Sigmaroc. Regulatory News (SRC)

28 Sep 2007 07:04

Messaging International Plc28 September 2007 Messaging International Plc / Market: AIM / Epic: MES / Sector: Technology 28 September 2007 Messaging International Plc ('the Company') Interims Chairman's Statement We are pleased to report that we have made considerable headway in recent monthsby further developing our products, strengthening relationships with existingclients and signing up new customers. Our products have no boundaries and arebecoming increasingly popular worldwide as the growth of the messaging marketaccelerates. Whilst it has taken longer than expected for us to reach theposition we are now in, I am confident that our position as one of the leadersin the messaging market will enable us to deliver value to shareholders in thefuture. Financial results The results for the six months ended 30 June 2007 show a pre-tax loss of£356,721 (2006: loss £545,162) on turnover of £424,342, an increase of 32% ascompared with the same six month period last year of £321,055. In March 2007, the Company raised £900,000 (gross) through a placing of newshares and a further £350,000 was generated following the recent sale of therights to intellectual property. The board does not recommend the payment of an interim dividend. Operations Americas Revenues generated from our North American operations are increasing as westrengthen our foothold and further develop our products to respond to the needsof our clients. Of particular note is the company's agreement with the leadingmobile operator, Sprint Nextel, which continues to create new business leads. Inaddition to the previous "Text to Landline" deal and other government deals bySprint (including the US Army 82nd Airborne and the US Justice Department) theUS Army 18th Airborne is now using our "One to Many" messaging service to sendemergency notifications and alerts to its staff. We also signed an agreement with a leading provider of medication reminderproducts and services, RxNotify, to supply our multi-channel notificationservice, "Multi Alert". This service enables the user to automate routinemessages with fully interactive voice and text communications and facilitatereal-time message delivery to wired and wireless devices, including landlinephones, mobile phones, fax machines, SMS and e-mail. Revenues are growing from our contract with HSBC in the USA, which uses our"Multi Alert" product to send text messages to its credit card customers. SinceJanuary 2006 volumes have risen from 100,000 messages per month to over 400,000per month in June 2007. The company receives a fee for each message sent. We strengthened our relationships with a number of North American telecomcustomers including Virgin Mobile USA, which launched our "Text to Landline"solution in July 2006. We are pleased to report that they have now engaged us toprovide additional enhancements to the original service in order to better theuser experience and branding for their customers. Rogers Wireless, the largestwireless operator in Canada, has also expanded their contract with us by thelaunch of our Mail Plug-in application, allowing its subscribers to compose andsend text messages directly from within Microsoft Outlook (R) and OutlookExpress (R). During 2007, customers have been added to our existing client-list includingTelus, the third largest high profile operator in Canada, which launched our"Text to Landline" solution. Two out of the three main Canadian operators nowutilise the "Text to Landline" service, with the result that this service nowcovers approximately 70% of Canadian users. Europe We continue to strengthen our relationship with our Spanish partner, Dominion,as a result of which our presence in Spain is growing steadily. In addition tothe two public sector agencies previously announced, which are marketing ourMail Plug-in and Multi Alert products, we look forward to entering into furtheragreements in the near future. Asia We continue to believe that the Asian market will give rise to manyopportunities as the messaging market gains momentum. In August we signed anagreement with Advanced Info Service ('AIS'), one of the largest operators inThailand, to launch our converged PC to Mobile products allowing users to sendpictures, music, text and videos from PCs to mobile phones. Middle East We secured a number of business contracts, and in particular with Israel'sairline, ELAL, to supply its "One to Many" messaging service so that passengersand crew are notified of late and cancelled flights. ELAL currently