Final Results
June 15 2001 - 12:00PM
UK Regulatory
RNS Number:3244F
10 Group PLC
15 June 2001
10 Group plc - Final Results
Preliminary results for the year ended 31 December 2000
10 Group plc, an AIM-listed investment, property and leisure company
announces its year-end results
Chairman's Statement.
2000 Year and Results
We have now completed our second full year under my chairmanship. This was a
year of considerable corporate activity.
In February, we launched 10i Ltd, which was originally our Internet
investment fund, now a general investment company. Further announcements
during the year related to investments made by 10i Ltd, in particular we made
an investment into RexOnline plc another AIM quoted company, of #217,000 and
realised a profit in March 2000 of #545,000 before expenses on the sale of
that investment in just over 3 months.
We also invested in Bon Appetit Direct.com plc, another AIM quoted company,
now called 7 Group plc.
We raised a further #2.85 million in cash during the year from equity issues
and we made a total of 22 Stock Exchange announcements in 2000.
Despite difficult market conditions we remained one of the most traded stocks
on AIM out of a total of approximately 550 companies, still retaining five
market makers.
The loss for the year was #3.524m on a turnover of #7.719m. The directors do
not recommend paying a dividend for the year ending December 31, 2000.
A significant proportion of the loss can be ascribed to the writing off of
goodwill and exceptional items, amounting to some #2.594m. Our actual
operating loss was #1.193m. However I am pleased to report that the Group's
Balance Sheet remains healthy with net assets of #3.554m and cash reserves of
#2.629m.
Outlook and current year
At the end of the financial year to December 31, 2000, as Chairman I needed
to make some harsh and radical decisions during 2001 and your Board took
swift action to redirect the Group's focus and cash resources on areas where
felt there was more certain short to medium term prospects of making profit.
We are withdrawing from marketing/media and internet related activities to
focus on investment in public and private companies where we feel
opportunities exist to achieve significant return on investment and capital
growth, property, and our new leisure division, 10 Leisure plc - more news
due later in the year.
CWG (formerly Charles Wall Group) and Internet Evolution (formerly 10
Internet) remain as wholly owned operating subsidiaries of 10 Group but it is
envisaged that these will become investments in our 10i division later this
year.
After acquiring the Mill House Media publishing operation a global downturn
in advertising revenue impacted severely on our publishing division and most
of the directors and staff left soon after our acquisition, including the
Managing Director.
The publishing operation was making substantial losses far in excess of the
targets provided by the departed operating board of directors of that
division, and 10 Group plc could not continue to fund these losses, without
affecting other Divisions of the Group and weakening the Group's cash
reserves substantially, although it was envisaged that the publishing
division would have made a profit within two years. The Board considered that
the risk of making further investment in this division outweighed the likely
return.
With deep regret, I took the decision to place our subsidiary into
administrative receivership on 30th March 2001 under the debenture that 10
Group plc held over the assets of that division. This decision was taken to
recoup some of our investment in the Publishing Division.
I am pleased to report that in early 2001 we sold one of the Publishing
Division's magazine titles for #395,000 cash and we remain hopeful of
realising further value from the remaining assets of that Division.
Paul Harvey, the Chief Executive, resigned at the end of January 2001. Paul
has been a personal friend of mine of many years and was instrumental in the
birth of 10 Group plc. The Board would like to take this opportunity to thank
him for his contribution to the development of 10 Group and wish him well in
the future.
The first half of this year, 2001, has been spent reducing overheads, and
disposing of non-performing businesses and investments, including putting our
Head Office in Birmingham, which was too large for our requirements, up for
sale.
I am pleased to report that on 12th April 2001 we raised a further #590,000
before expenses via a private placing which will be used to fund new
opportunities in Leisure and Investment. I believe this to be a vote of
confidence from the City in 10 Group plc and its Board and the new direction.
I am also pleased to report that on the 1st June 2001 10 Group plc signed an
agreement with Friedland Capital to have 10 Group's shares listed as a Level
1 American Depository Receipt (ADR). These ADRs will be issued by the Bank of
New York who are the authorised depository and will be traded in the USA
markets. The creation of ADRs will prove beneficial in opening up the huge US
investor markets to 10 Group and further enhance the liquidity of its shares.
