note a 789,950 1,167,950 934,950below) Fixtures and fittings 4,250 4,250 4,250 Equity investments
- SRS Technology Group Plc (see 8,451 36,339 12,676 note b below)
- Innobox Plc (see note c 32,900 82,344 49,256below) - Blue Chip Casinos Plc (see 49,358 73,867 49,358note d below) Totals 884,909 1,364,750 1,050,490
a. The carrying value of the freehold properties were revalued in the year
ended 28 February 2006 to the current market value. The value of these
investments at 31 August 2006, after the disposal in the period, remains
the same.
b. The value of the investment in SRS Technology Group Plc based on the
mid-price of an ordinary share on 31 August 2006 was ‚£8,451. The value of
the investment at the close of business on 23 November 2006 was ‚£3,718.
c. The market value of the investment in Innobox Plc based on the mid-price of
an ordinary share at 31 August 2006 was ‚£32,900. The value of the
investment at the close of business on 23 November 2006 was ‚£16,544.
d. The current carrying value of this investment is as per the latest
published accounts for Blue Chip Casinos Plc, being those at 30 April 2005.
In the previous interim period the investment had been valued on the
Directors' opinion that the value of this investment was equal to the cost
value of ‚£73,867.
7. Reconciliation of movements in shareholders' funds
Six months Six months Year ended ended ended 31 August 31 August 28 February 2006 2005 2006 (unaudited) (unaudited) (audited) ‚£ ‚£ ‚£ Loss on ordinary activities (80,827) (50,798) (255,803) Impairment of fixed asset - (115,379) (107,170)investments Net decrease in shareholders' (80,827) (166,177) (362,973)funds Shareholders' funds brought 382,792 745,765 745,765forward
Shareholders' funds at the end 301,965 579,588 382,792 of the period
8. Reconciliation of operating loss with net cash flow from operatingactivities Six months Six months Year ended ended ended 31 August 31 August 28 February 2006 2005 2006 (unaudited) (unaudited) (audited) ‚£ ‚£ ‚£ Operating loss (43,292) (41,069) (96,335)
(Increase)/Decrease in debtors (49,909) 18,930 23,491
Increase in creditors 11,036 9,054 69,655 Net cash outflow from (82,165) (13,085) (3,189)operating activities
9. Analysis of charges in net funds
As at Cash Non-Cash As at 1 March Flow Movement 31 August 2006 ‚£ ‚£ 2006 (unaudited) (unaudited) ‚£ ‚£ Cash at bank and in hand 113,716 (95,982) - 17,734 113,716 (95,982) - 17,734 Bank loan (705,393) 141,863 - (563,530) (591,677) 45,881 - (545,796)
10. Copies of the Interim Results are available for download from the Company's website at www.bidtimes.com or by request from the Company's registered office, Meriden House, 6 Great Cornbow, Halesowen, West Midlands B63 3AB.
Enquiries:Russell W Stevens 07860 562621 Chief Executive russell@bidtimes.com David Worlidge 020 7628 2200 John East & Partners Limited info@johneastpartners.com
BIDTIMES PLC