RNS Number:8001N
Asite PLC
22 July 2003
22 July 2003
ASITE PLC
INTERIM RESULTS ANNOUNCEMENT
SIX MONTHS TO 30 JUNE 2003
Highlights:
* Significant growth in revenue from continuing operations
* Reduction in operating losses to #0.8 million (2002: #2.1 million)
* Continued development of Asite's own intellectual property
* Expanded product offering following roll-out of new products
Sir John Egan, Chairman of Asite plc comments:
"I remain firmly of the belief that the technology community that we are
building at Asite is taking the right steps to achieve truly integrated business
relationships and that the construction industry will continue to find ever
greater value in our suite of products and services. The directors, therefore,
remain confident that Asite will move ahead toward profitable trading and
positive cashflows and that all necessary steps have been taken to ensure its
future success."
For further information:
Asite plc
Tom Dengenis, Chief Executive Tel: 020 7554 5678
Deloitte & Touche
Robin Binks Tel: 020 7936 3000
Richard Collins
Chairman's Statement
Results and dividends
The Group's core business, Asite Solutions Limited ("Asite"), made progress
during the first six months of 2003, enjoying a trend of increased revenues and
reduced fixed expenses as Asite continued to benefit from initiatives
implemented in the latter part of the year to December 2002. As a result, Asite
has seen a recent trend of decreasing monthly losses.
The Group's operating loss of #0.8m compares with a loss of #2.1m in the 6
months ended 30 June 2002, and #5.4m in the 12 months ended 31 December 2002.
The previous year's loss and the loss in the first half of 2003 reflect the
significant investment made in Asite. Further product development expenditure
of #0.3m to develop Asite's own intellectual property was incurred during the
period to 30 June 2003. The Group's operating loss before this expenditure was
#0.5m.
The loss per share was 0.7p compared with 2.0p and 4.7p respectively in the
previous half and full year. Turnover in the first six months of 2003 was up by
over 25% compared with the same period last year.
Development of the Group
This year, Asite has made a series of product releases that are a strong
indicator of our growing expertise in product development and solutions
delivery. The resulting intellectual property forms the core of Asite's
technology assets and increases our ability to respond to market demand. In
addition, our reduced reliance on licensed third party intellectual property
significantly decreases our cost of sales.
There have been major new releases of Asite Tender, in both the first and second
quarters. Asite Tender makes it easier both to prepare and manage a tender, and
to participate as a bidder, in a highly secure environment. In addition, we
have released Asite Negotiate for contract negotiation, in response to customer
requirements, including those of BAA. Asite Negotiate provides a secure
communications tool that supports the process of contract formation between
buyer and supplier.
We have also successfully released Asite Workspace, which supports
document-sharing environments for ad-hoc teams. Asite Workspace is included as
an enhancement to our fee-paying Asite Community programme, which already
comprises hundreds of companies.
The Asite Integration solution has been rolled-out with great success in
automating the Laing O'Rourke inventory control system to connect supply chains
on the BAA Terminal 5 project. In addition, we have completed the restructuring
of our production hosting operations to reduce reliance on third-party managed
services, whilst continuing to outsource secure infrastructure provision.
Operational review
Important new customers have been acquired, as the take-up of Asite Tender and
Asite Workspace continues to increase, including leading UK contractors and
property developers. Morgan Sindall plc have recently adopted Asite Tender on
their major tunnelling project at Terminal 5, which is in joint venture with
Vinci. We are also continuing to implement an enterprise-wide rollout at Laing
O'Rourke and across the Birse Rail / Network Rail project portfolio.
Prospects
I remain firmly of the belief that the technology community that we are building
at Asite is taking the right steps to achieve truly integrated business
relationships and that the construction industry will continue to find ever
greater opportunities to improve business performance through our suite of
products and solutions.
The directors, therefore, remain confident that Asite will move ahead toward
profitable trading and positive cashflows and that all necessary steps have been
taken to ensure its future success.
