30 November 2007
ADWALKER PLC
('Adwalker' or 'the Group' or 'the Company')
INTERIM RESULTS
The Board of Adwalker, the AIM-quoted media technology company, is pleased to
announce its interim results for the six-month period ended 31 August 2007.
HIGHLIGHTS
* Turnover for the period increased to Euro1,142,547 (2006: Euro937,756);
* Gross profits increased to Euro562,201 (2006: Euro445,229);
* Fundraising completed raising �930,000, before expenses, from a Placing of
62,000,000 new ordinary shares at 1.5 pence per share;
* USA operation continues to experience strong growth; and
* Pilot underway of an interactive digital network on behalf of a blue chip
Fast Moving Consumer Goods ("FMCG") company.
Commenting on today's results, Adwalker's, Chairman, Padraic O'Connor, said:
"The Group has made good progress in the first six months of this fiscal year
resulting in an increase in turnover with a particularly strong contribution
from our USA operation. In addition, the Company has made significant progress
with the development and pilot of an interactive digital network for a blue
chip customer and the Board believes the Company is well placed to build on the
progress made to date."
--ENDS--
Enquiries:
Adwalker plc Tel: +353 (1) 866 9000
Simon Crisp
simon@adwalker.com
John East & Partners Limited Tel: 020 7628 2200
Simon Clements
David Worlidge
Bishopsgate Communications Ltd. Tel: 020 7562 3350
Dominic Barretto Mobile: 07930 450 156
Sophie Davis Mobile: 07960 830 635
sophie@bishopsgatecommunications.com
www.bishopsgatecommunications.com
Notes to Editors:
About Adwalker
The Adwalker mobile out-of-home, interactive media platform is an advertising
and media platform which is worn by its operators ('Adwalkers') as a compact
body pack incorporating a LCD screen, wearable computer, touch screen and
printer, enabling services and applications which include brand advertising,
point-of-sale, data capture and promotions.
Some of Adwalker's blue chip clients to date include Bank Of America, AT&T,BT,
Virgin Music, Volvo, Lufthansa, Motorola, Diageo, Daimler Chrysler, Microsoft,
Paramount Pictures, UIP/Universal Pictures, GSK, Ask.com, 3 Mobile, American
Express, Coors, Comcast, O2, Ford, Guinness, Telemundo, British Airways,
Charles Schwab and Jameson's.
Adwalker's shares were admitted to trading on the AIM market of the London
Stock Exchange in August 2005. (Ticker: AWR) Its headquarters are in Dublin,
with offices in New York and London.
CHAIRMAN'S STATEMENT
I am pleased to present the interim results of the Group for the six months
ended 31 August 2007.
The Group has made good progress in the first six months of this fiscal year
resulting in an increase in turnover with a particularly strong contribution
from our USA operation. In addition, the Company has made significant progress
with the development and pilot of an interactive digital network for a blue
chip customer.
Turnover for the period was Euro1,142,547 (2006: Euro937,756) and gross profits were
Euro562,201 (2006: Euro445,229). The Company generated a loss before tax of Euro988,917
(2006: Euro1,597,969). The reduction in losses over the corresponding period in
2006 is due to tighter cost controls being exercised over the period and
slightly increased gross margins on client campaigns. The loss per share for
the period amounted to 0.56 cents (2006: 0.95 cents).
Earlier today, the Company announced that it has raised �930,000, before
expenses, from a Placing of 62,000,000 ordinary shares in the capital of the
Company at 1.5p per share with institutional and other investors. The Placing
provides the Company with working capital to support its expected growth, repay
certain overdue trade creditors and provide working capital generally.
The Company's USA operation continues to experience strong growth and for the
period under review and the Board believes the performance in the USA will
continue to drive the Adwalker wearable media business although its
contribution in the second half is likely to be impacted by the weakening
dollar.
In the period under review, the UK operation has concentrated on the
development of a longer term strategy with rental partners and steady progress
has been made in this area. The Irish operation has primarily focussed on the
development of digital consumer communication solutions and supporting the
operational requirements of the pilot project referred to below.
As previously announced, the Company is currently undertaking a pilot study of
an interactive digital network on behalf of a major Fast Moving Consumer Goods
("FMCG") company. The pilot study results to date have been very encouraging
and the decision to implement a major roll-out of this network is expected to
be made by the FMCG company in the first quarter of 2008.
In addition, the Company has received several enquiries from other Blue Chip
companies and retailers to discuss the development of similar interactive
digital networks and the Company will update shareholders in the event that
those discussions develop further.
The adoption cycle for the Adwalker wearable media solution is shortening, as
media agencies and their clients slowly move away from traditional media and
into the digital arena, and the global awareness of the platform continues to
grow. Increased awareness has led to a number of enquiries to licence the units
for use within certain territories. The Board is actively considering these
opportunities in order to increase the utilisation of its 300 Adwalker units.
