Final Results
April 27 2005 - 3:00AM
UK Regulatory
Highlights
2004 2003
�000 �000
Turnover 2,430 2,458
Profit before tax and amortisation of goodwill 230 141
Profit before tax 201 141
Profit after tax 156 120
Earnings - pence per share 0.16p 0.13p
* Turnover 1.1% down on last year's record.
* Profit before tax and amortisation of goodwill up 64% to �230,000.
* Profit before tax up 43% to �201,000.
* Good client retention by all elements of business.
* Strong balance sheet with net assets of 4.3p (3.7p of cash) per share, of which 3.7p is
cash.
* Dividend (proposed) of 0.05 pence per share.
Julian Burney, Chief Executive Officer, said:
"This is another pleasing result as we begin to generate returns on our continuing investment in
product innovation, staff and technology.
"We are relieved that a cloud has been lifted from our institutional advisory services by the
FSA's recognition that the cost of research is a permitted cost that may be charged direct to
investment funds alongside transaction costs. The uncertainty felt by a number of our
institutional customers and potential customers over the last eighteen months has undoubtedly had
a restraining effect on our institutional business.
"The recent expansion of our wider market subscription services from the US to the world's other
major stock markets has given us truly global coverage, but at local levels. These services under
our Investors Intelligence brand are highly-scalable and the recent extension of our micro-site
based offerings to providers of on-line retail investment services will help us with the public
exposure we need."
For further information:
Stockcube Julian Burney 020-7352-4001
Corporate Synergy Luke Ahern 020 7626 2244
Chairman's Statement
Introduction
We continued to make very good progress during 2004 in establishing Stockcube as a leading
provider of financial research and analysis on a truly global scale.
Financial review
Turnover for the year ended 31 December 2004 was �2,430,000 - a slight decrease of 1.1% from last
year's record (2003: �2,458,000). We are pleased to report that profit before tax was �201,000, an
increase of 43% over 2003 (�141,000) and profit after tax increased by 30% to �156,000 (2003
�120,000). Basic earnings were 0.16p per 1p ordinary share compared to 0.13p in 2003.
Our balance sheet continues to be strong with net assets of 4.3p (3.7p of cash) per share, of
which 3.7p is cash,
at 31 December, 2004.
Operations
Turnover from Stockcube Research, our stock market and sector analysis consultancy for
institutional investors, recorded a 3% drop after surging on a like-for-like basis by 20% in 2003.
We have continued our policy to increase the spread and depth of our expertise by recruiting and
training junior analysts and successfully building and nurturing research teams with regional and
sector specialisms. We expect these moves to bear fruit in the future.
Despite the continuing weakness of the US$ our US subsidiary, Chartcraft, contributed �83,000 to
consolidated group profits, up 33% on 2003.
During the year we launched our Investors Intelligence wider market subscription services for the
UK, European, Japanese and South East Asian equities, moving us further in our aim of covering
local markets on a worldwide basis. Customers can now subscribe for stock research on a modular
basis with common navigability across all modules. In pursuit of our strategy to seek distribution
partners for our analysis work, we have built and power online research 'microsites' that host
elements of our analysis for a number of leading stockbrokers providing shop windows for our
complete subscription services.
We changed the Fullermoney format during the year from a monthly hardcopy to a full on-line
service, thereby increasing considerably its immediacy and relevance to customers. While we
anticipated fallout from the switch away from hardcopy, we are pleased to note that subscriptions
have held up at last year's levels. We look forward to an enhanced contribution from Fullermoney
to group profits following increases in subscription rates and removal of printing and
distribution costs.
Our London based Chart Seminars continue to sell-out and our bespoke consultancy for in-house
training is developing satisfactorily.
Staff
I should like to thank our staff for their continued contribution during the year.
Dividend
We are pleased to propose to shareholders that we pay a dividend of 0.05 pence per share in
respect of the results for 2004.
Outlook
The current year has started well and we are confident of developing further our institutional and
subscriber customer base. We will continue to expand our business interests organically, in
conjunction with distribution partners, as well as considering selected investments.
