Interim Results
August 31 2006 - 4:01AM
UK Regulatory
1
Stockcube Plc
Interim Report
for the six months ended 30 June 2006
The Stockcube group produces research and technical analysis of the relative strengths and weaknesses
of price trends of stocks, stock and other financial instruments that assist institutional and
private investors in the timing of investment transactions.
Highlights for the six months ended 30 June 2006
* Turnover up 13.8% to �1,371,000 (2005: �1,205,000)
* Operating profit up 296% to �194,000 (2005: �49,000)
* Profit before tax of �286,000 (2005: loss �20,000)
* Earnings per share of 2.20p (2005: loss per share of 0.6p)
"Revenues generated in our consultancy and global strategy businesses in particular have shown good
growth and we continue to look for value for money from our cost base.
"Regulatory changes that clarify the way we bill our services are now being implemented by the
investment management industry which results in a greater opportunity for us as independent research
providers.
"Naturally, we are sensitive to the wide fluctuations in investor sentiment that prevail in all the
world's major financial markets in periods of uncertainty. However, we are confident that the
services and information we provide to customers and the perspective we bring to their investment
decisions will remain of value and we will see continuation of the growth in our business and
financial performance."
Julian Burney
Chief Executive of Stockcube
30 August 2006
Enquiries:
Julian Burney Chief Executive Officer +44 (0)207-352-4001
Shirley Yeoh Finance Director +44 (0)207-352-4001
Our website is: www.stockcube.com
Stockcube Plc
Chairman's Statement
for the six months ended 30 June 2006
Introduction
We are pleased to report that our increasing reputation for providing clear and timely research and
analysis of the world's major financial markets has begun to generate some tangible reward.
Financial review
Turnover for the six months ended 30 June, 2006 was up 13.8% to �1,371,000 (2005: �1,205,000) and
group operating profit increased very significantly by 296% to �194,000 from �49,000 in 2005.
Profit before tax amounted to �286,000 compared to a published loss of �20,000 in 2005 and, like-for-
like, increased by 120% over �130,000 (before exceptional impairment charges) reported for 2005.
Earnings per share of 2.2p compare to losses of 0.6p, re-stated for the effect of the consolidation
of our issued and authorised ordinary capital into 1 (new) for 10 (old) ordinary shares in May 2006
and, like for like, increased by 120% over earnings per share of 1.0p (before exceptional impairment
charges) reported for 2005.
We had cash balances of �4,242,000 at 30 June 2006 compared with �3,900,000 at the beginning of the
year. Assets per share amounted to 46.8p (2005: 43.1p) of which cash represented 44.1p per share
(2005: 40.3p).
Review of operations
We have continued to devote greater attention to individual client requirements in our institutional
investor consultancy and analysis services where turnover showed an encouraging 18% increase over
2005. We are now poised for greater penetration of the institutional sector with a dedicated sales
and marketing effort and with the clarity of regulatory changes in respect of payment for our
services.
The growing demand for Fullermoney, our global investment strategy service, reported during 2005 has
continued apace with a 24% increase in subscription over the same period last year. Revenues
increased by 26% during the period, reflecting gradual increases in unit prices.
Turnover in our wider market services under the Investors Intelligence brand moved up slightly by 3%
over the period absorbing the re-positioning of our services mix from individual subscriptions which
fell in number by 4% to 'bloc' arrangements with institutional customers on a business to business
basis.
Ecube has continued to provide valuable technology services to both its in-house and third party
customers.
Sportcal continues to trade profitably and contributed �8,000 to group profits in the first six
months.
Trading outlook
We are confident that the encouraging start recorded for the first six months will continue for the
remainder of 2006.