The Board is encouraged with the Group's performance in the first half of the
fiscal year, in particular the pilot study results from the interactive digital
network pilot and the Board believes the Company is well placed to build on the
progress made to date.
PADRAIC O'CONNOR
CHAIRMAN
30 November 2007
Consolidated Income Statement
For the six months ended 31 August 2007
Notes Six months Six months Year
ended ended ended
31 August 31 August 28 February
2007 2006 2007
Unaudited Unaudited Audited
Euro Euro Euro
Revenue - continuing operations 3 1,142,547 937,756 1,599,645
Cost of sales (580,346) (492,527) (1,149,190)
Gross profit 562,201 445,229 450,455
Distribution costs (5,077) (29,191) (24,727)
Administrative and other (1,494,014) (2,042,887) (3,624,733)
operating expenses
Loss from operations - (936,890) (1,626,849) (3,199,005)
continuing operations
Finance costs (6,311) (1,691) (3,832)
Income from investments - 34,518 36,448
Exchange loss (45,716) (3,947) (20,756)
Loss before tax - continuing (988,917) (1,597,969) (3,187,145)
operations
Income tax expense - - 8,613
Net loss for the period - (988,917) (1,597,969) (3,178,532)
continuing operations
Loss per share 4
Basic loss per share (0.56 cent) (0.95 cent) (1.88 cent)
Diluted loss per share (0.56 cent) (0.95 cent) (1.80 cent)
Consolidated Balance Sheet
As at 31 August 2007
Notes 31 August 31 August 28 February
2007 2006 2007
Unaudited Unaudited Audited
Euro Euro Euro
Assets
Non-current assets
Plant and equipment 5 434,666 889,868 609,973
Intangible assets 6 282,847 408,134 339,642
717,513 1,298,002 949,615
Current assets
Trade and other receivables 254,844 637,638 234,552
Bank and cash balances 174,938 402,655 109,738
429,782 1,040,293 344,290
Total assets 1,147,295 2,338,295 1,293,905
Equity and liabilities
Capital and reserves
Share capital 7 3,712,664 3,372,664 3,372,664
Capital reserves 5,753,560 5,392,689 5,392,689
Other reserve 25,489 - (8,519)
Share Options 505,582 464,617 493,410
Accumulated losses (10,177,763) (7,608,284) (9,188,848)
Total equity (180,469) 1,621,686 61,396
Non current liabilities
Obligations under finance leases 46,237 82,146 63,509
- due after one year
46,237 82,146 63,509
Current liabilities
Trade and other payables 865,900 494,370 886,296
Bank loans and Overdrafts 178,933 25,769 98,138
- due within one year
Other taxation liabilities 198,176 75,806 145,829
Obligations under finance leases 38,518 38,518 38,736
- due within one year
1,281,527 634,463 1,169,000
Total equity and liabilities 1,147,295 2,338,295 1,293,905
Consolidated cash flow statement for the six months ended 31 August 2007
Six months Six months Year
ended ended
ended
31August 31August
28 February
2007 2006
2007
(Unaudited) (Unaudited)
(Audited)
Euro Euro
Euro
Operating activities
Loss before tax (988,917) (1,597,969) (3,187,145)
Depreciation and amortisation 295,336 349,361 705,888
Adjustments for share options grants 12,172 29,933 58,726
Exchange differences 35,377 -
(646,032) (1,218,675) (2,422,531)
Tax refund - - 1,251
Decrease in inventories - 5,390 5,390
(Increase)/Decrease in receivables (18,528) (121,034) 282,052
Decrease/(Increase) in payables 31,952 (37,747) 423,044
Cash used in operations (632,608) (1,372,066) (1,710,794)
Net investment expense/(income) 6,311 (32,827) (32,616)
Net cash used in operating activities (626,297) (1,404,893) (1,743,410)
Investing activities
Interest received - 34,518 36,448
Interest paid (6,311) (1,691) (3,832)
Purchase of intangible assets (22,665) (13,820) (21,905)
Purchase of property, plant and (41,938) (82,056) (82,111)
equipment
Net cash used in investing activities (70,914) (63,049) (71,400)
Net cash outflow before financing (697,211) (1,467,942) (1,814,810)
Financing activities
Issue of shares 700,871 - -
Capital repayment of finance leases (19,254) (19,259) (37,678)
Net cash flow from financing 681,618 (19,259) (37,678)
Decrease in cash and cash equivalents (15,593) (1,487,201) (1,852,488)
in period
Cash and cash equivalents at start of 11,599 1,864,087 1,864,087
the period
Cash and cash equivalents at end of the 3,994 376,886 11,599
period
Notes to the interim consolidated financial statements
For the six months ended 31 August 2007
1. General
Adwalker plc is a public limited company incorporated in Ireland. The company
has subsidiaries located in the United Kingdom, United States and Hong Kong.
