RNS Number:8869Y
Capital Radio PLC
20 May 2004
20 May 2004
CAPITAL RADIO PLC
Interim results for the six months to 31 March 2004
Underlying Financial Highlights
* Group revenue up 4% at #59.0m (2003: #56.9m)
* Group operating profit from analogue radio up 5% at #14.4m (2003: #13.8m)
* Group profit before taxation of #12.1m (2003: #12.0m)
* Strong balance sheet: net debt of #32m (2003: #34m) with interest
cover of 18x (2003: 17x)
* Earnings per share of 10.1p (2003: 10.1p)
* Interim dividend at 6p (2003: 6p)
Operating Highlights
* 8.1 million adult listeners across the UK - up 222,000 in the last quarter
* 95.8 Capital FM Breakfast Show adds 133,000 listeners
* Record reach for Xfm with 678,000 listeners nationally
* BRMB reclaims leadership in Birmingham with more listeners than any other
station
* Century FM Network - record reach of 1.9m listeners and share of 7.6%
Statutory Results
* Profit before tax #6.5m (2003: #7.2m)
* Basic earnings per share of 3.6p (2003: 4.3p)
* Net cash inflow from operating activities up 10% at #10.5m (2003: #9.5m)
David Mansfield, Chief Executive, commented:
"There has been a modest improvement in the advertising economy and the Group
has had ten consecutive months of year on year radio revenue growth, while
increasing the number of listeners tuning into our stations. In London, we have
clear commercial leadership with more listeners than any of our competitors. We
are realising the benefits of the improvements we made to 95.8 Capital FM, with
increased listeners across the schedule and at breakfast, Johnny Vaughan is off
to a great start with early encouraging feedback from listeners and advertisers.
Across the Group, we have seen record listening figures for Xfm and the Century
FM Network and we have reclaimed leadership of the important Birmingham market.
We believe that the advertisement of new analogue radio licences later this year
together with the accelerated uptake of digital radio in the UK will present
opportunities for the Group and we remain confident that the business is in a
strong position for future growth."
Enquiries:
Capital Radio plc
David Mansfield, Chief Executive 020-7766-6194
Peter Harris, Finance Director
Jane Wilson, Director of Communications
Finsbury Group 020-7251-3801
Rupert Younger
James Leviton
This document is available via the Internet at http://www.capitalradiogroup.com.
'Underlying' results are presented to provide a better indication of overall
financial performance. The 'underlying' results exclude goodwill amortisation
and exceptional items.
Interim results for the six months to 31 March 2004
20 May 2004
Overview and current trading
The Group has seen a modest improvement in advertising market conditions in the
last six months and revenues increased by 4% in line with expectations. The
Group's revenue is up 1% in April and will also be modestly up in May. At this
stage, June is looking more positive based on revenues related to Euro 2004 and
a weak comparable.
In the last six months, our operational priorities have been: to strengthen 95.8
Capital FM's commercial lead in London, to successfully launch the new Johnny
Vaughan Breakfast Show and to continue to grow our radio businesses across the
UK. At 95.8 Capital FM, the latest RAJAR audience figures show growth across the
schedule and we are encouraged by the early positive feedback to the new
breakfast show. Across London, in an increasingly competitive marketplace, the
Group strengthened its leadership position, supported by the other brands in our
portfolio; Xfm, Capital Gold and Choice FM. Elsewhere in the Group, the Century
FM Network, which we acquired in 2000, continues to increase listeners and
revenue and we are already attracting new national advertisers to our most
recent acquisition, Choice FM.
Our strategy is to grow our strong portfolio of complementary radio brands and
attract loyal listeners and advertisers. We believe that the Group will benefit
from the advertisement of new analogue radio licences later this year and the
increased uptake of digital radio in the UK and we remain in a strong position
to take advantage of potential consolidation opportunities.
Financial Review
Group revenue for the first six months was up 4% on the previous year, to #59.0
million (2003: #56.9 million). Underlying group operating profit from our
analogue radio operations was up 5% at #14.4million (2003: #13.8 million).
