Parkmead Regulatory News (PMG)

21 Mar 2007 07:02

Parkmead Group (The) PLC21 March 2007 21 March 2007 The Parkmead Group plc (the "Group") Interim Results for the 6 months ended 31 December 2006 Interim results summary • Operating loss reduced to £19,000 - (2005 - loss £1,593,000) • Cash balances increased from £6.2 million as at 30 June 2006 to £7.4 million as at 31 December 2006. • Loss per share of Nil pence (2005 - loss of 3.6 pence) Significant events • The February 2006 acquisition of Quayside Corporate Services Limited ("Quayside") is now fully integrated into the Group and is trading profitably • Disposal of the Group's 54% holding in Audio Visual Machines Limited ("AVM") for a consideration of £1,275,000 before expenses leading to a consolidated profit on disposal of £166,165 • Subsequent to the half year end, the Group has disposed of its 54% holdings in Yospace Technologies Limited ("Yospace") and its 19% holding in The Respond Group Limited ("Respond") for a total of £7.1 million before expenses The Group's Chairman, Colin Goodall said, "the Group has now emerged from itsrestructuring period as a profitable business focused on three activities -business turnaround, principal finance and corporate finance. Trading in theseremaining areas so far in the second half is in line with our expectations.Following the recent disposals of Yospace and Respond, the Group's balance sheethas been further strengthened and the Group is now in a strong position toexploit the many opportunities available to it. Ends Enquiries The Parkmead Group plc 020 7494 3080Niall Doran (Chief Executive)Gordon Ashworth (Chief Financial Officer) Madano Partnership (PR to The Parkmead Group plc) 020 7593 4000Matthew Moth/Mark Way Financial Review During the six months ended 31 December 2006 the Group recorded an operatingloss of £19,000 (2005: £1,593,000). This included the loss of £86,000 incurredfrom Yospace, and also after having amortised £303,000 of goodwill relating tothe acquisition of Quayside. In September 2006 the Group disposed of its holding in AVM for a considerationof £1,275,000 before expenses. Whilst the Group made a cash profit of £768,000on the sale of this subsidiary, on consolidation the profit on disposal amountedto £166,000. The Group took the opportunity to write down the value of its portfolioinvestments by £303,000 (2005: £1,623,000). This charge relates to the Group'sholding in Red M Limited and this investment is now carried at £nil (2005:£303,000). After minority interests the Group's retained loss for the period amounted to£170,000 (2005: loss £3,347,000). Consolidated profit and Loss Account SixMonths ended 31 December 2006 Six months Six months Twelve to 31 to 31 months December December to 30 2006 2005 June 2006 Continuing Discontinued Total Continuing Continuing Operations Discontinued Total Existing Acquisitions (unaudited) (unaudited) (unaudited) (unaudited) audited audited audited audited £000 £000 £000 £000 £000 £000 £000 £000 Turnover 2 3,370 2,816 6,187 6,592 4,552 488 7,967 13,006 Cost of sales (254) (1,741) (1,995) (2,040) - (317) (4,673) (4,990) Gross profit 3,116 1,075 4,192 4,552 4,552 171 3,294 8,017 Administrativeexpenses (3,380) (912) (4,292) (6,197) (7,096) (47) (3,285) (10,428)Other Operating Income 82 - 82 52 106 - - 106 Operating(loss)/profit (182) 163 (19) (1,593) (2,438) 124 9 (2,305) Profit on saleof investment, provisionsreleased/(made) againstinvestments inthe period (303) (1,623) (2,671) Profits ondisposal ofsubsidiaries/investments 166 - 364 Net interest receivable(payable) 43 (64) (2) Loss onordinaryactivitiesbeforetaxation (113) (3,280) (4,613) Taxation (5) - (42) Profit (loss)on ordinary activitiesafter taxation (118) (3,280) (4,655) Minorityinterest (52) (67) (87) Retained lossfor the period (170) (3,347) (4,742) Earnings (loss) per share - basicand diluted(pence) 3 Nil (3.62) (2.80) Consolidated statement oftotal recognised gains andlosses Six months Six months Twelve months to 31 to 31 to 30 December December June 2006 2005 2006 (unaudited) (unaudited) audited £000 £000 £000 Loss for the financialyear attributable to members of the parentcompany (170) (3,347) (4,742)Write down of previous revaluation of fixed asset investments - (212) (1,096)Unrealised profit on partial disposal of subsidiary - 326 - Currency translation of foreign currency investments 30 - 10 Total recognised lossesfor the financial period (140) (3,233) (5,828) Consolidated balance sheet as at 31 December 2006 As at 31 As at 31 As at 30 December December June 2006 2005 2006 (unaudited) (unaudited) audited £000 £000 £000Fixed AssetsIntangible asset 5,921 1,989 8,177 Tangible assets 132 510 598 Investments 4 2,816 3,757 3,059 8,869 6,256 11,834 Current AssetsStock - 178 253Debtors 5 4,211 2,699 6,697Cash at bank and in hand 7,375 535 6,207 11,585 3,412 13,158 CreditorsAmounts falling due within one year 6 (1,721) (5,610) (5,188) Net current assets (liabilities) 9,865 (2,198) 7,970 Total assets less current liabilities 18,733 4,058 19,805 Creditors Amounts falling due after one year (487) (688) (695) Provision for liabilities and charges - - (109) Net assets 18,247 3,370 19,001 Capital & reserves Called up share capital 18,417 4,620 18,417 Share premium account - 19,430 - Revaluation reserves - 882 - Profit and loss accounts 1,029 (19,501) 1,199 