Edward Forbes
Chairman
London
30 August 2006
Stockcube Plc
Consolidated Profit and Loss Account
Unaudited Unaudited Audited
Six Months to Six Months to Year to
30 June 30 June 31 Dec
2006 2005 2005
�'000 �'000 �'000
Turnover 1,371 1,205 2,420
Administrative expenses (1,177) (1,156) (2,186)
-------- -------- --------
Group operating profit 194 49 234
Impairment in investment in associate - (150) (150)
Share of operating profit of associate 8 3 6
Amortisation of goodwill arising on acquisition of associate (15) (15) (32)
-------- -------- --------
(7) (162) (176)
-------- -------- --------
Profit/(loss) on ordinary activities 187 (113) 58
Interest receivable and similar income 99 93 193
------- ------- -------
Profit/(loss) on ordinary activities before taxation 286 (20) 251
Tax on profit/(loss) on ordinary activities (78) (35) (87)
-------- -------- -------
Profit/(loss) on ordinary activities after taxation 208 (55) 164
-------- -------- -------
Basic/diluted earnings/(loss) per share 2.2p (0.6)p 1.7p
Basic/diluted earnings per share before impairment 2.2p 1.0 p 3.3p
Group Statement of Total Recognised Gains & Losses
Unaudited Unaudited Audited
Six Months to Six Months to Year to
30 June 30 June 31 Dec
2006 2005 2005
�'000 �'000 �'000
Profit/(loss) on ordinary activities after taxation 208 (55) 164
Exchange differences on retranslation of net assets of subsidiary 20 (17) (28)
undertaking
------- ------- -------
Total recognised gains and losses during the period 228 (72) 136
------- ------- -------
Stockcube Plc
Consolidated Balance Sheet
Unaudited Unaudited Audited
As at As at As at
30 June 30 June 31 Dec
2006 2005 2005
�'000 �'000 �'000
Fixed assets
Intangible assets 17 18 17
Tangible assets 324 340 327
Investments 219 239 226
-------- -------- --------
560 597 570
-------- -------- --------
Current assets
Debtors 506 441 426
Cash at bank and in hand 4,242 3,872 3,900
-------- -------- --------
4,748 4,313 4,326
Creditors: amounts falling due within one year (806) (772) (550)
-------- -------- --------
Net current assets 3,942 3,541 3,776
-------- -------- --------
Total assets less current liabilities 4,502 4,138 4,346
-------- -------- --------
Capital and reserves
Called up share capital 961 961 961
Share premium account 3,774 3,774 3,774
Merger reserve 568 568 568
Profit and loss account (801) (1,165) (957)
-------- -------- --------
Equity shareholders' funds 4,502 4,138 4,346
-------- -------- --------
Approved by Order of the Board on 30 August 2006
Julian Burney
Director
Stockcube Plc
Consolidated Cash Flow Statement
Unaudited Unaudited Audited
Six Months to Six Months to Year to
30 June 30 June 31 Dec
2006 2005 2005
�'000 �'000 �000
Net cash inflow from operating activities 284 276 276
Returns on investments and servicing of finance
Interest received 99 93 193
Taxation 36 - (68)
Capital expenditure
Payments to acquire tangible fixed assets (5) (10) (14)
Equity dividends paid (72) (48) (48)
-------- -------- --------
Net cash inflow before financing 342 311 339
-------- -------- --------
Reconciliation of net cash flow to movement in net funds
Unaudited Unaudited Audited
Six Months to Six Months to Year to
30 June 30 June 31 Dec
2006 2005 2005
�'000 �'000 �000
Increase in cash 342 311 339
Net funds at 1 January 3,900 3,561 3,561
-------- -------- --------
NET FUNDS 4,242 3,872 3,900
-------- -------- --------
Analysis of net funds
Unaudited Unaudited Audited
Six Months to Six Months to Year to
30 June 30 June 31 Dec
2006 2005 2005
�'000 �'000 �000
Cash at bank and in hand 132 172 112
Short term deposits 4,110 3,700 3,788
-------- -------- --------
NET FUNDS 4,242 3,872 3,900
-------- -------- --------
Stockcube Plc
Notes to the Interim Report
for the six months ended 30 June 2006
1. Basis of preparation of interim financial information
The interim financial information has been prepared on the basis of the accounting policies set out in the group
statutory accounts for the year ended 31 December 2005. The taxation charge is calculated by applying
the directors' best estimate of the annual tax rate to the profit for the period. All other
accounting polices set out in the accounts for Stockcube Plc for the year ended 31 December 2005 were
applied for the purposes of this statement.