Sir John Egan
Chairman
22 July 2003
ASITE PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the Six Months Ended 30 June 2003
Note Unaudited Unaudited Audited
six months six months year
to to to
30 June 30 June 31 Dec
2003 2002 2002
#'000 #'000 #'000
TURNOVER
Continuing operations:
Turnover 1,032 816 1,575
Discontinued operations:
Turnover - - 24
1,032 816 1,599
Revenue share (217) (219) (469)
Net turnover 815 597 1,130
Staff costs 942 1,123 2,377
Depreciation and amortisation 1 760 2,245
Product development expenditure 310 - -
Other operating charges 359 861 1,859
1,612 2,744 6,481
OPERATING LOSS
Continuing operations (797) (2,147) (5,283)
Discontinued operations - - (68)
(797) (2,147) (5,351)
Loss on sale of discontinued operations - - (11)
Interest payable less receivable - (7) (29)
LOSS ON ORDINARYACTIVITIES BEFORE TAXATION (797) (2,154) (5,391)
Tax credit on loss on ordinary activities - - 71
LOSS ON ORDINARY ACTIVITES AFTER TAXATION (797) (2,154) (5,320)
Minority interest 92 266 761
LOSS FOR THE PERIOD (705) (1,888) (4,559)
Loss per share - basic 3 (0.7p) (2.0p) (4.7p)
ASITE PLC
CONSOLIDATED BALANCE SHEET
At 30 JUNE 2003
Note Unaudited Unaudited Audited
at at at
30 June 30 June 31 Dec
2003 2002 2002
#'000 #'000 #'000
FIXED ASSETS
Tangible assets 230 4,120 -
230 4,120 -
CURRENT ASSETS
Stock - 10 -
Debtors 643 593 564
Cash at bank - 1,923 89
643 2,526 653
CREDITORS: amounts falling due within one year (924) (5,617) (1,936)
NET CURRENT LIABILITIES (281) (3,091) (1,283)
TOTAL ASSETS LESS CURRENT LIABILITIES (51) 1,029 (1,283)
CREDITORS: amounts falling due after more than one year (4,671) (2,267) (2,632)
EQUITY MINORITY INTERESTS 1,863 1,265 1,761
NET (LIABILITIES) / ASSETS (2,859) 27 (2,154)
CAPITAL AND RESERVES
Called up share capital 4 10,291 9,801 10,291
Share premium account 4 2,442 2,442 2,442
Profit and loss account 4 (15,592) (12,216) (14,887)
EQUITY SHAREHOLDERS' (DEFICIT)/FUNDS (2,859) 27 (2,154)
ASITE PLC
CONSOLIDATED CASH FLOW STATEMENT
For the Six Months Ended 30 June 2003
Note Unaudited Unaudited Audited
six months six months year
to to to
30 June 30 June 31 Dec
2003 2002 2002
#'000 #'000 #'000
Net cash outflow from operating activities 5 (2,072) (1,609) (3,233)
Returns on investments and servicing of finance
Interest paid - (7) (29)
Net cash out flow from returns on investments and - (7) (29)
servicing of finance
Capital expenditure
Payments to acquire fixed assets (231) (357) (358)
Proceeds from sale of fixed assets - - 5
Net cash outflow from capital expenditure (231) (357) (353)
Acquisitions and disposals
Disposal of subsidiaries - - 10
Net borrowings disposed of with subsidiaries - - (24)
Net cash outflow from acquisitions and disposals - - (14)
Net cash outflow before financing (2,303) (1,973) (3,629)
Financing
Net proceeds on issue of ordinary share capital - - 897
Purchase of shares from minorities (10) - -
Net proceeds from borrowings 2,039 1,950 2,632
Repayment of borrowings - - (2)
Capital element of finance lease rental payments - - (6)
Net cash outflow from financing 2,029 1,950 3,521
Decrease in cash in the period 6 (274) (23) (108)
ASITE PLC
NOTES TO THE INTERIM REPORT
For the Six Months Ended 30 June 2003
1. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
The directors have prepared projected Group cash flow information for the
current financial year and for the first seven months of the following year to
31 July 2004. The early stage of development of the Group's business is such
that there can be considerable unpredictable variation in the amount of revenue
and timing and amount of cash flows. On the basis of this Group cash flow
information, the directors are aware that additional funding will be required.