We invested #2.4 million (2003: #2.0 million) in our digital operations which
principally comprised transmission costs. Digital radio is a key part of our
strategy to expand our brands and grow our listening share throughout the UK and
we now own 59 licences covering 85% of the UK population. Our associated
companies, including Wildstar, CE Digital and IRN, contributed #0.8 million
(2003: #1.0 million) to the Group's profits.
Group profit before tax, exceptional items and amortisation of goodwill was
#12.1 million (2003: #12.0 million). The tax on underlying profits was 30.5%
(2003: 31.0%) and underlying Group earnings per share were 10.1p (2003: 10.1p).
The profit before tax was #6.5million (2003: #7.2 million). Basic earnings per
share were 3.6p (2003: 4.3p)
During the year we incurred some exceptional charges in relation to the
re-organisation of Choice following its acquisition on 1 March 2004 and in
relation to some redundancies following the discontinuing of sports
commentaries. These changes will result in savings to the Group of approximately
#2m in a full year and we expect to reinvest a substantial part of this amount
in our business.
The Group had net debt at 31 March 2004 of #32.0 million (31 March 2003: #33.9
million) and interest cover before amortisation of goodwill and exceptional
items of 18x (2003:17x). The interest charge was #0.7 million (2003: #0.8
million).
Dividend
Our solid cash-flow position allows us to maintain our dividend level. The
Directors have declared an interim dividend of 6.0p per share (2003: 6.0p per
share) to be paid on 28 June 2004 to shareholders on the register on 28 May 2004
(ex-dividend date: 26 May 2004).
Operational Review
Audience figures
Latest RAJAR audience figures for the quarter to 31 March 2004, show that the
Group now reaches 8.12 million adult listeners across the most commercially
attractive markets in the UK. In the important London market, we remain the
leading commercial radio group with 3.23 million listeners. In the crucial
breakfast period, all four of our London analogue stations gained more
listeners. Outside London, we have seen continued success, particularly with the
Century FM Network, BRMB and Red Dragon FM.
Capital FM Network
95.8 Capital FM, London's leading commercial radio station, saw increased reach
and share for the second consecutive RAJAR survey and we are encouraged by
improvements across the schedule. With more listeners to the breakfast,
mid-morning, afternoon, drive-time, and weekend breakfast shows, last year's
programming improvements to the station are now delivering results with reach
increasing by 37,000 (quarter on quarter) to 2.34 million listeners. We have
also seen an increase in the amount of time spent listening to the station with
share of listening up in the quarter to 31 March. Chris Tarrant added 133,000
listeners to the breakfast show in his last full RAJAR survey. This is a boost
for the show's new host Johnny Vaughan who started broadcasting on 19 April.
Initial feedback on the new breakfast show has been extremely encouraging with
positive reactions from listeners and advertisers alike. While still in its
infancy, early indications suggest that Johnny is capable of delivering a real
advantage over London's commercial competition at breakfast.
Outside London, the Capital FM network performed well in the most recent RAJAR
results. In South Wales, Red Dragon saw growth across the day, achieving its
highest ever audience figures with 330,000 listeners and a 15.8% share of
listening hours. In Birmingham, reach at BRMB has grown by 21,000 listeners
quarter on quarter as the station reclaimed leadership over all of its
competitors in this important marketplace. Our other stations generally
performed well as we attracted 53,000 more listeners and 1 million more
listening hours to the Capital FM Network, including 95.8 Capital FM, in the
quarter to 31 March 2004.
Century FM Network
The Century FM Network had yet another record breaking RAJAR as it continued to
attract more listeners. Almost 1.9 million listeners are now tuning into its mix
of the best of the '80's, 90's and Now' for more hours than ever. Across the
Century FM Network, highlights included 100-102 Century FM becoming the north
east's biggest station, reaching more listeners than any other in the region. In
the north west, 105.4 Century FM continues to be the largest commercial station
in the region. The success of Century's 'Hairbrush Divas' brand continues with a
regular Sunday night show and a second CD 'Hairbrush Divas 2' released this
year. Sales of Hairbrush Divas CDs now total 240,000 units. In the past six
months, the network ran the successful 'Radio you just have to sing along to'
marketing campaign, launched Century FM Ringtones and created 21st Century Kids,
its new children's charity.
