TNG.L Regulatory News (TNG)

16 May 2005 11:59

Documedia Solutions PLC16 May 2005 Documedia Solutions Plc ("Documedia" or "the Company") Preliminary Results for the year ended 28 February, 2005 Chairman's statement I am pleased to announce the results for the year ended 28 February 2005. This is the Company's fifth year of trading and, after taking into account anexceptional profit, the Company recorded its first profitable year overall. The results show an operating loss from continuing operations of £117,000 forthe year ended 28 February 2005 (2004: £895,000) but the Company made anexceptional profit of £167,000 on the sale of its Bury St Edmonds site and theprofit before and after taxation for the year was £20,348. Net current assets at28 February 2005 were £392,000 (2004 - £287,000). Operating activities generated positive cash flow of £215,000 (2004: outflow -£581,000). In view of the operating losses and the fact that the Company does not havedistributable reserves, the Board will not be recommending payment of a dividendfor the year. Operational review The sale of our stationery business has enabled us to focus on our core business- DocuMarketing. This is the on-line platform that enables corporates toautomate and empower their distributed businesses to generate local marketingcampaigns whilst centrally controlling brand and spend. This business is centred in London. Major successes during the early months of2005 include new business wins with Unichem for store and outbound customisedcampaigns, Next for creating and executing customised recruitment marketingacross their UK stores and Diageo in delivering product specific customisedmarketing campaigns to pubs in the UK wide. The Company has also been appointedto run a trial pilot system in the retail financial services sector. Cheltenham is our small highly efficient centre for our production andfulfilment service for subscribers of technical documents and membership centredpublications. This outsourced service was founded on our longstanding contractwith the Civil Aviation Authority, much of which has been converted to e-mediaformat over the last 3 years; this contract comes to an end this month. Wecontinue to expand the service into other similar authorities and continue withthe ongoing contracts with the National Air Traffic Service and severalcouncils. This business is well placed to continue to trade profitably and withthe continued extension of the Government's commitment to outsource more andmore of its services, we see a strong future for this segment. The Future Your business has now become leaner and more focussed. It is in a position toexpand profitably in its core competence. It is highly thought of and, withincreasing take off of its software and supporting structure, all in thebusiness view the future with much confidence. Mark O'Connor is stepping down as Managing Director while continuing as anon-executive director of the business. I am pleased to announce the appointmentof James Marsland as his successor. James has been with the Company for the lastfive years and has worked closely with Mark during that time. He has beeninstrumental in developing our technology and bringing it to market. I wouldlike to thank them both for their efforts and wish them success in their newroles. J W TaylerChairman16 May 2005 Profit and Loss Accountfor the year ended 28 February 2005 Note Year ended Year ended 28 February 28 February 2005 2004 £ £ Turnover Continuing Operations 5,317,201 5,493,843Discontinued activities 1,283,211 2,356,766 6,600,412 7,850,609 Cost of sales (3,978,618) (5,403,466) Gross Profit 2,621,794 2,447,143 Administrative expenses - normal (2,669,957) (3,205,218)Administrative expenses - exceptional (70,208) (191,091) Operating Loss Continuing operations (117,472) (857,347)Discontinued (899) (91,819) (118,371) (949,166) Profit on disposal of trading division 167,663 22,500 Profit/(loss) on ordinary activities before interest 49,292 (926,666) Net interest payable (28,944) (40,363) Profit/(loss) on ordinary activities before taxation 20,348 (967,029) Taxation - - Profit/(loss) for period attributable to members of parent 20,348 (967,029)company Earnings/(loss) per shareBasic 2 0.06p (2.79p)Diluted 0.06p (2.79p) Group Balance Sheetas at 28 February 2005 At At 28 February 28 February 2005 2004 £ £ Fixed assetsIntangible assets 47,805 63,740Tangible assets 277,312 296,232Investments - 30,076 390,048 325,117 Current assetsStocks 81,873 277,148Debtors 