employ over5000 staff globally and during 2005 transported 3.5 million passengers. Other large enterprise deals secured in Israel include Ackerstein Industries andHewlett Packard, both of whom are using our Mail Plug-in in order to remain incontact with their staff locally and worldwide. The Israeli market is rapidly embracing SMS applications and in line with this,our Mail Plug-in product (which enables users to download a simple Plug-in totheir Microsoft Outlook and send an SMS message) was launched with MIRSCommunications Ltd., one of Israel's leading mobile phone operators. Recent events We believe we have a highly innovative team operating at the cutting edge of themessaging market. Our team developed intellectual property (a method ofidentifying a message selection made at a mobile station enabling users toseamlessly reply to messages across various messaging services) which waspatented in 2006. More recently, a sale of these rights has generated £350,000. Prospects In line with the buoyant global messaging market, I am confident that the secondhalf of the year will see continued growth. I believe that MessagingInternational PLC has an exciting future as we continue to developgeographically and increase the range of products and services on offer to ourclients. H FurmanChairman26 September 2007 For further information visit www.telemessage.com or contact: Guy Levit Messaging International Plc Tel: +972 3 922 5252Isabel Crossley St. Brides Media & Finance Ltd Tel: +44 (0) 20 7242 4477Mark Percy Seymour Pierce Limited Tel: +44 (0) 20 7107 8000 Messaging International Plc Consolidated income statement for the six month period ended 30 June 2007 Unaudited Unaudited Audited six months six months year ended ended ended 31 December Notes 30 June 30 June 2006 2007 2006 £ £ £ Continuing operations Revenues 2 424,342 321,055 674,620Cost of revenue (243,270) (237,186) (466,001) ---------- ---------- ----------Gross profit 181,072 83,869 208,619 ---------- ---------- ---------- Operating expensesResearch and development (187,593) (218,435) (489,429)Sales and marketing (167,422) (233,874) (440,968)Administrative andgeneral costs (170,686) (179,218) (362,174) ---------- ---------- ----------Total operating expenses (525,701) (631,527) (1,292,571) ---------- ---------- ---------- Operating loss onordinary activitiesbefore interest andtaxation (344,629) (547,658) (1,083,952) Interest(payable)/receivable (12,092) 2,496 (18,320) ---------- ---------- ----------Loss on ordinaryactivities (356,721) (545,162) (1,102,272) Taxation on ordinaryactivities 3 - - - ---------- ---------- ----------Loss for the financialperiod (356,721) (545,162) (1,102,272) ========== ========== ========== Loss per share on continuingoperations Basic and diluted lossper share 4 (0.2)p (0.5)p (0.9)p ========== ========== ========== All amounts relate to continued activities. There were no recognised gains or losses other than shown in the incomestatement. Messaging International Plc Consolidated balance sheet as at 30 June 2007 Unaudited Unaudited Audited As at As at As at 30 June 30 June 31 December Notes 2007 2006 2006 £ £ £ Non current assetsGoodwill 3,236,617 3,236,617 3,236,617Tangible assets 37,234 54,280 43,592Intangible assets 350 1,158 715Other Investments 47,330 94,288 53,929 ---------- ---------- ---------- 3,321,531 3,386,343 3,334,853 ---------- ---------- ---------- Current assetsCash and cash equivalents 393,663 341,264 84,965Trade and other receivables 263,996 266,874 191,346 ---------- ---------- ---------- 657,659 608,138 276,311 ---------- ---------- ---------- ---------- ---------- ----------Total Assets 3,979,190 3,994,481 3,611,164 ---------- ---------- ---------- Current liabilitiesTrade and other payables (177,098) (217,741) (209,347)Bank overdraft (57,000) - (171,834) ---------- ---------- ---------- (234,098) (217,741) (381,181) ---------- ---------- ---------- ---------- ---------- ----------Net current assets/(liabilities) 423,561 390,397 (104,870) ---------- ---------- ---------- Non current liabilitiesSeverance pay obligations (85,013) (132,681) (90,894) ---------- ---------- ----------Total liabilities (319,111) (350,422) (472,075) ---------- ---------- ---------- Net assets 3,660,079 3,644,059 3,139,089 ========== ========== ========== Share capital 1,176,900 576,900 576,900Share premium account 4,266,227 3,999,475 3,999,475Revenue reserves (1,770,962) (938,081) (1,414,241)Foreign exchange reserves (12,086) 5,765 (23,045) ---------- ---------- ----------Shareholders' equity 5 3,660,079 