2. Turnover
Turnover, which is stated net of value added tax, represents the sales value of work done in the period.
Turnover is attributable mainly to the continuing activity of the provision of research and analysis of price
trends in stocks, commodities, currencies and interest rates.
An analysis of turnover by geographical market is given below:
Origin Unaudited Unaudited Audited
Six Months to Six Months to Year to
30 June 30 June 31 Dec
2006 2005 2005
United Kingdom 1,247 1,069 2,145
United States of America 124 136 275
-------- -------- --------
1,371 1,205 2,420
-------- -------- --------
3. Earnings per share
Following a 1 for 10 consolidation of the Company's existing ordinary shares , the company's issued shares were
reduced to 9,610,630 from 96,106,300 ordinary shares. This was effected at an Extraordinary General
Meeting held on 24 May 2006.
The calculation of the basic earnings per ordinary share is based on profits after tax of �208,000 (December
2005:profit of �164,000, June 2005:losses of �55,000) and on 9,610,630 (December 2005 and June 2005:
96,106,300 before capital consolidation of 1 for 10 shares) ordinary shares. The comparative
earnings per share figures have been re-stated based on the new capital structure.
There are no dilutive potential ordinary shares at 30 June 2006 (31 December 2005 and 30 June 2005: nil).
4. Reconciliation of operating profit to net cash inflow from operating activities
Unaudited Unaudited Audited
Six Months to Six Months to Year to
30 June 30 June 31 Dec
2006 2005 2005
�'000 �'000 �000
Operating profit 194 49 234
Depreciation 7 15 32
Exchange differences on inter-company loans 20 (16) (29)
Goodwill amortisation 1 1 2
(Increase)/decrease in debtors (80) 109 124
Increase/(decrease) in creditors 142 118 (87)
-------- -------- --------
Net cash inflow from operating activities 284 276 276
-------- -------- --------
Stockcube Plc
Notes to the Interim Report
for the six months ended 30 June 2006 -continued
5. Dividends and other appropriations
Unaudited Unaudited Audited
Six Months to Six Months to Year to
30 June 30 June 31 Dec
2006 2005 2005
�'000 �'000 �000
Equity dividends on ordinary shares -Paid 72 48 48
-------- -------- --------
6. Publication of non-statutory accounts
The results for the year ended 31 December 2005 have been audited, whilst the results for the six months ended
30 June 2005 and 30 June 2006 are unaudited.
The financial information contained in this interim report does not constitute statutory accounts as defined in
section 240 of the Companies Act 1985.
The financial information for the preceding full year is based on the statutory accounts of Stockcube Plc for
the year ended 31 December 2005. Those accounts, upon which the auditors issued an unqualified
opinion, have been delivered to the Registrar of Companies.
7. Reconciliation of shareholders' funds and movement in reserves
Group Share Share Merger Profit and Total
capital premium reserve loss shareholders'
account account funds
�'000 �'000 �'000 �'000 �'000
At 31 December 2004 961 3,774 568 (1,045) 4,258
Retained profit for the year - - - 116 116
Exchange differences on
retranslation of net asset of - - - 20 20
subsidiary undertaking
Dividends paid - - - (48) (48)
------- ------- ------- ------- --------
At 31 December 2005 961 3,774 568 (957) 4,346
Retained profit for the period - - - 208 208
Exchange differences on
retranslation of net asset of - - - 20 20
subsidiary undertaking
Dividends paid - - - (72) (72)
------- ------- ------- ------- --------
At 30 June 2006 961 3,774 568 (801) 4,502
------- ------- ------- ------- --------
The financial information for the six months ended 30 June 2006 has not been reviewed in accordance with the
guidance contained in Bulletin 1999/4 "Review of interim financial information" issued by the
Auditing Standards Board.
Stockcube PLC
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