RNS Number:4514T
Eurovestech PLC
19 December 2003
EMBARGOED - NOT TO BE RELEASED UNTIL 07.00 A.M. ON
19th December, 2003
EUROVESTECH PLC ("Eurovestech" or "the Company")
Interim Results for the six months ended
30 September 2003
Operating and Financial Review
I am pleased to report on an eventful and very encouraging first half of the
year. Several of our portfolio companies achieved significant milestones and in
June we completed the purchase of the entire share capital of Knowledge Support
Systems Limited ('KSS').
For the period under review, net assets increased from #4.76 million to #7.08
million, with the #3.17 million revaluation uplift in the valuation of
investments more than offsetting the pre-tax loss of #0.87 million. This loss
was in line with our expectations; and was significantly impacted by the decline
in value during the period of our 9.1 per cent. shareholding in Knowledge
Support Systems Group PLC. These shares were sold in June.
The #3.17 million revaluation surplus arose from the uplift in value of our
shareholding in KSS and our decision to place a carrying value of KSS's net cash
of #4.2 million rather than retain a value of our purchase price of #1.0
million.
In October, we completed an institutional share placing which raised #1,690,000.
Portfolio Development
A fortnight ago, we announced that KSS, which provides pricing and revenue
management solutions for the retail and petroleum industries, had secured
significant new orders in both its petrol and retail businesses. Within the
petroleum division, it won a Euro 2.1 million contract from a major European
fuels retailer and secured an extension to an existing licence agreement with a
US fuels retailer. The retail division won a #0.3 million first stage order from
a large US retailer and also secured a consulting services order from a major
European grocer. As a result, the business is trading materially ahead of our
expectations. KSS's management believe that the company will be strongly cash
generative in 2004.
In August, we reported that Cjudge Ltd ("Cjudge"), the Paris-based online market
research and software company had secured several material client wins and
reached profitability ahead of forecast. New clients included Amgen, Banque
Populaire, Christian Dior, l'Oreal and Peugeot. We are pleased to report that as
well as continuing to achieve more client wins in France, with Citroen recently
extending its list of blue chip customers, Cjudge is now attracting
international interest for its products. We are currently in advanced
discussions with Cjudge's management in order to assess how best to fully
capitalise on Cjudge's growing success. Eurovestech currently owns 73 per cent.
of Cjudge's fully diluted share capital.
This week, Boxmind Limited, the e-learning publisher and consultancy ("Boxmind")
signed a non-exclusive worldwide distribution agreement for its authoring tools
Enlighten Express and Professional with Research Machines plc ("RM"). RM is the
UK's leading supplier of education services and currently is the supplier of
choice for approximately one-third of UK schools. Eurovestech owns 48 per cent,
of Boxmind's fully diluted share capital.
Magenta Corporation Limited ("Magenta") develops intelligent software agent
technology and is continuing to grow its sales pipeline successfully. Last
month, we reported that Magenta had won a significant order from a leading
shipping management firm based in London. Magenta's software will be implemented
in February 2004 with the intention that the solution will support operations
for matching cargos to best available vessels at any point in time. We believe
this contract provides tangible evidence that its pioneering multi-agent systems
platform provides an optimum solution to a real industry need. Eurovestech
currently owns 33 per cent. of Magenta's fully diluted share capital.
In August, we announced that Mykindaplace ("MKP"), the UK's leading online
magazine for teenage girls, secured a two year contract with BskyB ("Sky"). This
agreement means that MKP will provide content and other commercial services to
enable Sky to fully commercialise its interactive platforms. MKP reached
profitability in June 2003 and has continued to trade strongly in recent months.
Eurovestech owns 5.3 per cent. of MKP's fully diluted share capital.
Charitable Donations
In our prospectus in March 2000 we made a commitment to issue within two years
4,000,000 ordinary shares to a selection of charities. To date, we have issued
4,200,000 shares to a total of 42 charities.
Eurovestech is pleased to note that together with the 4,200,000 shares donated
to the same charities from Richard Bernstein's personal holding; the stock
market value of shares in Eurovestech gifted to worthy causes now exceeds #1
million.
The Board is proud that so many great causes have been able to benefit from
Eurovestech's progress. We believe that this is an extremely simple and
effective method of corporate sharegiving and hope that other companies will
follow suit to support charities in this way. The full list of 42 charities is
available at www.eurovestech.com
Prospects
We are pleased with the Company's continuing progress and see significant
opportunities. The proceeds from the placing allow us to improve the value of
the returns and the timings of realisations from our investments as well as
enabling us to take advantage of other targeted investment opportunities.
