Highlights
for the six months ended 30 June 2002
* Turnover slightly ahead at �1,078,000 (2001: �1,072,000).
* �34,000 loss before tax and exceptional items.
* Exceptional write-off -- �1,589,000 of purchased goodwill and other intangible assets.
* Consolidation of intellectual property rights through purchase of business and assets of Sapphyr Technology.
"The turmoil in the world's equity markets that we have been observing over the last eighteen months has had an
increasingly negative impact on investor confidence and market sentiment. Against this background, along with many
other businesses, we have reassessed the carrying values of our purchased goodwill and other intangibles. We concluded
that as the capacity of these assets to generate a contribution commensurate to their book value is, in the present
climate, so uncertain the most prudent course is to write them down. Accordingly, we have written off intangible assets
of �1,589,000 as an exceptional item.
Of course, we are disappointed that general economic circumstances dictate that we should take this view. However,
during a period in which the international investment communities we serve have suffered a series of substantial blows
and many other financial website providers have disappeared, we have maintained the same level of turnover that we
achieved in 2001, we have retained our customer base and continued to consolidate our position as a leading independent
provider of technical analysis to professional and private investors.
The loss for the period is attributable to the losses incurred at Chartcraft our U.S. subsidiary but we have now almost
completed the product regeneration and are delighted with the results. We anticipate further cost reductions and are
now looking forward to the challenge of increasing sales in the largest market in the world with a recognised brand
leader."
Julian Burney, Chief Executive of Stockcube, 27 September 2002
Enquiries:
Julian Burney, Chief (020) 7352 4001
Executive Officer
Shirley Yeoh, Finance (020) 7352 4001
Director
Our website is: www.stockcube.com
CHAIRMAN'S STATEMENT
Introduction
We continue to extend and improve our research products and to build a solid foundation for our services in the UK and
USA.
Financial review
Turnover for the six months ended 30 June 2002 amounted to �1,078,000, a slight increase from �1,072,000 for the
comparative period for 2001.
We are showing a group loss of �1,623,000 before tax for this period. Excluding the exceptional write-off of
�1,589,000, the like-for-like comparison is a loss of �34,000 in 2002 against a profit of �66,000. While this small
loss was contrary to our initial budget expectations we consider it is a satisfactory result in view of the disruption
to investor sentiment caused by market conditions and a slowdown in growth in demand for our services. In addition, we
have absorbed with effect from 1 May 2002 the full cost of the staff transferred on the acquisition of Sapphyr's
business and undertaking.
In spite of the additional Sapphyr-related costs our UK-based activities generated a pre-tax profit of �53,000 (2001:
�143,000). Chartcraft's losses increased from �77,000 to �87,000 as we continue to transfer its product offering from
hard copy to on-line.
Losses per share of 1.70p per 1p ordinary share for the period compare to earnings of 0.02p reported in June 2001.
Despite writing off our intangible assets, the balance sheet remains strong. After setting aside �200,000 of purchase
consideration for the business of Sapphyr, paid in July 2002, we had free cash of �4,125,000, an increase of �205,000
on the balance of �4,120,000 at the end of last year.
Review of operations
The gradual progress EFMtech had made with US institutional investors has marked time in the first six months but we
have retained those we gained last year. This is a good outcome in view of the savage down-turn in US markets,
especially in the NASDAQ during the period.
We launched C2F2, our new service devoted to currencies, commodities and financial futures. This covers over 200
contracts. The nature of these instruments makes it our first product with universal appeal and it has replaced both
Chartanalyst's service and Chartcraft's 'Futures' publication. C2F2 is an excellent service which brings contracts of
interest and trading ideas to investors' attention each day in a clear and crisp format, based on short-term and
continuation point & figure charts and candlestick charts. It has been well received by subscribers. We also introduced
a 'Comment of the Day' feature within the Fullermoney offering to an on-line modular service at www.fullermoney.com.
Again, this is proving very popular with site visitors.
We are pleased to report that with the exception of US mutual funds coverage, which is under development, we have now
replicated all Chartcraft's products and services for access and distribution on the web. At the same time we have
maintained hard copy production to ensure continuity of service to existing customers and to secure as much of
Chartcraft's traditional revenues as possible during this transition process.