Xfm Network
Broadcast on analogue in London and digitally across the UK, its most recent
audience figures saw Xfm increase listeners by 64,000, quarter on quarter, to
reach a record 678,000 listeners nationally. At breakfast, Sony Award winning DJ
of the Year, Christian O'Connell's show, described by judges as "high octane,
unmissable radio", reached an all time high of 297,000 adults with an extra
40,000 listeners from the previous quarter.
As part of Xfm's drive to build its national audience, it is partnering with
student radio stations across the UK, providing them with Xfm shows for their
schedules. In addition, the station has also partnered with New York's 92.3
K-Rock in New York to produce a weekly programme showcasing the best new music
from London and New York.
Capital Gold Network
Now available on DAB Digital Radio in all its analogue transmission areas,
Capital Gold is continuing to develop its audience on other national digital
platforms including Sky Digital, NTL and Telewest. In the important London
market, Mick Brown's Breakfast Show added 38,000 listeners on the previous
quarter and while overall, the network reach fell digital listening remains
strong. Broadcast on the AM frequency, we believe that the full potential of
Capital Gold will be realised as take-up of digital radio increases. Sales of
the popular Capital Gold CD series have now surpassed 2.4 million units and the
latest Gold CD, 'Just Great Songs' entered the UK compilation chart at number 4.
Choice FM
We completed our acquisition of urban contemporary music station Choice FM in
March 2004. We now operate two Choice FM radio licences in London and a network
of 5 digital radio licences covering London, the North West, Yorkshire, North
East and the Severn Estuary. In the most recent RAJAR figures for the quarter to
March 31 2004, Choice had 254,000 adult listeners in London and increased its
breakfast show reach to 152,000, with 18,000 extra listeners.
Revenue
With a modest improvement to advertising market conditions, we have seen an
increase in forward bookings. Across the Group, Xfm, Beat 106, the Century FM
Network and the newly acquired Choice FM, have shown collective half year
revenue uplifts of 30% and new advertisers to Choice include Nike, McDonalds,
Reebok, British Airways and the Guardian. We have also performed well across the
Capital FM network outside London and Birmingham. In London, the Johnny Vaughan
breakfast show has already attracted new sponsors including AOL and Aussie Hair
Care and a number of advertising agencies are now in the process of negotiating
longer-term contracts.
Sponsorship & Promotion continues to be successful for the whole Group. We have
attracted a number of high profile sponsors including renewals from Kellogg's
(Capital FM and Century FM networked breakfast shows), Rimmel (Party in the
Park) and O2 (Traffic & Travel, Party in the Park). In addition to traditional
revenue sources, we are also committed to developing new revenue streams
including CDs, ring-tones and interactive services.
We have seen the following performance in revenues from our top 15 advertising
categories:
Category Year-on-year % of total
growth
Retail flat 18%
Gov/Social/Political 24% 12%
Motors 11% 12%
Business & Industrial 35% 11%
Entertainment & the Media -20% 10%
Travel and Transport -20% 6%
Food 72% 6%
Entertainment -23% 5%
Household Equipment -12% 5%
Computers 50% 4%
Finance -21% 2%
Household Supplies -7% 2%
Cosmetics & Toiletries -12% 2%
Drink 49% 1%
Leisure Equipment 13% 1%
Source: Capital Radio Advertising, Oct 03 - Mar 04
Digital
With an annual investment of #5 million in 2004 and over 500,000 digital radios
now owned in the UK, digital development is a core part of our strategy to
extend Capital's brands nationally across additional platforms. We now have 59
digital licences across the UK, potentially broadcasting to 85% of the
population. As we begin to measure digital listening to our analogue brands,
recent RAJAR results show that on Capital Gold and Xfm, non-analogue listening
accounts for almost 20% of reach and we have already started selling national
advertising on Xfm. In addition, kids' station Capital Disney has produced
encouraging audience figures with 141,000 listeners over the age of four. By the
end of 2004, we plan to measure national listening for Century, Choice and Life.
