Interim Results
September 26 2001 - 3:00AM
UK Regulatory
RNS Number:6321K
e-quisitor PLC
26 September 2001
26 September 2001
e-quisitor plc
Interim Results for the half year ended 30 June 2001
Financial Highlights
* Turnover of #2.9m
* Operating profit, before exceptional items and goodwill amortisation of #
217,000
* Earnings per share, before exceptional items and goodwill amortisation, of
2.63p
Operating Highlights
* TVI, e-quisitor's first acquisition, remained profitable despite
difficult trading conditions in the US
* Successfully completed the acquisition of Broadnet a profitable,
UK-based software house providing technology for commercial radio
stations
* Identified over 200 acquisition opportunities in the UK and US
For further information
Bob Bond, Chief Executive
e-quisitor plc
Tel: 01422 301917
Millham Communications Ltd
Keeley Middleton
Tel: 0113 242 1171
e-quisitor plc
CHAIRMAN'S STATEMENT
Introduction
Your Company was established in March 2000 and was admitted to AIM on 19 May
2000. The period being reported on is the six months to 30 June 2001. Since
inception e-quisitor's strategy has been and remains focused on acquiring
controlling interests in profitable information-oriented businesses with good
growth prospects.
Results
Operating profit, before exceptional costs and amortisation of goodwill, for
the six months was #217,000 which, given the poor economic environment in the
United States is considered by your Board to be satisfactory. The loss after
tax for the period of #132,000 is after exceptional items of #42,000 and
goodwill charges of #207,000. Earnings per share before goodwill amortisation
and exceptional items were 2.63p compared with a loss for the period ended 31
December 2000 of 0.98p.
Operating cashflows in the period have been impacted by a reduction in the
level of customer deposits at TVI. However, since the end of the period the
working capital position has stabilised.
Review of Operations
US-based TVI remained the sole business in the Group during the period. Given
the fragility of the US economy throughout this period the Board focused much
of its effort on maintaining the profitability at TVI, whilst continuing
cautiously to seek new acquisition opportunities.
I am pleased to report that the actions undertaken at TVI have ensured that it
has remained profitable. Throughout this period of difficult trading
conditions the employees at TVI have shown tremendous determination in working
with your Board to improve operational efficiency and win new business. TVI
also began piloting a number of new programming initiatives including the
recruitment of clinical trials candidates, marketing financial services and
specific campaigns for the federal government.
Dealflow during the period remained very strong. More than 200 acquisition
targets were identified, but your Board continued to take a cautious view of
new acquisition opportunities, particularly those in the US.
The Group continues to have available to it bank facilities of #27 million,
comprising a #25 million acquisition facility and a #2 million working capital
facility. As at 30 June 2001 the Group's net bank indebtedness was #2.9
million.
Recent Developments
On 7 August 2001 e-quisitor completed the acquisition of UK-based Broadnet, an
established software house specialising in the development of advertising
scheduling systems for commercial radio stations. Broadnet is the leading
provider of scheduling software to commercial radio stations in the UK.
Broadnet provides e-quisitor with a profitable, cash-generative platform to
address the opportunities presented by digital radio, whilst at the same time
generating recurring revenues from its core analogue radio customers. It is
your Board's ultimate intention to leverage TVI's expertise to help commercial
radio stations deliver compelling visual content alongside their existing
audio output.
TVI has recently launched a new programming initiative focused on home and
family-related issues. Since the launch Proctor & Gamble and The Roblin Group
have contracted to participate in the show, which should begin airing in
spring 2002.
Future Prospects
Recent events in the United States and their consequences can only exacerbate
an already challenging economic environment. Your Board will continue to
focus its attentions on maintaining the profitability of TVI in the face of
very difficult market conditions. On the positive side, Broadnet has traded
well since its acquisition and, mainly due to its strong market position, your
Board believes that this situation should continue for the foreseeable future
despite a worsening global economic outlook.
Your Board remains confident in its ability to identify appropriate businesses
that meet our stated acquisition criteria and intends to maintain e-quisitor's
acquisition programme whilst continuing to exercise an appropriate degree of
caution.
