7 Aug 2008 07:00
For Immediate Release
7 August 2008
TSE Group plc
("TSE" or "the Company")
Interim Results
For the first six months of the year I am delighted to report a substantial improvement in the Group's fortunes. Group revenue increased by 48% to £611,875 from £414,094, on a comparable basis, and a profit before tax of £54,976 was generated.
These results vindicate the Board's decision last year to acquire Swiss-based TSE Consulting SA, a management consultancy business operating at the highest levels of the international sports market, particularly in the current uncertain economic climate. Operating within the growing sector of major international sporting events and with a considerable amount of the company's business being generated from local, regional and federal governments around the world, the Directors believe that the Group's business is well positioned to minimise the impact of any economic downturn.
During 2008 the company has increased its contracts providing strategic consultancy to the United States Olympic Committee, the organisation leading Chicago's strong bid to host the 2016 Olympic Games which will follow the London Olympics. The company has also continued to work with a number of the major governing bodies for sport throughout the world including the International Association of Athletics Federations (IAAF) and the European Football Association (UEFA) for whom it is now commencing an intensive consultancy skills training programme within its Head Offices in Switzerland. The company's Istanbul office is working with the Turkish Golf Federation in their bid to host the World Team Championships in golf and its United States office has recently reached over the border and commenced working with the city of Monterrey in North East Mexico, on their longterm sports event strategy.
The growth of TSE Consulting SA through international expansion and acquisition remains our core strategy and during the second half of this year the Company is planning to open two further regional offices in the Middle East and South East Asia. In addition, the company continues to progress a number of acquisition and joint venture opportunities.
The Directors are confident about the outlook for the continued growth of the Group during the remainder of the year and beyond. In particular the Beijing Olympic Games later this month will enable TSE to meet with its core governmental and sports federation clients and to develop further new business opportunities for this year and 2009.
Adam Reynolds
Chairman
For further information, please contact:
| TSE Group plc | Tel: 0207 245 1100 |
| Paul Foulger, Finance Director www.tsegroupplc.com | |
| Beaumont Cornish Limited | Tel: 0207 628 3396 |
| Michael Cornish |
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2008
| Notes | Unaudited six months ended 30 June 2008 | Unaudited three months ended 30 June 2007 | Audited nine months ended 31 December 2007 | ||
| £ | £ | £ | |||
| Group revenue | 611,875 | - | 317,427 | ||
| Operating costs | (551,716) | (96,544) | (545,506) | ||
| _________ | _________ | _________ | |||
| OPERATING PROFIT / (LOSS) | 60,159 | (96,544) | (228,079) | ||
|
| |||||
| Finance revenue | 1,602 | 6,152 | 20,187 | ||
| Finance costs | (6,785) | (155) | (19,232) | ||
| Settlement of Liabilities | - | - | - | ||
| _________ | _________ | _________ | |||
| PROFIT / (LOSS) BEFORE TAX | 54,976 | (90,547) | (227,124) | ||
| Taxation | (12,095) | - | 12,726 | ||
| _________ | _________ | _________ | |||
| PROFIT / (LOSS) FOR THE YEAR | 42,881 | (90,547) | (214,398) | ||
| _________ | _________ | _________ | |||
| Earnings / (Loss) per share | |||||
| Basic | 3 | 0.01p | (0.02p) | (0.04p) | |
| Diluted | 3 | 0.01p | (0.02p) | (0.04p) | |
| _________ | _________ | _________ | |||
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2008
| Unaudited as at 30 June 2008 | Unaudited as at 30 June 2007 | Audited as at 31 December 2007 | |
| £ | £ | £ | |
| Non-current assets | |||
| Intangible assets | 1,737,158 | - | 1,737,158 |
| Tangible assets | 25,443 | - | 18,954 |
| Current assets | |||
| Trade and other receivables | 453,975 | 98,476 | 347,712 |
| Cash and cash equivalents | 62,887 | 1,138,061 | 97,945 |
| ________ | ________ | _______ | |
| 516,862 | 1,236,537 | 445,657 | |
| Current liabilities Trade and other payables Net current assets | (406,144) ________ 110,718 | (100,885) ________ 1,135,652 | (336,217) ________ 109,440 |
| ________ | ________ | ________ | |
| Total assets less current liabilities | 1,873,319 ________ | 1,135,652 ________ | 1,865,552 ________ |
| Non-current liabilities | |||
| Long term payables | (200,000) | - | (200,000) |
| Provision for liabilities and charges | - | (50,000) | (35,114) |
| ________ | ________ | ________ | |
| Net assets | 1,673,319 | 1,085,652 | 1,630,438 |
| ________ | ________ | ________ | |
| Equity | |||
| Issued share capital | 1,231,901 | 1,141,900 | 1,231,900 |
| Shares to be issued reserve | 204,000 | - | 204,000 |
| Share premium account | 2,608,385 | 1,933,385 | 2,608,385 |
| Retained losses | (2,370,967) | (1,989,633) | (2,413,847) |
| ________ | ________ | ________ | |
| SHAREHOLDERS' FUNDS | 1,673,319 | 1,085,652 | 1,630,438 |
| ________ | ________ | ________ | |
The financial statements were approved by the Board of Directors on 6 August 2008.
