Interim Results
23 December 2003 - 11:02PM
UK Regulatory
RNS Number:6014T
Galleon Holdings PLC
23 December 2003
For release
Galleon Holdings plc:
Interim results for the six months ended 30 September 2003
Chairman's statement
I am pleased to present the interim financial results of Galleon Holdings plc
for the six months to 30 September 2003. The operating loss after taxation for
the period was #597,000. Included in this figure was #274,000 relating to
amortisation of goodwill, which arose from the acquisition of The Galleon Group
plc.
In my last Chairman's statement, I said that I expected to see an improvement
during the second half of the current financial financial year. I am happy to
report the following:
A4 Publications successfully produced a magazine supplement in conjunction with
the Reed Midem Organisation, which was distributed during MIP Junior and MIPCOM
television festivals in October 2003, in Cannes. The new sales and editorial
teams have settled in, and we are seeing the positive results of their
endeavours flowing through.
Astro Knights is now in production with Jaguar Media Productions SA, and the
first episode will be premiered at the MIP TV festival in April 2004, in Cannes.
The major thrust for the licensing programme is scheduled for the New York
licensing show in June 2004.
Pepper's Patrol is in development with Coolebah Ltd, a company whose Chairman is
William Harris, the ex-Chief Executive Officer of Gullane plc, the company
behind the hugely successful children's cartoon series Thomas The Tank Engine. I
shall be announcing the studio selected to undertake the production of the
series early in 2004.
Oggies will be in full production in 2004, with the pre- and post-production
being handled in the USA, and the animation in China. The licensing programme
has continued to expand across the food, plush, giftware, clothing, toy and
technical equipment sectors. The British Surfing Association and Surfing
Australia will launch the Fistral Freddie and the Bondi Bruce Surf Academies for
children aged 5 to 10 years of age during the first half of 2004.
We have been successful in acquiring all of the rights in both Pepper's Patrol
and Oggies giving Galleon total ownership. The rights' owners accepted Galleon
shares as payment further demonstrating their belief in our IPR strategy.
We continue to work with The Metropolitan Police across a number of areas
related to the safety of children. The first of these initiatives, Safer Surfing
On The Internet, featuring Oggies super surfing hero, Fistral Freddie, was
launched by The Met and Crimestoppers in November 2003.This campaign, warning
children and parents of the dangers of internet chat rooms has been launched
initially to schools in the Metropolitan area, with a national rollout planned
for 2004.
We made progress during the first half and this has continued during the second
half. I believe that our IPR development and ownership strategy is absolutely
sound. The recent activities in the rights sector with acquisitions and bids
attracting significant valuations can only enhance the value of our rights
portfolio. We will continue to look for further acquisitions that will add
strength and enhance our earnings.
Thank you for your continued support and may I take this opportunity to wish you
all a very merry Christmas and a happy and peaceful New Year.
James Driscoll, MBE
CHAIRMAN
22 December 2003
PROFIT AND LOSS ACCOUNT
For the six months ended 30 September 2003
Six months Six months
ended 30 ended 30 Year ended 31
September 2003 September 2002 March 2003
Note Unaudited Unaudited Audited
#'000 #'000 #'000
Turnover 329 780 1,207
Cost of sales (275) (492) (883)
------- ------- -------
Gross profit 54 288 324
Other administrative (377) (656) (1,186)
expenses
Impairment and (274) (565) (7,823)
amortisation of ------- ------- -------
goodwill
Administrative expenses (651) (1,221) (9,009)
Operating loss prior to (323) (368) (862)
impairment and
amortisation of
goodwill
Impairment and (274) (565) (7,823)
amortisation of ------- ------- -------
goodwill
Operating loss (597) (933) (8,685)
Share of operating profit 5 (34) (64)
/(loss) of associate
Amortisation of purchased (5) - (70)
goodwill in associate
Net interest (12) (2) (14)
Loss on ordinary
activities before ------- ------- -------
taxation (609) (969) (8,833)
Tax on loss on ordinary 2 - - -
activities
------- ------- -------
Loss on ordinary (609) (969) (8,833)
activities after taxation
and loss for the
financial period
Basic loss per ordinary 3 (0.1)p (0.2)p (1.08)p
share
There were no recognised gains or losses other than the loss for the period.