Unaudited Group Profit and Loss Account
For the Half Year to 31st Unaudited Unaudited Audited Year
March 2004 Half Year Half Year Ended
to 31st March to 31st March 30th September
NOTE 2004 2003 2003
#000 #000 #000
-------------------------- ----- --------- --------- ---------
Turnover 2 58,958 56,900 115,328
--------- --------- ---------
Operating profit
Continuing operations
Before goodwill and 2 11,965 11,794 21,982
exceptional operating
costs
Exceptional operating 2,3 (758) - -
costs
Amortisation of goodwill 2 (4,843) (4,775) (9,372)
--------- --------- ---------
Operating profit 3 6,364 7,019 12,610
Share of operating profit 787 981 2,113
of associated companies --------- --------- ---------
Profit on ordinary 2 7,151 8,000 14,723
activities before
interest
Net interest payable and (694) (770) (1,465)
similar income
-------------------------- ---- --------- --------- ---------
Underlying profit before 12,058 12,005 22,795
taxation
Exceptional items and (5,601) (4,775) (9,537)
goodwill
-------------------------- ---- --------- --------- ---------
Profit on ordinary 6,457 7,230 13,258
activities before
taxation
Taxation on profit on 4 (3,446) (3,712) (6,939)
ordinary activities --------- --------- ---------
Profit on ordinary 3,011 3,518 6,319
activities after taxation
Dividends 5 (5,073) (4,927) (15,191)
--------- --------- ---------
Retained loss for the (2,062) (1,409) (8,872)
period
-------------------------- ---- --------- --------- ---------
Earnings per share 6 3.6p 4.3p 7.7p
Loss per share on 6.5p 5.8p 11.6p
exceptional items and --------- --------- ---------
goodwill after taxation
Underlying earnings per 6 10.1p 10.1p 19.3p
share
-------------------------- ---- --------- --------- ---------
Diluted earnings per 6 3.6p 4.3p 7.7p
share
-------------------------- ---- --------- --------- ---------
The results for all periods relate to continuing operations.
Unaudited Group Balance Sheet
Unaudited Unaudited Audited
as at 31st as at 31st as at 30th
March March September
2004 2003 2003
#000 #000 #000
NOTE
-------------------------- ----- -------- -------- ---------
Fixed assets
Intangible assets - 165,109 156,845 152,076
goodwill
Tangible fixed assets 16,175 16,770 16,858
Investments (including 2,785 5,317 5,656
associated undertakings) -------- -------- ---------
184,069 178,932 174,590
-------- -------- ---------
Current assets
Debtors 8 20,832 19,219 20,958
Cash 12 500 - -
Creditors: amounts falling 9 (41,673) (58,515) (63,323)
due within one year
-------- -------- ---------
Net current liabilities (20,341) (39,296) (42,365)
-------- -------- ---------
Total assets less current 163,728 139,636 132,225
liabilities -------- -------- ---------
Creditors: amounts falling 10 (20,000) - -
due after more than one
year
-------- -------- ---------
Net assets 143,728 139,636 132,225
-------- -------- ---------
Capital and reserves
Called up share capital 12 2,136 2,068 2,075
Share premium account 12 78,965 77,711 78,965
Shares to be issued 12 500 - -
Merger reserve 12 36,695 23,767 23,767
Profit and loss account 12 25,432 36,090 27,418
-------- -------- ---------
Equity shareholders' 11 143,728 139,636 132,225
funds
-------------------------- ---- -------- -------- ---------
Unaudited Group Cash Flow Statement
For the Half Year to 31st Unaudited Unaudited Audited
March 2004 Half Year to Half Year to Year Ended
31st March 31st March 30th September
2004 2003 2003
NOTE #000 #000 #000
-------------------------- ----- --------- --------- ----------
Net cash inflow from 13 10,507 9,520 26,962
operating activities
Dividends from associated 304 867 1,684
undertakings
Returns on investments and
servicing of finance
--------- --------- ----------
Interest received and 139 19 35
similar income
Interest paid (782) (627) (1,661)
--------- --------- ----------
Returns on investments and (643) (608) (1,626)
servicing of finance
Taxation paid (2,935) (3,340) (7,117)
Capital expenditure
--------- --------- ----------
Proceeds from sale of 52 14 76
tangible fixed assets
Purchase of tangible fixed (759) (1,231) (3,541)
assets --------- --------- ----------
Cash outflow on capital (707) (1,217) (3,465)
expenditure
Acquisitions and 14 (692) 154 145
disposals
Cash outflow from equity (10,262) (10,255) (15,180)
dividends paid --------- --------- ----------
Cash (outflow)/inflow (4,428) (4,879) 1,403
before use of liquid
resources and financing
