Totally Regulatory News (TLY)

9 Sep 2005 06:00

To be embargoed until 7.00am on 9 September, 2005 Totally Plc ("Totally" or "the Company") Interim announcement of results for the six month period ended 30 June 2005 New businesses launched; increased product development & reduced operatinglosses.Totally Plc, the publishing and communications group which targets Jewishcommunities worldwide, announces its interim results for the six months to 30June 2005.Summary * www.totallyjewishdating.com, the Group's new global dating portal is launched in a market now estimated to be worth in excess of $25 million per annum. * www.totallyjewishtravel.com, the Group's Jewish travel business is merged with www.sederolam.co.il, the leading Israeli business travel site, creating the world's largest Jewish travel portal in a growing market estimated to be worth in excess of $300 million per annum. * The Jewish Advocate, the Group's US based newspaper reports 22 per cent. year on year increase in primary advertising sales to $619,000. * Core UK titles, The Jewish News and www.totallyjewish.com are successfully re-launched and UK publishing expenditure is reduced by over ‚£200,000 per annum. * 11 per cent. reduction in Group operating losses to ‚£197,000. * As a result of the extensive product development activity and significant reduction in UK publishing costs, substantial improvements expected in second half. Steve Burns, CEO of Totally Plc commented:"During the first half of 2005 we continued with our strategy of aggressiveproduct development. As a result, we have launched, and in some casesre-launched, several new and improved media and services. We have completedthese revenue generative developments whilst also reducing our UK publishingcosts by over ‚£200,000 per annum. This has created confidence in our ability todeliver substantially improved results for the second half of this year."Chairman's StatementI am pleased to present the results for the six months ended 30 June 2005.During the period the Group incurred a loss before taxation of ‚£218,000 (2004:‚£239,000) on turnover of ‚£1.33 million, an increase of 5.7 per cent. over theturnover for the comparable period last year of ‚£1.26 million.DatingThe Jewish dating services market is now estimated to be worth in excess of $25million per annum. With this in mind I am pleased to report that in May 2005the Group launched its new global dating portal, www.totallyjewishdating.comwhich we expect to gain market share in this sector in the short to mediumterm. Beyond using the Group's own media to drive awareness and ultimatelysubscriptions, the intention is to develop and roll out affiliate programs topropagate this new brand across the global Jewish market place.At the same time, the Group is planning to utilise its proprietary onlinedating technology and online marketing skills to help other niche publishers tolaunch their own dating services under partnership agreements.TravelIn the Group's 2004 accounts I reported that we had entered into an agreementto merge our online travel business with www.sederolam.co.il, the leadingIsraeli travel site which late last year received excellent reviews in the NewYork Times business section. I am pleased to report that this transaction hasbeen completed and that the Group now owns 50 per cent. of a new business,Totally Jewish Travel Inc., which has been established to exploit theconsiderable opportunities within a growing travel market, which is currentlyestimated to be worth in excess of $300 million per annum.In July the new combined site was launched in English under the brand name www.totallyjewishtravel.com and work is currently underway to launch both theHebrew and French versions.UK PublishingIn January of this year the Group appointed Charles Golding, former Controllerof LBC and deputy editor of the Sunday Express, as its new Editor-In-Chief towork alongside Dan Assor, the Group's Publishing Director. Their combined briefhas been to develop the Group's existing media and where possible, reducepublishing expenditure. I am delighted to report that during the period underreview they succeeded in re-launching The Jewish News, the Group'saward-winning London based newspaper, with the result that the publication isnow more upmarket, vibrant and community orientated. At the same time, theyhave restructured the UK publishing business and reduced publishing expenditureby over ‚£200,000 per annum, the benefits of which will begin to be felt in thelast quarter of 2005. Community feedback for the new look paper has been veryencouraging and we expect its increased profile to translate into increasedadvertising revenues in the medium term.In May of this year the Group also re-launched www.totallyjewish.com, theGroup's flagship UK based website, with a far greater emphasis being placed onadvertising and subscription based revenue generation. We are already receivingincreased income, as a result.Following the end of the period under review, the Group has also launched itsnew yellow and white pages Jewish directory service in the UK, www.totallyjewishdirectory.com. The intention is to create the global standardfor local, national and international Jewish listings.US PublishingAs previously reported the Group has invested in developing the management,systems, infrastructure and editorial prowess at The Jewish Advocate, theGroup's first US Jewish newspaper based in Boston, MA. I am pleased to reportthat, during the period under review, this investment has started to delivermeaningful results, with advertising revenues increasing by 22 per cent. to$619,000 from $516,000 for the same period last year. The directors believethat this increasing revenue trend is set to continue.Also following the end of the period under review, the Group re-launched the www.thejewishadvocate.com website. This new resource, which is modelled onwww.totallyjewish.com, is also focused on driving revenue from newspapers,subscriptions and ancillary services.Totally Communications LimitedDuring the period under review, the technology and