Last checked at 30 Sep 2011 07:00
30September 2011 Totally Plc ("Totally", "the Group"or "the Company") Half-yearly results for the sixmonth period ended 30 June 2011
Totally Plc (AIM: TLY), the AIM quoted niche community publisher and digital marketing services provider announces its half-yearly results for the six month period ended 30 June 2011.
Summary
* Group turnover of £0.90 million (2010: £0.89 million) * EBITDA profit of £15,000 (2010: £84,000) * Operating profit of £8,000 (2010: £73,000) * Loss before Tax of £5,000 (2010: profit £63,000) For further information:Totally Plc T: 020 7692 6929 Daniel Assor Chief Executive Officer Merchant Securities Limited T: 020 7628 2200 Simon Clements / Virginia Bull
Chairman's Statement
I am pleased to present the results for the six months ended 30 June 2011. During the period the Group made an operating profit of £8,000 (2010: £73,000) and a loss before taxation of £5,000 (2010: profit £63,000) on turnover of £ 0.90m (2010: £0.89 million).
The Group's digital marketing division has achieved year on year growth and the reduction in the Group's operating profit can be attributed solely to the weak advertising conditions faced by the Group's niche community media business.
Despite the reduction in Group earnings the Board is encouraged that the Company has managed to deliver a broadly break even position during the period under review despite tough trading and weaker general economic conditions. The Board remains confident that the Group will achieve an operating profit for the third consecutive year.
Dr Michael SinclairNon-Executive Chairman30 September 2011Operational Review
Software Development and Digital Marketing Division (Totally Communications)
Revenues of £435,000 (2010: £350,000) were achieved in the period under review.
The first half of 2011 has seen strong growth for both its Software Development and Search Marketing divisions, with revenues during the reporting period up 24% compared to the same period last year.
Despite continuing economic uncertainty in the wider economy, Totally Communications continues to show strong growth, consolidating its position as a leading developer of software to the charitable and voluntary sector.
To support its continued growth, this division moved into a substantially larger office and increased its team from 10 to 15 people.
During the period under review, notable new software development project wins within the charitable and voluntary sector included the construction of an extensive web-based volunteer management system for the Crisis] charity and new online propositions for Parenting UK and Kusuma Trust.
Totally Communications also constructed websites for a number of commercial organisations including Le Cordon Bleu, Linked In, Katie Price, GTA Advertising & Rough Hill. During the reporting period, Rise Digital has secured Search Marketing campaigns for many companies including Ingersoll Rand (international commercial manufacturer), Homesun Limited (solar power), Art You Grew Up With, Celebrity Group and Paulie Clothing
Community Media division (Jewish News and Media Group)
Revenues of £464,000 (2010: £544,000) were achieved in the period under review.
Revenues for the division were down 14.7% on 2010. This was in part due to continuing volatile advertising trading conditions and in part due to the deferral of the publication of a magazine from Q2 into Q3.
Investment was made in the division's event business with the recruitment of a "Head of Events" whose primary responsibility is to deliver a new initiative, Jewish Living Expo in 2012. This event will include approximately 150 paying exhibitors and 3,000 paying visitors and will be held at Wembley Stadium in March 2012. The event website is www.jewishlivingexpo.com
The overall objective for this division is to reduce the reliance on advertising revenues over the next three years by building a division with multiple revenue streams including print, digital and events.
