Last checked at 30 Sep 2009 07:00
30 September 2009 Totally Plc ("Totally" or "the Company") Half-yearly results for the six month period ended 30 June 2009
Totally Plc, the AIM quoted (ticker `TLY') publisher and digital marketing services provider announces its half yearly results for the six month period ended 30 June 2009.
Summary
* Group turnover increased 5.8% to 0.86 million (2008: 0.81 million) * EBITDA of 68,000 an increase of 108,000 (2008: loss 40,000) * Operating profit increased by 106,000 to 56,000 (2008: loss 50,000) * Profit before tax increased by 118,000 to 40,000 (2008: loss 78,000) * Administrative expenses reduced by 9% to 603,000 (2008: 664,000) For further information:Totally Plc T: 020 7692 6929Daniel Assor Chief Executive Officer
John East & Partners Limited, a subsidiary of Merchant Securities PLC Simon Clements/Virginia Bull
T: 020 7628 2200
Chairman's Statement
I am pleased to present the results for the six months ended 30 June 2009. During the period the Group made an operating profit of 56,000 (2008: 50,000 loss) and a profit before taxation of 40,000 (2008: loss 78,000) on turnover of 0.86 million (2008: 0.81 million).
I am pleased with the progress that the group has made this year. To achieve year-on-year increases in sales and profitability in the current economic climate is an excellent achievement and I am confident that the group will have a strong trading performance in the second half of the year.
Dr Michael SinclairNon-Executive Chairman30 September 2009
Chief Executive's Operational Review
In the last quarter of 2008 the board introduced a series of operational efficiencies designed to reduce overall group costs by 10%. This was in preparation for an expected reduction in group revenues as a consequence of the turmoil in the wider economy.
Despite the instability in the UK economy a like-for-like sales and profits increase was achieved in the period under review.
Software Development and Digital Marketing Division (Totally Communications)
Revenues of 357,000 (2008: 272,000) and an EBITDA of 105,000 (2008: 23,000) were achieved during the period under review.
The business division posted a like-for-like sales increase of 31% and an increase in EBITDA of 82,000 or 357%. This performance was predominantly due to two significant new business wins. Recurring maintenance contracts made up 21% of revenues in the period.
The challenge to secure longer term contracts remains but I am confident that this division will deliver an improved performance for the year ending 31 December 2009 on a like-for-like basis.
Publishing division (Jewish News and Media Group)
Revenues of 498,000 (2008: 536,000) and an EBITDA of 125,000 (2008: 126,000) were achieved during the period under review.
The bulk of this division's revenues are derived from advertising sales. Despite a decline in sales of 7%, the division generated EBITDA of 125,000 which is consistent with 2008.
The board is also confident that this division will deliver an improved performance for the year ending 31 December 2009 on a like-for-like basis.
Post Balance Sheet Events
In an attempt to diversify its revenue streams and reduce its reliance on advertising revenues the Company has launched an events division. On 18 October 2009, TJ Weddings Live! will be held at the Village Hotel in Elstree, Hertfordshire and 61 paying exhibitors have been secured to promote services to an expected audience of 1,500 people.
Daniel AssorChief Executive Officer30 September 2009Consolidated Income StatementFor the six months ended 30 June 2009 Six months Six months Year ended ended ended 31 December 30 June 2009 30 June 2008 2008 (unaudited) (unaudited) (audited) GBP000 GBP000 GBP000 Group turnover 855 808 1,684 Cost of sales (184) (184) (430) Gross profit 671 624 1,254 Administrative expenses (603) (664) (1,287) Profit/(Loss) before interest, 68 (40) (33)tax, depreciation and amortisation Depreciation (7) (5) (9) Amortisation (11) (11) (22) Operating profit/(loss) 50 (56) (64) Finance costs (10) (22) (40) Profit/(Loss) before taxation 40 (78) (104) Taxation - 18 18 Profit/(Loss) for the period 40 (60) (86) Discontinued operations Loss for the year from - (11) (1,000)discontinued operations Profit/(Loss) for the year 40 (71) (1,086)attributable to equity shareholders Earnings/(Loss) per share (pence) 0.04p (0.06)p (0.09)p- basic and diluted Consolidated Statement of Changes in EquityFor the six months ended 30 June 2009Period to 30 June 2009 Share Share Other Profit Equity capital premium reserve and loss shareholders account account funds GBP000 GBP000 GBP000 GBP000 GBP000 At 1 January 2009 1,124 3,353 - (5,014) (537) Credit on issue of share - - 9 - 9options Profit for the period - - - 40 40 At 30 June 2009 1,124 3,353 9. (4,974) (488) Balance sheetAs at 30 June 2009 As at As at As at 30 June 2009 30 June 2008 31 December 2008 (unaudited) (unaudited) (audited) GBP000 GBP000 GBP000 Assets Non-current assets Intangible fixed assets 35 1,015 51 Tangible fixed assets 9 23 7 44 1,038 58 Current assets Inventory - 2 - Trade and other receivables 241 358 290 Cash and cash equivalents 32 51 14 273 411 304 Total assets 316 1,449 362 Current liabilities Trade and other payables (222) (389) (338) Borrowings - financial liabilities (583) (568) (561) (805) (957) (899) Non current liabilities Investment in joint venture - (32) - Total liabilities (805) (989) (899) Net (liabilities)/assets (488) 460 (537) Shareholders' equity Called up share capital 1,124 1,124 1,124 Share premium account 3,353 3,353 3,353 Translation reserve - 1 - Retained earnings (4,965) (4,018) (5,014) Total equity attributable to equity (488) 460 (537)holders of the parent Cash Flow StatementFor the six months ended 30 June 2009 Six months Six months Year ended ended ended 31 December 30 June 2009 30 June 2008 2008 (unaudited) (unaudited) (audited) GBP000 GBP000 GBP000 Net cash outflow from operating 10 (40) 15activities (note 5) Interest paid (10) (22) - R&D tax credit - 18 18 Income tax paid - - (5) Net cash (used in)/generated from - (44) 28operating activities Cash flows from investing activities Purchase of non-current asset (4) - (8) Cash disposed with subsidiary - - (35) Costs on disposal of subsidiary - - (44) Purchase of intangible assets - (25) - Net cash utilised by investing (4) (25) (87)activities Cash outflow before financing (4) (69) (59) Cash flows from financing activities Interest paid - - (40) Net cash utilised from financing - - (40)activities Net decrease in cash and cash (4) (69) (99)equivalents Cash and cash equivalents at (547) (448) (448)beginning of period Cash and cash equivalents at end of (551) (517) (547)period Notes to the Interim Results1. Basis of preparation
The interim report and accounts for the six months ended 30 June 2009 has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with IAS 34 `Interim financial reporting' as adopted by the European Union. The interim report and accounts should be read in conjunction with the Group's 2008 Annual Report and Accounts which have been prepared in accordance with IFRS's 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 2008 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 29 September 2009. The results for the six months to 30 June 2009 and the comparative results for six months to 30 June 2008 are unaudited. The comparative figures for the year ended 31 December 2008 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 237(2) or Section 237(3) of the Companies Act 1985.