Merger Reserve (952) (2,407) (952) Exchange difference on foreignsubsidiaries 21 - -Currency translation of foreign currencyinvestments 18,515 3,024 18,663Minority shareholders' funds (268) 346 337 Capital employed 18,247 3,370 19,001 Consolidated cash flow statement Six months Six months Year to 31 to 31 to 30 December December June 2006 2005 2006 (unaudited) (unaudited) audited £000 £000 £000 Net cash from operating activities 76 (265) (3,697) Returns on investment and servicing offinance 43 47 (2) Taxation - - 83 Capital expenditure and financialinvestment (78) (108) (1,222) (Acquisition)/Disposal 1,396 (72) (407) Cash in(out)) flow before use of liquidresources and financing 1,438 (398) (5,244) Financing (64) - 10,584 Increase (decrease) in cash 1,375 (398) 5,341 Reconciliation of net cash flow to Six months Six months Year movement in net debt to 31 to 31 to 30 December December June 2006 2005 2006 (unaudited) (unaudited) audited £000 £000 £000 Increase/(decrease) in cash in the period 1,375 (398) 5,341 increase (decrease) in debt and leasefinancing 64 - 1,632Loans and finance leases (acquired) withsubsidiaries 270 - (9)Other non cash changes - new finance leases (13) Change in net funds (debt) 1,709 (398) 6,951 Net funds (debt) as at 1 July 2006 5,352 (1,599) (1,599) Net funds (debt) as at 31 December 2006 7,061 (1,997) 5,352 Notes to the Interim financial statements for the six months to 31 December 2006 1 Basis of preparation The interim financial statements have been prepared on the basis of theaccounting policies set out in the Group's statutory accounts for the year ended30 June 2006, and are unaudited. The interim financial statements do notconstitute statutory financial statements within the meaning of section 240 ofthe Companies Act 1985. Comparative figures for the year ended 30 June 2006 are an abridged version ofthe Group's full accounts which carry an unqualified audit report. Going concern The Directors of the Group are satisfied that, after having made appropriateenquiries, that the Group has adequate resources to continue to adopt theconcern basis in preparing the interim financial statements. 2 Turnover Turnover and segmental analysis bygeographical market Six months to Six months to 31 Twelve 31 December December 2005 months to 30 2006 June 2006 (unaudited) (unaudited) audited £000 £000 £000 United Kingdom 5,860 6,227 10,342 Other European countries 311 85 953 USA and Canada 13 215 1,697 Other 2 65 14 6,187 6,592 13,006 3 Loss per share The calculation of basic earnings per share is calculated on a Group loss of£169,510 (6 months to 31 December 2005 loss of £3,347,357 and year to 30 June2006 loss of £4,741,702) and a weighted average number of ordinary 5p shares inissue during the period of 368,341,780 (6 months to 31 December 2005 92,425,254and year to 30 June 2006 171,332,649). Due to the loss of £169,510 (6 months to 31 December 2005 loss of £3,347,357 andyear to 30 June 2006 loss of £4,741,702) there is no further dilution of theearnings or the number of shares of 368,341,780 (6 months to 31 December 200592,425,254 and year to 30 June 2006 171,332,649). 4 Investments As at 01 July 2006 (unaudited) £000 As at 01 July 2006 3,059Additions 60Disposals -Provided during the period (303)Revaluation - 31 December 2006 2,816 5 Debtors Debtors Six months Six months Year to 31 to 31 to 30 December December June 2006 2005 2006 (unaudited) (unaudited) audited £000 £000 £000 Trade debtors 1,149 2,150 2,748 Amounts recoverable on contracts - 263 112 Other Debtors 2,790 27 3,310 Prepayments and accrued income 272 259 527 4,211 2,699 6,697 Due in more than one year - - - 4,211 2,699 6,697 6 Creditors Creditors Six months to Six months to Year to 31 December 31 December 30 June 2006 2005 2006 (unaudited) (unaudited) audited £000 £000 £000 Bank overdraft - 174 207 Short-term loans 30 1,525 202 Obligations under finance leases and hire purchase contracts - 19 Trade creditors 532 1,255 1,507 Corporation tax 259 17 793 Other taxes and social security costs 243 580 628 Other creditors 112 453 77 Accruals and deferred income 546 1,606 1,753 1,721 5,610 5,188 7 Cash Flows Reconciliation of operating loss to net cash flow from Six months Six months Year operating activities to 31 to 31 to 30 December December June 2006 2005 2006 (unaudited) (unaudited) audited £000 £000 £000 Operating loss (19) (1,593) (2,305) Depreciation 2 145 179 Amortisation 318 369 427 Increase(decrease) in stocks - (233) (23) Increase (decrease) in debtors 619 (228) (2,973) Increase (decrease) in creditors (782) 1,275 898 Increase in other provisions 21 - 100 Net cash flow from operating activities 158 (265) (3,697) 8 Post balance sheet events On 1 February 2007 the Group disposed of its 54% holding in Yospace TechnologiesLimited for a consideration of £5.0 million before expenses. On 16 February2007 the Group disposed of its 19% holding in The Respond Group Limited for aconsideration of £2.1 million before expenses. Interim statement Copies of the Interim statement will be available to the public free of chargefrom the Company's registered office: 22/23 Old Burlington St, London W1S 2JJ.A copy of the Interim statement will also be made available on the Group'swebsite, www.parkmeadgroup.com. This information is provided by RNS The company news service from the London Stock Exchange