Interim Results
November 21 2005 - 2:00AM
UK Regulatory
RNS Number:3725U
Blue Star Mobile Group plc
21 November 2005
BLUE STAR MOBILE GROUP PLC
Interim Results
Blue Star Mobile Group PLC ("Blue Star" or the "Company"), the provider of
mobile marketing and content solutions, announces its first interim results
since its successful flotation on AIM, for the period ended 30 September 2005
Financial Highlights
- Turnover of #1.2m
- Gross Profit of #0.4m
- Profit achieved in Q2
- Net Cash balances of #0.4m at 30 September 2005
Corporate Highlights
- Successful AIM flotation in April 2005
- Purchase and integration of mobile sports marketing company, Sports
Programming & Event Consultants Limited (SPEC), on flotation
(subsequently renamed Blue Star Sport Limited).
Operational Highlights
- Contract with News Group Digital (part of News International) to
provide mobile channel management and technical delivery
- Extension to News Group Digital agreement to manage all SMS
subscription services, reverse auctions and SMS text to win competitions
- Re-appointment as T-Mobile UK's exclusive English football sponsorship
agency.
- Deals with a numbers of brands, the latest being the launch of
British Airways' Alternative London City Guide for mobiles.
- Deal to provide, on the Vodafone Live platform, a range of exclusive
video content for the Filmnight service.
- Deal with Hit40uk to deliver a reverse auction via a text message
service
David Cromwell, Chairman of Blue Star Mobile Group plc, commented:
"Our company has grown at a strong but manageable pace. We believe that the
business will continue to grow going forward as we exploit opportunities within
the growing mobile marketing and content solutions market. We have already
established a number of profitable relationships with a range of blue chip
organisations and these demonstrate our ability to grow and develop the
business."
For further Information, please contact
Blue Star Mobile Group plc:
Steve Clarke
Chief Executive
Tel: 020 7317 2300
Adam Hayes
Finance Director
Tel: 020 7317 2300
Binns & Co PR Ltd
Paul McManus
Tel: 020 7153 1485
Mob: 07980 541 893
About Blue Star Mobile Group PLC
Blue Star Mobile Group plc listed on the AIM on 1 April 2005.
The Group consists of two companies:
Blue Star Mobile is a mobile content and solutions specialist. It works with
networks and handset manufacturers to develop strategic marketing tools to drive
handset and content sales and with brands and media companies to communicate and
drive revenue through mobile. Clients include Motorola, News International,
Bacardi, British Airways and EMAP
Blue Star Sport is a sports marketing company that specialises in the football
and mobile industries. Its main client is T-Mobile UK for which it negotiates,
manages and activates its English football and cycling sponsorship programmes.
Blue Star Mobile Group PLC
Chairman's Statement
The Mobile Market
The underlying belief of the Company is that mobile content and mobile solutions
are confusing to both consumers and corporates. The majority of consumers do
not know how to download content or activate WAP settings and corporates do not
have the capability or resource to handle content rights, content formatting and
handset compatibility. Blue Star Mobile simplifies this by delivering a
complete solution to its clients.
Even as consumers and corporates become more knowledgeable about mobile content
and mobile solutions, we believe the industry will become more complex as mobile
handset technology develops and mobile handset capabilities increase. Therefore
the need for cutting-edge products and services will remain for existing and new
clients alike.
Business Review
By developing our complete solution and by incorporating the strapline of
'Making Mobile Simple', we have established an impressive blue chip client base
in the first six months since listing. Clients originate from the areas of
handset manufacturers, network operators, retailers, media companies and major
brands.
The nature of our working relationship with each client differs depending on
their particular requirements. When working with a handset manufacturer such as
Motorola our role is to create compelling content propositions that can be used
as a marketing tool to help drive sales of a particular handset for which we
receive a payment per handset.
For a media company, such as News International, our role is to effectively act
as their external mobile channel department and help them to drive revenue. A
revenue or gross profit share model is used in these relationships.
Our relationship with the network operator, T-Mobile, is based on delivering a
specific service for a pre-defined fee.
With brands, our role is to create new and innovative ways for them to
communicate with their desired audience through the mobile channel for which we
received a development fee and a maintenance fee to cover ongoing work.
Growth Areas
Whilst we recognised that the majority of our sales would initially come from
handset manufacturers and retailers we are encouraged at the rate at which we
have brought on other brands from outside the mobile arena.
Our core strength is our ability to influence, understand and implement
solutions that meet our customer's requirements in a fast paced environment.