Chartcraft's new services have been very well received by subscribers and we are experiencing a growing number of trial
subscriptions emanating through search engines and unsolicited third party recommendations. We are in the process of
revising the pricing structure to reflect the added value we are now providing to the users of Chartcraft services.
We completed the acquisition of the business and assets of Sapphyr Technology in July and we are in the process of
assimilating their team into the group. They are now providing additional in-house technical expertise to improve our
web-based offerings generally and are continuing to develop Sitebuilder, Sapphyr's website building and management
software package.
Trading outlook
By the nature of the services we provide and investors' reasons for using them, particularly with recent market turmoil
in people's minds, our revenue may be subject to some variation for the foreseeable future. Depending on the aims of
our customers, the intensity of stock movements will either stimulate or depress further demand for our research, to an
extent which is not easy to predict.
However, we are well positioned. We have a strong balance sheet and positive cash flows. Both our professional and
private investor customer bases have proved very stable during the last six months and we expect to consolidate our
position during the remainder of the year.
Edward Forbes
Chairman
London
27 September 2002
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Unaudited Unaudited Audited
Six months Six months Year to
30 June 30 June 31 Dec
2002 2001 2001
�000 �000 �000
_______________________________________________________________________________
Turnover
-- UK 926 880 1,762
-- US 152 192 373
_______________________________________________________________________________
1,078 1,072 2,135
Administrative expenses
- ongoing -- UK (877) (790) (1,617)
- ongoing -- US (239) (269) (455)
- software developmentand (82) (60) (190)
website costs
Exceptional items (1,589) - -
_______________________________________________________________________________
(2,787) (1,119) (2,262)
Operating (loss)/profit before
interest
and taxation
-UK (1,622) 30 (45)
- US (87) (77) (82)
_______________________________________________________________________________
(1,709) (47) (127)
Bank interest receivable 86 113 218
Interest payable and similar - - -
charges
_______________________________________________________________________________
(Loss)/profit on ordinary (1,623) 66 91
activities before taxation
Taxation (10) (43) (61)
_______________________________________________________________________________
(Loss)/profit after taxation (1,633) 23 30
_______________________________________________________________________________
Basic (loss)/earnings per (1.70)p 0.02p 0.03p
share
Basic (loss)/earnings per (0.05)p 0.02p 0.03p
share before exceptionals
Diluted (loss)/earnings per (1.70)p 0.02p 0.03p
share
There were no recognised gains or losses other than the profit/loss for the period.
CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
30 June 30 June 31 Dec
2002 2001 2001
�000 �000 �000
_______________________________________________________________________________
Fixed assets
Intangible assets - 1,201 1,368
Tangible assets 364 424 363
Investments - 235 235
_______________________________________________________________________________
364 1,860 1,966
_______________________________________________________________________________
Current assets
Debtors 502 725 468
Cash at bank and in hand 4,325 4,206 4,120
_______________________________________________________________________________
4,827 4,931 4,588
_______________________________________________________________________________
Creditors: Amounts due within (844) (842) (598)
one year
Net current assets 3,983 4,089 3,990
_______________________________________________________________________________
Net assets 4,347 5,949 5,956
_______________________________________________________________________________
Capital and reserves
Called up share capital 961 961 961
Share premium account 4,114 4,114 4,114
Merger reserve 568 568 568
Profit and loss account (1,296) 306 313
_______________________________________________________________________________
4,347 5,949 5,956
_______________________________________________________________________________
Approved by the Board
Julian Burney
STATEMENT OF CASH FLOWS
Audited
Unaudited Unaudited Year ended
30 June 30 June 31 Dec
2002 2001 2001
�000 �000 �000
______________________________________________________________________________
Net cash inflow/(outflow) from 146 (53) (72)
operating activities
Returns on investments and
service of finance
Interest received 86 113 185
______________________________________________________________________________
Taxation (2) - (8)
______________________________________________________________________________
Capital expenditure
Payments to acquire tangible (25) (61) (70)
fixed assets
Payments to acquire intangible - (50) (22)
fixed assets
______________________________________________________________________________
(25) (111) (92)
______________________________________________________________________________
Acquisitions and disposals
Payments to acquire - - (150)
investments