Phillip Bennett
Chairman
26 September 2001
e-quisitor plc
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months ended 30 June 2001
Pre-
Exceptional Exceptional
items
items Total
Notes Period
Six months Six months Six months ended 31
ended 30 ended 30 ended 30 December
June 2001 June 2001 June 2001 2000
(unaudited) (unaudited) (unaudited) (audited)
#'000 #'000 #'000 #'000
Turnover 2,933 - 2,933 947
Cost of sales (1,503) - (1,503) (593)
Gross profit 1,430 - 1,430 354
Administrative expenses (1,420) (42) (1,462) (448)
Operating profit/(loss)
before amortisation of
goodwill
217 (42) 175 (44)
Amortisation of (207) - (207) (50)
goodwill
Operating profit/(loss) 10 (42) (32) (94)
Net interest (payable)/ (147) - (147) 46
receivable
Loss before taxation (137) (42) (179) (48)
Taxation 47 - 47 (29)
Loss after taxation (90) (42) (132) (77)
Minority interests 2 - - - (4)
Loss for the period (90) (42) (132) (81)
Basic (earnings)/loss 3
per share
Before exceptional
items and goodwill
amortisation 2.63p (0.98p)
After exceptional items
and goodwill
amortisation (2.96p) (2.56p)
Diluted earnings/(loss) 3
per share
Before exceptional
items and goodwill 2.46p (0.92p)
amortisation
After exceptional items
and goodwill
amortisation (2.77p) (2.41p)
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES #'000 #'000
Loss for the period (132) (81)
Currency adjustments 228 (191)
Total recognised gains
and losses in the
period 96 (272)
e-quisitor plc
CONSOLIDATED BALANCE SHEET
at 30 June 2001
31
30 June 2001 December
2000
(unaudited) (audited)
#'000 #'000
FIXED ASSETS
Intangible assets 7,886 7,692
Tangible assets 189 258
8,075 7,950
CURRENT ASSETS
Stock 138 190
Debtors 267 161
Cash - 367
405 718
CREDITORS: amounts falling due within one year (1,530) (1,949)
Net current liabilities (1,125) (1,231)
6,950 6,719
CREDITORS: amounts falling due after more than one (2,583) (2,507)
year
4,367 4,212
CAPITAL AND RESERVES
Called up equity share capital 445 445
Share premium account 4,098 4,098
Profit and loss account (176) (272)
Equity shareholders' funds 4,367 4,271
Equity minority interests - (59)
4,367 4,212
e-quisitor plc
CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30 June 2001
Six months ended 30 Period ended 31
June 2001 December 2000
(unaudited) (audited)
#'000 #'000
Net cash (outflow)/inflow from (605) 163
operating activities
Returns on investments and (146) (181)
servicing of finance
Capital expenditure and financial 34 70
investments
Acquisitions - (6,845)
Net cash (outflow)/inflow before (717) (6,793)
financing
Financing (30) 7,160
(Decrease)/increase in cash in the (747) 367
period
Reconciliation of net cashflow to
movement in net debt
(Reduction)/increase in cash in the (747) 367
period
Cash (outflow)/inflow from increase
in debt and lease
financing (30) (2,425)
Finance leases acquired with - (173)
subsidiary undertakings
Currency adjustments (53) 78
Movement in net debt (830) (2,153)
Opening net debt (2,153) -
Closing net debt (2,983) (2,153)
NOTES
1. The interim financial information for the half year ended 30 June 2001 has
not been audited and does not constitute statutory accounts within the
meaning of Section 240 of the Companies Act 1985. It has been prepared on
the basis of the Group's accounting policies set out in the Group's 2000
statutory accounts.
2. In view of the trading performance of TVI the directors consider that there
is no current likelihood of any additional consideration being payable for
the remaining 10% minority interest in that company. The consideration
payable for the remaining 10% interest is dependent on the level of
profits achieved by the TVI Group in the four years ending 31 December
2003 and in the 12 months ending on the same date. For this reason no
minority interest adjustment has been made for the six months ended 30
June 2001.
3. The calculation of the basic loss per share is based on the loss after
taxation of #132,000 divided by the weighted average number of ordinary
shares in issue during the period of 4,454,545 (basic) and 4,757,909
(diluted). An adjusted earnings per share figure before exceptional items
and the amortisation of goodwill has been presented to show underlying
earnings. This is based on the profit after taxation of #117,000 which
represents the pre-exceptional profit before goodwill of #217,000 less
interest of #147,000 plus the tax credit relating to pre-exceptional
profit of #47,000.
4. No interim ordinary dividend is payable.
5. The profit and loss account for the year ended 31 December 2000 and the
balance sheet at that date are derived from the Company's full accounts
which have been filed with the Registrar of Companies and on which the
Company's auditors gave an unqualified report.
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