SMRT.L Regulatory News (SMRT)

26 Sep 2007 07:01

Coms PLC26 September 2007 COMS PLC ("Coms", or "the Company") Interim accounts for the six months ended 31 July 2007 Highlights: • Developed three focussed and recurring revenue streams • Delivered a gross margin in excess of 40% • Generated a gross profit of £202,000 on revenues of £501,000 • Delivering on the CompanyOs acquisition strategy Commenting on the interim results, Jason Drummond, Chairman said: "Asconsumer migration to internet telephony accelerates, Coms is well positionedfor exceptional growth based on an attractive product offering in the threemajor revenue generating channels of consumer, business and wholesaledistribution. We are actively pursuing both our organic and acquisitionstrategies." Contact: Coms plcRichard Bennett +44 (0)7966 388 374 HB CorporateRod Venables/Rory Creedon +44 (0)20 7538 1166 Square1 Consulting LtdMark Longson +44 (0)20 7929 5599 Chairman's Statement: I am pleased to report that as a result of organic growth and acquisitionstrategy, Coms has made significant progress in developing a long-term recurringrevenue stream from providing internet telephony services. Our business has progressed significantly since admission to AIM last year, andtoday's interim results begin to demonstrate the momentum we have gained fromthe successful execution of our strategies. Coms has three distribution channels- consumer, business and wholesale - each generating a separate revenuestream. From a standing start the combined streams have yielded revenue of £501and gross profits £202k for this interim period. Consumer Services:Our consumer service, coms.com, allows individuals to connect their home phoneor a WiFi enabled mobile phone to our innovative internet telephony platform. Weare driving sales directly through the coms.com website and through retailoutlets including the John Lewis Partnership. Business Services:Coms sells directly to business customers under the coms.net brand todifferentiate the extra value-added business services from our consumeroffering. The service is based upon the service developed by ExchangeXT Limited,a business that we acquired in December 2006. Coms is making steady progresssigning up small and medium sized businesses and is looking to expand into themainstream business market. Distribution Services:The acquisition of VCOMM Limited in March this year contributed four months ofrevenue to the interim revenues and will have a greater impact on the revenuesfor the full year. More importantly, VCOMM has 450 active resellers that Comsintend to motivate to resell its expanded package of internet telephony hardwareand services. I am very confident about the immediate and long-term outlook for Coms. For theremainder of this financial year, we expect VCOMM to contribute a full 6 monthsof revenue to the year-end revenue, and we also expect to see further revenuegrowth from both coms.com and coms.net. I am also encouraged by continued analyst predictions that forecast that bothconsumers and businesses will continue to migrate from traditional telephony(PSTN) services to internet telephony (VoIP) services, which will provide anenduring and lucrative market for Coms. This, coupled with the fact that we haveachieved a gross margin in excess of 40% during this period, makes me continueto believe that Coms is well positioned for exceptional growth. Accordingly, we intend to continue our current strategies of pursuing organicgrowth and seeking out other complementary acquisitions. Jason DrummondChairman. COMS PLC Income Statement For the Six months ended 31 July 2007 Six months to Six months Year ended 31 July 2007 31 July 2006 31 January 2007 Unaudited Unaudited Audited £'000s £'000s £'000s Continuing operations Revenue 501 - 106 Cost of Sales (299) - (79) ---------- --------- ---------- Gross Profit 202 - 27 Administrative expensesExceptional loss onintangibles written off - - (126) Other administrativeexpenses (485) (71) (574) ---------- --------- ---------- Operating Loss (283) (71) (673) Investmentrevenues 3 7 10 Finance costs (3) - (1) ---------- --------- ---------- Loss before tax (283) (64) (664) Income tax charges - - - ---------- --------- ---------- Loss for the periodfrom continuingoperations attributableto shareholders (283) (64) (664) ========== ========== ========= Loss per shareFrom continuing operations:Basic anddiluted (0.03p) (0.05p) (0.17p) --------- --------- --------- The Company's turnover and operating loss arose from continuing operations.There were no recognised gains or losses other than those recognised in theincome statement above. COMS PLC Balance Sheet as at 31 July 2007 As at As at As at 31 July 2007 31 July 2006 31 January 2007 Unaudited Unaudited Audited £'000s £'000s £'000s AssetsNon-current assets Property, plant andequipment 49 - 22Goodwill 2,330 - 1,950Other intangibles 14 - 10 ---------- ---------- --------- 2,393 - 1,982 ---------- ---------- --------- Current assets Inventories 56 - 5Trade and otherreceivables 296 6 94Cash and cashequivalents 186 433 179 --------- --------- ---------- 538 439 278 --------- --------- ---------- Current liabilities Trade andother payables (414) (60) (318) Other loans (37) - - ---------- --------- ---------- (451) (60) (318) ---------- --------- ---------- Net currentassets/(liabilities) 87 379 (40) ---------- --------- ---------- Non current liabilitiesOther loans (61) - - ---------- ---------- ---------- (61) - - ---------- ---------- ----------Netassets/(liabilities) 2,419 379 1,942 ========= ========== ========== Equity and liabilities Capital and reservesShare capital 3,446 476 2,686Accumulated deficit (1,027) (97) (744) ----------- ---------- ----------Total equity 2,419 379 1,942 =========== ========== ========== COMS PLC Cash Flow Statement For the Six months ended 31 July 2007 Six months to Six months Year ended 31 July 2007 31 July 2006 31 January 2007 Unaudited Unaudited Audited £'000s £'000s £'000s Note Operatingactivities 3 (565) (22) (465) Investing activities Interest received 3 7 10Interest paid (3) - (1) Purchases ofplant and equipment (39) - (7)Purchase of otherintangibles (1) - (110)Purchase ofsubsidiary undertakings(net of cash acquired) (39) - (487) Financingactivities Proceeds on issueof shares 660 - 917Repayment ofbank loans (9) - - ---------- ---------- ----------Net cash outflow 7 (15) (143) Cash and cash equivalents at thebeginning of the period 179 448 322 --------- ---------- ----------Bank balances and cash 186 433 179 --------- ---------- ---------- Consolidated statement of changes in equity As at As at As at 31 July 2007 31 July 2006 31 January 2007 Unaudited Unaudited Audited £'000s £'000s £'000s As at beginning of period 1942 443 (29) Deficit for the period (283) (64) (664) Share options granted - - 29Value of reverse acquisition - - 1,689Issue of share capital net of expenses 760 - 917 ---------- ---------- ----------As at end of period 2,419 379 1,942 ---------- ---------- ---------- COMS PLC Notes to the Interim Report 1. Significant Accounting Policies These accounts have been prepared in accordance with InternationalFinancial Reporting Standards and on the historical cost basis, using generallyrecognised accounting principles consistent with those used in the annual reportand accounts for the year ended 31 January 2007. This interim report for the six months to 31 July 2007 was approved by the Boardon 25 September 2007. 2. Loss per Share Six months to Six months to Year ended 31 July 2007 31 July 2006 31 January 2007 Earnings per ordinary sharesBasic anddiluted (0.03p) (0.05p) (0.17p) --------- --------- --------- The loss per ordinary share is based on the company's loss for theperiod of £283,024 (31 July 2006 - £63,716; 31 January 2007 - £664,331) and abasic weighted average number of shares of 908,450,023 (31 July 2006 -121,750,000; 31 January 2007 - 394,284,174) and a diluted weighted averagenumber of shares of 937,950,023 (31 July 2006 - 121,750,000; 31 January 2007- 409,559,517). The share options are anti-dilutive as they decrease the loss per share. 3. Reconciliation of operating loss to net cash outflow from operating activities. Six months to Six months to Year ended 31 July 2007 31 July 2006 31 January 2007 £O00s £O00s £O00sLoss for theperiod (283) (71) (673)Adjustments for: Share basedpayments - - 30Write off ofother intangibles - - 126Depreciationand amortisation 14 - 29(Increase) ininventories (17) - 7(Increase)/Decreasein receivables (54) 2 (11)(Decrease)/Increasein payables (225) 47 27 ----------- ---------- -----------Net cash fromoperating activities (565) (22) (465) =========== ========== =========== 4. Called up Share Capital The issued share capital as at 31 July 2007 was 921,378,200 OrdinaryShares of 0.1 p each (31 July 2006 - 121,750,000; 31 January 2007 -793,878,200). 5. The unaudited results for period ended 31 July 2007 do not constitutestatutory accounts within the meaning of Section 240 of the Companies Act 1985.The comparative figures for the year ended 31 January 2007 are extracted fromthe statutory financial statements which have been filed with the Registrar ofCompanies and which contain an unqualified audit report and did not containstatements under Section 237(2) or (3) of the Companies Act 1985. 6. Copies of this interim statement are available from the Company at itsregistered office at 5-7 Cranwood Street, London, EC1V 9EE. The interimstatement will also be available on the company website www.coms.com 7.Events subsequent to 31 July 2007 On 17 September 2007 the Company issued 1,000,000 ordinary shares for aconsideration of 0.1p each as the result of an exercise of warrants. This information is provided by RNS The company news service from the London Stock Exchange