Management of liquid (500) - -
resources
Cash outflow from (84) (12,612) (2,686)
financing --------- --------- ----------
Decrease in cash in the (5,012) (17,491) (1,283)
period
-------------------------- ---- --------- --------- ----------
Reconciliation of net cash
flow to
movement in net debt
-------------------------- --------- --------- ----------
Decrease in cash in the (5,012) (17,491) (1,283)
period
Cash flow from decrease/ - 9,000 (1,500)
(increase) in debt
Monies transferred into 12 500 - -
escrow
Repayment of finance leases - 31 31
Repayment of loan notes 84 3,595 4,186
--------- --------- ----------
Movement in net debt in
the period (4,428) (4,865) 1,434
Net debt at start of period (27,565) (28,999) (28,999)
--------- --------- ----------
Net debt at end of period 15 (31,993) (33,864) (27,565)
-------------------------- --------- --------- ----------
Notes to the Interim Statement
1. Accounting Policies
The statement has been prepared under the historical cost accounting
rules, modified to include the revaluation of certain fixed assets, and in
accordance with applicable accounting standards, consistent with those used for
the year ended 30th September 2003, except for purchased goodwill on the
acquisition of Tainside Limited.
Prior to becoming a subsidiary undertaking, Tainside Limited (trading as
Choice FM) was accounted for as an associated undertaking. In accordance with
FRS2, and in order to give a true and fair view, purchased goodwill has been
calculated as the sum of the goodwill arising on each purchase of shares in
Tainside Limited, being the difference at the date of each purchase between the
fair value of the consideration given and the fair value of the identifiable
assets and liabilities attributable to the interest purchased. This represents a
departure from the statutory method, under which goodwill is calculated as the
difference between cost and fair value on the date that Tainside Limited became
a subsidiary undertaking. The statutory method would not give a true and fair
view because it would result in the group's share of Tainside Limited's retained
reserves, during the period that it was an associated undertaking, being
recharacterised as goodwill. The effect of this departure is to decrease
retained profits and decrease purchased goodwill by #621,000.
Tangible fixed assets are stated at cost less accumulated depreciation.
Fixed asset investments are stated at cost less provisions.
2. Segmental Information Unaudited Half Unaudited Half Audited Year
Year to 31st Year to 31st Ended 30th
March March September
2004 2003 2003
#000 #000 #000
------------------------------ ----------- ----------- ----------
Turnover
Commercial radio, all from UK:
Analogue 58,658 56,599 114,637
Digital 300 301 691
----------- ----------- ----------
Total 58,958 56,900 115,328
----------- ----------- ----------
Profit before interest and
taxation
Commercial radio, all from UK:
Analogue 14,414 13,765 26,216
Digital (2,449) (1,971) (4,234)
----------- ----------- ----------
Total before goodwill and 11,965 11,794 21,982
exceptional operating costs
Exceptional operating costs (758) - -
Amortisation of goodwill (4,843) (4,775) (9,372)
----------- ----------- ----------
Operating profit 6,364 7,019 12,610
Share of operating profit of 787 981 2,113
associated undertakings ----------- ----------- ----------
7,151 8,000 14,723
------------------------------ ----------- ----------- ----------
3. Operating Profit
Unaudited Half Unaudited Half Audited Year
Year to 31st Year to 31st Ended 30th
March 2004 March 2003 September 2003
#000 #000 #000
Turnover 58,958 56,900 115,328
Direct cost of sales (7,276) (7,111) (14,406)
----------- ----------- -----------
Gross profit 51,682 49,789 100,922
Staff costs (14,634) (13,254) (27,827)
Other operating charges (23,694) (23,203) (48,078)
----------- ----------- -----------
13,354 13,332 25,017
Exceptional operating costs (758) - -
----------- ----------- -----------
12,596 13,332 25,017
Depreciation and amortisation of (6,232) (6,313) (12,407)
goodwill ----------- ----------- -----------
Operating profit 6,364 7,019 12,610
-------------------------------- ----------- ----------- -----------
Exceptional costs in the period relate to management and post Choice acquisition
restructuring costs and the provision for redundancies following the
discontinuing of sports commentaries on the FM network stations.