Daniel AssorChief Executive Officer30 September 2011Consolidated Income StatementFor the six months ended 30 June 2011 Six Six Year ended months ended months ended 31 December 30 June 2011 30 June 2010 2010 (unaudited) (unaudited) (audited) £000 £000 £000 Group turnover 899 894 1,882 Cost of sales (259) (234) (427) Gross profit 640 660 1,455 Administrative expenses (625) (576) (1,308) Profit before interest, tax, 15 84 147depreciation and amortisation Depreciation (1) (1) (1) Amortisation (6) (10) (40) Operating profit 8 73 106 Finance costs (13) (10) (20) (Loss)/profit before taxation (5) 63 86 Taxation 0 0 10 (Loss)/profit for the year (5) 63 96attributable to equity shareholders Earnings per share (pence) Basic 0p 0.1p 0.1p Diluted 0p 0.1p 0.1pConsolidated Statement of Changes in Equity(Unaudited)
For the six months ended 30 June 2011
Share Other Profit and Equity shareholders Capital reserve loss funds account £000 £000 £000 £000 At 1 January 2011 1,124 0 (4,798) (321) Loss for the period - - (5) (22) At 30 June 2011 1,124 0 (4,803) (343)Balance sheetAs at 30 June 2011 30 June 30 June 31 December 2011 2010 2010 (unaudited) (unaudited) (audited) £000 £000 £000 Assets Non-current assets Intangible fixed assets 44 52 38 Tangible fixed assets 5 3 4 49 55 42 Current assets Trade and other receivables 563 325 374 Cash and cash equivalents 1 25 0 564 350 374 Total assets 613 405 416 Current liabilities Trade and other payables (492) (278) (335) Borrowings - financial liabilities (447) (493) (402) Total liabilities (939) (771) (737) Net liabilities (326) (366) (321) Shareholders' equity Called up share capital 1,124 1,124 1,124 Share premium account 3,353 3,353 3,353 Translation reserve 0 0 0 Retained earnings (4,803) (4,843) (4,798) Equity Shareholders Deficit (326) (366) (321)Cash Flow StatementFor the six months ended 30 June 2011 Six months Six months Year ended ended ended 30 June 30 June 31 December 2011 2010 2010 (unaudited) (unaudited) (audited) £000 £000 £000 Net cash outflow from operating (28) (15) 68activities (note 4) R&D tax credit 10 0 10 Net cash (used in)/generated from (18) (15) 78operating activities Cash flows from investing activities Purchase of non-current assets (2) 0 (1) Purchase of intangible assets (12) (2) (18) Net cash utilised by investing (14) (2) (19)activities Cash (outflow)/inflow before financing (32) (17) 59 Cash flows from financing activities Interest paid (13) (10) (20) Net cash utilised from financing (13) (10) (20)activities Net (decrease)/increase in cash and cash (45) (27) 39equivalents
Cash and cash equivalents at beginning (402) (441) (441) of period
Cash and cash equivalents at end of (447) (468) (402)period Notes to the Interim Results 1. Basis of preparation
The interim report and accounts for the six months ended 30 June 2011 have been prepared using the recognition and measurement principles of International accounting Standards, International Financial reporting Standards and Interpretations adopted for use in the European Union (collectively "Adopted IFRS").
The interim report and accounts should be read in conjunction with the Group's 2010 Annual Report and Accounts which have been prepared in accordance with IFRSs as adopted by the European Union.
The interim report and accounts have been prepared on the basis of the accounting policies set out in the Group's 2010 Annual Report and Accounts. The interim report and accounts do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. The interim accounts were approved by the Board of Directors on 28 September 2011. The results for the six months to 30 June 2011 and the comparative results for the six months to 30 June 2010 are unaudited. The comparative figures for the year ended 31 December 2010 do not constitute the statutory financial statements for that year. Those financial statements have been delivered to the Registrar of Companies and include the auditor's report which was unqualified and did not contain a statement either under section 498(2) or Section 498 (3) of the Companies Act 2006.
2. Earnings per share
The basic earnings per share has been calculated by dividing the retained loss for the period of £5,000 (2010: profit £63,000) by the weighted average number of ordinary shares of 91,947,934 (2010: 91,947,934) in issue during the period. None of the share options or warrants in issue had a dilutive effect in 2011 and 2010.
3. Dividends
No dividend is proposed for the 6 months ended 30 June 2011.
4. Cash flows utilised in operating activities for the six months ended 30
June 2011 5. Six months Six months Year ended ended ended 30 June 30 June 31 December 2011 2010 2010 (unaudited) (unaudited) (audited) £000 £000 £000 Cash inflow from operating activities (Loss)/profit from continuing (5) 73 106activities Adjustments for: Equity settled share based payment 3 3 15 Depreciation, amortisation and 7 11 41impairment Operating cash flow prior to working 5 87 162capital
Increase in trade and other receivables (189) (59) (108)
Increase/(Decrease) in trade and other 156 (43) 14payables Cash (utilised by)/generated from (28) (15) 68
operating activities
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