RNS Number:1532T
DA Group PLC
12 December 2003
DA GROUP PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003
CHIEF EXECUTIVE'S STATEMENT
Our strategy for reshaping the company and maximising shareholder value has
continued in a systematic and constructive way, with the force of our sales
campaigns hitting the targeted markets in earnest in July. The accumulated
experience has revealed that sentiment for innovative technology is still very
cautious. This has meant that it has taken longer than expected to penetrate our
target markets and the climate remains tough. However there is a definite
improvement in attitudes and the inroads we have been making with our demand-led
sales strategy tell us that things are changing for the better.
In some sectors - namely web marketing and mobile messaging - our experience has
been that there is now a far greater readiness to embrace avatars and an
enthusiasm for the business advantage they can bring.
A summary of the results shows that turnover for the 6 month period ended 30
September 2003 decreased to #404,978 (2002 #993,811). The reduction in turnover
is primarily the result of a shift in focus from one off consultancy projects to
our core technology business which we believe will lead to a sustainable
business model moving forward. The operating loss for the period was #1,075,150
(2002 #313,493) before research and development expenditure of #382,864 (2002
#450,077), impairment and amortisation of goodwill of #nil (2002 #457,680), and
exceptional loss of #nil (2002 #226,330).
During this period the Company has successfully concluded the return of capital
to shareholders by means of a tender offer which resulted in the cancellation of
12,971,369 shares at a cost of #2,789,065.This distribution was preceded by the
cancellation of the share premium account and creation of a distributable
reserve. The Company also cancelled the deferred shares previously in issue and
officially changed its name to DA Group plc. Cash balances at 30 September 2003
following the distribution to shareholders stand at #3,236,807.
Over recent months our focus has been turned towards avatar marketing
particularly across mobile networks. We have campaigned in the Asian nations,
where mobile and messaging trends often set the pattern for the rest of the
world. We have attended and taken speaker platforms at events, as well as met
with potential new clients.
In the UK over the next year, we see these trends translating into
brand-to-consumer messaging and expect the networks and blue chip companies to
take up more engaging content to 'speak to' their audiences and brand
communities.
The prospect of new business is strong under the leadership of Cyril Scott. We
fully expect that the recent announcement of our 'sector-first' deal with SMART
Communications in the Philippines will be the curtain raiser to other equally
significant contracts. Alongside these we continue to build marketing
relationships with global technology suppliers, which should realise greater
benefits over the medium term.
We are now finding there are companies in the market more pre-disposed than ever
to the commercial advantages of our solutions. We are concentrating on these
defined buying communities illustrating the business case for solutions which
will result in sustainable revenue streams.
I thank the shareholders, directors and staff for their continuing commitment.
Mike Antliff
Chief Executive
12 December 2003
INDEPENDENT REVIEW REPORT TO DA GROUP PLC
Introduction
We have been instructed by the company to review the financial information for
the six months ended 30 September 2003 which comprises the Group Profit and Loss
Account, Group Balance Sheet and the related notes 1 to 5. We have read the
other information contained in the interim report and considered whether it
contains any apparent misstatements or material inconsistencies with the
financial information.
This report is made solely to the company having regard to guidance contained in
Bulletin 1999/4 'Review of interim financial information' issued by the Auditing
Practices Board. To the fullest extent permitted by the law, we do not accept or
assume responsibility to anyone other than the company, for our work, for this
report, or for the conclusions we have formed.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report as required by the AIM Rules
issued by the London Stock Exchange.
Review work performed
We conducted our review having regard to the guidance contained in Bulletin
1999/4 'Review of interim financial information' issued by the Auditing
Practices Board for use in the United Kingdom. A review consists principally of
making enquiries of management and applying analytical procedures to the
financial information and underlying financial data, and based thereon,
assessing whether the accounting policies and presentation have been
consistently applied, unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with United Kingdom Auditing Standards and therefore provides a lower
level of assurance than an audit. Accordingly we do not express an audit
opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2003.
Ernst & Young LLP
Glasgow
12 December 2003
UNAUDITED GROUP PROFIT & LOSS ACCOUNT
6 months to 6 months to year to
30 September 30 September 31 March 2003
2003 2002 (audited)
# # #
TURNOVER 404,978 993,811 1,542,220
Cost of sales 166,413 245,792 507,077
GROSS PROFIT 238,565 748,019 1,035,143
Administration costs 1,696,579 2,195,599 3,990,081
Operating loss
Before R&D, impairment & (1,075,150) (313,493) (1,333,686)
amortisation and exceptional
items
Research & development (382,864) (450,077) (929,528)
expenditure
Impairment & amortisation of - (457,680) (432,677)
Goodwill
Exceptional loss - compensation - (226,330) (259,047)
for loss of office and related
costs
OPERATING LOSS (1,458,014) (1,447,580) (2,954,938)
Net interest receivable 115,345 184,780 345,634
LOSS ON ORDINARY ACTIVITIES (1,342,669) (1,262,800) (2,609,304)
BEFORE TAXATION
Tax on ordinary activities - (111,000) (111,000)
LOSS FOR THE PERIOD (1,342,669) (1,373,800) (2,720,304)
Loss and diluted loss per ordinary (4.99p) (4.28p) (8.53p)
share
UNAUDITED GROUP BALANCE SHEET
31 March
30 September 30 September 2003
2003 2002 (audited)
# # #
FIXED ASSETS
Tangible assets 369,141 501,296 415,459
Investments 130,000 160,905 156,965
499,141 662,201 572,424
CURRENT ASSETS
Debtors 309,499 708,911 494,401
Cash at bank and in hand 3,236,807 9,230,142 7,513,663
3,546,306 9,939,053 8,008,064
CREDITORS: amounts falling due 335,561 724,400 738,162
within one year
NET CURRENT ASSETS 3,210,745 9,214,653 7,269,902
TOTAL ASSETS LESS CURRENT 3,709,886 9,876,854 7,842,326
LIABILITIES
CREDITORS: amounts falling due - 149,367 -
after more than one year
PROVISIONS FOR LIABILITIES AND 23,586 12,955 24,292
CHARGES
3,686,300 9,714,532 7,818,034
CAPITAL AND RESERVES 3,686,300 9,714,532 7,818,034
1. BASIS OF PREPARATION OF INTERIM FINANCIAL INFORMATION
The interim financial information has been prepared on the basis of the accounting
policies set out in the Group's statutory accounts for the year ended 31 March 2003.
The financial information contained in the interim statement does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. Statutory
accounts for the period ended 31 March 2003, which were unqualified, have been
delivered to the Registrar of Companies.
2. TAXATION
No provision for taxation has been made as the Group has losses brought forward.
3. LOSS PER SHARE
Loss per ordinary share is based on 26,905,754 ordinary shares, being the weighted
average number of shares in issue during the period. At 31 March 2003 and 30
September 2003 the weighted average number of shares in issue was 31,900,789 and
32,121,228 respectively. Due to the loss for the period, the share options have no
dilutive effect.
4. CAPITAL AND RESERVES
The reduction in capital and reserves in the 6 month period to 30 September 2003
reflects the loss for the period of #1,342,669 and a reduction in capital of
#2,789,065 including expenses arising from the cancellation of shares pursuant to
the tender offer which took place on 21 August 2003.
5. INTERIM REPORT
The interim report was approved by the board of directors on 12 December 2003.
Copies of this report will be sent to all shareholders and are available to members
of the public at the Company's Registered Office.
This information is provided by RNS
The company news service from the London Stock Exchange
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