1,153,994 1,802,422Cash at bank and in hand 61,942 44,086 1,297,809 2,213,656 Creditors: amounts falling due within one year (906,210) (1,836,846) Net current assets 391,599 286,810 Total assets less current liabilities 716,716 676,858 Creditors: Amounts falling due in more than one year (34,728) (8,161) Provisions for liabilities and charges (94,000) (101,057) 587,988 567,640 Capital and reservesCalled up share capital 401,133 401,133Share premium account 7,859,888 7,859,888Merger reserve 1,162,400 1,162,400Profit and loss account (8,835,433) (8,855,781) Shareholders' funds - Equity interests 587,988 567,640 Cash Flow Statementfor the year ended 28 February 2005 Year ended Year ended 28 February 28 February 2005 2004 £ £ Net cash inflow/(outflow) from operating activities 215,180 (581,454) Returns on investments and servicing of financeNet Interest paid (28,944) (40,363) Capital expenditurePayments to acquire tangible fixed assets (163,271) (74,291)Receipts from sale of tangible assets 35,157 842,133Receipts from sale of investments 37,536 23,680 Net cash (outflow)/inflow on capital expenditure (90,578) 791,522 Acquisitions and disposalsProceeds on sale of trading division 366,663 - Net cash inflow before financing 462,321 169,705 FinancingNet (repayment)/advance on invoice discounting facility (420,343) 289,175Repayment of bank loan (7,995) (5,239)Capital element of hire purchase contracts (10,386) (272) Net cash (outflow)/inflow from financing (438,724) 283,664 Increase in cash 23,597 453,369 i. NET CASH OUTFLOW FROM OPERATING ACTIVITIES Year ended Year ended 28 February 28 February 2004 2005 £ £ Operating loss (118,371) (949,166) Amortisation of goodwill 15,395 15,935 (Profit)/loss on disposal of fixed assets (5,300) 9,242 Profit on disposal of investments (7,460) (8,756) Deprecation of tangible fixed assets 215,334 429,608 Decrease in stock 20,498 38,225 Decrease in debtors 668,906 324,435 Decrease in creditors and provisions (573,822) (440,977) Net cash inflow/(outflow) from operating activities 215,180 (581,454) ii. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT Year ended Year ended 28 February 28 February 2005 2004 £ £ Increase in cash in the year 23,597 453,369 Cash outflow/(inflow) from decrease/(increase) in debt 438,724 (283,664) Change in net debt resulting from cash flows 462,321 169,705 New hire purchase agreements (87,223) - Movement in net debt in the year 375,098 169,705 Opening net debt (398,818) (568,523) Closing net debt (23,720) (398,818) iii. ANALYSIS OF NET DEBT At Cash flow New Finance At lease 1 March 28 February 2004 2005 £ £ £ Net cash: Cash in bank and in hand 44,086 17,856 - 61,942 Bank overdrafts (5,741) 5,741 - - 38,345 23,597 - 61,942 Debt: Invoice discounting (420,343) 420,343 - - Bank loan (16,820) 7,995 - (8,825) Hire purchase - 10,386 (87,223) (76,837) (437,163) 438,724 (87,223) (85,662) Net debt (398,818) 462,321 (87,223) (23,720) Notes to the financial statements 1. Publication of non-statutory accounts The financial information set out in this preliminary announcement does notconstitute statutory accounts as defined in Section 240 of the Companies Act1985. The financial information for the year ended 28 February 2005 has been extractedfrom the Group's financial statements to that date, which have received anqualified auditors' report in respect only of amounts disclosed in thecomparative profit and loss account for the year ended 29 February 2004 whichthe auditors consider understates losses by £226,000, but have not yet beendelivered to the Registrar of Companies. The financial statements for the yearended 29 February 2004, which received a qualification in respect of the samematter, have been filed with the Registrars of Companies. 2. Earnings (Loss) per share The calculation of basic and diluted earnings (loss) per ordinary share for theyear is based on the profit of £20,348 (2004: £967,029) for the year, and34,660,000 ordinary shares (2003:34,660,000) being the weighted average numberof ordinary shares in issue during the year, after excluding the shares owned bythe Employee Share Trust. 3. Dividends No dividends were paid or are proposed in respect of the year ended28 February 2005. 4. A copy of the Annual Report and Accounts will be sent to allshareholders shortly and will be available from the Company's registered office,Truscott House, 32-42 East Road, London N1 6AD . This information is provided by RNS The company news service from the London Stock Exchange