Final Results
April 30 2001 - 9:23AM
UK Regulatory
RNS Number:8471C
e-quisitor PLC
30 April 2001
30 April 2001
e-quisitor plc
Chairman's Statement
The Company was established in March 2000 and was admitted to AIM on 19th May
2000. The period being reported is the period from incorporation on 13 March
2000 to 31 December 2000. Since inception e-quisitor's strategy has been and
remains focused on acquiring controlling interests in profitable
information-oriented businesses with good growth prospects.
Review of Operations to 31 December 2000
In the short period of time between May and December the Company has reached a
number of important milestones:-
* successfully completed its first acquisition on 14 November 2000,
US-based TVI for an initial consideration of $10m.
* together with GWB established a dealflow function capable of proactively
sourcing acquisition opportunities both in the US and UK.
* successfully secured a #25m acquisition finance facility and a #2m
working capital facility.
* breakeven before goodwill and tax reflecting e-quisitor's start-up and
head office costs mitigated by the positive contribution of TVI since
acquisition.
Recent Developments
At this early stage in the development of the group, the financial performance
is directly aligned with the performance of its sole subsidiary, TVI.
TVI is a cross-media production company specialising in the promotion of its
clients through the creation of high quality programming for a range of media,
including television and the internet using video streaming technology.
Historically, its client base has been a mix of early stage internet
businesses, established technology companies and blue-chip pharmaceuticals.
In common with very many other US businesses TVI has recently been impacted by
the sudden and sharp slowdown in the US economy and, in particular, by the
rapid decline in spending by early stage internet companies.
In view of these circumstances your Board has taken the following incisive
action in conjunction with TVI's management team:-
* costs have been reduced by over 35% but without effecting the ability to
generate sales
* TVI's marketing activities have been repositioned to focus greater
attention on non-technology sector clients. Primary target markets (which
TVI already has a presence in) now include the following:-
+ Pharmaceutical sector
+ Grant-funded healthcare sector
+ Blue-chip technology sector
* TVI has widened its product offering to further increase the
attractiveness of its services to new and existing clients
By rapidly implementing these measures and working closely with TVI's
management team, your Board has ensured that TVI remains profitable, despite
the significant slowdown in the US economy. We believe that our strategy of
buying high quality, profitable businesses is vindicated by the ability of TVI
to remain profitable despite the recent sudden and sharp reduction in spending
by TVI's clients in the technology sector.
Prospects
Going forward we will continue to work directly with the management team at
TVI and apply our expertise particularly in the area of sales & marketing to
provide support, guidance and assistance as we trade through this particularly
challenging period. However, this will not be undertaken at the expense of
identifying and concluding new acquisitions.
Although dealflow remains positive, we are currently taking a more cautious
approach determined in part by the performance of the US economy. While it
remains our intention to build a balanced portfolio of UK and US businesses in
the short to medium term our focus will be directed more to the UK.
For further information:
e-quisitor plc Millham Communications
Bob Bond, Chief Executive Keeley Middleton
Tel: 07747 032478 Tel: 0113 242 1171
e-quisitor plc
GROUP PROFIT AND LOSS ACCOUNT
for the period ended 31 December 2000
Notes #'000
Turnover- acquisitions 947
Cost of sales (593)
Gross profit 354
Administrative expenses (448)
Operating loss before amortisation of goodwill (44)
Amortisation of goodwill (50)
Operating loss 2 (94)
Interest 46
Loss before taxation (48)
Taxation (29)
Loss after taxation (77)
Minority interests (4)
Loss for the period (81)
Basic loss per share
Loss per share 3 (2.56p)
Adjusted loss per share 3 (0.98p)
Diluted loss per share
Loss per share 3 (2.41p)
Adjusted loss per share 3 (0.92p)
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
#'000
Loss for the period (81)
Currency adjustments (191)
Total recognised gains and losses (272)
e-quisitor plc
CONSOLIDATED BALANCE SHEET
as at 31 December 2000
Notes #'000
FIXED ASSETS
Intangible assets 4 7,692
Tangible assets 258
7,950
CURRENT ASSETS
Stock 190
Debtors 161
Cash 367
718
CREDITORS: amounts falling due within one year (1,949)
Net current liabilities (1,231)
Total assets less current liabilities 6,719
CREDITORS: amounts falling due after more than one year (2,507)
4,212
CAPITAL AND RESERVES
Called up equity share capital 445
Share premium account 4,098
Profit and loss account (272)
Equity shareholders' funds 5 4,271
Equity minority interests (59)
4,212
e-quisitor plc
CONSOLIDATED CASHFLOW STATEMENT
for the period ended 31 December 2000
Notes #'000
Net cash outflow from operating activities 6 (69)
Returns on investments and servicing of finance 51
Capital expenditure and financial investments 70
Acquisitions (6,845)
Cash outflow before financing (6,793)
Financing 7,160
Increase in cash in the period 367
Reconciliation of net cashflow to movement in net debt
Increase in cash in the period 367
Cash outflow from increase in debt and lease financing (2,425)
Finance leases acquired with subsidiary undertakings (173)
Currency adjustments 78
Closing net debt (2,153)
e-quisitor plc
Notes:
1. Basis of preparation
The financial information above is not the Group's statutory accounts. The
Group's accounts for the period from incorporation on 13 March 2000 through to
31 December 2000 on which the auditors, PricewaterhouseCoopers, have given an
unqualified opinion in accordance with Section 235 of the Companies Act 1985,
will be filed with the Registrar of Companies in due course.
2. Operating loss
The operating loss comprises: #'000
Head office (116)
Acquisition 72
Amortisation of goodwill (50)
(94)
3. Loss per share
The calculation of the basic loss per share is based on a loss of #81,000
divided by the weighted average number of Ordinary shares in issue during the
period of 3,159,636 (basic) and 3,367,145 (diluted). An adjusted loss per
share figure before the amortisation of goodwill has been presented. This is
based on a loss after taxation of #31,000 which represents the adjusted loss
of #81,000 before goodwill amortisation of #50,000.
4. Intangible fixed assets
Group Goodwill
#'000
Cost
Additions 8,005
Currency adjustments (262)
At 31 December 2000 7,743
Amortisation
Charge for the period 50
Currency adjustments 1
At 31 December 2000 51
Net book amount at 31 December 2000 7,692
The fair value of the net assets acquired can be summarised as follows:
#'000
Fixed assets
Tangible assets 362
Current assets
Stock 195
Debtors 146
Cash at bank and in hand 556
Current liabilities
Finance leases (173)
Trade and other creditors (410)
Deferred revenue (1,343)
Minority interests 63
Fair value of net liabilities acquired (604)
Consideration - cash 6,963
- costs 438
7,401
Provisional goodwill 8,005
No fair value adjustments were made by the Group.
5. Group reconciliation of movements in shareholders' funds
#'000
Opening equity shareholders' funds -
Loss for the period (81)
Currency adjustments (191)
Shares issued in the period 4,914
Costs associated with share issue (371)
Closing equity shareholders' funds 4,271
6. Reconciliation of operating loss to net cash outflow from operating
activities
#'000
Operating loss (94)
Depreciation 21
Amortisation of goodwill 50
Decrease in stock 5
(Increase) in debtors (243)
Increase in creditors 228
(Decrease) in deferred income (36)
Net cash outflow from operating activities (69)
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