Paul Foulger
Director
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2008
| Unaudited six months ended 30 June 2008 | Unaudited three months ended 30 June 2007 | Audited nine months ended 31 December 2007 | |
| £ | £ | £ | |
| Cash flow from operating activities | |||
| Profit / (Loss) before taxation | 60,159 | (96,544) | (228,079) |
| Adjusted for: | |||
| Depreciation of tangible assets | - | - | - |
| (Increase)/decrease in trade and other receivables | (84,302) | (85,845) | (335,081) |
| Increase/(decrease) in trade and other payables | 757 | 164,249 | 457,545 |
| ________ | ________ | ________ | |
| Net cash from operating activities | (23,386) | (18,140) | (105,615) |
| Cash flows from investing activities | |||
| Acquisition of subsidiary, net of cash acquired | - | - | (813,517) |
| Purchase of property, plant, and equipment | (6,489) | - | - |
| Interest received | 1,602 | 6,152 | 20,187 |
| Interest paid | (6,785) | (155) | (19,232) |
| ________ | ________ | ________ | |
| Net cash (outflow) / inflow from investing activities | (11,672) | 5,997 | (812,562) |
| ________ | ________ | ________ | |
| Cash flows from financing activities | |||
| Proceeds from the issue of shares (net of issue costs) | - | 1,064,250 | 812,251 |
| Redemption of loan notes/new loan notes issued | - | - | - |
| ________ | ________ | ________ | |
| Net cash used in financing activities | - | 1,064,250 | 812,251 |
| ________ | ________ | ________ | |
| Net (decrease) / increase in cash & cash equivalents | (35,058) | 1,052,107 | (105,926) |
| Opening cash & cash equivalents | 97,945 | 85,954 | 203,871 |
| ________ | ________ | ________ | |
| Closing cash & cash equivalents | 62,887 | 1,138,061 | 97,945 |
| ________ | ________ | ________ | |
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2008
|
| Share Capital | Shares to be Issued Reserve | Share Premium | Profit and Loss account | Total equity | |
| £ | £ | £ | £ | £ | ||
| Balance at 1 April 2007 | 1,000,000 | - | 1,011,035 | (1,899,086) | 111,949 | |
| Loss for the period | - | - | - | (214,398) | (214,398) | |
| Shares to be issued Reserve | - | 204,000 | - | - | 204,000 | |
| Acquisition of TSE | - | - | - | (300,363) | (300,363) | |
| Issue of share capital | 231,900 | - | 1,597,350 | - | 1,829,250 | |
| _______ | _______ | ________ | ________ | ________ | ||
| Balance at 1 January 2008 | 1,231,900 | 204,000 | 2,608,385 | (2,413,847) | 1,630,438 | |
| Profit for the period | - | - | - | 42,881 | 42,881 | |
| ________ | ________ | ________ | ________ | ________ | ||
| Balance at 30 June 2008 | 1,231,900 | 204,000 | 2,608,385 | (2,370,966) | 1,673,319 | |
| ======= | ======= | ======= | ======= | ======= | ||
NOTES TO THE INTERIM UNAUDITED FINANCIAL STATEMENTS
1. TSE Group plc is a public limited company incorporated in the United Kingdom under the Companies Act 1985 (Registration Number 5353387). The address of the registered office is given on page 2. The principal activity of the Company is that of an International Sports Consultancy firm.
The comparative figures included in this report for the three months ended 30 June 2007 are unaudited. The 9 months to 31 December 2007 are audited.