3,644,059 3,139,089 ========== ========== ========== Messaging International Plc Consolidated cash flow statement for the six months ended 30 June 2007 Unaudited Unaudited Audited six months six months year ended ended ended 31 December 30 June 2007 30 June 2006 2006 £ £ £ Notes Net cash outflow from operatingactivities 6 (436,802) (601,553) (1,072,620) ---------- ---------- ---------- Investing activitiesInterest and similar income (12,092) 2,496 7,072Purchase of tangible assets (925) (14,567) (6,610)Investments 6,599 - 30,401 ---------- ---------- ----------Net cash used in investingactivities (6,418) (12,071) 30,863 ---------- ---------- ---------- Financing activitiesIssue of equity share capital 900,000 - -Share issue costs (33,248) - - ---------- ---------- ----------Net cash from financing 866,752 - -activities ---------- ---------- ---------- Net increase/(decrease) in cashand 423,532 (613,624) (1,041,757)cash equivalents Cash and cash equivalents at thebeginning of the period/year (86,869) 954,888 954,888 ---------- ---------- ----------Cash and cash equivalents at theend 336,663 341,264 (86,869)of the period/year ========== ========== ========== Cash and cash equivalents 393,663 341,264 84,965Bank overdrafts (57,000) - (171,834) ---------- ---------- ----------Cash and cash equivalents at theend 336,663 341,264 (86,869)of the period/year ========== ========== ========== Messaging International Plc Notes to the interim report for the six months ended 30 June 2007 1. Basis of preparation and consolidation The interim results for the six months ended 30 June 2007 are unaudited and donot constitute accounts within the meaning of S240 of the Companies Act 1985. The interim results have been drawn up using accounting policies andpresentation consistent with those disclosed and applied in the annual reportand accounts for the year ended 31 December 2006. The Comparative information contained in this report does not constitute theaccounts within the meaning of S240 of the Companies Act 1985. The accounting policies used in the interim statement are consistent with thoseused in the financial statements for the year ended 31 December 2006 and are inaccordance with International Financial Reporting Standards. The consolidated income statement and balance sheet include the financialstatements of the company and its subsidiary undertakings up to 30 June 2007 2. Turnover Unaudited Unaudited six months six months ended ended 30 June 2007 30 June 2006 £ £ North America 249,562 182,075Rest of the World 174,780 138,980 ---------- --------- 424,342 321,055 ---------- --------- 3. No provision has been made for taxation as the group has losses available tocarry forward against future trading profits. No deferred tax asset has beenrecognised in accordance with International Accounting Standard 12. 4. Basic and diluted loss per share The calculation of the loss per ordinary share is based on the loss aftertaxation for the six month period to 30 June 2007 of £356,721 (2006 £545,162)and 195,800,000 ordinary shares being the weighted average number of shares inthe period. (2006 115,380,000). 5. Movement to shareholders' equity Unaudited Unaudited six months six months ended ended 30 June 2007 30 June 2006 £ £ Loss for the period (356,721) (545,162)Foreign Exchange reserves movement 10,959 14,652Issue of new shares net of costs 866,752 - ---------- --------- 520,990 (530,510)Equity at the beginning of the period 3,139,089 4,174,569 ---------- ---------Equity at the end of the period 3,660,079 3,644,059 ========== ========= 6. Reconciliation of operating loss to net cash outflow from ordinary activities Unaudited Unaudited Audited six months six months year ended ended ended 31 December 30 June 2007 30 June 2006 2006 £ £ £ Operating loss for the period (344,629) (547,658) (1,083,952) Adjustments for:Depreciation of tangible assets 7,283 12,658 22,376Amortisation of intangible assets 365 473 916Share based payment adjustment - - 80,950Foreign currency translation 10,959 14,652 (46,529)differences ---------- ---------- ----------Operating cash flow before movements inworking capital (326,022) (519,875) (1,026,239) Increase in receivables (72,650) (85,373) (9,845)Reduction in payables (32,249) (2,808) (11,202)(Reduction)/Increase in provisions (5,881) 6,503 (25,334) ---------- ---------- ----------Net cash outflow from operatingactivities (436,802) (601,553) (1,072,620) ========== ========== ========== This information is provided by RNS The company news service from the London Stock Exchange