______________________________________________________________________________
Net cash outflow before 205 (51) (137)
financing
Management of liquid resources
Decrease/(Increase)in 140 - (80)
short-term deposits
______________________________________________________________________________
Increase/(decrease) in cash 345 (51) (217)
______________________________________________________________________________
STATEMENT OF CASH FLOWS
Audited
Unaudited Unaudited Year ended
30 June 30 June 31 Dec
Reconciliation of net cash flow 2002 2001 2001
to movement in net funds �000 �000 �000
_______________________________________________________________________________
Increase/(decrease) in cash 345 (51) (217)
(Decrease)/increase in (140) - 80
short-term deposits
_______________________________________________________________________________
Movement in net funds 205 (51) (137)
Net funds at 1 January 4,120 4,257 4,257
_______________________________________________________________________________
Net funds 4,325 4,206 4,120
_______________________________________________________________________________
Analysis of changes in net debt 30 June 30 June 1 Jan
2002 2001 2002
�000 �000 �000
_______________________________________________________________________________
Cash at bank and in hand 1,285 1,066 940
Short-term deposits 3,040 3,140 3,180
_______________________________________________________________________________
4,325 4,206 4,120
_______________________________________________________________________________
NOTES TO THE INTERIM REPORT
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 2001. 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 2001 were applied for the purposes of this statement, except in
relation to deferred tax where the group has implemented FRS19, Deferred Taxation. The implementation of FRS19 has not
had any effect on the prior year results.
Basis of consolidation
The group accounts consolidate the accounts of Stockcube plc and all its subsidiary undertakings.
2. Earnings per share
The calculation of basic loss per ordinary share is based on losses of �1,633,000 (year to December 2001: profit of
�30,000, six months to 30 June 2001: profit �23,000) and on 96,106,300 (December 2001: 96,106,300; June 2001:
90,722,944) ordinary shares.
The basic loss per share before the exceptional write-off of the intangibles is based on losses of �44,000 and on
96,106,300 ordinary shares.
As there is a loss per share, the diluted earnings are the same as the basic loss per share.
3. Reconciliation of operating profit to net cash inflow from operating activities
Unaudited Unaudited (Audited)
Half Year to Half Year to Full Year
30 June 2002 30 June 2001 2001
�000 �000 �000
_______________________________________________________________________________
Operating (loss) (1,709) (47) (127)
Exceptional write-offs -- 1,589
intangibles
Depreciation 23 20 42
Amortisation of goodwill 25 33 65
Amortisation of trademarks 1 6
Exchange losses 12 - -
(Increase)/decrease in debtors (34) (165) 125
Increase/(decrease) in 239 106 (183)
creditors
_______________________________________________________________________________
Net cash inflow/(outflow) from 146 (53) (72)
operating activities
_______________________________________________________________________________
The operating loss for the six months is stated after writing off the website development expenses of �82,000
(December 2001: �190,000; June 2001: �60,000).
4. Publication of non-statutory accounts
The financial information contained in this statement does not constitute statutory accounts as defined in
section 240 of the Companies Act 1985. The financial information for the full year is based on the statutory accounts
of Stockcube plc for the year ended 31 December 2001. Those accounts, upon which the auditors issued an unqualified
opinion, have been delivered to the Registrar of Companies.
INDEPENDENT REVIEW REPORT TO STOCKCUBE PLC
Introduction
We have been instructed by the company to review the financial information for the six months ended 30 June 2002 which
comprises the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Statement of Cash Flows and the related
notes 1 to 4. We have read the other information contained in the interim report and considered whether it contains any
apparent misstatements or material inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is the responsibility of and has been
approved by the directors. The directors are responsible for preparing the interim report as required by the AIM Rules
issued by the London Stock Exchange.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4 'Review of interim financial
information' issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of
making enquiries of group management and applying analytical procedures to the financial information and underlying
financial data and, based thereon, assessing whether the accounting policies and presentation have been consistently
applied, unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with
United Kingdom Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly, we do
not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that should be made to the financial
information as presented for the six months ended 30 June 2002.
Ernst & Young LLP
London
27 September 2002
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