Financial Results
Blue Star Mobile Group plc was incorporated on 25th February 2005. The Company
has adopted reverse acquisition accounting following its acquisition of Blue
Star Mobile Ltd on 16th March 2005. The comparatives shown in the financial
statements relate to Blue Star Mobile Ltd.
The group has generated a turnover of #1.2m for the six months ending 30
September (compared with #0.1m for the same period in 2004), including #0.5m of
turnover from Blue Star Sport which was acquired on 1 April 2005. In the same
period gross margin rose to #0.4m and the business moved into profit in Q2 in
line with internal business plans.
On listing, loan notes that had been issued by the Group and its subsidiaries
were all converted to shares.
The business holds #0.4m of net cash at the 30 September 2005.
Six Months Overview
The key objective for the period was to establish a stable and robust business
that gives us the platform to grow rapidly. Our first strategic objective of
consolidating our place in the mobile content and solutions market has been
achieved.
In the first six months, we also completed the acquisition and integration of
Sports Programming & Event Consultants Limited (SPEC), which we have
subsequently re-branded as Blue Star Sport. Following the acquisition Blue Star
Sport was reappointed by their major client, T-Mobile to manage its English
football sponsorship programme.
We are pleased with the performance of the business to date and are excited
about what can be achieved going forward.
Over the last six months we have been able to sign a number of deals with a
number of major brands. In May we announced a deal with 02, in association with
News International, to syndicate the 'Page 3' multimedia content of 'The Sun'
newspaper. In June we announced a deal with Hit40uk, the UK's biggest music
chart show, to deliver a reverse auction via a text messaging service, as well
as an exclusive partnership with BlueBuy, the German online retailer, to provide
branded mobile content for promotional use.
Furthermore in July we announced an agreement with Filmnight Digital
(filmnight.com) to deliver video content through their service on Vodafone Live!
In September we announced a deal with T-Mobile to provide a new mobile java game
and in successfully launched British Airways' new Alternative London City Guide
for mobiles.
Future Opportunities
We will continue to develop relationships with our existing partners in the UK.
In addition we will focus on media agencies to access brands where we see an
opportunity to utilise the mobile channel.
The UK is recognised as being at the forefront of the mobile content industry
and therefore we are also investing time and resource in exploiting
opportunities to expand internationally.
Blue Star Sport Ltd will exploit opportunities around World Cup 2006 by
utilising our expertise within sport and mobile.
Outlook
Our company has grown at a strong but manageable pace. We believe that the
business will continue to grow going forward as we exploit opportunities within
the growing mobile marketing and content solutions market.
Summary
We are pleased with the performance of Blue Star Mobile Group PLC to date and
whilst we understand the challenges ahead, we are very excited and optimistic
about the potential that our business can realise in a rapidly growing market.
We have already established a number of profitable relationships with a range of
blue chip organisations and these demonstrate our ability to grow and develop
the business.
David Cromwell
Chairman
21 November 2005
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Period ended 30 September 2005
Unaudited Unaudited Unaudited
Period Six months Period
ended ended ended
30 September 30 September 31 March
2005 2004 2005
Note #'000 #'000 #'000
TURNOVER 680 97 247
Acquisitions 485
Total Turnover 6 1165 97 247
COST OF SALES (762) (33) (119)
GROSS PROFIT 403 64 128
Administrative expenses (524) (216) (567)
OPERATING LOSS (121) (152) (439)
Interest receivable and similar income 6 - 1
Interest payable and similar charges - (3) (8)
LOSS ON ORDINARY ACTIVITIES (115) (155) (446)
BEFORE TAXATION
Tax on profit on ordinary activities - - -
LOSS ON ORDINARY ACTIVITIES (115) (155) (446)
AFTER TAXATION
Equity dividend payable - -
RETAINED PROFIT FOR THE FINANCIAL PERIOD (115) (155) (446)
BASIC AND DILUTED (LOSS) PER ORDINARY SHARE p/share (0.449) n/a n/a
There are no recognised gains and losses other than those passing through the
profit and loss account.
