Final Results
11 September 2003 - 5:00PM
UK Regulatory
RNS Number:6245P
Bits Corp PLC
11 September 2003
Press Release
11 September 2003
BITS CORP PLC
Unaudited Preliminary Results
for the year to 31 March 2003
Chairman's Statement
The year under review has seen a significant increase in our turnover, and a
much reduced net loss. In fact, in the second half of the year, the Group
generated turnover of #1.1 million and a loss of #16,000.
Results
Turnover for the year increased from #994,000 in the year ended 31 March 2002 to
#1.70 million, an increase of 71%, generating a loss after tax of #484,000
compared to a loss of #1.74 million in the prior year.
No dividend is proposed for the year.
Operating Review and Current Developments
As can be seen from the results, the year to 31 March 2003, and particularly the
second six months, may well be looked upon as a turning point in the Group's
fortunes.
The year did not get off to a good start, as announced in early August 2002, at
which time the Group agreed with one of its publishers, with whom it had an
agreement to publish and distribute an original Bits game, to suspend the
contractual agreement for the publishing of this game due to fundamental
differences in approach. Although the publisher had reimbursed some of the
development expenditure for the game, there was a substantial shortfall. This
announcement also contained details of a reduction in turnover for the year
ended 31 March 2002, a substantially increased loss for that year compared to
the prior year, and a Placing of shares to enable the Company to continue in
business.
I am pleased to report that the Placing was successful, raising the net sum of
#340,000, with one of the Company's major Institutional shareholders showing its
confidence in the Group's future by subscribing for more than 50% of the total,
the balance being contributed, in the main, by two of the Group's directors.
We announced in January 2003 that the Group had signed an agreement with Fox
Interactive to develop and co-publish Die HardTM: Vendetta ("Die Hard") for
Sony's Playstation(R)2, subsequently selling the extended European distribution
rights to this game to Vivendi Universal Interactive Publishing International
SA. The game was released in June 2003. This was, of course, in addition to
the previously announced agreement to develop Die Hard for Nintendo's GameCube
TM. We also agreed to develop and co-publish a further version of this game for
the Microsoft XboxTM, released in July 2003, and there are prospects that we
will be receiving royalties from the sales of Die Hard during the course of the
current year. During the year, we announced the signing of an agreement with
THQ(R) Inc to develop Sega Arcade GalleryTM for Nintendo's GameboyTM Advance,
which was released in May 2003.
Most significantly, we announced in March 2003 that we had signed an agreement
with Kotobuki System Co., Ltd, global video games publisher Kemco's video games
division, to develop, for all three next generation consoles, an innovative
stealth-action video game entitled "Rogue Ops", which was unveiled in May 2003
at the premier video games industry trade fair, the E3 Expo, and which received
very encouraging feedback from within the industry.
Staff
The staff have continued to show tremendous energy and commitment and the board
of directors thank our dedicated employees for their efforts during the year.
Prospects
Whilst all of the new contracts signed recently are extremely encouraging, there
is still a lot of hard work ahead in order to produce the games on time, and to
use the platform now established with leading publishers to enable Bits to
become one of the leading developers in the industry.
I am confident that, with the outstanding leadership of our Chief Executive, and
his dedicated team, Bits can now go from strength to strength.
John Corre
Chairman
For further information, please contact:
Bits Corp plc
Foo Katan, Chief Executive Tel: + 44 (0)20 8282 7200
Email: foo@bitscorp.com
Consolidated Profit and Loss Account for the Year ended 31 March 2003
Unaudited
Year ended Year ended
31 March 31 March
2003 2002
#'000 #'000
Turnover 1,702) 994)
Cost of sales (1,920) (2,274)
Gross profit (218) (1,280)
Distribution costs (10) (5)
Administrative expenses (350) (487)
Operating loss (578) (1,772)
Interest receivable 6) 47)
Interest payable and similar charges -) (3)
Loss on ordinary activities before taxation (572) (1,728)
Taxation on loss from ordinary activities 88) (13)
Loss retained for the year (484) (1,741)
Loss per share
Basic (1.29 p) (5.49 p)
The results relate wholly to continuing operations. There is no material
difference between the results stated above and the results shown on a
historical basis.
