Interim Results
29 Novembre 2002 - 5:52PM
UK Regulatory
RNS Number:5006E
Market Age PLC
29 November 2002
The Market Age Plc
Unaudited Interim Results for the six months ended 31 August 2002
The Directors report the unaudited interim results for the six months ended 31
August 2002
Financial Results
The net loss after taxation for the six months was #601,000 (reduced from
#1,175,000 in the corresponding period last year) from turnover of #110,000
(down from #151,000 in the corresponding period).
The net loss includes #164,000 of deprecation and net cash outflow from
operations amounted to #488,000. This was offset by tax refunds received
totalling #245,000 and new financing received of #250,000. After the servicing
of finance and capital expenditure, overall net cash outflow in the period was
#24,000.
The Group cash balances as at 31 August 2002 amounted to #435,000.
Operations
The Group has continued to face a number of challenges during the current
financial year, including a slower than expected decision cycle on the part of
the major banks regarding the adoption of our services, delays caused by the
failings of our external software developers and the later than anticipated
signing and subsequent implementation of our key distribution channel contract
and a slower than expected roll-out of our service by the professional
association for professionals in our market. The combined effect of these
challenges is that, despite new capital being provided to the Company during the
year by the Directors and a continuous streamlining of costs, the Company's cash
resources have reached a critical stage and it is not reasonable to assume that
further investment will be forthcoming from the public market in the current
conditions.
Reluctantly the Directors have been forced to recognise that in the current
market environment, the Group is unable to generate sufficient income from its
existing contracts to cover costs under its present cost structure. As
previously announced in June 2002 the Group had sufficient cash resources for
its then anticipated ongoing requirements, but the lack of income generation and
in particular the failure to conclude a key "white label" contract, has forced
the Directors to consider the Group's future. As a result, the Directors have
instigated a substantial cost cutting exercise which risks impacting on levels
of trading and the service that the Group can deliver.
Although the Directors continue to examine additional possible cost
efficiencies, they believe that no material further streamlining is possible
without further impacting adversely on the services offered by the Group. In
addition, the Board is not optimistic about the possibility of entering into
further contracts in time to resolve the Group's present liquidity position.
Prospects
The immediate prospects for the Group are dependent upon its ability to close a
key contract. The board is unable to claim a positive outlook for the prospects
of closing this deal before funds, at the current rate of outflow, would be
exhausted. The further cost cutting program has therefore been implemented with
immediate effect and, during the operating window that these cuts extend, the
Group has begun to explore all avenues to secure its future including the sale
of some or all of its businesses. The Directors believe that shareholder value
can best be protected by a merger or sale of the business to a larger company
with the sale resources that are essential to capitalise on the value that has
been created.
A further announcement will be made as soon as possible.
Consolidated Profit & Loss Account
6 months ended 6 months ended
31 August 31 August
2002 2001
#000 #000
Turnover - continuing operations 110 151
Cost of sales -58 -73
Gross profit 52 78
Administrative expenses -758 -1,273
Operating loss -706 -1,195
Interest receivable 4 42
Interest payable -23 -22
Loss on ordinary activities before -725 -1,175
taxation
Taxation 124 0
Loss on ordinary activities after -601 -1,175
taxation
Minority interest 14 0
Loss attributable to Members of the -587 -1,175
Parent Company
Loss per ordinary share -3.73p -6.75
Fully diluted loss per ordinary -3.73p -6.75
share
Consolidated statement of recognised gains and losses
6 months ended 31 6 months ended 31
August 2002 August 2001
#000 #000
Loss attributable to Members of the Parent Company -587 -1,175
Gain on deemed disposal of part interest in subsidiary 159 0
Total recognised losses -428 -1,175
Consolidated Balance Sheet
As at 31 August 2002 As at 31 August 2001
#000 #000
Tangible fixed assets 562 873
Current Assets
Debtors 84 255
Cash at bank and in hand 435 1,333
519 1,588
Creditors: amounts falling due -386 -541
within one year
Net current assets 133 1,047
Total assets less current liabilities 695 1,920
Creditors: amounts falling due -773 -720
after one year
Minority interest -15 0
Total net assets -93 1,200
Capital and reserves
Called up share capital 174 174
Share premium account 4,262 4,262
Other reserves -4,529 -3,236
Equity Shareholders' Funds -93 1,200
Consolidated Cash Flow Statement
As at 31 August 2002 As at 31 August 2001
Net cash outflow from operating activities -488 -1,024
Returns on investments and servicing of finance -19 20
Tax refunds received 245 0
Capital expenditure - tangible fixed assets -5 -656
Net cash outflow before financing -267 -1,660
New issue of ordinary shares in subsidiary company 188 0
Lease financing received 63 31
Debt repayment -8 -3
Decrease in cash -24 -1,632
Reconciliation of net cash flow to movement in net debt
Decrease in cash -24 -1,632
Lease financing received -63 -31
Debt repayment 8 3
Movement in net cash/(debt) -79 -1,660
Net cash/(debt) at beginning of period -271 2,261
Net cash/(debt) at end of period -350 601
Net cash outflow from operating activities is
Operating loss -706 -1,195
Depreciation 164 135
Decrease (increase) in 56 34
debtors
Increase (decrease) in -2 2
creditors
Net cash outflow from operating -488 -1,024
activities
Analysis of net cash/(debt)
Cash 435 1,333
Debt due within one year -12 -11
Debt due after one year -773 -721
Net cash/(debt) -350 601
Notes
1. This interim statement has been prepared on the basis of the accounting
policies of The Market Age PLC as set out in its statutory accounts for the
period ending 28 February 2002.
2. This interim statement consolidates the accounts of The Market Age PLC and
all of its subsidiary undertakings and, as the Company meets the
requirements of FRS 6, the consolidation has been prepared using merger
accounting.
3. The loss per share for the six months ended 31 August 2002 is based on the
number of shares in issue at the end of that period.
END
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