Totally Regulatory News (TLY)

25 Jul 2006 07:00

Embargoed: not to be released until 7.00am on 25 July 2006 Totally Plc ("Totally" or "the Company ") Interim Announcement Of Unaudited Results For Six Month Period Ended 30 June 2006 All main publications and divisions operationally profitable. Totally Plc, the AIM quoted (ticker `TLY') international publisher and Internetservices provider announces its interim results for the six months to 30 June2006.Summary * EBITDA improves by ‚£272,000 to ‚£7,000 (2005: ‚£265,000 loss) * Operating profit improves by ‚£219,000 to ‚£22,000 (2005: ‚£197,000 loss) * All main publications and divisions operationally profitable * Net turnover up 8 per cent. to ‚£1.3 million (2005: ‚£1.2 million) * Internet joint ventures launched in partnership with other community focussed media owners * Online dating service targeting the global Jewish community now well established in the UK * Confidence high that the improved trading performance will continue into the second half Steve Burns, CEO of Totally commented:"I am pleased to report that during the first half of 2006 all primary businessunits were operationally profitable, net turnover grew by 8 per cent. and ourEBITDA improved by ‚£272,000 when compared to the same period last year.Beyond these substantial improvements in our trading performance, we alsoproved our ability to leverage our suite of proprietary online publishingsoftware by launching Internet based joint ventures targeting other nichecommunities.We believe that our existing publications and services operating within theJewish niche are all set for growth, with new product and joint venturelaunches planned for later this year and, as a result, the board's confidenceis extremely high that this improved trading performance will continue into thesecond half and beyond."For further information:Steve Burns T: 020 7692 6929 CEO Totally Plc www.totallyplc.com John East & Partners T: 020 7628 2200 David Worlidge / Simon Clements Abigail Singleton T: 0207 429 6606 Conduit PR M: 07739 461 061 Chairman's StatementI am pleased to present the results for the six months ended 30 June 2006.During the period the Group made an operating profit of ‚£22,000 (2005: ‚£197,000loss) and profit after taxation of ‚£9,000 (2005: ‚£218,000 loss) on turnover of‚£1.39 million (2005: ‚£1.33 million).Jewish Niche Publishing & ServicesAs a direct result of the product development activity undertaken in 2005,publishing revenue in the UK and US grew by 6 per cent. and 12 per cent.respectively when compared to the same period last year. Indeed both JewishNews and The Jewish Advocate newspapers produced trading results ahead of thoseachieved in any previous years.While Totally has been busy establishing its new dating service(www.totallyjewishdating.com) in the UK market, significant developmentactivity has been undertaken in order to prepare the site for an internationalmarketing drive, designed to help ensure that it takes a share in the $30million worldwide market for online Jewish personals. A new and improvedversion of the site will be launched in this third quarter.At the same time, the TotallyJewish branded directory, travel and recruitmentwebsites have all experienced revenue increases when compared to the secondhalf of 2005 and work is almost complete on two new TotallyJewish brandedonline product launches within the property and celebrations sectors.As a result of the proprietary nature of Totally's Internet publishing softwareand the breadth of its online offering within the global Jewish niche, Totallyhas been able to instigate conversations with a number of other internationalJewish publishers regarding the potential for strategic online distribution andASP partnerships. These conversations will hopefully culminate in the globalrealisation of the TotallyJewish brand and its various derivatives, which thedirectors expect will help to grow additional revenue streams.After a concerted effort in the area of search engine optimisation, the currentTotallyJewish portfolio of websites are extremely well represented within thenaturalised listings on all major search engines, especially Google.Internet ServicesOver the first six months of this year Totally has demonstrated its ability touse its proprietary Internet publishing technology to target successfully otherniche communities in partnership with specialist publishers, broadcasters orcontent owners.During the period under review, Totally launched three joint ventures asfollows: * Together with the leading Greek broadcaster London Greek Radio ("LGR"), Totally launched www.lgr.co.uk a new portal targeting the UK's Greek community, promoting a range of new online services including dating, directory, property and recruitment. Under a five year joint venture agreement, the partners will share in all service related revenues and new advertising agreements. Totally will provide use of its proprietary online publishing software suite and advise LGR on its commercial online strategy. LGR will provide content, marketing via its 24-hour FM broadcast and established Greek community relationships. * Together with the publisher of The Property Trade Directory, a 1,600 page guide to over 30,000 property contacts across the UK, Totally launched www.propertytradedirectory.com, an online version of the already established printed guide which is now in its third edition. Under the joint venture agreement, Totally provides use of its proprietary online directory software and receives half of the revenues generated from online advertising, listing upgrades and other ancillary services. * Together with the leading specialist online language job board www.toplanguagejobs.co.uk, Totally launched a new portal www.toplanguagecommunity.com promoting a range of online services including dating, directory, property, forums and general classifieds targeting the fast growing communities of foreign language speakers working or looking to work in the UK and Ireland. Under the joint venture agreement, the partners will share equally in all future advertising and service related revenues. As a result of the generic and modular approach taken in the development of itsproprietary publishing technology, Totally