Interim Results
December 14 2005 - 5:24AM
UK Regulatory
RNS Number:6367V
MKM Group PLC
14 December 2005
MKM Group plc
('MKM' or the 'Group')
Interim results for the six months ended 30 September 2005
Chairman's statement
Financial review
The poor financial results for the six months to 30 September 2005 reflect the
difficulties associated with the problems of the previous financial year and the
subsequent radical restructuring of the business. As stated at the time of the
publication of the annual report, the first quarter was particularly difficult
but the performance improved in the second quarter. Turnover was # 2,404,000
(2004 - # 4,457,000) and the Group produced a loss before taxation for the half
year of #512,000 (2004 - #372,000 profit). This performance was in line with
the Board's expectations at the time of publication of the 2005 report and
accounts and the completion of the placing and open offer on 2 September 2005.
The substantial overhead restructuring and cost reduction exercise has been
completed and the balance sheet reflects the benefit of the funds raised from
the placing and open offer.
An increasingly significant proportion of sales have been derived from the
Partnership and Loyalty programmes and focus is being placed on the development
of these areas. Sales and new business orders have been encouraging and the
second half performance shows continued signs of improvement
Following the successful completion of the restructuring, the management team
are now fully focused on returning the business to profitability.
Dividend
No interim dividend is being paid or proposed.
Outlook
Since the end of the half year, trade has been encouraging with the Group
trading profitably and new business continuing to be won. The benefits of the
reduced cost platform will be reflected in the Group's performance in the second
half.
Andrew Johnson
Chairman
14 December 2005
For Further Information:
Andrew Johnson MKM Group plc 0161 606 0733
Chairman
David Youngman WH Ireland Limited 0161 832 2174
MKM GROUP PLC
Consolidated Profit And Loss Account For The Six Months Ended 30 September 2005
Notes Unaudited 6 Months Ended Unaudited 6 Months Ended Audited
30 September 2005 30 September 2004 12 Months
Ended 31
March 2005
#'000 #'000 #'000
Turnover 3 2,404 4,457 10,279
Cost of sales (1,585) (2,413) (7,083)
Exceptional cost of sales - - (790)
________ ________ _________
Gross Profit 819 2,044 2,406
Administrative expenses (1,348) (1,683) (3,465)
Exceptional administrative expenses - - (367)
Other operating income - 10 -
________ ________ _________
Operating (Loss)/Profit (529) 371 (1,426)
Interest receivable and similar
income 23 23 73
Interest payable and similar charges (6) (22) (38)
________ ________ _________
(Loss)/Profit on Ordinary Activities
Before Taxation (512) 372 (1,391)
Tax charge/(credit) on profit/(loss) 4
on ordinary activities - (124) 231
________ ________ _________
(Loss)/Profit on Ordinary Activities
After Taxation (512) 248 (1,160)
Dividends - - -
________ ________ _________
Retained (Loss)/Profit For The
Period (512) 248 (1,160)
________ ________ _________
Earnings Per Share 5
-Basic (3.0)p 3.0p (10.8)p
-Diluted (3.0)p 2.9p (10.8)p
________ _________ _________
No separate statement of total recognised gains and losses has been presented as
all gains and losses have been dealt with in the profit and loss account.
