Final Results
April 21 2004 - 4:01AM
UK Regulatory
Preliminary results for the year to 31 December, 2003
2003 2002
�000 �000
Turnover 2,458 2,045
Profit (Loss) before tax & exceptional charge 141 (218)
Profit (Loss) before tax 141 (2,013)
Profit (Loss) after tax 120 (2,015)
Earnings (Loss)- pence per share 0.13p (2.10)p
* Turnover up by 20.2%.
* Profit of �141,000 before tax
* Dividend (proposed) of 0.05 pence per share
* Strong client retention by all elements of business
* Chartcraft traded profitably throughout year and cash generative
* Strong balance sheet with available cash and short term deposits of �4.14m
Julian Burney, Chief Executive Officer, said:
"Overall this is a pleasing result and the foundations are in place to help us begin to generate
an acceptable return for the investment that we have made over the last few years in our staff and
technology. Whilst, no doubt, the return of market confidence during 2003 has helped to underpin
our own results with record turnover we think our growing reputation and ability to analyse stock
and market trends is establishing us as an essential adviser in all market conditions.
"Stockcube remains in very good health and well-positioned to fulfill and benefit from investors'
increasing need for clear, independent, investment research and advice in what may turn out to be
an extended flat or bearish period for stock markets overall"
For further information:
Stockcube Julian Burney 020-7352-4001
Numis Simon Law 020-7776-1500
STOCKCUBE PLC - REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER, 2003
CHAIRMAN'S STATEMENT
Introduction
We are satisfied with our results for 2003 and are confident that Stockcube is becoming widely
recognised as a leading provider of financial research and analysis for investors.
Financial review
Turnover for the year ended 31 December 2003 was �2,458,000, a new record for the group and over
20% higher than last year (2002: �2,045,000). We are pleased to report profit before tax and
exceptional charge of �141,000 (2002: loss of �218,000). There was no exceptional charge in 2003
(2002: �1,795,000) and post-tax profit for the year amounted to �120,000. Basic earnings were
0.13p per 1p ordinary share compared to a loss of 2.10p in 2002.
Our balance sheet continues to be strong with available cash reserves and short term deposits of
�4,145,000 at 31 December, 2003 (2002: �3,768,000).
Operations
Our stock market and sector analysis consultancy for institutional investors showed another strong
performance. We increased income by 20% over 2002, benefiting from our growing reputation as well
as increased investor confidence during the rally in the world's equity markets since early
Spring, 2003. We now have nine full-time consultant analysts and further investment in technology
during the year has increased considerably the speed and value of their market timing and stock
selection work for customers.
We are pleased to report that our US subsidiary, Chartcraft, contributed �62,000 from operations
to consolidated profits. Chartcraft was cash positive every month in 2003.
We have invested heavily in time and effort in bringing the services of Chartcraft and Investors
Intelligence into a timely and meaningful format. This investment should continue to bear fruit,
not just in our US services but elsewhere, as the data handling, analysis and web structures we
have developed now form the framework for coverage of the world's other major stock markets,
currently serviced by Fullermarkets. Development work continues and we expect to launch our wider
market services for UK, European, Japanese and South East Asian equities during 2004. This will
give our analysts truly global coverage and enable our customers to subscribe for stock, sector
and market analysis on a modular basis with common navigability across all modules. We are
actively seeking distribution partners for our work.
There has been a gradual re-awakening of subscriber interest in commodities, currencies and in
classes of assets other than equities. We expect to see this awareness translate into increasing
revenues for these areas of our work.
We have felt increasingly that the Fullermoney format of a monthly global strategy newsletter was
out-moded and no longer serving subscribers' interests to the maximum. Responding to subscriber
demand we have recently withdrawn the monthly hardcopy service to concentrate exclusively on the
daily website and David Fuller's market audio broadcasts. It is early days but customer response
has been encouraging and subscriptions have increased by 22% over the last six months during this
transition. Our bi-annual Chart Seminars held in London were sell-outs.
After the year end we took a 34.4% stake in Sportcal Global Communications Limited, with the
option to increase to 50.0% by 2007. Sportcal operates www.sportcal.com, the leading sport events
calendar site for business-to-business users and provides related services for the sports
industry. Sportcal also builds websites and provides technical development and assistance to
sports federations. In conjunction with our software development business, Ecube, we see
considerable scope for sale to the sports industry of complete packages encompassing web-building,
online publishing and data handling.
Capital reorganisation
On 3 July, 2003 the High Court of Justice, Chancery Division, Companies Court confirmed a
reduction of the share premium account of Stockcube plc by �340,050 which was registered by the
Registrar of Companies on 7 July, 2003. The reorganisation transferred �340,050 from the share
premium account and eliminated the deficit on the profit and loss account of the holding company
as at 31 December, 2002 which had arisen from the write off of goodwill in 2002.