At 30 September At 30 September At 31 March
2003 2002 2003
Unaudited Unaudited Audited
#'000 #'000 #'000
Fixed assets
Intangible assets
Goodwill 4,476 12,008 4,750
Other 2 1 2
------- ------- -------
4,478 12,009 4,752
------- ------- -------
Tangible assets 58 91 70
Investments
Associates and joint ventures 70 170 70
Other investments 22 97 26
------- ------- -------
92 267 96
------- ------- -------
------- ------- -------
4,628 12,367 4,918
------- ------- -------
Current assets
Stocks and work in progress 19 53 18
Debtors 868 968 779
Cash at bank and in hand 68 100 4
------- ------- -------
955 1,121 801
Creditors: amounts falling due (950) (605) (807)
within one year
------- ------- -------
Net current assets/(liabilities) 5 516 (6)
------- ------- -------
Total assets less current 4,633 12,883 4,912
liabilities
Creditors: amounts falling due
after more
than one year (3) - (5)
Provisions for liabilities and (98) (210) (98)
charges
4,532 12,673 4,809
Capital and reserves
Called up share capital 8,488 8,150 8,150
Share premium account 1,336 1,342 1,342
Other reserves 6,338 6,338 6,338
Profit and loss account (11,630) (3,157) (11,021)
Shareholders' funds 4,532 12,673 4,809
Note Six months Six months
ended 30 ended 30 Year ended 31
September 2003 September 2002 March 2003
Unaudited Unaudited Audited
#'000 #'000 #'000
Net cash outflow from 6 (261) (300) (694)
operating activities ------- ------ -------
Returns on investments
and servicing of
finance
Interest received - 3 4
Interest paid (10) (5) (14)
Hire purchase interest (2) (2) (4)
Net cash outflow from
returns on ------- ------ -------
investments and servicing (12) (4) (14)
of finance ------- ------ -------
Capital expenditure
Purchase of tangible - (18) (16)
fixed assets
Purchase of intangible - - (1)
fixed assets
Payments to acquire fixed - (30) (30)
asset investments
Proceeds from sale of - - 2
fixed asset investments ------- ------ -------
Net cash outflow from - (48) (45)
capital expenditure ------- ------ -------
Net cash outflow before (273) (352) (753)
financing
Financing
Issue of shares 338 - -
Expenses paid in (6) - -
connection with share
issues
Capital element of (15) (18) (40)
finance leases ------- ------ -------
Net cash inflow/(outflow) 317 (18) (40)
from financing ------- ------ -------
Increase/(decrease) in 44 (370) (793)
cash
1 RESULTS
The results for the six months ended 30 September 2003 are neither audited nor
reviewed and do not constitute statutory accounts within the meaning of the
Companies (Northern Ireland) Order 1986. They have been prepared on the basis of
accounting policies consistent with those used in the annual accounts for the
year ended 31 March 2003. The statutory accounts for the year ended 31 March
2003 have been given an unqualified audit report and have been filed with the
Registrar of Companies. The interim accounts for the six months to 30 September
2002 were unaudited.
2 TAXATION
In view of the Company's tax losses carried forward, there is no tax charge
included in the six months under review.
3 LOSS PER SHARE
Loss per share has been calculated in accordance with FRS14 based on 826,578,774
ordinary shares of 1 pence each being the weighted average of those in issue
during the six months ended 30 September 2003.
4 DIVIDENDS
The Company will not be declaring an interim dividend.
5 CONTINGENT LIABILITY
The Company has been involved jointly with Glencar Mining plc in civil
litigations in the Irish courts against Mayo County Council. The Company has
withdrawn its action, although Glencar Mining plc has decided to proceed with an
appeal to the Supreme Court. Under an agreement reached between the Company and
Glencar Mining plc dated 23 May 2000, the Company will still be liable for the
legal costs, should the appeal be rejected, but restricted to a maximum of Irish
#60,000. This amount has been provided in the accounts as at 30 September 2003.
As this agreement is between the Company and Glencar Mining plc, the Company has
joint and several liability regarding legal costs in the event, considered
unlikely by the Directors, that there is a shortfall unpaid by Glencar Mining
plc.
6 NOTE TO THE CASH FLOW STATEMENT
Reconciliation of operating loss to net cash (outflow)/inflow from operating
activities:-
Six months Ended Six months Ended
30 September 30 September Year ended 31
2003 2002 March 2003
Unaudited Unaudited Audited
#'000 #'000 #'000
Operating loss (597) (933) (8,685)
Loss of disposal of - 2 2
tangible fixed assets
Depreciation of tangible 12 25 45
fixed assets
Amortisation of intangible - 5 5
fixed assets
Provision against 4 1 70
investments
Reversal of provisions - - (112)
Amortisation of goodwill 274 565 7,823
Increase in work in (1) (36) (1)
progress
(Increase)/decrease in (89) (55) 134
debtors
Increase in creditors 136 126 25
Net cash (outflow)/inflow (261) (300) 694
from operating activities
For further information please contact:
Sam Allen
Binns & Co. PR Ltd
T: 0207 7862 829
This information is provided by RNS
The company news service from the London Stock Exchange
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