RNS Number:8504M
10 Group PLC
27 June 2003
10 GROUP PLC
PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 DECEMBER 2002
CHAIRMAN'S STATEMENT
RESULTS FOR THE YEAR
In the 12 months ended 31st December 2002, 10 Group Plc recorded a loss on
ordinary activities before taxation of #2.73 million (2001: #1.45 million).
This loss includes write offs of investments of #460,000 and of loans of
#656,000 and exceptional bad debts and impairment of intangible fixed assets of
#536,000.
This result should be viewed in the light of the closure or sale of the majority
of the businesses entered into by the previous Board of Directors.
CURRENT TRADING AND FUTURE PROSPECTS
Jonathan Burrow and I joined the Board of 10 Group Plc earlier this year
following the resignation of Andy Moore and subsequently Simon Cooper. We have
continued the policy of realising such assets as 10 Group has with a view to
converting it into a small shell. All trading operations of the group have now
been sold or closed. We continue to manage the property liabilities of the
group with the aim of minimising the cash outflow. We continue to explore the
possibilities for realising cash from the remaining assets of the group.
Currently, our principal assets comprise freehold premises in Birmingham with a
book value of #675,000 against which we have mortgages in the amount of #662,000
and a secured loan of #275,000 advanced in February 2003 to Oakburn Holdings
Plc.
Notwithstanding this, your Board recognises that the group will require further
funding to enable it to meet its liabilities as they fall due. To this end, we
are in discussions with potential investors in relation to a proposed placing to
provide the additional working capital that is urgently required.
Your Board continues to seek an appropriate acquisition target that will enhance
shareholder value going forward, and we are currently in discussions with a
company with a view to merging it with 10 Group. A further announcement will be
made in the event that your Board is able to agree terms in relation to this or
any other acquisition target.
NEIL G. McGOWAN
Chairman
CONSOLIDATED PROFIT AND LOSS ACCOUNT
2002 2001
# # # #
TURNOVER 1,021,214 4,487,522
Continuing operations 971,267 1,209,653
Discontinued operations 49,947 3,277,869
Cost of sales 932,047 2,991,412
GROSS PROFIT 89,167 1,496,110
Net operating expenses 1,672,907 3,156,016
OPERATING LOSS (1,583,740) (1,659,906)
Continuing operations (1,485,713) (1,241,421)
Discontinued operations (98,027) (418,485)
Write back old creditors no longer - 544,295
payable
Write off loans (656,827) (140,000)
Profit on sale and closure of businesses 45,452 272,670
(2,195,115) (982,941)
Interest receivable and similar income 13,505 65,100
(2,181,610) (917,841)
Amounts written off investments 460,194 497,719
(2,641,804) (1,415,560)
Interest payable and similar charges 47,149 83,056
LOSS ON ORDINARY ACTIVITIES
BEFORE TAXATION (2,688,953) (1,498,616)
Tax on loss on ordinary activities - -
LOSS FOR THE FINANCIAL YEAR
AFTER TAXATION (2,688,953) (1,498,616)
Minority interests
Minority interest - equity 47,752 (47,752)
DEFICIT FOR THE YEAR FOR THE GROUP #(2,736,705) #(1,450,864)
Loss per ordinary share
Basic 0.14p 0.16p
TOTAL RECOGNISED GAINS AND LOSSES
The group has no recognised gains or losses other than the losses for the
current and previous years.
CONSOLIDATED BALANCE SHEET
2002 2001
# # # #
FIXED ASSETS
Intangible assets - 252,632
Tangible assets 736,694 885,883
Investments 5,051 70,082
741,745 1,208,597
CURRENT ASSETS
Stocks 9,223 -
Debtors 354,199 1,307,068
Investments 291,559 749,475
Cash at bank and in hand 500,699 705,375
1,155,680 2,761,918
CREDITORS
Amounts falling due within one year (678,129) (445,389)
NET CURRENT ASSETS 477,551 2,316,529
TOTAL ASSETS LESS CURRENT
LIABILITIES 1,219,296 3,525,126
CREDITORS
Amounts falling due after more than one
year (585,700) (620,110)
MINORITY INTERESTS - 27,752
#633,596 #2,932,768
CAPITAL AND RESERVES
Called up share capital 9,533,167 9,361,426
Share premium 7,082,139 6,816,347
Capital redemption reserve 3,563,534 3,563,534
Profit and loss account (19,445,244) (16,808,539)
SHAREHOLDERS' FUNDS #633,596 #2,932,768
CONSOLIDATED CASH FLOW STATEMENT
2002 2001
# #
Net cash outflow from operating (598,874) (2,483,548)
activities
Returns on investments and
servicing of finance (33,644) (17,956)
Capital expenditure
and financial investment (224,715) 261,496
Acquisitions and disposals (6) 308,449
(857,239) (1,931,559)
Management of liquid resources 171,660 (885,144)
Financing 480,910 910,935
Decrease in cash in the period #(204,669) #(1,905,768)
Reconciliation of net cash flow to movement in net funds
2002 2001
# #
Decrease in cash in the period (204,669) (1,905,768)