4. Taxation
UK corporation tax has been provided at 30% (2003: 30%) on the taxable
profits for the period. After allowing for adjustments related to prior years
the effective rate of corporation tax is 30% (2003: 31%). Included within
debtors is a deferred tax asset of #269,000. (2003: #463,000)
5. Dividends
The Directors propose to pay an interim dividend of 6.0p per share
(2003: Interim dividend of 6.0p per share, full year dividend of 18.5p per
share) on 28th June 2004 to all shareholders on the register on 28th May 2004
(ex-dividend date: 26th May 2004).
6. Earnings Per Share
Earnings per share is based on the profit after tax of #3,011,000 (2003:
#3,518,000) divided by the weighted average number of Ordinary Shares in issue
in each of the relevant periods; 2004: 82,749,960 (2003: 82,052,600). The
underlying earnings per share is included to show the effect of adjusting for
the impact of goodwill and exceptional operating costs which results in earnings
increasing by #5,601,000 (2003: #4,775,000). After the effect of a related tax
credit of #231,000 (2003: #nil), this results in earnings of #8,381,000 (2003:
#8,293,000).
Dilution increases the weighted average number of shares to 82,938,986
(2003: 82,061,807).
7. Acquisition of Choice FM
On 1 March 2004 Capital Radio plc completed the acquisition of Tainside Limited
(trading as Choice FM) in accordance with the original agreement signed on 25
October 2001. Consideration amounted to #17,258,000 resulting in purchased
goodwill of #17,806,000 (see note 1). Fair value adjustments totalling #221,000
have been included in these figures in respect of revaluations and accounting
policies. The Group has used acquisition accounting to account for this
purchase.
8. Debtors Unaudited as Unaudited as Audited as at
at 31st March at 31st March 30th September
2004 2003 2003
#000 #000 #000
------------------------------ ---------- ----------- ----------
Amounts falling due within one
year:
Trade debtors 13,438 12,276 14,032
Deferred tax 269 463 400
Other debtors 1,577 1,218 1,133
Prepayments and accrued income 4,581 4,310 4,426
---------- ----------- ----------
19,865 18,267 19,991
Amounts falling after more than
one year:
Prepayments and accrued income 967 952 967
---------- ----------- ----------
20,832 19,219 20,958
------------------------------ ---------- ----------- ----------
9. Creditors - amounts falling Unaudited as Unaudited as Audited as at
due within one year at 31st March at 31st March 30th September
2004 2003 2003
#000 #000 #000
------------------------------ ---------- ----------- ----------
Bank loans and overdrafts 10,783 31,479 25,771
Loan notes 1,710 2,385 1,794
Trade creditors 10,445 4,076 10,921
Other creditors 2,448 3,327 1,966
Corporation tax payable 4,496 5,159 4,104
Proposed dividend 5,077 4,927 10,266
Other taxation and social 2,587 2,224 2,890
security
Accruals and deferred income 4,127 4,938 5,611
---------- ----------- ----------
41,673 58,515 63,323
------------------------------ ---------- ----------- ----------
10. Creditors - amounts falling Unaudited as Unaudited as Audited as at
due after more than one year at 31st March at 31st March 30th September
2004 2003 2003
#000 #000 #000
-------------------------- ---------- ----------- ----------
Bank loans and overdrafts 20,000 - -
---------- ----------- ----------
20,000 - -
-------------------------- ---------- ----------- ----------
11. Reconciliation of Movement in Shareholders' Funds
Unaudited Unaudited Audited
Half Year to Half Year to Year Ended
31st March 31st March 30th September
2004 2003 2003
#000 #000 #000
------------------------ ----------- ----------- ------------
Profit for the financial 3,011 3,518 6,319
period
Dividends (5,073) (4,927) (15,191)
----------- ----------- ------------
Retained loss for the (2,062) (1,409) (8,872)
period
New share capital 61 14 31
issued
Movement on shares to be 500 - -
issued
Movement on merger 12,928 - -
reserve