CONSOLIDATED BALANCE SHEET
As at 30 September 2005
Unaudited Unaudited
as at as at Unaudited
30 30 as at
Note September September 31 March
2005 2004 2005
#'000 #'000 #'000
FIXED ASSETS
Intangible Assets 437
Other tangible fixed assets 21 22 22
458 22 22
CURRENT ASSETS
Debtors 661 79 132
Cash at bank and in hand 399 24 441
1060 102 573
CREDITORS: amounts falling due (770) (229) (991)
within one year
NET CURRENT ASSETS/ (LIABILITIES) 290 (127) (418)
TOTAL ASSETS LESS CURRENT LIABILITIES 748 (105) (396)
CREDITORS: amounts falling due - -
after more than one year
NET ASSETS 748 (105) (396)
CAPITAL AND RESERVES
Called up share capital 8 296 50 50
Share premium account 8 1224
Reverse Acquisition reserve 8 (211)
Profit and loss account 8 (561) (154) (446)
EQUITY SHAREHOLDERS' FUNDS 748 (105) (396)
CONSOLIDATED CASH FLOW STATEMENT
Period ended 30 September 2005
Unaudited Unaudited Unaudited
Period Six months
ended ended
30 30 Year ended
September September 31 March
2005 2004 2005
Note #'000 #'000 #'000
Net cash inflow (outflow) from operating activities 7 (222) (58) (216)
Returns on investment and servicing of finance
Interest received 6 1
Interest paid (3) (8)
Net cash inflow (outflow) from returns on investments and 6 (3) (7)
servicing of finance
Taxation
UK corporation tax paid - - -
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (4) (25) (30)
Receipts from sale of fixed assets
Payments to improve investment properties
Net cash outflow from capital expenditure and financial (4) (25) (30)
investment
Acquisitions and disposals
Payments to acquire subsidiary (98)
Cash acquired in subsidiary 26
Net cash (outflow)/inflow from acquisitions and disposals (72) - -
Equity dividends paid - - -
Cash (outflow)/inflow before financing (292) (86) (253)
Financing
Issue of share capital 1051 50 50
Expenses incurred in issuing share capital (155)
New borrowings 60 739
Repayment of borrowings (646) (93)
Expenses incurred in arranging finance
Net cash inflow from financing 250 110 694
Increase (Decrease) in cash (42) 24 441
NOTES TO THE INTERIM FINANCIAL INFORMATION
Period ended 30 September 2005
1. The financial information included in the interim report comprises the
consolidated profit and loss account, the consolidated balance sheet, the
consolidated cash flow statement and notes 1 to y. These have been prepared in
accordance with the normal accounting policies of the Group.
2. This interim financial information does not constitute statutory
accounts within the meaning of s240 (5) of the Companies Act 1985.
3. Blue Star Mobile Group PLC was incorporated on 25th February 2005. In
the consolidated financial information the group has adopted reverse acquistion
accounting for its acquisition of Blue Star Mobile Ltd in March 2005.
Consequently the comparative figures provided for the periods ended 30 September
2004 and 31 March 2005 are those of Blue Star Mobile Ltd.
4. The financial information is unaudited and has not been reviewed by the
Group's auditors
5. The Company completed the acquisition of Sports Programming & Event
Consultants Limited (SPEC) following the company's listing on AIM on 1st April
2005.
6. Analysis of Turnover
Unaudited Unaudited Unaudited
Period Six months
ended ended Year ended
30 September 30 September 31 March
2005 2004 2005
#'000 #'000 #'000
Mobile Content & Solutions 680 97 247
Sports Marketing 485
Turnover 1165 97 247
7. Reconciliation of operating loss to net cash inflow from operating activities
Unaudited Unaudited Unaudited
Period Six months
ended ended Year ended
30 September 30 September 31 March
2005 2004 2005
#'000 #'000 #'000
Operating loss (121) (152) (439)
Depreciation 5 3 8
Amortisation of Goodwill 11
(Increase) in debtors (473) (79) (132)
Increase in creditors 356 170 347
Net cash inflow from operating activities (222) (58) (216)
8. Statement of movements on share capital and reserves
Called up Share Reverse Profit and
share premium Acquisition loss
capital reserve account Total
#'000 #'000 #'000 #'000 #'000
Share issue to acquire BSM 200 200
Share issue on admission to AIM 62 793 855
Share issued to acquire SPEC 20 404 424
Less cost of issue (155) (155)
Share issue June 05 13 183 196
Retained loss Blue Star mobile Ltd (446) (446)
Reverse acquisition reserve (211) (211)
Retained loss for the period - unaudited (115) (115)
At 30 September 2005 - unaudited 295 1225 (211) (561) 748
9. Copies of this statement are available to the public for collection at
the company's registered office at 116 Gloucester Place, London W1U 6HZ.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ZVLFFEFBXFBQ
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