can now develop and implementpartner sites quickly and cost effectively and, once the sites have beenimplemented, Totally's involvement in marketing and administration is minimal.As a result, revenues generated from these joint ventures are expected to behighly profitable. The directors are currently working on the development of amore formulaic strategy for the future roll out of this area of the Company.Over the last six months Totally has also grown the technology side of TotallyCommunications, a web agency and general technology and consultancy provider.Working across an increasingly corporate client base, as a result of itsgeneric approach to developing Internet solutions, Totally can deliver highquality websites and bespoke online applications at extremely competitiveprices. Whilst client acquisition has traditionally been created throughreferral and recommendation, the Company has started recruiting a sales team todrive growth and is considering options in relation to marketing activity.ProspectsThrough the continued development of its publications, services anddistribution capability, Totally's operations within the Jewish niche are setto grow rapidly and profitably.By leveraging its proprietary internet based publishing technology, Totally cancontinue to develop partnerships that have the potential to deliver highlyprofitable revenues and create significant long term value. At the same time,through investing in a formal sales and marketing strategy, Totally'stechnology business can also grow rapidly and profitably.Ultimately, as a result of the product development activity undertaken over thelast 18 months, Totally is now extremely well placed to take advantage ofopportunities for growth in revenue and profit.Dr Michael SinclairChairman25 July 2006Profit and loss accountFor the six months ended 30 June 2006 6 months 6 months Year ended ended ended 31 December2005 30 June2006 30 June2005 (audited) (unaudited) (unaudited) ‚£ ‚£ ‚£ Gross Turnover 1,389,251 1,332,535 2,771,000 Less: Share of Joint ventures 36,300 - 31,000 Group Turnover 1,352,951 1,332,535 2,740,000 Cost of sales (51,497) (138,041) (654,000) Staff costs (663,556) (760,761) (1,659,000) Depreciation (48,074) (20,441) (71,000) Other operating charges (568,120) (610,179) (629,000) Total expenses (1,331,247) (1,529,422) (3,013,000) Operating profit/(loss) 21,704 (196,887) (273,000) Share of operating loss of (9,708) - (13,000)joint venture Interest payable (23,658) (20,758) (40,000) Loss on ordinary activities (11,662) (217,645) (326,000) before taxation Taxation 20,548 - 31,000 Retained profit/(loss) for 8,886 (217,645) (295,000)the period Earnings/(loss) per share 0.01p (0.25)p (0.34)p(pence) - basic and diluted Balance sheetAs at 30 June, 2006 6 months ended 6 months ended 12 months ended 31 December 2005 30 June 2006 30 June 2005 (audited) (unaudited) (unaudited) ‚£ ‚£ ‚£ Fixed assets Tangible fixed assets 312,375 267,996 297,000 Intangible fixed assets 928,819 945,427 941,000Investments Investments in Joint Venture Share of gross assets 13,644 - 18,000 Share of gross liabilities (23,352) - (29,000) Current assets Newsprint inventory 1,945 5,400 4,000 Debtors and prepayments 390,640 378,898 408,000 Cash at bank and in hand 69,144 13,981 43,000 461,729 398,279 455,000 Creditors Trade creditors (208,605) (250,588) (312,000) Loans and overdrafts (783,750) (561,301) (754,000) Accruals and deferred income (212,612) (256,726) (142,000) Other taxation and social (75,331) (66,141) (74,000) security (1,280,298) (1,134,756) (1,282,000) Net current liabilities (818,569) (736,477) (827,000) Total assets less current 412,917 476,946 400,000 liabilities Net Assets 412,917 476,946 400,000 Capital and reserves Called up share capital 900,747 898,647 898,000 Share premium account 3,107,217 3,106,167 3,106,000 Revaluation reserve 2,000 1,000 2,000 Profit and loss account (3,597,047) (3,528,868) (3,606,000) Equity shareholders' funds 412,917 476,946 400,000 Cashflow StatementFor the six months ended 30 June 2006 6 months to 6 months to 30 June2006 30 June2005 (unaudited) (unaudited) ‚£ ‚£ Net cash inflow/(outflow) from operating 57,741 (143,125)activities Return on investments and servicing of finance Interest paid (23,658) (20,758) 34,083 (163,883) Taxation R&D tax credit 20,548 - Capital expenditure and financial investments Payments to acquire tangible fixed (61,387) (104,437)assets Net cash outflow before financing (6,756) (268,320) Financing Issue of ordinary share capital for cash 3,150 275,000 Expenses paid in connection with share - (6,000)issues 3,150 269,000 (Decrease)/increase in cash (3,606) 680Reconciliation of operating loss to net cash flow from operating activitiesOperating profit/(loss) 21,704 (196,887) Depreciation 48,074 20,441 (Increase)/decrease in inventory 2,055 (2,400) Decrease in debtors 17,360 7,675 (Decrease)/increase in creditors (31,452) 28,046 57,741 (143,125)Reconciliation of net cash flow to movements in net debt At 31 At 30 Cash At 31 At 30 Cash flows December June December June flows 2005 2004 2006 2005 ‚£ ‚£ ‚£ ‚£ Cash at bank and 43,000 69,144 26,144 48,000 13,981 (34,019)in hand Overdrafts (754,000) (783,750) (29,750) (596,000) (561,301) (34,699) (711,000) (714,606) (3,606) (548,000) (547,320) 680Notes to the Interim Results1. Basis of preparationThe Interim Results for the six months ended 30 June 2006 are unaudited and donot constitute statutory accounts in accordance with section 240 of theCompanies Act 1985.Full accounts for the year ended 31 December 2005, 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.The Interim Results do not include any provision under FRS 20 - Accounting forShare Based Payments. The Company is currently working with its auditors toagree an appropriate formula and this will be reflected in the full yearaccounts for the year ended 31 December 2006.2. DividendsNo dividend is proposed for the six months ended 30 June 2006.3. Earnings/(loss)per shareThe basic loss per share has been calculated by dividing the retained profitfor the period of ‚£8,886 (2005:‚£217,645) by the weighted average number ofordinary shares of 90,014,378 (2004: 86,233,632) 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. ENDTOTALLY PLC