Last checked at 11 Jun 2007 07:00
TOTALLY PLC ("Totally", "the Company" or "the Group") Preliminary results for the year ended 31 December 2006
Totally Plc, the AIM quoted (ticker `TLY') international publisher and Internet services provider today announces its preliminary results for the year ended 31 December 2006.
Highlights
* Strongest trading performance since its admission to AIM * Turnover increased by 3 per cent. over the previous year to ‚£2,823,000 (2005 - ‚£2,740,000) * Operating profit increased by ‚£357,000 to ‚£7,000 (2005 - loss ‚£350,000) * Gross profit increased by 10 per cent. to ‚£2,295,000 (2005 - ‚£2,086,000) * Following a review of the cost base of the Group, employee related costs were reduced by 15 per cent
Post Year End Highlights
On 15 January 2007, the Group announced the appointment of Daniel Assor as the new CEO. He has been with Totally since 2000 and was formerly Group Publishing Director. Daniel has made an immediate impact following his appointment and the Board expect him to be instrumental in delivery of the Group's organic and acquisition growth strategy.
On 31 January 2007, the Group announced a joint venture agreement with Northern & Shell, publishers of the Daily Express, Daily Star and OK Magazines. Under the terms of the agreement, Totally will implement its private property classified system within each of the websites associated with the above mentioned titles.
On 30 March 2007, the Group raised ‚£500,000 before expenses from the placing by Hoodless Brennan plc, the Group's newly appointed broker, of 22,222,225 new ordinary shares in the capital of Totally at 2.25 pence per share. The funds are to be used for the organic and acquisitive development of the Group's Internet services & publishing divisions.
On 5 June the Group announced a joint venture agreement with Real City Network Limited, publishers of the `Real` brand of online city guides including Real Brighton and Real Manchester.com. Under the terms of the agreement, Totally will implement its private property classified system across the Real portfolio.
Daniel Assor, CEO, commented:
`Totally is now in a strong position to execute its stated strategy for delivering shareholder value through a combination of sustained organic growth and profit enhancing acquisitions in the areas of Internet services and niche publishing'
For further information:
Totally Plc www.totallyplc.com T: 020 7692 6929 Daniel Assor CEO John East & Partners Limited T: 020 7628 2200 David Worlidge / Simon Clements HB Corporate T: 020 7510 8654 Jon Levinson Chairman's StatementOverview
2006 was a transforming year for the Group in which it recorded the best financial and operational performance in Totally's history. The Group reported a maiden profit at an operational level. This was as a direct result of the efficiencies and cost savings that were introduced at the end of 2005 and in 2006 and the new business opportunities and partnerships that were signed during 2006. Furthermore, I believe the results also reflect the decision by the Board and members of the senior management team to focus on consolidation and driving organic growth within the Group.
Our publishing division, which delivers print and online media and services for the UK and North American Jewish communities, is now profitable at an operational level and since the year end has continued the good work started in 2006 to focus on the development of its product portfolio.
During the year under review and since the year end Totally Communications Limited, our Internet services division, has gone from strength to strength expanding its operations outside of the Jewish charitable arena and into the corporate domain. The division now has 5 main business units; website build & design, application development, consultancy, creative services and development of corporate partnerships or joint ventures. The Board is particularly pleased with the progress made in the latter unit where it has entered into a number of joint ventures with third party publishers providing, on a revenue share basis, in house classified and dating platforms.
Financial Review
In 2006 the Group experienced its strongest trading performance since its admission to AIM in 2000 and a year of strong growth across it publishing and communication divisions. Turnover in the year ended 31 December 2006 increased by 3 per cent over the previous year to ‚£2,823,000 (2005 - ‚£2,740,000) and operating profit in the year increased by ‚£357,000 to ‚£7,000 (2005 - loss ‚£ 350,000). In the year under review I am pleased to report that gross profit increased by 10 per cent. to ‚£2,295,000 (2005 - ‚£2,086,000) and following a review of the cost base of the Group, employee related costs were reduced by 15 per cent compared with 2005.
The results for the year ended 31 December 2006 also reflect the impact of the introduction of a new accounting standard for share based payments (FRS 20 including accounting for share options). The introduction of FRS 20 resulted in an additional non-cash charge to the profit and loss account for the year ended 31 December 2006 of ‚£25,000.
Board Changes
On the 15 January 2007, the Group announced the appointment of Daniel Assor as the new CEO. He has been with Totally since 2000 and was formerly Group Publishing Director. Daniel has made an immediate impact following his appointment and the Board expect him to be instrumental in delivery of the Group's organic and acquisition growth strategy.
Post Balance Sheet Events
On 31 January 2007, the Group announced a joint venture agreement with Northern & Shell, publishers of the Daily Express, Daily Star and OK Magazines. Under the terms of the agreement, Totally will implement its private property classified system within each of the websites associated with the above mentioned titles.
On 30 March 2007, the Group raised ‚£500,000 before expenses from the placing by Hoodless Brennan plc, the Group's newly appointed broker, of 22,222,225 new ordinary shares in the capital of Totally at 2.25 pence per share. The funds are to be used for the organic and acquisitive development of the Group's Internet services & publishing divisions.
On 5 June the Group announced a joint venture agreement with Real City Network Limited, publishers of the `Real` brand of online city guides including Real Brighton and Real Manchester.com. Under the terms of the agreement, Totally will implement its private property classified system across the Real portfolio.
Growth Strategy & Prospects
Having completed a significant turnaround in performance in 2006, I believe the Group is well positioned to build on the foundations that have been put into place and generate shareholder value in the short to medium term.
The Group's strategy is to create value for shareholders by building a portfolio of Internet service and niche digital and print publishing businesses.