Over the last 18 months, Mr Robert Tchenguiz has provided the Group with the
financial support it has required. The directors believe Mr Robert Tchenguiz
will continue to provide the funding required and have received a written
confirmation from him that he intends to provide this funding in the form of a
new loan amounting to #750,000 and that he will not call for the repayment of
this new loan or any existing loans before 31 July 2004.
This new loan has been agreed to be provided in the expectation that the Group
achieves its forecast cash flows in the period to 31 July 2004. However, there
is inherent uncertainty as to the realisation of the forecast and consequently
uncertainty as to the continuing support of Mr Robert Tchenguiz.
On the basis of this cash flow information and discussions with Mr Robert
Tchenguiz, the directors have formed a judgement at the time of approving the
interim statement that they consider it appropriate to prepare this interim
statement on the going concern basis. The interim statement does not include
any adjustments that would result should support from Mr Robert Tchenguiz or
other sources no longer be available.
2. COMPANIES ACT 1985
These accounts are not the statutory accounts of the Group. The statutory group
accounts of Asite plc for the year to 31 December 2002 will be delivered to the
Registrar of Companies, following the AGM on 24 July 2003. The interim report
contains financial information on the year ended 31 December 2002 which
constitutes non-statutory accounts for the purposes of section 240 of the
Companies Act 1985. The auditors provided an emphasis of matter on their
opinion on the audited accounts on the basis of the ability of Asite Solutions
Limited to continue as a going concern, as detailed in note 1. The numbers in
the interim financial statements to 30 June 2003 are neither reviewed nor
audited.
The interim financial information has been prepared on the basis of accounting
policies consistent with those applied in the 2002 financial statements.
3. LOSS PER SHARE
Unaudited Unaudited Audited
six months six months year
to to to
30 June 30 June 31 Dec
2003 2002 2002
# # #
Basic
Net loss for the period: (#705,000) (#1,888,000) #(4,559,000)
Weighted average number of ordinary shares outstanding: 102,910,633 93,771,912 96,526,461
Loss per share: 0.7p 2.0p 4.7p
FRS 14 requires presentation of diluted loss per share when a Company could be
called upon to issue shares that would decrease net profit or increase net loss
per share. For a loss making Company with outstanding share options, net loss
per share would only be increased by the exercise of out-of-the-money options.
No adjustment has been made to diluted loss per share for out-of-the-money share
options and as there are no other diluting future share issues, diluted loss per
share has not been presented.
4. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' (DEFICIT)/FUNDS
Called up Share Profit Total
share premium and loss
capital account account
#'000 #'000 #'000 #'000
Group
At 1 January 2003 10,291 2,442 (14,887) (2,154)
Minority interest - - 92 92
Loss for the period - - (797) (797)
At 30 June 2003 10,291 2,442 (15,592) (2,859)
5. RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW
Unaudited Unaudited Audited
six months to six months to year to
30 June 30 June 31 Dec
2003 2002 2002
#'000 #'000 #'000
Operating loss (797) (2,147) (5,351)
Depreciation and amortisation 1 760 2,245
Fees received in advance (66) - 138
Service charged to operating profit in return for - 50 50
issue of shares
Decrease in stock - 11 22
Decrease / (increase) in debtors (79) 207 236
Decrease in creditors (1,131) (490) (573)
(2,072) (1,609) (3,233)
6. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/(debt)
Unaudited Unaudited Audited
six months to six months to year to
30 June 30 June 31 Dec
2003 2002 2002
#'000 #'000 #'000
Decrease in cash in the period (274) (23) (108)
Decrease in debt finance - - 19
Decrease in lease finance - 9 6
(274) (14) (83)
Loan (2,039) - (2,632)
Movement in net debt in the period (2,313) (14) (2,715)
Net (debt)/funds at start of period (2,543) 172 172
Net (debt)/funds at end of period (4,856) 158 (2,543)
7. ANALYSIS OF NET DEBT
At At
1 January Movement 30 June
2003 #'000 2003
#'000 #'000
Cash 89 (89) -
Uncleared payments - (185) (185)
89 (274) (185)
Loan (2,632) (2,039) (4,671)
(2,543) (2,313) (4,856)
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