Movement on Quest 76 148 183
----------- ----------- ------------
Net movement in 11,503 (1,247) (8,658)
shareholders' funds
Equity shareholders' 132,225 140,883 140,883
funds at beginning of
period
----------- ----------- ------------
Equity shareholders' 143,728 139,636 132,225
funds at end of period
------------------------ ----------- ----------- ------------
12. Reserves
The movement on reserves during the period was as follows:
Share Capital Share Premium Shares to Merger Reserve Profit and
be Issued Loss Account
#000 #000 #000 #000 #000
------------------------ -------- -------- -------- -------- -------
Beginning of period 2,075 78,965 - 23,767 27,418
Retained loss for the - - - - (2,062)
period
Movement on Quest - - - - 76
New share capital 61 - - - -
issued
Reserves arising on - - 500 12,928 -
acquisition -------- -------- -------- -------- -------
End of period 2,136 78,965 500 36,695 25,432
------------------------ -------- -------- -------- -------- -------
The Group issued 2,434,535 ordinary shares at #5.335 for the acquisition of
Tainside Limited. The #500,000 included within shares to be issued represents
monies held in escrow relating to conditional issue of shares as part of the
purchase of Tainside Limited.
13. Reconciliation of Operating Profit to Net Cash Inflow from Operating
Activities
Unaudited Unaudited Audited Year
Half Year to Half Year to Ended 30th
31st March 31st March September
2004 2003 2003
#000 #000 #000
-------------------------------------- ----------- ---------- ----------
Operating profit 6,364 7,019 12,610
Depreciation 1,389 1,538 3,035
Amortisation and impairment of 4,843 4,775 9,372
goodwill
Profit on disposal of fixed tangible (1) (3) (41)
assets
Decrease/(increase) in debtors 202 (593) (694)
(Decrease)/increase in creditors* (2,390) (3,196) 2,478
Profit on disposal of investment - (20) (20)
Change in provisions against 100 - 222
investments in own shares ----------- ---------- ----------
Net cash inflow from operating 10,507 9,520 26,962
activities
-------------------------------------- ----------- ---------- ----------
* Liabilities of #737,000 were acquired with Tainside Limited.
14. Cash Flows from Acquisitions and Disposals
Unaudited Unaudited Audited Year
Half Year to Half Year to Ended 30th
31st March 31st March September
2004 2003 2003
#000 #000 #000
------------------------------------ --------- ----------- -----------
Acquisition of subsidiary (205) - -
Overdraft acquired with subsidiary (431) 50 50
Repayment of associate set-up - 111 111
costs
Purchase of fixed asset (56) (7) (16)
investments --------- ----------- -----------
(692) 154 145
------------------------------------ --------- ----------- -----------
Net Debt at Cash Other Net Debt at
15. Analysis of Net 30th September Flow non-cash 31st March
Debt 2003 changes 2004
#000 #000 #000
Bank overdrafts (5,771) (5,012) - (10,783)
---------- ------- -------- ----------
Bank loans falling due in (20,000) - 20,000 -
less than one year
Bank loans falling due - - (20,000) (20,000)
after more than one
Year
Loan notes (1,794) 84 - (1,710)
Monies transferred to - 500 - 500
escrow ---------- ------- -------- ----------
(21,794) 584 - (21,210)
---------- ------- -------- ----------
(27,565) (4,428) - (31,993)
----------------------- ---------- ------- -------- ----------
16. Full Accounts
The information relating to the half years ended 31 March 2003 and 2004 is
unaudited and does not constitute statutory accounts. The comparative figures
for the financial year ended 30th September 2003 are not the Company's statutory
accounts for that financial year. Those accounts have been reported on by the
Company's auditors and delivered to the Registrar of Companies. The report of
the auditors was unqualified and did not contain a statement under section 237
(2) or (3) of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QKCKKDBKBOPD
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