Parkmead Regulatory News (PMG)

31 Mar 2006 07:02

Interregnum PLC31 March 2006 31st March 2006 Interregnum plc Financial Results for the 6 months ended 31 December 2005 Interim results summary • Turnover - £6,592,000 (2004 - £3,349,000) • Operating loss on ordinary activities - £1,593,000 (2004 - £719,000) • Retained loss - £3,347,000 (2004 - £468,000) • Loss per share - 3.62p (2004 - 0.51p) Significant events • £10million share placing • Major changes to the board of directors including new Chairman and Chief Executive • Acquisition of Quayside Corporate Services The reported operating loss of £1,593,000 includes one off charges totalling£1,704,000. These charges relate to provisions against doubtful debts, areduction in the carrying value of goodwill and certain provisions forrestructuring costs. These charges are as a result of material activity both atthe end of the reporting period and subsequent to it. A further provision of £1,623,000 was made against the carrying value of theportfolio, resulting in a retained loss of just over £3.3 million. Interregnum Chairman, Colin Goodall said, "Interregnum is a much changedbusiness over recent months. We now have a strong platform upon which to buildvalue for our shareholders based on our three areas of operation, businessturnaround, principal finance and corporate finance activities." Niall Doran, Interregnum Chief Executive said, "Following my appointment to theboard in November 2005, a major review of the business was undertaken. Thisresulted in major changes which have completely transformed the business ofInterregnum plc both operationally and financially. This will enable the companyto undertake a wider and more profitable spectrum of work." Ends Enquiries Interregnum plc 020 7494 3080Niall Doran (Chief Executive) Madano Partnership (PR to Interregnum) 020 7593 4000Matthew Moth/Mark Way Consolidatedprofit and lossaccountSix months ended31 December 2005 Note Six months to 31 December 2005 Six months to 31 December 2004 Twelve months to 30 June 2005 Continuing Continuing Discontinued Total Continuing Discontinued Total (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (audited) £000 £000 £000 £000 £000 £000 £000 Turnover 2 6,592 1,112 2,237 3,349 4,153 3,829 7,982 Cost of sales (2,040) (756) (756) (1,090) (1,201) (2,292) Gross profit 4,552 1,112 1,481 2,593 3,063 2,627 5,690 Administrative (6,197) (1,946) (1,419) (3,365) (4,787) (2,564) (7,352)expensesOther operating income 52 53 53 108 108 Operating loss (1,593) (781) 62 (719) (1,617) 63 (1,554) Profit on sale of investment - 3 4Provisions released/(made)againstinvestments inperiod (1,623) 194 1,272Amounts written off investments - - (99)Net Interest receivable (64) 7 (58) Loss on ordinary activities beforetaxation (3,280) (515) (435) Taxation - - 30 Loss on ordinary activities aftertaxation (3,280) (515) (405) Minority interest (67) 47 49 Retained loss for the period (3,347) (468) (356) Loss per share - 3 (3.62p) (0.51p) (0.38p)basic and diluted Consolidatedstatement oftotal recognisedgains and losses Six months Six months Year to 30 to 31 to 31 June December December 2005 2004 2005 (unaudited) (unaudited) (audited) £000 £000 £000 Profit/(loss) for financial period (3,347) (468) (356)Unrealised surplus onrevaluation offixed assetinvestments - 27 953Write down of previousrevaluation offixed assetinvestments (212) - (257)Unrealised profit on partialdisposal ofsubsidary 326Temporary diminution invalue of fixedasset investments - - (360) Total recognised losses for thefinancial period (3,233) (441) (20) Consolidatedbalance sheet31 December 2005 As at 31 As at 31 As at 30 December December June 2005 2005 2004 (unaudited) (unaudited) (audited) £000 £000 £000Fixed assetsIntangible assets 1,989 1,628 863Tangible assets 510 334 618Investments 4 3,757 2,957 5,648 6,256 4,919 7,129 Current assetsStock 178 - 161Debtors 5 2,699 2,198 2,039Cash at bank and 535 1,915 886in hand 3,412 4,113 3,086 Creditors: Amounts fallingdue in one year 6 (5,610) (1,849) (3,297) Net current liabilities (2,198) 2,264 (211) Total assets less currentliabilities 4,058 7,183 6,918 CreditorsAmounts fallingdue after morethan one year(includingconvertible debt) (688) (1,549) (825) Provision for revenue andcharges - (4) Net assets 3,370 5,634 6,089 Capital andreservesCalled up share capital 4,620 4,620 4,621Share premium 19,430 19,430 19,430Revaluation reserve 882 428 789Merger reserve (2,407) (2,407) (2,407)Profit and loss (19,501) (16,220) (16,159)account Equity shareholders'funds 3,024 5,851 6,274 Minority shareholders'funds 346 (217) (185) 3,370 5,634 6,089 Consolidated cashflow statementSix months ended31 December 2005 Note Six months Six months Year to 30 to 31 to 31 June December December 2005 2004 2005 (unaudited) (unaudited) (audited) £000 £000 £000 Net cash flows from operatingactivities 7 (265) (534) (1,087) Returns on investments andservicing offinance 47 12 236 Taxation - - 97 Capital expenditure andfinancialinvestment (108) (584) (863) Acquisition (72) - (472) Cash outflow before use ofliquid resourcesand financing (398) (1,106) (2,089) Financing - 139 (111) Decrease in cash (398) (967) (2,200) Reconciliation