Interim Results
25 November 2003 - 6:00PM
UK Regulatory
RNS Number:4417S
Bits Corp PLC
25 November 2003
Press Release
25 November 2003
BITS CORP PLC
Interim Results
for the six months ended 30 September 2003
Bits Corp plc ('Bits Corp' or 'the Company'), a leading UK developer of video
games software for major console platforms, today reports its interim results
for the six months ended 30 September 2003.
Chairman's Statement
The results for the six months ended 30 September 2003 reflect the continuing
progress made by the Group.
As you will be aware from my statement in the last Annual Report and Accounts,
trading for the second half of the year ended 31 March 2003 produced a turnover
of #1.1 million and a loss of #16,000. I am pleased to report that the Group's
trading for the twelve months to 30 September 2003 has generated a net profit.
Results
Turnover for the six months ended 30 September 2003 was #1,062,000 compared with
#633,000 in the same period last year. The profit (both before and after tax)
for the half year was #23,000 compared with a loss of #556,000 in the same
period last year.
No dividend is proposed for the period (2002: #nil).
Operating Review and Current Developments
Die HardTM: Vendetta, our game released across Europe, the US and Canada towards
the end of last year for Nintendo's GameCubeTM, has been released for both
Sony's Playstation(R) 2 and Microsoft's XBoxTM. The result for the period under
review includes modest royalty income from this game.
The US release of Rogue Ops, a stealth-action adventure game developed for all
three major platforms, took place at the end of October, whilst the European and
Japanese launches are due in the early part of 2004. Very encouragingly, the
game was proclaimed as the best surprise at this year's European Computer Trade
Show ("ECTS") in the Eurogamer/GamesBiz website awards.
The Rogue Ops agreement with Kemco allowed for a series of bonus payments to the
Group upon successful achievement of key time-related milestones and I am very
pleased to report that the maximum bonus was earned.
The Group has also been working on a number of other development opportunities
and we look forward to announcing these in due course.
The Group's cash position is now much more healthy as a result of the successful
completion of Rogue Ops and Die Hard: Vendetta.
Prospects
The Group remains focused on its core activity, the design and development of
video games for all next generation games consoles.
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 six months ended 30 September 2003
Unaudited Unaudited Audited
6 months ended 6 months ended Year
30 September 2003 30 September ended
2002 31 March 2003
Note #000 #000 #000
Turnover 1,062 633 1,702
Cost of sales (852) (991) (1,920)
Gross profit/(loss) 210 (358) (218)
Operating profit/(loss) 22 (562) (578)
Interest receivable 1 6 6
Profit/(Loss) on ordinary activities before 23 (556) (572)
taxation
Taxation - - 88
Retained profit/(loss) for the period 23 (556) (484)
Earnings/(Loss) per share pence pence pence
Basic and diluted 2 0.06 (1.66) (1.29)
All amounts relate to continuing operations.
Statement of Total Recognised Gains and Losses
for the six months ended 30 September 2003
Unaudited Unaudited Audited
6 months ended 6 months ended Year
30 September 2003 30 September ended
2002 31 March 2003
#000 #000 #000
Profit/(Loss) for the period 23 (556) (484)
Currency translation differences (5) - (40)
Total recognised gains and losses 18 (556) (524)
relating to the period
Consolidated Balance Sheet
as at 30 September 2003
Unaudited Unaudited Audited
As at As at As at
30 September 2003 30 September 31 March
2002 2003
#000 #000 #000
Fixed assets
Intangible assets - Games licences 152 396 254
Tangible assets 34 108 68
186 504 322
Current assets
Debtors 275 573 1,014
Cash at bank and in hand 651 60 12
926 633 1,026
Creditors: Amounts falling due within one (711) (774) (965)
year
Net current assets/(liabilities) 215 (141) 61
Net assets 401 363 383
Capital and reserves
Called up share capital 415 415 415
Share premium account 3,719 3,739 3,719
Merger reserve 735 735 735
Profit and loss account (4,468) (4,526) (4,486)
Shareholders' funds - equity 401 363 383
Consolidated Cash Flow Statement
for the six months ended 30 September 2003
Unaudited Unaudited Audited
6 months ended 6 months ended Year
30 September 2003 30 September ended
2002 31 March 2003
Note #000 #000 #000
Net cash inflow/(outflow) from operating 3 650 (832) (888)
activities
Returns on investments and servicing of
finance
Interest received 1 6 6
1 6 6
Taxation
Corporation tax recovered - - 88
- - 88
Capital expenditure
Purchase of tangible fixed assets (7) (29) (49)
(7) (29) (49)
Net cash inflow/(outflow) before use of 644 (855) (843)
liquid resources and financing
Management of liquid resources
Movement in short term bank deposits (672) 480 480
(672) 480 480
Financing
Issue of ordinary share capital - 390 390
Expenses paid in connection with share - (32) (52)
issues
- 358 338
Decrease in cash (28) (17) (25)
Notes to the Financial Statements
for the six months ended 30 September 2003
1. Basis of preparation
The interim financial statements have been prepared on the basis of the
accounting policies set out in the Group's Annual Report and Accounts for
the year ended 31 March 2003. The financial information for the year ended
31 March 2003 has been extracted from the Annual Report and Accounts, which
have been filed with the Registrar of Companies. The auditors' report on
those accounts was unqualified and did not contain any statements under
section 237(2) or (3) of the Companies Act 1985. The financial information
contained in this document does not constitute statutory financial
statements as defined in section 240 of the Companies Act 1985.
2. Earnings/(Loss) per share
The calculation of basic earnings is based on the profit after taxation of
#23,000 (six months ended 30 September 2002 - loss #556,000; year ended 31
March 2003 - loss #484,000) by reference to the 41,491,690 (six months
ended 30 September 2002 - 33,446,608; year ended 31 March 2003 -
37,458,128) weighted average ordinary shares in issue during the period.
As the Company's market share price is lower than the exercise price of all
options currently in issue, none of the Company's potential ordinary shares
are dilutive and therefore the earnings per share is the same as the
diluted earnings per share.
3. Net cash outflow from operating activities
Unaudited Unaudited Audited
6 months ended 6 months ended Year
30 September 2003 30 September ended
2002 31 March 2003
#000 #000 #000
Operating profit/(loss) 22 (562) (578)
Depreciation and amortisation of fixed 144 136 337
assets
Decrease/(Increase) in debtors 739 (167) (609)
Decrease in creditors (255) (239) (38)
Net cash inflow/(outflow) from operating 650 (832) (888)
activities
4. Reconciliation of net cash flow to movement in net funds
Unaudited Unaudited Audited
6 months ended 6 months ended Year
30 September 2003 30 September ended
2002 31 March 2003
#000 #000 #000
Decrease in cash in the period (28) (17) (25)
Increase/(Decrease) in liquid resources 672 (480) (480)
Change in net funds resulting from cash 644 (497) (505)
flows
Currency translation differences (5) - (40)
Movement in net funds in the period (639) (497) (545)
Opening net funds 12 557 557
Closing net funds 651 60 12
5. Analysis of net funds
At At
1 30
April Cash Translation September
2003 Flows Differences 2003
#000 #000 #000 #000
Cash at bank and in 12 (28) (5) (21)
hand
Short term deposits - 672 - 672
Total net funds 12 644 (5) 651
This information is provided by RNS
The company news service from the London Stock Exchange
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