The Board would like to thank the Directors and staff for all their contributions in 2006. The Board would also like to extend its appreciation to its former CEO and co-founder Steve Burns for his contribution to Totally.
Dr Michael SinclairNon-Executive Chairman11 June 2007Consolidated profit and loss accountfor the year to 31 December 2006 Note Total Total 2006 2005 ‚£000 ‚£000 As restated Gross Turnover 2,888 2,771 Less: share of joint ventures (65) (31) Group Turnover 2,823 2,740 Cost of Sales (528) (654) Gross profit 2,295 2,086 Administrative expenses (2,288) (2,436) Operating Profit/(loss) 7 (350) Share of operating loss of joint ventures (18) (13) Interest payable (50) (40) Loss on ordinary activities before taxation (61) (403) Taxation 17 31 Loss after tax for the year (44) (372) Loss per share - basic 5 0.05p 0.42p Loss per share - diluted 5 0.05p 0.42p
Consolidated statement of total recognised gains and losses for the year to 31 December 2006
Year to Year to 31 December 31 December 2006 2005 ‚£'000 ‚£'000 Loss for the financial year (44) (372) Currency translation differences on foreign currency - 2net investments Credit on issue of share options and warrants 25 77 Total gains and losses recognised since last annual (19) (293)report Consolidated balance sheetat 31 December 2006 2006 2005 as restated Note ‚£000 ‚£000 ‚£000 ‚£000 Fixed assets Intangible assets 941 941 Tangible assets 2 294 297 1,235 1,238 Investment in Joint Ventures Share of gross assets 18 18 Share of gross liabilities (45) (29) (27) (11) Total fixed assets 1,208 1,227 Current assets Stock 5 4 Debtors 3 422 408 Cash at bank and in hand 32 43 459 455
Creditors: amounts falling due within 4 (1,282) (1,282) one year
Net current liabilities (823) (827) Total assets less current liabilities 385 400 Net Assets 385 400 Capital and reserves Called up share capital 901 898 Share premium account 3,107 3,106 Revaluation reserve 2 2 Profit and loss account (3,625) (3,606) Shareholders' funds - equity interests 385 400Consolidated cash flow statementfor the year ended 31 December 2006 2006 2005 ‚£000 ‚£000 Net cash inflow/(outflow) from operating activities 113 (238) Returns on investments and servicing of finance Bank interest paid (50) (40) 63 (278) Taxation R&D tax credit 21 33 Foreign tax on subsidiary profit (5) (2) Capital expenditure Payments to acquire tangible fixed assets (95) (184) Cash outflow before financing (16) (431) Financing Issue of ordinary share capital for cash 4 269 Decrease in cash in the period (12) (162)
Notes to the financial statements
1. Basis of preparation
The financial statements are prepared on a going concern basis which the Directors believe to be appropriate for the following reasons. The Group currently meets its day to day working capital requirements through two overdraft facilities which are repayable on demand.
The Group has confirmed the availability of a facility of ‚£550,000 with Bank Hapoalim which was renewed on 29 April 2007 until 28 April 2008. As security for the facility, the bank has obtained the unlimited Joint and Several Guarantees of Dr. Michael J. Sinclair (non-executive Chairman), Mr Leo Noe and Grand Rabbi Y.A. Korff of Boston (non-executive Director).
In addition, a working capital facility of ‚£50,000 has been agreed with Natwest which is secured on the Group's debtor book. This facility is due for renewal on 31 October 2007.
The Directors have prepared projected cash flow information for the period ending twelve months from the date of their approval of these financial statements.
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 the facilities 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 and Total fittings leasehold equipment property ‚£000 ‚£000 ‚£000 ‚£000 Cost At beginning of year 54 438 79 571 Additions - 83 11 94 At end of year 54 521 90 665 Depreciation At beginning of year 49 153 72 274 Charge for year 5 90 2 97 At end of year 54 243 74 371 Net book value At 31 December 2006 - 278 16 294 At 31 December 2005 5 285 7 297 3. Debtors 31 December 31 December 2006 2005 ‚£000 ‚£000 Trade debtors 336 305 Other debtors 20 27 Prepayments and accrued income 66 76 422 408
4. Creditors: amounts falling due within one year
31 December 31 December 2006 2005 ‚£000 ‚£000 Bank loans and overdrafts 755 754 Trade creditors 295 312 Other taxes and social security 106 74 Accruals and deferred income 126 142 1,282 1,2825. Loss per share
The calculation of the basic loss per share is based on the loss of ‚£44,000 (2005: ‚£372,000) and on 90,042,249 (2005: 87,841,901) ordinary shares being the weighted average number of shares in issue during the period. The diluted loss per share is the same as the basic loss per share, in accordance with FRS 14 which prescribes that potential ordinary shares should only be used as dilutive when, and only when, their conversion to ordinary shares would decrease net profit or increase net loss per share from continuing operations.
6. Dividends
The Directors are not proposing the payment of a dividend in respect of the year ended 31 December 2006.
7. Publication of non-statutory accounts
The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985.
The consolidated balance sheet as at 31 December 2006 and the consolidated profit and loss account, consolidated cash flow statement and associated notes for the year then ended have been extracted from the Group's financial statements. Those financial statements have received an unqualified report from the auditors but have not yet been delivered to the Registrar of Companies. The 2005 accounts have been delivered to the Registrar of Companies and the auditors gave an unqualified report on them.
8. Copies of accounts will be sent to shareholders shortly and will also be available at the Company's registered office, Unit 611, Highgate Studios, 53-79 Highgate Road, Kentish Town, London NW5 1TL.
TOTALLY PLC