marketing teams have spent aconsiderable amount of time driving the development and launch of the variousnew online media. Whilst this "internal" focus has impacted on their ability todrive client revenues, revenues have, nonetheless increased by 4 per cent. to ‚£233,000 from ‚£224,000 for the same period last year.As a result of the board and management changes reported in the 2004 report andaccounts, work has now started on developing Totally Communications' productsand services and significant growth is expected over the coming months.ProspectsDuring the first half of 2005, the Group has focused on extensive productdevelopment, which has led to significant improvements being made in a numberof our existing titles and the launch of a number of new and exciting productsand services. As a result of this and the reduction in UK publishing costs, theGroup is now well positioned to take advantage of opportunities for growth inthe second half of 2005 and beyond.Dr Michael Sinclair, Non-Executive Chairman9 September 2005Profit and loss accountFor the six months ended 30 June 2005 6 months 6 months ended Year ended ended 30 June 31 December 30 June 2004 2004 2005 (unaudited) (audited) (unaudited) ‚£ ‚£ ‚£ Turnover 1,332,535 1,260,418 2,698,000 Cost of sales (138,041) (103,680) (285,000) Staff costs (760,761) (798,396) (1,540,000) Depreciation (20,441) (15,380) (33,000) Other operating charges (610,179) (562,984) (1,144,000) -------- -------- -------- Total expenses (1,529,422) (1,480,440) (3,002,000) -------- -------- -------- Operating loss (196,887) (220,022) (304,000) Interest payable (20,758) (19,102) (28,000) -------- -------- -------- Loss on ordinary activities (217,645) (239,124) (332,000) before taxation Taxation - 41,618 68,000 -------- -------- -------- Retained loss for the period (217,645) (197,506) (264,000) ======== ======== ======== Loss per share (pence) - (0.25)p (0.26)p (0.34)p basic and diluted ======== ======== ========Balance sheetAs at 30 June, 2005 As at As at 12 months ended 31 December 2004 30 June 2005 30 June 2004 (audited) (unaudited) (unaudited) ‚£ ‚£ ‚£ Fixed assets Tangible fixed assets 267,996 46,530 184,000 Intangible fixed assets - 941,000 875,474 941,000Investments Current assets Newsprint inventory 5,400 5,111 3,000 Debtors and prepayments 383,325 459,745 391,000 Cash at bank and in hand 13,981 62,525 48,000 -------- -------- -------- 402,706 527,381 442,000 Creditors Trade creditors (250,588) (235,077) (295,000) Loans and overdrafts (561,301) (467,298) (596,000) Accruals and deferred income (256,726) (214,839) (174,000) Other taxation and social (66,141) (74,468) (77,000) security -------- -------- -------- (1,134,756) (991,682) (1,142,000) Net current liabilities (732,050) (464,301) (700,000) Total assets less current 476,946 457,703 425,000 liabilities -------- -------- -------- Net liabilities 476,946 457,703 425,000 ======== ======== ======== Capital and reserves Called up share capital 898,647 786,897 788,000 Share premium account 3,106,167 2,915,849 2,947,000 Revaluation reserve 1,000 - 1,000 Profit and loss account (3,528,868) (3,245,043) (3,311,000) -------- -------- -------- Equity shareholders' funds 476,946 457,703 425,000 ======== ======== ========Cashflow StatementFor the six months ended 30 June 2005 6 months to 6 months to 30 June 30 June 2005 2004 (unaudited) (unaudited) ‚£ ‚£ Net cash outflow from operating (143,125) (202,379)activities Return on investments and servicing of finance Interest paid (20,758) (19,102) -------- -------- (163,883) (221,481) Taxation R&D tax credit - 41,618 Capital expenditure and financial investments Payments to acquire tangible fixed assets (104,437) (15,910) Acquisitions Purchase of investments in subsidiary - (31,000)undertakings Cash acquired with subsidiary - 27,000 -------- -------- Net cash inflow/(outflow) before (268,320) (199,773)financing Financing Issue of ordinary share capital for cash 275,000 - Expenses paid in connection with share (6,000) -issues -------- -------- 269,000 - (Decrease)/increase in cash 680 (199,773) ======== ======== Reconciliation of operating loss to net cash flow from operating activitiesOperating loss (196,887) (220,022) Depreciation 20,441 15,380 (Increase) in inventory (2,400) (5,111) Decrease/(increase) in debtors 7,675 (68,745) Increase in creditors 28,046 76,119 -------- -------- (143,125) (202,379) ======== ======== Reconciliation of net cash flow to movements in net debt At 31 At 30 Cash At 31 At 30 Cash flows flows December June December June 2004 2003 2005 2004 ‚£ ‚£ ‚£ ‚£ Cash at bank and 48,000 13,981 (34,019) - 62,525 62,525in hand Overdrafts (596,000) (561,301) 34,699 (205,000) (467,298) (262,298) (548,000) (547,320) 680 (205,000) (404,773) (199,773)Notes to the Interim Results1. Basis of preparationThe Interim Accounts for the six months ended 30 June 2005 are unaudited and donot constitute statutory accounts in accordance with section 240 of theCompanies Act 1985.Full accounts for the year ended 31 December 2004, on which the auditors gavean unqualified report and contained no statement under Section 237 (2) or (3)of the Companies Act 1985, have been delivered to the Registrar of Companies.2. DividendsNo dividend is proposed for the six months ended 30 June 2005.3. Loss per shareThe basic loss per share has been calculated by dividing the retained loss forthe period of ‚£217,645 (2004:‚£197,506) by the weighted average number ofordinary shares of 86,233,632 (2003: 75,423,225) in issue during the period. The diluted loss per share is the same as the basic loss per share, inaccordance with FRS 14 which prescribes that potential ordinary shares shouldonly be used as dilutive when, and only when, their conversion to ordinaryshares would decrease net profit or increase net loss per share from continuingoperations.4. Copies of Interim ResultsCopies of the Interim 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. EnquiriesTotally PlcSteve Burns Tel: 020 7692 6929John East & Partners LimitedDavid Worlidge Tel: 020 7628 2200Simon ClementsENDTOTALLY PLC