Richard Grogan
Chairman
18 December 2003
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 30 September 2003
Note Six months Six months Year ended 31
ended 30 ended 30 March
September September
2003 2002 2003
(unaudited) (unaudited) (audited)
# # #
Turnover 32,473 64,009 93,466
Gross profit 32,473 64,009 93,466
Administrative
expenses (374,298) (246,561) (828,348)
(Loss)/profit
on disposal of
current asset
investments (523,476) (73,323) 174,717
Other
operating
income - - 9,360
Operating loss (865,301) (255,875) (550,805)
(Loss) on
disposal of
fixed asset
investment - - (330,251)
Amounts
written off
fixed asset
investments - (1,286,885) (3,751,460)
Income from
other fixed
and current
asset
investments 276 6,091 -
Other interest
receivable and
similar income 1,991 26,842 35,216
Interest
payable and
similar
charges (6,100) (5,021) (23,893)
Loss on
ordinary
activities
before
taxation (869,134) (1,514,848) (4,621,193)
Tax on loss on ordinary - - -
activities
Retained loss
on ordinary
activities
after tax (869,134) (1,514,848) (4,621,193)
Fully diluted
and basic loss
per share
(pence) 2 (0.383)p (0.675)p (2.055)p
UNAUDITED OTHER PRIMARY STATEMENTS
For the six months ended 30 September 2003
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Six months Six months Year ended 31
ended 30 ended 30 March
September September
2003 2002 2003
(unaudited) (unaudited) (audited)
# # #
Loss for the
financial
period (869,134) (1,514,848) (4,621,193)
Total
recognised
gains and
losses for the
period (869,134) (1,514,848) (4,621,193)
NOTE OF HISTORICAL COST PROFIT AND LOSSES
Six months Six months Year ended 31
ended 30 ended 30 March
September September
2003 2002 2003
(unaudited) (unaudited) (audited)
# # #
Loss for the
financial
period (869,134) (1,514,848) (4,621,193)
Permanent
diminution in
value of fixed
asset
investment - - 881,207
Realisation of
revaluation
losses of
previous
periods - (131,943) (875,553)
Historical
cost loss on
ordinary
activities
before
taxation (869,134) (1,646,791) (4,615,539)
Historical
cost loss
transferred to
reserves (869,134) (1,646,791) (4,615,539)
UNAUDITED CONSOLIDATED BALANCE SHEET
at 30 September 2003
At 30 September At 30 September At 31 March
2003 2002 2003
(unaudited) (unaudited) (audited)
# # # # # #
Fixed
assets
Tangible
assets 5,448 16,172 9,565
Investments 7,533,885 5,683,301 2,906,929
----------- ------------ ----------
7,539,333 5,699,473 2,916,494
Current
assets
Debtors 459,684 257,697 155,381
Investments 57 1,209,810 1,718,657
Cash at bank
and in hand 154,355 767,306 370,507
614,096 2,234,813 2,244,545
Creditors:
amounts
falling due
within one
year (1,074,314) (221,854) (397,354)
Net current
(liabilities)
/ (460,218) 2,012,959 1,847,191
assets
Total assets
less current
liabilities 7,079,115 7,712,432 4,763,685
Capital and
reserves
Called up
share capital 2,271,686 2,254,966 2,266,225
Share premium
account 7,652,113 7,634,583 7,643,324
Revaluation
reserve 3,170,314 -
Profit and
loss account (6,014,998) (2,177,117) (5,145,864)
-------- --------- ---------
Shareholders'funds 7,079,115 7,712,432 4,763,685
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 September 2003
Note Six months Six months Year ended 31
March
ended 30 ended 30
September September
2003 2002 2003
(unaudited) (unaudited) (audited)
# # #
Net cash
inflow/(outflow) from
operating activities 3 35,938 (50,018) (285,262)
Returns on investments and
servicing of finance
Interest received 1,991 26,842 35,216
Interest paid (6,100) (5,021) (23,893)
Dividends received 276 6,091 -
Net cash inflow from
returns on investments
and servicing of
finance (3,833) 27,912 11,323
Taxation - - -
Capital expenditure and financial
investment
Purchase of tangible
fixed assets (989) - (3,912)
Net cash outflow from
capital expenditure and
financial investment (989) - (3,912)
Acquisitions
Purchase of fixed asset
investments (1,456,642) (662,545) (1,119,366)
Sale of fixed asset
investments - 385,426 663,915
Net cash outflow from
acquisitions and
disposals (1,456,642) (277,119) (455,451)
Management of liquid resources
Purchase of current
asset investments (2,663,586) (5,909,390) (12,796,625)
Sale of current asset
investments 3,858,710 4,866,461 11,587,966
Gain on disposal of
current assets - (228,258)
Net cash
(outflow)/inflow from
management of liquid
resources 1,195,124 (1,271,187) (1,208,659)
Financing
Issue of shares 14,250 25,250 -
Net cash inflow from
financing 14,250 25,250 -
(Decrease) in cash 4 (216,152) (1,545,162) (1,941,961)
NOTES TO THE UNAUDITED INTERIM CONSOLIDATED ACCOUNTS
For the six months ended 30 September 2003
1 BASIS OF PREPARATION
The results for the six months ended 30 September 2003 which are unaudited, have
been prepared in accordance with applicable accounting standards and under the
historical cost convention.