Statement of Total recognised Gains and Losses for the Year ended 31 March 2003
Unaudited
Year ended Year ended
31 March 31 March
2003 2002
#'000 #'000
Loss for the year (484) (1,741)
Currency translation differences (40) -)
Total recognised gains and losses relating to the year (524) (1,741)
Consolidated Balance Sheet at 31 March 2003
Unaudited
31 March 31 March
2003 2002
#'000 #'000
Fixed Assets
Intangible Assets 254) 458)
Tangible Assets 68) 152)
Investments -) -)
322) 610)
Current Assets
Debtors 1,014) 405)
Cash at bank and in hand 12) 557)
1,026) 962)
Creditors: amounts falling due within one year (965) (1,003)
Net current assets/(liabilities) 61) (41)
Net assets 383) 569)
Consolidated Balance Sheet at 31 March 2003 (continued)
Capital and reserves
Called up share capital 415) 317)
Share premium account 3,719) 3,479)
Merger reserve 735) 735)
Profit and loss account (4,486) (3,962)
Shareholders' funds - equity 383) 569)
Consolidated Cash Flow Statement for the Year ended 31 March 2003
Unaudited
Year ended Year ended
31 March 31 March
2003 2002
#'000 #'000
Net cash outflow from operating activities (888) (1,240)
Returns on investments and servicing of finance
Interest received 6) 47)
Interest paid -) (3)
6) 44)
Taxation
Corporation tax repaid/(paid) 88) (13)
88) (13)
Capital expenditure
Purchase of tangible fixed assets (49) (172)
(49) (172)
Net cash outflow before use of liquid resources and financing (843) (1,381)
Consolidated Cash Flow Statement for the Year ended 31 March 2003 (continued)
Management of liquid resources
Movement in short term bank deposits 480) 1,000)
480) 1,000)
Financing
Issue of ordinary share capital 390) 3)
Expenses paid in connection with share issues (52) -)
338) 3)
(Decrease)/Increase in cash in the year (25) (378)
Notes to the Financial Information
1 Publication of non-statutory accounts
The financial information contained in this preliminary statement does not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985. The financial information for the year ended 31 March 2003 has been
extracted from the unaudited group financial statements.
The following are extracts from the notes to the unaudited group financial
statements for the year ended 31 March 2003.
2 Loss per share
The calculation of basic earnings is based on the loss after taxation of
#484,000 (2002 - loss #1,741,000) by reference to the 37,458,128 (2002 -
31,712,867) weighted average ordinary shares in issue during the period. Due to
a loss being recorded for each of the periods, none of the Company's potential
ordinary shares are dilutive and therefore the loss per share is the same as the
diluted loss per share.
3 Reconciliation of movements in shareholders' funds
Unaudited
2003 2002
#'000 #'000
Loss for the financial period (484) (1,741)
Share capital issued 338) 3)
Currency translation differences (40) -)
Net reduction in shareholders' funds (186) (1,738)
Opening shareholders' funds 569) 2,307)
Closing shareholders' funds 383) 569)
4 Reconciliation of operating loss to net cash outflow from operating
activities
Unaudited
2003 2002
#'000 #'000
Operating loss (578) (1,772)
Depreciation and amortisation of fixed assets 337) 286)
Increase in debtors (609) (89)
(Decrease)/Increase in creditors (38) 335)
Net cash outflow from operating activities (888) (1,240)
5 Reconciliation of net cash flow to movement in net funds
Unaudited
2003 2002
#'000 #'000
Decrease in cash in the period (25) (378)
Decrease in liquid resources (480) (1,000)
Change in net funds resulting from cash flows (505) (1,378)
Currency translation differences (40) -)
Movement in net funds in the period (545) (1,378)
Opening net funds 557) 1,935)
Net funds at the end of the year 12) 557)
6 Analysis of net funds
Unaudited At
At 1 April Cash Translation 31 March
2002 flow differences 2003
#'000 #'000 #'000 #'000
Cash at bank and in hand 77) (25) (40) 12)
Short term deposits 480) (480) -) -)
Total net funds 557) (505) (40) 12)
7 Annual Report
The annual report for the year ended 31 March 2003 will be mailed to
shareholders shortly.
This information is provided by RNS
The company news service from the London Stock Exchange
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