Interim Results
27 March 2003 - 6:01PM
UK Regulatory
RNS Number:2599J
Poptones Group PLC
27 March 2003
CHAIRMAN'S STATEMENT
Introduction
I am pleased to announce our interim results for the six month period ended 31
December 2002.
Financial Review
Total turnover for the period, including contribution from the Group's joint
ventures, fell to #260,000 (2001: #575,000) and the loss before tax also fell to
#186,000 (2001: #588,000). Accordingly, there is no interim dividend.
The results reflect the shift in the Group's strategy to operating principally
via joint ventures, together with a significant reduction in administration
expenses following a successful cost cutting programme in the prior financial
year.
Business Review
The Group's activities were dominated by the Group's two joint ventures with
Telstar Music Group Limited, which were established in the spring of 2002.
The first joint venture was formed to continue to exploit the success of The
Hives album, "your new favourite band". This Album performed well over the
period.
The second joint venture, established to promote a further three artists, has
already signed two bands, The Bellrays and The Droyds, and negotiations are
continuing with a third act. This agreement has not yet contributed
significantly to the Group's financial results due to the relatively early stage
of its development.
Finances
At 31 December 2002 the Company had cash balances of #437,000. Cash resources
continue to be managed carefully.
Outlook
The Group continues to operate in what remain tough trading conditions for the
music industry. Against this background, it is difficult to view the future with
anything other than caution. Accordingly, your Board is considering all
available strategic options for the business.
J M Blackburn
Chairman
27 March 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2002
Six month Six month
period to period to Year ended
31 December 31 December 30 June
2002 2001 2002
Unaudited #000 Unaudited #000 Audited
#000
Turnover
- group and share of joint ventures 260 575 1,961
- less share of joint ventures (229) - (241)
Group turnover 31 575 1,720
Cost of sales (13) (408) (1,036)
Gross profit 18 167 684
Selling expenses (73) (451) (519)
Administrative expenses (175) (313) (529)
Operating loss (230) (597) (364)
Share of operating profit in joint ventures 31 - -
(199) (597) (364)
Interest receivable 13 9 14
Loss for the financial period (186) (588) (350)
Loss per share - basic and diluted (3.3)p (10.3) p (6.1)p
Note:
Basic loss per share is calculated using the loss for the financial period of
#186,000 and a weighted average number of ordinary shares in issue during the
six month period to 31 December 2002 of 5,720,871. On 15 November 2002
shareholders approved a 1 for 100 share consolidation. As a result, the loss per
share for the six month period ended 31 December 2001 has been restated from
0.1p to 10.3p and the loss per share for the year ended 30 June 2002 has been
restated from 0.06p to 6.1p.
Exercise of the Company's share options and warrants would not result in any
dilution in the loss per share.
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2002
31 December 2002 31 December 30 June
Unaudited #000 2001 2002
Unaudited #000 Audited
#000
Fixed assets
Tangible assets 1 27 3
Investments in joint ventures
- share of gross assets 321 - 515
- share of gross liabilities (290) - (515)
31 - -
Current assets 32 27 3
Stock 17 97 8
Debtors 101 325 133
Cash at bank 437 80 784
555 502 925
Creditors: amounts falling due within
one year (143) (137) (298)
Net current assets 412 365 627
Net assets 444 392 630
Capital and reserves
Called up share capital 5,721 5,721 5,721
Share premium account 933 933 933
Profit and loss account (6,210) (6,262) (6,024)
Shareholders' funds 444 392 630
Notes:
1. The unaudited financial information included in this report has been prepared
in accordance with applicable accounting standards.
2. The unaudited interim financial information was approved by the Directors on
26 March 2003.
3. The Directors are unable to recommend the payment of an interim dividend.
4. The Group is indemnified against cumulative losses made by the two joint
venture companies, Poptones Telstar 1 Limited and Poptones Telstar 2 Limited,
to the extent that they exceed the value of the investment.
5. Copies of this interim report are being sent to all of the Company's
shareholders. Further copies can be obtained from the Company's registered
office.
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2002
Six month Six month Year
period to 31 period to 31 ended 30
December December June
2002 2001 2002
Unaudited Unaudited Audited
#000 #000 #000
Reconciliation of operating loss to net cash
outflow from operating activities:
Operating loss (230) (597) (364)
Depreciation and impairment of tangible fixed
assets 2 22 49
Profit on disposal of tangible fixed assets - - (1)
(Increase)/decrease in stock (9) 66 155
Decrease/(Increase) in debtors 32 (110) 82
(Decrease)/increase in creditors (155) (85) 76
Net cash outflow from operating activities (360) (704) (3)
Returns on investment and servicing of finance
Interest received 13 9 14
Capital expenditure and financial investment
Purchase of tangible fixed assets - - (4)
Proceeds from disposal of tangible fixed - - 2
assets - - (2)
Management of liquid resources
Decrease/(increase) in short-term deposits 550 - (550)
Increase/(decrease) in cash 203 (695) (541)
Analysis of net funds At 1 At 31
July Cash December
2002 Flow 2002
#000 #000 #000
Cash at bank 234 203 437
Short-term deposits 550 (550) -
At 31 December 2002 784 (347) 437
Enquiries:
J M Blackburn 01483 563 314
Poptones Group Plc
This information is provided by RNS
The company news service from the London Stock Exchange
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