Cash (inflow)/outflow from (decrease)/increase in liquid resources (171,660) 785,144
Cash (inflow)/outflow from (increase)/decrease in debt and lease (43,377) 131,571
financing
Change in net funds resulting from cash flows (419,706) (989,053)
New finance leases (33,995) (62,203)
Borrowings disposed with subsidiary - 542,569
Current asset investments provisions (286,256) (252,624)
Cash at bank and in hand disposed with subsidiary (7) -
Movement in net funds in the period (739,964) (761,311)
Net funds at 1st January 771,808 1,533,119
Net funds at 31st December #31,844 #771,808
Reconciliation of operating loss to net cash outflow from operating activities
2002 2001
# #
Operating loss (1,583,740) (1,659,906)
Depreciation charges 139,106 152,876
Loss/(profit) on disposal of fixed assets 71,909 (147,850)
Amortisation charges 312,632 326,100
Write off loans (656,827) (140,000)
Write back old creditors - (544,295)
(Increase)/decrease in stocks (9,223) 409,647
Decrease/(increase) in debtors 940,796 (522,298)
Increase/(decrease) in creditors 186,473 (357,822)
Net cash outflow from operating (597,874) (2,483,548)
activities
NOTES TO THE PRELIMINARY ANNOUNCEMENT OF RESULTS
FOR THE YEAR ENDED 31ST DECEMBER 2002
1. ACCOUNTING POLICY
The above Profit and Loss Account, Balance Sheet and Cash Flow Statement
is an abridged statement of the full Group accounts for the years ended 31
December 2002, on which the report of the Auditors, Moore Stephens, is
unqualified and which did not include a statement under Section 237 (2) or
237 (3) of the Companies Act 1985.
The financial statements have been prepared under the historical cost
convention and are in accordance with applicable accounting standards and
on a going concern basis. The directors believe that a going concern basis
is applicable as they are arranging for a placing of new shares in the
company to provide sufficient working capital.
The report of the Auditors includes the following statement:
"Fundamental Uncertainty
In forming our opinion we have considered the adequacy of the disclosures
made in the financial statements concerning the provision of further
funding for the group to enable it to continue its activities. The
financial statements have been prepared on a going concern basis, the
validity of which depends upon the provision of further funding. The
financial statements do not include any adjustments that would result if
the funding were not advanced. Our report is not qualified in this
respect."
2. ANALYSIS OF OPERATIONS
2002
Continuing Discontinued Total
# # #
Cost of sales 864,443 67,604 932,047
Gross profit/(loss) 106,824 (17,657) 89,167
Net operating expenses:
Administrative expenses 1,708,435 84,772 1,793,207
Other operating income (115,898) (4,402) (120,300)
2001
Continuing Discontinued Total
# # #
Cost of sales 1,110,011 1,881,401 2,991,412
Gross profit 99,642 1,396,468 1,496,110
Net operating expenses:
Administrative expenses 1,446,696 1,814,953 3,261,649
Other operating income (105,633) - (105,633)
3. EXCEPTIONAL ITEMS
Included within 'Administrative expenses' are the following exceptional
items:
2002 2001
# #
Bad debts 258,389 275,000
Impairment of intangible fixed assets 277,432 -
535,821 275,000
4. LOSS PER SHARE
The calculation of loss per share is based on the loss for the financial
year after taxation of #2,688,953 (2001 #1,498,616) and on 1,921,988,652
(2001 922,406,448) ordinary shares, being the time-weighted average number
of shares in issue during the year. There are no shares options that have
a dilutive effect.
5. POST BALANCE SHEET EVENTS
Subsequent to the year end, 10 Group Plc made a loan to Oakburn Holdings
Plc of #275,000; #100,000 was advanced on 5th February 2003, #100,000 was
advanced on 23rd February 2003 and #75,000 was advanced on 27th February
2003. The loan is for a period of six months with an option to renew.
Interest is payable quarterly in arrears at a rate of 15% per annum.
On 30th May 2003, 10 Group Plc sold its investment in 10 Leisure Plc, a
subsidiary company, to Turnbegin Limited, for #1. The net liabilities of 10
Leisure Plc at the date of disposal were #595,979.
On 30th May 2003, 10 Group Plc sold its investment in Enhance Technology
Plc of 32 ordinary shares of 50p each and 100,000 preference shares of #1
each to S P Cooper, a former director of 10 Group Plc, for a total of
#5,000.
6. REPORT AND ACCOUNTS
Copies of the Group's full Report & Accounts will be sent to shareholders
by 30th June 2003. Additional copies will be available from the Company's
registered office, 10 Clement Street, Birmingham, B1 2SL. The Statutory
Accounts will be filed with the Registrar of Companies in due course.
This information is provided by RNS
The company news service from the London Stock Exchange
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