Disclosure of impact of new accounting standards
The following standards, amendments and interpretations to published standards were mandatory for the financial year beginning 1 January 2009:
IAS 1 (revised), `Presentation of financial statements'. The Group has elected to present an income statement. Furthermore, adoption of the above standard has resulted in management including a statement of changes in equity within the primary statements of the interim report.
IFRS 8, `Operating segments'. IFRS 8 replaces IAS 14, `Segment reporting'. The standard defines operating segments as components of an entity about which separate financial information is available and is evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. It also sets out the required disclosures for operating segments. On adoption, there was no change to the Group's reportable segments or financial measures.
The following new standards, amendments to standards and interpretations are mandatory for the first time for the financial year beginning 1 January 2009, but are not currently relevant for the Group or have no impact on the interim accounts:
IFRIC 13, `Customer loyalty programmes'.
IFRIC 14, `The limit on a defined benefit asset, minimum funding requirements and their interaction'
IFRIC 15, `Agreements for the construction of real estate'
IFRIC 16, `Hedges of a net investment in a foreign operation'
IFRS 7 `Financial instruments; disclosures' (Amendment)
The following new standards, amendments to standards and interpretations have been issued, but are not effective for the financial year beginning 1 January 2009 and have not been early adopted:
IAS 39 (amendment), `Financial instruments: Recognition and measurement'
IFRS 3 (revised), `Business combinations' and consequential amendments to IAS 27, `Consolidated and separate financial statements', IAS 28, `Investments in associates' and IAS 31, `Interests in joint ventures'
IFRIC 17, `Distributions of non-cash assets to owners'
IFRIC 18, `Transfers of assets from customers'
2. Segmental reportingBusiness Revenue EBITDA Operating profit segments Six Six Year Six Six Year Six Six Year months months ended 31 months months ended 31 months months ended 31 ended ended December ended ended December ended ended December 30 30 2008 30 30 2008 30 30 2008 June June June June June June 2009 2008 2009 2008 2009 2008 Head office - - - (162) (186) (322) (162) (186) (322) UK Publishing 498 536 1,076 125 126 101 113 113 73 Digital 357 272 608 105 23 188 99 20 185marketing Total 855 808 1,684 68 (37) (33) 50 (53) (64)continued operations Discontinued - - 471 - (3) (40) - (3) (43)operations Total 855 808 2,155 68 (40) (73) 50 (56) (107)3. Earnings/(loss) per share
The basic loss per share has been calculated by dividing the retained profit for the period of 40,000 (2008: loss 71,000) by the weighted average number of ordinary shares of 112,447,934 (2008: 112,447,934 in issue during the period. The diluted profit/loss per share is the same as the basic profit/loss per share, in accordance with IAS 33 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.
4. Dividends
No dividend is proposed for the six months ended 30 June 2009.
5. Cash flows utilisedin operating activities for the six months to 30 June2009 Six months Six months Year ended ended ended 31 December 30 June 2009 30 June 2008 2008 (unaudited) (unaudited) (audited) GBP000 GBP000 GBP000 Cash inflow from operating activities Profit/(Loss) from continuing 40 (69) (64)operations Adjustments for: Equity settled share based payment 9 2 18 Depreciation, amortisation and 18 22 31impairment Operating cash flow prior to 67 (45) (15)working capital (Increase)/Decrease in inventory - (6) 1 Decrease/(Increase) in trade and 49 (75) 69other receivables (Decrease) /Increase in trade and (106) 86 (32)other payables Cash generated/(used by) from 10 (40) 23continuing operations Loss before tax from discontinued - - (43)operations Depreciation - - 3 Movement in working capital from - - 32discontinued operations Cash generated from/(used by) 10 (40) 15operating activities
6. Copies of half-yearly Results
Copies of the half-yearly Results will be available from the Company's website (www.totallyplc.com) and from the Company's registered office, Unit 611, Highgate Studios, 53-79 Highgate Road, London NW5 1TL.
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