Totally Regulatory News (TLY)

25 May 2006 07:00

Embargoed: not to be released until 7.00a.m. on 25 May 2006 TOTALLY PLC ("Totally", "the Company" or "the Group") Preliminary results for the year ended 31 December 2005 Totally Plc, the AIM quoted (ticker `TLY') international publisher and Internetservices provider today announces its preliminary results for the year ended 31December 2005.Highlights: * Launch of new Internet based services in the high growth sectors * Creation of a new proprietary online publishing software suite * Re-launch of the Group's primary print and online publications * Gross turnover of ‚£2.77 million (2004: ‚£2.7 million) * Operating loss of ‚£0.27 million (2004: loss ‚£0.30 million) Post Year End Highlights * Launch of new joint venture with the London Greek Radio * Unaudited first quarter 2006 trading: modest operating profit (2005: loss ‚£ 130,000) Steve Burns, CEO, commented:"As a result of last year's product development we are confident that Totallyis well placed to achieve sustained growth in revenue and operating profit. Wenow have a much larger and more comprehensive portfolio of products andservices targeting the global Jewish community and, through the launch of theLondon Greek Radio joint venture, we have demonstrated our ability to use ourproprietary technology and Internet expertise to successfully target otherniche communities. We are excited by trading in the first quarter of 2006 andhope to be able to release further positive news during the second half of2006."For further information:Totally Plc www.totallyplc.com T: 020 7692 6929 Steve Burns CEO John East & Partners Limited T: 020 7628 2200 David Worlidge / Simon Clements Conduit PR T: 0207 429 6606 Abigail Singleton M: 07739 461 061 Chairman's StatementI am pleased to report the results for the year ended 31 December 2005. Duringthe period under review the Company's gross turnover grew by 3 per cent. to ‚£2.77 million (2004: ‚£2.7 million) and its operating loss reduced by 10 percent. to ‚£0.27 million (2004: ‚£0.30 million).In order to drive future growth and profitability, during 2005 the Groupundertook a considerable amount of product development across all its media andtechnology platforms. I am extremely pleased to report that this activity hasculminated in: * the launch of new Internet based services in the high growth sectors of dating and directories; * the creation of a new proprietary online publishing software suite which is already supporting new joint ventures with third party media owners and a fast growing web design agency; and, * the re-launch of the Group's primary print and online publications with a focus on reducing operating expenses whilst also improving product quality and advertising revenue. In particular, during 2005, the Group: * launched www.totallyjewishdating.com into the Jewish online dating market estimated to be worth in excess of $25 million pa; * launched www.totallyjewishdirectory.com, a new white and yellow page directory service, with aspirations for it to become the global standard for online Jewish directories around the globe; * re-launched www.totallyjewish.com, the Group's flagship website, with a primary focus on driving subscription based services and advertising; * re-launched www.totallyjewishtravel.com in both English and Hebrew, with a new global restaurant directory and other value added services; * re-launched the www.thejewishadvcoate.com to support online newspaper subscriptions and classified advertising; * re-launched both the Jewish News and The Jewish Advocate newspapers with a greater emphasis placed on classified advertising and a sharper editorial focus; * launched a new 100 page glossy annual called Totally Jewish Simcha, which targets the UK's Jewish wedding and celebrations market; * created a new proprietary online publishing software suite to support the efficient and expedient creation of new websites for third party media partners and clients direct. Current DevelopmentsSince the year end, the Group has launched a new joint venture with the UK'sleading Greek broadcaster, London Greek Radio ("LGR"). Totally and LGR havelaunched a new LGR web portal promoting a raft of new online services includingdating, directory, property and recruitment targeting the UK's Greek community.The launch of the new LGR portal demonstrates the Group's ability to use itsnew online publishing software suite and general Internet expertise tosuccessfully target other niche communities, which your directors believe willhelp build new revenue streams and create long term value.Trading ProspectsHaving completed this product development activity, the Group is now wellpositioned to take advantage of the opportunities for increased profits andgrowth. This is reflected in the Group's unaudited operating performance forthe first quarter of 2006 during which the Group made a modest operating profitversus a ‚£130,000 loss for the same period in 2005.Your Directors believe that this trading improvement should continue throughout2006 and look forward to a positive outcome for the full year.Dr Michael J SinclairChairmanConsolidated profit and loss accountfor the year to 31 December 2005 Note Total Total 2005 2004 ‚£000 ‚£000 Gross Turnover 2,771 2,698 Less: share of joint ventures 31 - Group Turnover 2,740 2,698 Cost of Sales (654) (733) Gross profit 2,086 1,965 Administrative expenses (2,359) (2,269) Operating Loss (273) (304) Share of operating loss joint (13) -venture Interest payable (40) (28) Loss on ordinary activities (326) (332)before taxation Taxation 31 68 Loss after tax for the year (295) (264) Loss per share - basic 5 (0.34)p (0.34)p Loss per share - diluted 5 (0.34)p (0.34)p Consolidated statement of total recognised gains and lossesfor the year to 31 December 2005 Year to Year to 31 31 December December 2005 2004 ‚£'000 ‚£'000 Loss for the financial year (295) (264) Currency translation differences on foreign currency 2 1net investments Total gains and losses recognised since last annual (293) (263)report Consolidated balance sheetat 31 December 2005 2005 2004 Note ‚£000 ‚£000 ‚£000 ‚£000 Fixed assets Intangible assets 941 941 Tangible assets 2 297 184 1,238 1,125 Investment in Joint Ventures Share of gross assets 18 - (29) - (11) - Total fixed assets 1,227 1,125 Current assets Stock 4 3 Debtors 3 408 391 Cash at bank and in hand 43 48 455 442 Creditors: amounts falling due within 4 (1,282) (1,142) one year Net current liabilities (827) (700) Total assets less current liabilities 400 425 Net Assets 400 425 Capital and reserves Called up share capital 898 788 Share premium account 3,106 2,947 Revaluation reserve 2 1 Profit and loss account (3,606) (3,311) Shareholders' funds - equity interests 400 425Consolidated cash flow statementfor the year ended 31 December 2005 2005 2004 ‚£000 ‚£000 Net cash outflow from operating activities (238) (215) Returns on investments and servicing of finance Bank interest paid (40) (28) (278) (243) Taxation R&D tax credit 33 70 Foreign tax on subsidiary profit (2) (2) Capital expenditure Payments to acquire tangible fixed assets (184) (164) Acquisitions Purchase of investments in subsidiary undertakings - (31) Cash acquired with subsidiary - 27 Cash outflow before financing (431) (343) Financing Issue of ordinary share capital for cash 269 - Decrease in cash in the period (162) (343) Notes to the financial statements1. Basis of preparationThe financial statements are prepared on a going concern basis which theDirectors believe to be appropriate for the following reasons. The Groupcurrently meets its day to day working capital requirements through twooverdraft facilities which are repayable on demand.The Group has confirmed the availability of a facility of ‚£650,000 with BankHapoalim which was renewed on 29 April 2006 until 28 April 2007. As securityfor the facility, the bank has obtained the unlimited Joint and SeveralGuarantees of Dr. Michael J. Sinclair (non-executive Chairman), Mr Leo Noe andGrand Rabbi Y.A. Korff of Boston (non-executive Director).In addition, a working capital facility of ‚£150,000 has been agreed withNatwest which is secured on the Group's debtor book. This facility is due forrenewal on 31 October 2006.The Directors have prepared projected cash flow information for the periodending twelve months from the date of their approval of these financialstatements.On the basis of cash flow forecasts and discussions with the group's bankers,the Directors consider that the group will be able to operate within thefacilities currently agreed.Inherently, there can be no certainty in relation to these matters, but thedirectors believe that the going concern basis of preparation continues to beappropriate. 2. Tangible fixed assets Short Computer Fixtures Total leasehold equipment and property fittings ‚£000 ‚£000 ‚£000 ‚£000 Cost At beginning of year 54 260 73 387 Additions - 178 6 184 Disposals - - At end of year 54 438 79 571 Depreciation At beginning of year 39 103 61 203 Charge for year 10 50 11 71 Disposals - - - - At end of year 49 153 72 274 Net book value At 31 December 2005 5 285 7 297 At 31 December 2004 15 157 12 184 3. Debtors 31 31 December December 2005 2004 ‚£000 ‚£000 Trade debtors 305 247 Other debtors 27 26 Other taxation and social security - 5 Prepayments and accrued income 76 113 408 391 4. Creditors: amounts falling due within one year 31 31 December December 2005 2004 ‚£000 ‚£000 Bank loans and overdrafts 754 596 Trade creditors 312 295 Other creditors including taxation and social 74 77security Accruals and deferred income 142 174 1,282 1,1425. Loss per shareThe calculation of the basic loss per share is based on the loss of ‚£295,000(2004: ‚£264,000) and on 87,841,901 (2004: 77,133,270) ordinary shares being theweighted average number of shares in issue during the period. The diluted lossper share is the same as the basic loss per share, in accordance with FRS 14which prescribes that potential ordinary shares should only be used as dilutivewhen, and only when, their conversion to ordinary shares would decrease netprofit or increase net loss per share from continuing operations.6. DividendsThe Directors are not proposing the payment of a dividend in respect of theyear ended 31 December 2005.7. Publication of non-statutory accountsThe financial information set out in this preliminary announcement does notconstitute statutory accounts as defined in Section 240 of the Companies Act1985.The consolidated balance sheet as at 31 December 2005 and the consolidatedprofit and loss account, consolidated cash flow statement and associated notesfor the year then ended have been extracted from the Group's financialstatements. Those financial statements have received an unqualified report fromthe auditors but have not yet been delivered to the Registrar of Companies. The2004 accounts have been delivered to the Registrar of Companies and theauditors gave an unqualified report on them.8. Copies of accounts will be sent to shareholders shortly and will also beavailable at the Company's registered office, Unit 611, Highgate Studios, 53-79Highgate Road, Kentish Town, London NW5 1TL.EnquiriesTotally PLCSteve Burns Tel: 020 7692 6929John East & Partners LimitedJohn East/David Worlidge/Simon Clements Tel: 020 7628 2200ENDTOTALLY PLC