of Six months Six months Year to 30net cash flow to to 31 to 31 Junemovement in net December Decemberdebt 2005 2004 2005 (unaudited) (unaudited) (audited) £000 £000 £000 (Decrease)/ increase in cashin the period (398) (967) (2,200)Increase in debt financing andlease financing - (127) 111Loans and finance leases acquiredwith subsidiary - - (163)Loan stock issued on acquisition ofsubsidiary - - (300) Change in net debt (398) (1,094) (2,552) Net funds at 1 July 2005 (1,599) 953 953Net funds at 31 December 2005 (1,997) (141) (1,599) Notes to the Interim financial statementsFor the six months to 31 December 2005 1. Basis of preparation The interim financial statements have been prepared on the basis of the accounting policies set out in the Group'sstatutory accounts for the year ended 30 June 2005, and are unaudited. The interim financial statements do notconstitute statutory financial statements within the meaning of section 240 of the Companies Act 1985.Comparative figures for the year ended 30 June 2005 are an abridged version of the Group's full accounts whichcarry an unqualified audit report. Going concern A cash flow forecast has been prepared for the next 12 months which shows that the company is anticipated to remainwithin its available cash resources and is able to settle its liabilities as they fall due. This forecast includesthe benefits of placing, which is further explained in note 8. Accordingly, the accounts are prepared on a goingconcern basis. 2. Turnover By geographicalmarket Six months Six months Year to 30 to 31 to 31 June December December 2005 2004 2005 (unaudited) (unaudited) (audited) £000 £000 £000 United Kingdom 6,227 3,063 7,342Other European countries 85 53 72USA and Canada 215 135 445Other 65 98 123 6,592 3,349 7,982 3. Loss per share The calculation of basic earnings per share is calculated on a Group loss of £3,347,000 (6 months to 31 December2004 loss of £468,000 and year to 30 June 2005 loss of £355,552) and a weighted average ordinary 5p shares in issueduring the period of 92,425,254 (6 months to 31 December 2004 92,425,254 and year to 30 June 2005 92,425,254).Due to the loss of £3,347,000 (6 months to 31 December 2004 loss of £468,000 and 30 year to June 2005 loss of£355,552) there is no further dilution of the earnings or the number of shares 92,425,254 (6 months to 31 December2002 92,425,254 and year to 30 June 2005 92,425,254) 4. Investments 1 July 2005 5,648Additions 90Disposals (144)Provided during the period (1,887)Revaluation 50 31 December 2006 3,757 5. Debtors Six months Six months Year to 30 to 31 to 31 June December December 2005 2004 2005 (unaudited) (unaudited) (audited) £000 £000 £000 Trade debtors 2,150 1,353 1,443Amounts recoverable on contracts 263 - 65Others debtors 27 595 315 Prepayments & accrued income 259 250 196 2,699 2,198 2,019Due in more than one year - - 20 2,699 2,198 2,039 6. Creditors:Amounts fallingdue within oneyear Six months Six months Year to 30 to 31 to 31 June December December 2005 2004 2005 (unaudited) (unaudited) (audited) £000 £000 £000 Bank overdraft 174 - 227Short-term loans 1,525 400 1,433Trade creditors 1,255 648 591Corporation tax 17 - 10Other taxes and social securitycost 580 305 310Other creditors 453 305 337Accruals and deferred income 1,606 191 389 5,610 1,849 3,297 7. Cash flows Six months Six months Year to 30 to 31 to 31 June December December 2005 2004 2005 (unaudited) (unaudited) (audited) £000 £000 £000Reconciliation ofoperating loss tonet cash flowfrom operatingactivities Operating loss (1,593) (719) (1,554)Depreciation 145 129 218Amortisation of intangible fixedassets 369 72 178Movement in stocks (233) - 116Movement in debtors (228) 19 (448)Movement in creditors 1,275 (35) 399Loss on sale of tangible fixedassets 0 0 4 Net cash flow from operatingactivities (265) (534) (1,087) 8. Post balance sheet events On 21 February 2006 151,515,152 ordinary shares with an aggregate nominal value of £7,575,758 were issued at 6.6peach as part of a placing. Also on 21 February 2006 90,909,091 ordinary shares with an aggregate nominal value of£4,545,455 were issued at 6.6p each as the consideration for the acquisition of the issued share capital ofQuayside Corporate Services Limited. The goodwill on acquisition is estimated to be £6m. On 1 March 2006 thecompany accepted an offer from a fund of Greenpark Capital to purchase the portfolio of investments for aconsideration of £5m prior to expenses. As this is considered to be indicative of the fair value of the portfolioat 31 December 2005, the portfolio has been reflected at this value in these interim accounts. The transaction alsogives Interregnum potential deferred consideration in the form of a share in profits generated from the sale of thecompanies in the future. On 21 February the company received approval in general meeting to apply to the courtsfor the share premium account to be reduced by £17,600,000. Interim Statement Copies of the Interim statement will be available to the public free of charge from the Company's registeredoffice:22/23 Old Burlington St, London W1S 2JJ This information is provided by RNS The company news service from the London Stock Exchange