Availeon PLC - Interim Results
January 31 2000 - 12:18PM
UK Regulatory
RNS Number:7399E
Availeon PLC
31 January 2000
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 1999
Chief Executive's Statement
Introduction
Along with the publication of our Interim Results to 30 September 1999, the
Board is pleased to announce the significant strengthening of the Board by the
recent appointment of three new directors as detailed below. In my recent
annual report to shareholders, I stated that we were then negotiating for an
acquisition that, should it proceed, would be substantial enough to constitute
a reverse. After due diligence, it has not proved possible to agree
satisfactory terms and the discussions for that acquisition have therefore
terminated.
Interim Results and Operational Review
The results for the six months ended 30 September 1999 show an operating loss
of #408,000 (1998: #314,000) on turnover of #1.5m (1998: #1.5m). As mentioned
in my statement of 22 September 1999, the cost of ongoing marketing and
enhanced operational management continued to have its effect on results to the
half-year, as did the downturn in one of our principal contracts. In addition,
a new contract that commenced at the end of the last financial year proved
extremely taxing as we inherited a number of problems that have taken much
cost and management time to address. This contract aside, the effects of
others that commenced over the last year are expected to lead to an
improvement in trading results. Progress is also being achieved in relation to
certain of the larger existing contracts where prospects are being enhanced
and in some cases facilities extended, and this is expected to have a
beneficial effect on the Group's revenues. In particular, activity at the film
studio at Elstree is very strong over the winter period.
Board Appointments
As promised in previous statements, the Board has been seeking new members and
I am therefore pleased that on 18 January 2000 two new executive directors
were appointed:
Christopher Miller, aged 38, joins the Group as Managing Director for our new
Leisure and Events Division. Mr Miller was previously with Mosimann's Limited
where he was general manager for Anton Mosimann's Party Service division and
where he increased this division's turnover significantly and managed events
for royalty, government and many prestigious corporations. Prior to this, he
was operations manager for two medium-sized contract catering businesses.
Michael Audis, aged 46, joins the Group as Managing Director for our new
Catering Management and Business Development Division, which will include
public bodies and PFI opportunities. Mr Audis joins us after 25 years with
Gardner Merchant Limited, most recently as divisional managing director -
business and industry south. Prior to that, Mr Audis was Gardner Merchant
Limited's UK sales director and served on the Government's "Health of the
Nation" taskforce. Mr Audis will also be responsible for the Group's sales and
marketing.
I am also pleased to announce the appointment on 28 January 2000 of Jeremy
Long FCA, aged 46, as Non-Executive Chairman. Mr Long is currently deputy
chairman and chief executive of GB Railways Group plc and has been involved in
the development of a number of leisure and hospitality businesses. He was
previously chief executive of Pavilion Services Limited, deputy chief
executive of Mecca Leisure Group plc and chairman of Passion for Food Limited.
Future Prospects
Following the appointment of Christopher Miller and Michael Audis, the
business of the Group has been split into two divisions. Mr Miller will be
responsible for the Group's Leisure and Events division and Mr Audis will take
charge of the Group's Catering Management and Business Development division.
It is intended that Mr Miller will create a new events business to enable the
Group to capitalise on his experience within this area. It is planned that
this business will both promote catering events and expand to cover the
organisation of other hospitality events, parties and conferences for the
corporate market. The aim is to build a company that is accepted onto the many
established event venues lists and which vigorously promotes the many unique
venues that the Group already has within its portfolio of contracts.
On an annualised basis, sales from the Group's current and prospective
operations, including the concession at St James's Park and Green Park, are
anticipated to have a positive effect on its trading position in the future.
To secure this position, the Board is today proposing a Placing and Open Offer
of 43,324,446 New Ordinary Shares at 3p per share to raise #1.15m net of
expenses, details of which are being sent to all shareholders. The Board looks
forward to the future with confidence.
Mira Hyams-Merme
Chief Executive
31 January 2000
Unaudited Consolidated Profit and Loss Account
For the six months ended 30 September 1999
Notes 6 months 6 months Year
ended ended ended
30.9.99 30.9.98 31.3.99
#'000 #'000 #'000
Turnover 1,511 1,466 2,952
Cost of sales (614) (594) (1,187)
------- ------- -------
Gross profit 897 872 1,765
Administrative expenses (1,305) (1,186) (2,435)
------- ------- -------
Operating loss (408) (314) (670)
Exceptional items 2 (11) (101) (79)
Income from interest in
associated undertaking - - 50
Interest receivable and other income 6 11 32
Interest payable and similar charges (27) (23) (70)
------- ------- -------
Loss on ordinary activities before tax (440) (427) (737)
Tax on (loss)/profit on ordinary activities - - -
------- ------- -------
Loss for the period (440) (427) (737)
======= ======= =======
Earnings per share 3 (0.3p) (0.4p) (0.7p)
======= ======= =======
Fully diluted earnings per share 3 (0.3p) (0.4p) (0.7p)
======= ======= =======
Dividends Nil Nil Nil
======= ======= =======
Notes:
1. The results for the half year are unaudited but have been reviewed by the
auditors, Baker Tilly, having regard to the Bulletin Review of Interim
Financial Information issued by the Auditing Practices Board.
2. The exceptional items relate to costs in respect of an abortive
transaction.
3. The earnings per share has been calculated on the Group's loss of
#440,000 (1998 - #427,000) and on a weighted average of 140,397,785
shares in issue during the period (1998 -103,631,118).
4. On 30 September 1999 the remaining #298,000 of convertible unsecured loan
stock was converted into 14,900,000 new ordinary shares of 2p each.
5. Copies of this statement are available at the registered office: Box 48,
Shepperton Studios, Studios Road, Shepperton, TW17 0QD.
Unaudited Consolidated Balance Sheet
As at 30 September 1999
30 September 1999 31 March 1999
#'000 #'000 #'000 #'000
Fixed assets
Intangible assets 582 598
Tangible assets 367 413
------- -------
949 1,011
Current assets
Stocks 64 53
Debtors 478 539
Cash at bank and in hand 8 4
------- -------
550 596
Creditors: Amounts falling due
within one year (1,137) (1,100)
------- -------
Net current liabilities (587) (504)
------- -------
Total assets less current liabilities 362 507
Creditors: Amounts falling due
after more than one year (25) (28)
------- -------
Net assets 337 479
======= =======
Capital and reserves
Called up share capital 3,106 2,808
Share premium account 9 9
Profit and loss account (2,778) (2,338)
------- -------
Shareholders' funds 337 479
======= =======
END
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