MKM GROUP PLC
Consolidated Balance Sheet At 30 September 2005
Unaudited Unaudited Audited
At 30 September 2005 At 30 September 2004 At 31 March 2005
#'000 #'000 #'0000
Fixed Assets
Intangible assets 797 848 823
Tangible assets 365 377 493
_______ _______ _______
1,162 1,225 1,316
Current Assets
Stocks 1 1 1
Debtors 1,014 1,577 1,172
Cash at bank and in hand 1,112 2,095 1,151
_______ _______ ______
2,127 3,673 2,324
Creditors: Amounts Falling
Due Within One Year 1,190 2,163 2,047
_______ _______ ______
Net Current Assets 937 1,510 277
_______ _______ _______
Total Assets Less Current
Liabilities 2,099 2,735 1,593
Creditors: Amounts Falling
Due After More Than One Year - 531 -
Provision For Liabilities And
Charges 639 4 892
_______ _______ ______
639 535 892
_______ _______ _______
Net Assets 1,460 2,200 701
_______ _______ _______
Capital and Reserves
Called up share capital 204 66 66
Share premium account 2,082 949 949
Profit and loss account (826) 1,185 (314)
_______ _______ _______
Equity Shareholders' Funds 1,460 2,200 701
_______ _______ _______
MKM GROUP PLC
Consolidated Cash Flow Statement For The Six Months Ended 30 September 2005
Note Unaudited 6 Unaudited 6 Audited 12
Months Ended Months Ended Months Ended
30 September 30 September 31 March 2005
2005 2004
#'000 #'000 #'000
Net Cash (Outflow)/Inflow From Operating
Activities 6 (1,544) 481 129
Returns On Investments And Servicing Of Finance 17 1 35
Taxation 270 (318) (316)
Capital Expenditure And Financial Investment (51) (269) (438)
Acquisitions - (120) (120)
Dividends - - -
________ ________ _______
Net Cash Outflow Before Financing (1,308) (225) (710)
Financing 7 1,270 1,012 553
________ ________ _______
(Decrease)/Increase In Cash In The Period (38) 787 (157)
________ ________ _______
Reconciliation Of Net Cash Flow To Movement In
Net Debt
(Decrease)/Increase in cash in the period (38) 787 (157)
Cash inflow from increase in debt - - 412
________ ________ ________
Change in net funds resulting from cash flows (38) 787 255
New finance leases - - -
________ ________ ________
Movement in net funds in the period (38) 787 255
Net funds at the start of the period 1,147 892 892
________ ________ ________
Net funds at the end of the period 1,109 1,679 1,147
________ ________ ________
MKM GROUP PLC
Notes Forming Part Of The Financial Statements For The Six Months Ended 30
September 2005
________________________________________________________________________________
1. Accounting Policies.
The results for the six month period ended 30 September 2005, which are not
audited, have been prepared on the basis of accounting policies consistent with
those that will be adopted in the Report and Financial Statements for the year
ending 31 March 2006.
2. Basis of Preparation of Interim Financial Information.
The Interim Results are unaudited and do not constitute full accounts within the
meaning of Section 240 of the Companies Act 1985. The results for the year
ended 31 March 2005 and the balance sheet as at that date are abridged from the
Company's Report & Financial Statements which have been delivered to the
Registrar of Companies. The auditors' report on these accounts was unqualified
and did not contain a statement under Section 237(2) or (3) of the Companies Act
1985.
3. Turnover
Turnover is wholly attributable to the principal activity of the group and
arises in the United Kingdom.
4. Taxation.
The tax charge for the period is based on the anticipated effective rate of tax
for the year to 31 March 2006.
5. Earnings Per Share.
The basic earnings per share has been calculated using the weighted average
number of shares in issue during the relevant financial periods. The weighted
average number of equity shares in issue is 17,097,834 (6 months to 30 September
2004 - 8,361,379; 12 months to 31 March 2005 - 10,762,146) and the earnings,
being the loss after tax, are #512,000 (6 months to 30 September 2004 - #248,000
profit; 12 months to 31 March 2005 - #1,160,000 loss).
6. Reconciliation of Operating Profit to Net Cash Inflow From Operating
Activities.
Unaudited Unaudited Audited
6 Months Ended 6 Months Ended 12 Months Ended
30 September 2005 30 September 2004 31 March 2005
#'000 #'000 #'000
Operating (loss)/profit (529) 371 (1,426)
Depreciation 82 36 87
Amortisation 26 26 51
Loss on sale of fixed assets 97 - 2
(Increase)/ decrease in debtors (112) (424) 251
(Decrease)/increase in creditors (1,108) 431 1,164
Share Option adjustment - 41 -
____ ____ ____
Net cash (outflow)/inflow from
operating activities (1,544) 481 129
____ ____ ____
7. Financing
The #1,270,000 cash inflow from financing for the six months ended 30 September
2005 relates to the net proceeds from the issue of new shares.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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