The financial information in this statement does not constitute statutory accounts under S240 of the Companies Act and was not subject to a formal review by the auditors. The financial information in respect of the year ended 31 December 2007 has been extracted from the statutory accounts which have been filed with the Registrar of Companies. The auditors' report on those accounts was unqualified and did not contain any statement under Section 237 of the Companies Act 1985.
The interim financial information has been prepared on the basis of the accounting policies set out in the Group's statutory accounts for the year ended 31 December 2007. Fixed annual charges are apportioned to the interim period on the basis of time elapsed. Other expenses are accrued in accordance with the same principles used in the preparation of the annual accounts.
2. In the opinion of the directors, the company has no business or geographical segments for which disclosure is required under IAS 34 'Interim Financial Reporting'.
3. Earnings per share has been calculated using the weighted average number of shares in issue during the relevant financial period. The weighted number of equity shares in issue and the earnings, being the profit after tax, are as follows:
| Unaudited six months ended 30 June 2008 | Unaudited three months ended 30 June 2007 | Audited nine months ended 31 December 2007 | |
| Weighted number of equity shares | 583,900,000 | 486,902,192 | 529,110,584 |
| Effect of employee share options | - | 122,250 | - |
| Weighted average number of shares used in diluted EPS | 583,900,000 | 487,024,442 | 584,039,350 |
| Profit / (Loss) after tax | 42,881 | (90,547) | (214,398) |
| Earnings per share | 0.01p | (0.02p) | (0.04p) |
| Diluted earnings per share | 0.01p | (0.02p) | (0.04p) |
4. Provision for liabilities & charges - Group & Company
| At 30 June 2008 | At 31 December 2007 | ||
| £ | £ | ||
| Provision for claim for breach of contract | - | 35,114 | |
| ========== | ========== | ||
At 31 December 2007, a provision of £35,114 was made to allow for a potential claim for breach of contract regarding J E Farmer, a former director of the company. On 23 April 2008, the Company reached an agreement with J E Farmer, the consequence of which has resulted in a provision no longer being required as at 30 June 2008.
5. The results of TSE Consulting SA are consolidated in the Interim financial statements and are shown below:
INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2008
| Unaudited six months ended 30 June 2008 | Unaudited six months ended 30 June 2007 | Audited twelve months ended 31 December 2007 | |||
| £ | £ | £ | |||
| Revenue | 611,875 | 414,094 | 871,929 | ||
| Operating costs | (467,882) | (273,577) | (775,620) | ||
| _________ | _________ | _________ | |||
| OPERATING PROFIT | 143,993 | 140,517 | 96,309 | ||
|
| |||||
| Finance revenue | 209 | 1,047 | 2,337 | ||
| Finance costs | (6,785) | (3,461) | (1,181) | ||
| _________ | _________ | _________ | |||
| PROFIT BEFORE TAX | 137,417 | 138,103 | 97,465 | ||
| Taxation | (12,095) | (37,288) | (23,903) | ||
| _________ | _________ | _________ | |||
| PROFIT FOR THE PERIOD | 125,322 | 100,815 | 73,562 | ||
| _________ | _________ | _________ | |||
BALANCE SHEET
AS AT 30 JUNE 2008
| Unaudited as at 30 June 2008 | Unaudited as at 30 June 2007 | Audited as at 31 December 2007 | |
| £ | £ | £ | |
| Non-current assets | |||
| Tangible assets | 25,443 | 13,224 | 18,954 |
| _______ | _______ | _______ | |
| Current assets | 25,443 | 13,224 | 18,954 |
| Trade and other receivables | 435,413 | 203,592 | 251,030 |
| Cash and cash equivalents | 17,333 | 50,444 | 55,249 |
| _______ | _______ | _______ | |
| 452,746 | 254,036 | 306,279 | |
| Current liabilities Trade and other payables Net current assets | (149,601) ________ 303,145 | (55,753) ________ 198,283 | (121,967) ________ 184,312 |
| ________ | ________ | ________ | |
| Total assets less current liabilities | 328,588 ________ | 211,507 ________ | 203,266 ________ |
| Equity | |||
| Issued share capital | 45,455 | 41,322 | 45,455 |
| Retained earnings | 283,133 | 170,185 | 157,811 |
| ________ | ________ | ________ | |
| SHAREHOLDERS' FUNDS | 328,588 | 211,507 | 203,266 |
| ________ | ________ | ________ | |
6. A copy of this report is available at the Company's website www.tsegroupplc.com.
ENDS