Staff
I should like to thank our staff for their contributions during the year and I am pleased to
report that we have an excellent group of analysts and support staff.
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 2003
Outlook
We have made a very promising start to 2004 and are confident that we are now well-positioned to
develop and grow our wider market services customer base. We intend to expand the reach of our
business interests organically, in conjunction with distribution partners, as well as through
carefully selected investments.
Edward Forbes,
Chairman,
London
20 April, 2004
Stockcube Plc
Group Profit and Loss Account
For the year ended 31 December 2003
2003 2002
�000 �000
Turnover 2,458 2,045
Administrative expenses
Ongoing (excluding impairment) (2,452) (2,418)
Exceptional:
Impairment of intangible assets (1,795)
-------- -------
Administrative expenses (2,452) (4,213)
-------- -------
Group operating profit/(loss) 6 (2,168)
Interest receivable and similar income 135 155
------- -------
Profit/(loss) on ordinary activities before taxation 141 (2,013)
Tax on profit/(loss) on ordinary activities (21) (2)
------- -------
Profit/(loss) for the financial year 120 (2,015)
Proposed dividend (48) -
------- -------
Profit (loss) retained for the financial year 72 (2,015)
------- -------
Basic earnings/(loss) per share 0.13p (2.10)p
Diluted earnings/(loss) per share 0.11p (2.10)p
Group Statement of Total Recognised Gains and Losses
2003 2002
�000 �000
Profit/(loss) for the financial year 120 (2,015)
Exchange differences on retranslation of net assets of subsidiary 34 -
undertaking
------- -------
Total recognised gains and losses during the year 154 (2,015)
------- -------
Stockcube Plc
Group Balance Sheet
At 31 December 2003
Fixed assets 2003 2002
�000 �000
Tangible assets 345 346
------- ------
Current assets
Debtors 300 394
Short term deposits 3,880 2,860
Cash at bank and in hand 265 908
------- ------
4,445 4,162
Creditors: amounts falling due within one year (743) (567)
------- ------
Net current assets 3,702 3,595
------- ------
Total assets less current liabilities 4,047 3,941
------- ------
Capital and reserves
Called up share capital 961 961
Share premium account 3,774 4,114
Merger reserve 568 568
Profit and loss account (1,256) (1,702)
------ ------
Equity shareholders' funds 4,047 3,941
------ ------
Approved by Order of the Board on 20 April 2004 .
Director
Stockcube Plc
Group Statement of Cash Flows
For the year ended 31 December 2003
2003 2002
�000 �000
Net cash inflow/(outflow) from operating activities 273 (205)
-------- --------
Returns of investments and servicing of finance
Interest received 135 155
-------- --------
Corporation tax paid (2) (59)
-------- --------
Capital expenditure
Payments to acquire tangible fixed assets (29) (25)
-------- --------
Acquisitions and disposals
Payments to acquire investments - (218)
-------- --------
Net cash inflow/(outflow) before financing 377 (352)
-------- --------
Management of liquid resources
(Increase)/decrease in short-term deposits (1,020) 320
-------- --------
(Decrease) in cash (643) (32)
-------- --------
2003 2002
�000 �000
Reconciliation of net cash flow to movement in net funds
(Decrease) in cash (643) (32)
Increase/(decrease) in short-term deposits 1,020 (320)
-------- --------
Movement in net funds 377 (352)
Net funds at 1 January 3,768 4,120
-------- --------
Net funds at 31 December 4,145 3,768
-------- --------
Stockcube Plc
Group Statement of Cash Flows
For the year ended 31 December 2003
Reconciliation of operating profit/ (loss) to net cash outflow from operating activities
2003 2002
�000 �000
Operating profit/(loss) 6 (2,168)
Exchange differences 34 -
Impairment of intangible assets - 1,795
Depreciation 30 38
Amortisation of goodwill - 24
Amortisation of trademarks and licence fees - 2
Loss on disposal - 4
Decrease in debtors 94 74
Increase in creditors 109 26
-------- --------
Net cash inflow/(outflow) from operating activities 273 (205)
-------- --------
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 2002 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 2003 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 to be 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 accounts consolidate the accounts of Stockcube PLC and all of its subsidiary
undertakings for the year to 31 December 2003. No profit and loss account is presented for
Stockcube PLC as permitted by Section 230 of the Companies Act 1985.
4. Earnings per share
Basic earnings per ordinary share have been calculated on the following basis:
2003 2002
'000 '000
Profit/(loss) for the year �120 �(2,015)
Weighted average number of ordinary shares outstanding 96,106 96,106
Basic earnings/(loss) per share (pence) 0.13p (2.10)p
Diluted earnings/(loss) per share (pence) 0.11p (2.10)p
The calculation of diluted earnings per share is based on 108,677,725(2002: 108,706,750)
ordinary shares which takes into account theoretical ordinary shares that would be issued at
average market value if all outstanding options were exercised.
Stockcube Plc
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