As chairman my role is to increase shareholder value. This can involve
complete changes of strategy as we have done, if certain businesses and
investments do not produce the expected results.
Your Board is confident that the new strategy will produce positive results
in the coming years and enhance shareholder value, and we hope that the share
price will reflect the Group's value, potential and entrepreneurial skills.
Thank you for your continued support.
Andy Moore,
Chairman,
10 GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED
31st DECEMBER 2000
2000
Notes Before Before
charging charging Goodwill
goodwill goodwill Amortisation
and and and
exceptional exceptional exceptional
items items items Total
Continuing Discounted
#'000 #'000 #'000 #'000
Turnover
- Existing 5519 - - 5519
operations 945 - - 945
- Acquisitons
- Discontinued - 1255 - 1255
operations _____ ______ ______ _____
6464 1255 - 7719
Cost of sales (3735) (1273) - (5008)
_____ ______ ______ _____
Gross profit/(loss) 2729 (18) - 2711
Administrative (3922) (1038) (1538) (6498)
expenses ______ _____ ______ _____
Operating
profit/(loss)
-Existing (1484) - (706) (2190)
operations 291 - - 291
-Acquisitions
-Discontinued - (1056) (832) (1888)
operations ______ ______ ______ _____
(1193) (1056) (1538) (3787)
______ ______ ______
Profit/(loss) on 206
disposal and
closure of
business
Net interest 57
receivable _____
Loss on ordinary (3524)
activities before
taxation
Taxation -
_____
Loss for the (3524)
financial year _____
Loss per
ordinary share
Basic 0.55p
As restated
1999
Notes Before Before
charging charging Goodwill
goodwill goodwill Amortisation
and and and
exceptional exceptional exceptional
items items items Total
Continuing Discounted
#'000 #'000 #'000 #'000
Turnover
- Existing 9044 - - 9044
operations - - - -
- Acquisitons
- Discontinued - 197 - 197
operations _____ _____ _____ _____
9044 197 - 9241
Cost of sales (5380) (226) - (5606)
_____ _____ _____ _____
Gross profit/(loss) 3664 (29) - 3635
Administrative (4654) (134) (189) (4977)
expenses _____ _____ _____ _____
Operating
profit/(loss)
-Existing (990) - (189) (1179)
operations - - - -
-Acquisitions
-Discontinued - (163) - (163)
operations _____ _____ _____ _____
(990) (163) (189) (1342)
_____ _____ _____
Profit/(loss) on (56)
disposal and
closure of
business
Net interest -
receivable _____
Loss on ordinary (1398)
activities before
taxation
Taxation -
_____
Loss for the (1398)
financial year _____
Loss per
ordinary share
Basic 0.43p
A Statement of total recognised gains and losses is not provided as all such
items are included within the above profit and loss account.
10 GROUP PLC
CONSOLIDATED BALANCE SHEET
31st DECEMBER 2000
Notes
2000 1999
#'000 #'000 #'000 #'000
FIXED ASSETS
Intangible assets 970 720
Tangible assets 660 360
Investments 121 -
_______ ______
1751 1080
CURRENT ASSETS
Stock 536 79
Freehold property for sale 677 -
Investments 217 -
Debtors 2353 1576
Cash at bank and in hand 2629 2993
_______ ______
6412 4648
CREDITORS: AMOUNTS FALLING DUE (4000) (2381)
WITHIN ONE YEAR _______ ______
NET CURRENT ASSETS 2412 2267
______ ______
TOTAL ASSETS LESS CURRENT 4163 3347
LIABILITIES
CREDITORS: AMOUNTS FALLING DUE (609) (173)
AFTER MORE THAN ONE YEAR ______ ______
NET ASSETS 3554 3174
______ ______
CAPITAL AND RESERVES
Called up share capital 8327 8004
Share premium account 6808 3915
Capital redemption reserve 3564 3564
Merger reserve 213 213
Profit and loss account (15358) (12522)
______ ______
EQUITY SHAREHOLDERS' FUNDS 3554 3174
______ ______
These financial statements were approved by the board of directors on 14 June
2001
A. MOORE DIRECTOR
S. COOPER DIRECTOR
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