Edward Forbes,
Chairman,
London
27 April 2005
Group profit and loss account
For the year ended 31 December 2004
2004 2003
�000 �000
Turnover 2,430 2,458
Administrative expenses (2,360) (2,452)
------- -------
Group operating profit 70 6
Share of operating loss in associate (8) -
Amortisation of goodwill arising on acquisition of associate (29) -
------- -------
Total operating profit: group and share of associate 33 6
Interest receivable and similar income 168 135
------- -------
Profit on ordinary activities before taxation 201 141
Tax on profit on ordinary activities (45) (21)
------- -------
Profit for the financial year 156 120
Dividends (48) (48)
-------- --------
Retained Profit for the year 108 72
------- -------
Basic earnings per share 0.16p 0.13p
Group Statement of Total Recognised Gains and Losses
2004 2003
�000 �000
Profit for the financial year excluding share of losses of associate 164 120
Share of associate loss for the year (8) -
------- -------
Profit for the financial year attributable to members of the
parent company 156 120
Exchange differences on retranslation of net assets of
subsidiary undertaking 55 34
------- -------
Total recognised gains and losses during the year 211 154
------- -------
Stockcube Plc
Group Balance Sheet
At 31 December 2004
2004 2003
�000 �000
Fixed assets
Intangible assets 19 -
Tangible assets 345 345
Investments in associate 400 -
------- ------
764 345
Current assets
Debtors 550 300
Short-term deposits 3,450 3,880
Cash at bank and in hand 111 265
------- ------
4,111 4,445
Creditors: amounts falling due within one year (665) (743)
------- ------
Net current assets 3,446 3,702
------- ------
Total assets less current liabilities 4,210 4,047
------- ------
Capital and reserves
Called up share capital 961 961
Share premium account 3,774 3,774
Merger reserve 568 568
Profit and loss account (1,093) (1,256)
------- ------
Equity shareholders' funds 4,210 4,047
------- ------
Approved by the Board on 27 April 2005
Julian Burney
Director
Stockcube Plc
Group Statement of Cash Flows
For the year ended 31 December 2004
2004 2003
�000 �000
Net cash( outflow)/ inflow from operating activities (193) 273
-------- --------
Returns of investments and servicing of finance
Interest received 168 135
-------- --------
Coporation tax paid (18) (2)
-------- --------
Capital expenditure
Payments to acquire tangible fixed assets (36) (29)
Payments to acquire intangible fixed assets (20) -
-------- --------
Total capital expenditure (56) (29)
-------- --------
Acquisitions and disposals
Payments to acquire investments in associates (437) -
-------- --------
Equity dividends paid (48) -
-------- --------
Net cash (outflow)/ inflow before financing (584) 377
-------- --------
Management of liquid resources
Decrease/(increase) in short-term deposits 430 (1,020)
-------- --------
(Decrease) in cash (154) (643)
-------- --------
Reconciliation of net cash flow to movement in net funds
2004 2003
�000 �000
(Decrease) in cash (154) (643)
(Decrease)/ increase in short-term deposits (430) 1,020
------- -------
Movement in net funds (584) 377
------- -------
Net funds at 1 January 4,145 3,768
-------- -------
Net funds at 31 December 3,561 4,145
-------- --------
Reconciliation of operating loss to net cash outflow from operating activities
2004 2003
�000 �000
Operating profit 70 6
Depreciation 36 30
Amortisation of goodwill 1 -
(Increase)/decrease in debtors (250) 94
(Decrease)/increase in creditors (50) 143
------- ------
Net cash (outflow)/inflow from operating activities (193) 273
------- ------
Analysis of changes in net funds
At 1 January Cashflow At 31 December
2004 2004
�000 �000 �000
Cash at bank and in hand 265 (154) 111
Short-term deposits 3,880 (430) 3,450
------- ------- -------
4,145 (584) 3,561
------- ------- -------
Notes
1. Nature of financial information
These accounts do not constitute accounts under section 240 of the Companies Act 1985. The
results for the year ended 31 December 2003 are extracts from the Group accounts which
have been delivered to the Registrar of Companies. They carry an unqualified auditor's
report and did not contain a statement under Section 237 (2) or (3) of the Company's Act
1985. The statutory accounts for the year ended 31 December 2004 will be finalised on the
basis of the financial information in this preliminary announcement and will be filed with
the Registrar of Companies after the Annual General Meeting.
2. Basis of preparation
The accounts are prepared under the historical cost convention and in accordance with
applicable accounting standards. The accounting policies set out in the group accounts for
the year ended 31 December 2003 have been applied for the purposes of this statement.
3. Basis of consolidation
The group financial statements consolidate the financial statements of Stockcube PLC and
all of its subsidiary undertakings for the year to 31 December 2004
Entities other than subsidiary undertakings, in which the group has a participating
interest and over whose operating and financial policies the group exercises a significant
influence are treated as associates. In the group financial statements, associates are
accounted for using the equity method
No profit and loss account is presented for Stockcube PLC as permitted by Section 230 of
the Companies Act 1985
4. Earnings per share
The calculation of basic earnings per ordinary share is based on earnings as follows:
2004 2003
000 000
Profit for the year �156 �120
Weighted average number of ordinary shares outstanding 96,106 96,106
Basic earnings per share 0.16p 0.13p
There were no dilutive potential ordinary shares in 2004 (2003:nil)
5. Dividend record and payment date
The Directors have decided to pay a dividend. The dividend will be paid on 6 June 2005 at
a price of 0.05p per share. Dividends will be paid to those shareholders on the Register
at the close of business on 4 May 2005.
Stockcube PLC
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