The financial information set out in this document does not comprise the
statutory accounts of the Company within the meaning of section 240(5) of the
Companies Act 1985.
BASIS OF CONSOLIDATION
The group financial statements consolidate those of the Company and of its
subsidiary undertaking, Eurovestech Israel Ltd, a company incorporated in
Israel. The subsidiary undertaking was dormant throughout the whole period from
the 1 April 2003 until 30 September 2003. Profits or losses on intra-group
transactions are eliminated in full. On establishment of the subsidiary, all of
the subsidiary's assets and liabilities which existed at the date of acquisition
were recorded at their values reflecting their consideration at that date.
2 (LOSS) / EARNINGS PER ORDINARY SHARE
The calculation of the loss per share is based on the loss on ordinary
activities for the six month period ended 30 September 2003 of #869,134 and the
weighted average number of ordinary shares in issue during the period, being
227,048,857.
3 RECONCILIATION OF OPERATING LOSS TO NET CASH INFLOW/(OUTFLOW)
FROM OPERATING ACTIVITIES
Six months Six months Year ended 31
March
ended 30 ended 30
September September
2003 2002 2003
(unaudited) (unaudited) (audited)
# # #
Operating loss for the period (865,301) (255,875) (550,805)
Depreciation of tangible fixed
assets 5,106 10,291 20,810
Loss/(profit) on sale of
investments 523,476 73,323 (174,717)
Decrease/(increase) in debtors (304,303) 323,017 425,333
(Decrease)/increase in
creditors 676,960 (200,774) (25,274)
Other non-cash movement - - 19,391
--------- -------- --------
Net cash inflow/(outflow) from
operating activities 35,938 (50,018) 285,262
4 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
Six months Six months Year ended 31
March
ended 30 ended 30
September September
2003 2002 2003
(unaudited) (unaudited) (audited)
# # #
(Decrease)/increase in cash in
the period (216,152) (1,545,162) (1,941,961)
Cash (outflow)/inflow from
current asset investments (1,195,124) 1,271,187 1,208,659
Change in net funds resulting
from cash flows (1,411,276) (273,975) (733,302)
Other non-cash items (523,476) (370,799) 200,576
Movement in net funds in the
period (1,934,752) (644,774) (532,726)
Net funds at the beginning of
the period 2,089,164 2,621,890 2,621,890
-------- -------- --------
Net funds at the end of the
period 154,412 1,977,116 2,089,164
5 ANAYLIS OF CHANGES IN NET FUNDS - UNAUDITED
At 1 Cash flow At 30 September
April 2003
2003
# # #
Cash in hand and at bank 370,507 (216,152) 154,355
Current asset investments 1,718,657 (1,718,600) 57
--------- --------- ----------
2,089,164 (1,934,752) 154,412
6 DIVIDENDS
No dividend is proposed for the six months ended 30 September 2003.
7 COPIES OF THE INTERIM FINANCIAL STATEMENTS
Copies of the interim financial statements will be sent to shareholders and
copies are available on request from the Company's registered office at 29
Curzon Street, London W1J 7TL.
Further Enquiries:
Eurovestech plc
Richard Bernstein, Chief Executive Tel: 020 7491 0770
This information is provided by RNS
The company news service from the London Stock Exchange
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