The company and subsidiaries are principally involved in offering clients
digital media solutions on the Adwalker mobile platform.
These results are presented in Euro as that is the currency in which the
majority of the Group's transactions are presently denominated.
2. Basis of Preparation of the interim financial statements
The interim financial statements have been prepared on a basis which is
consistent with the accounting policies adopted for the period to 31 August
2007.
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the AIM
Rules of the London Stock Exchange which require that the accounting policies
and presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes,
and the reasons for them, are disclosed.
The interim accounts which are abridged and unaudited, do not include all the
information required for full annual financial statements. The financial
information contained in the interim statements does not constitute statutory
accounts as defined within the meaning of the Companies Act 1963 to 2006.
Comparative figures for the year to 28 February 2007 have been extracted from
the latest financial statements on which the report of the independent auditors
was unqualified.
The interim financial statements have been prepared in accordance with the
International Financial Reporting Standards.
3. Revenue
An analysis of the Group's revenue is as follows:
Six months Six months Year
ended ended
ended
31 August 31 August
2006 28 February
2007 2007
Unaudited
Unaudited Audited
Euro Euro Euro
Media services 1,142,547 937,756 1,599,645
Revenue is derived from the following geographic regions
Ireland 78,972 248,630 193,900
United Kingdom 53,970 556,461 853,180
United States of America 1,009,605 132,665 552,565
1,142,547 937,756 1,599,645
4. Loss per share
Basic loss per share is based on a loss of Euro988,917, (Six months ended 31
August 2006: Euro1,597,969) (Year ended 28 February 2007: Euro3,178,532) and a
weighted average number of shares in issue of 177,880,340 (Six months ended 31
August 2006: 168,633,087) (Year ended 28 February 2007: 168,633,087).
In 2007 the diluted loss per share has been calculated on the same basis as
basic loss per share because the effect of the potential ordinary shares (share
options) reduces the net loss per share and is therefore anti-dilutive.
5. Plant and equipment
Adwalker Fixtures Computer Leasehold Total
&
Packs Equipment Improvements
Fittings
Euro Euro Euro Euro Euro
Cost or valuation
At 1 March 2007 1,334,619 131,256 178,555 89,174 1,733,604
Reclassification 650 (1,714) 1,670 (606) -
Exchange - (1,462) (629) (165) (2,256)
Additions - - 41,938 - 41,938
At 31 August 2007 1,335,269 128,080 221,534 88,403 1,773,286
Accumulated depreciation
and impairment
At 1 March 2007 915,600 41,652 139,218 27,161 1,123,631
Reclassification 5,067 1,237 (5,797) (507) -
Exchange - (522) (295) (71) (888)
Charge for the period 178,844 13,529 14,443 9,060 215,876
At 31 August 2007 1,099,511 55,896 147,569 35,643 1,338,620
Carrying amount
At 28 February 2007- 419,019 89,604 39,337 62,013 609,973
Audited
At 31 August 2007 - 235,758 72,184 73,965 52,759 434,666
Unaudited
6. Intangible assets
Patents and ACOMS Goodwill Total
Trademark System
Euro Euro Euro Euro
Cost
At 1 March 2007 88,894 527,643 1,959,567 2,576,104
Additions 22,665 - - 22,665
At 31 August 2007 111,559 527,643 1,959,567 2,598,769
Accumulated amortisation
At 1 March 2007 33,057 243,838 1,959,567 2,236,462
Charge for the period 13,505 65,955 - 79,460
At 31 August 2007 46,562 309,793 1,959,567 2,315,922
Carrying amount
At 28 February 2007 - Audited 55,837 283,850 - 339,642
At 31 August 2007 - Unaudited 64,997 217,850 - 282,847
The impairment of goodwill arose on Adwalker (IP) Limited. The company ceased
trading on acquisition and the directors wrote down the goodwill relating to
this subsidiary by Euro1,959,567 in the period ended 28 February 2005.
7. Share Capital
31 August 31 August 28 February
2007 2006 2007
Unaudited Unaudited Audited
Euro Euro Euro
Authorised share capital
1,200,000,000 ordinary shares of Euro0.02 24,000,000 24,000,000 24,000,000
each
24,000,000 24,000,000 24,000,000
Issued share capital
At 1 March 2007
168,633,087 ordinary shares of Euro0.02 3,372,664 3,372,664 3,372,664
each
Issued in the period 340,000 - -
17,000,000 ordinary shares of Euro0.02 each
3,712,664 3,372,664 3,372,664
8. Dividends
The Directors are not proposing the payment of a dividend in respect of the six
months ended 31 August 2007.
9. Copies of the Interim Results
Copies of the interim results will be sent out to shareholders shortly and will
also be available at the Company's registered office, The Crescent Building,
Northwood, Santry, Dublin 9.
END
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