Final Results
17 May 2005
TOTALLY PLC ('Totally', 'the Company' or 'the Group')
Preliminary results for the year ended 31 December 2004
Totally Plc, the publishing and communications Group that targets niche Jewish
communities around the world, today announces its preliminary results for the
year ended 31 December 2004.
Highlights:
* Robin Morgan, Editor of Sunday Times Magazine, joins the Board as a
non-executive director
* Merger of TotallyJewishTravel & SederOlam to create the world's largest
Jewish travel site
* Global Jewish dating portal set to launch later this month
* Global Jewish directory set to launch June 2005
* Turnover of £2.70 million (2003: £1.95 million)
* Operating loss of £0.30 million (2003: loss £0.21 million)
Commenting on the results, Dr Michael Sinclair, Non-Executive Chairman, said:
'2004 was the year in which Totally Plc made the greatest strides yet in
creating a global publishing and communications Group targeting the Jewish
market. With the successful acquisition and integration of the Jewish Advocate,
which has been profitable and cashflow generative since its acquisition in
January 2004, the Group now has the content and distribution capability to grow
rapidly and profitably on both sides of the Atlantic.
The Company has today strengthened the board through the appointment of Robin
Morgan, the award winning, long serving Editor of Sunday Times Magazine, as a
non executive director. Robin's appointment represents a significant
endorsement of the current strategy and focus of the business.
The Group has also entered into an agreement to merge its online travel
business www.totallyjewishtravel.com with www.sederolam.com, the leading
Israeli business travel site. By creating the world's largest Jewish travel
portal, the Group hopes to exploit the ample opportunities within the Jewish
travel sector, which is currently estimated to be worth in excess of $300
million per annum.
In the next few months, the Group proposes to launch a number of new services
websites targeting the global Jewish market. These will include a new Jewish
dating portal targeting the 1,000,000 (approx) Jewish singles across the world,
a market estimated to be worth in excess of $2 million per annum. A new global
Jewish directory service is also about to be launched, which your Directors
believe will become the standard for directory listings across Europe and the
United States.
Having now completed its reorganisation and restructuring, the Group is now
positioned to take advantage of the opportunities for increased profits and
growth, and the Directors believe that 2005 will be an exciting year with a
positive outlook for the future.
Chairman's Statement
2004 was the year in which Totally Plc made the greatest strides yet in
creating a global publishing and communications group targeting the Jewish
market. With the successful acquisition and integration of the Jewish Advocate,
which has been profitable and cashflow generative since its acquisition in
January 2004, the Group now has the content and distribution capability to grow
rapidly and profitably on both sides of the Atlantic.
One of the key targets for the period under review was the successful
integration of the Jewish Advocate and as a result, the creation of cost-based
economies of scale between the London and Boston newspapers and websites. I am
pleased to report that the introduction of new systems and working practices
has created an opportunity to share significant amounts of content and
editorial resources between the sister publications. This has helped the Group
consolidate its editorial and production resources and will lead to a material
reduction in the Group's operating costs in 2005 and beyond.
During 2004 advertising and subscription revenues in both London and Boston
remained static. Whilst disappointing, this reflected the management team's
primary focus on product and delivery development, the benefits of which will
again be seen in 2005.
During the period under review the Group's turnover grew to £2.76 million
(2003: £1.95 million). The operating loss for the Group increased to £0.28
million (2003: loss £0.21 million).
Board Changes
Earlier today, the Company strengthened the board following the appointment of
Robin Morgan, the award winning, long serving Editor of Sunday Times Magazine,
as a non-executive director. Robin's appointment represents a significant
endorsement of the current strategy and focus of the business.
In order to align the make up of the Board with the Group's primary activities,
Andy Margolis and Dan Levitt, who head up the technology and marketing services
arms of Totally Communications Limited respectively, will be stepping down from
the main Board with effect from the conclusion of the Annual General Meeting.
Andy Margolis will not be seeking re-election and Dan Levitt will be resigning.
Going forward, Totally Communications Limited will be run more autonomously
reflecting the Board's desire to see this business flourish. Andy Margolis and
Dan Levitt will remain directors of Totally Communications Limited and key
figures in the Group's senior management.
Post Year End
Since the year end, the Group has entered into an agreement to merge its online
travel business www.totallyjewishtravel.com with www.sederolam.com, the leading
Israeli business travel site. The agreement covers the creation of a jointly
and equally owned business which will take ownership of the combined assets of
the two sites. By creating the world's largest Jewish travel portal, the Group
hopes to exploit the ample opportunities within the Jewish travel sector, which
is currently estimated to be worth in excess of $300 million per annum.
The Group is also about to launch a number of new websites targeting the global
Jewish market. These will include a new Jewish dating portal targeting the
1,000,000 (approx) Jewish singles across the world, a market estimated to be
worth in excess of $2 million per annum. A new global Jewish directory service
is also about to be launched, which your Directors believe will become the
standard for directory listings across Europe and the United States.
Prospects
Having now completed its reorganisation and restructuring, the Group is now
positioned to take advantage of the opportunities for increased profits and
growth, and the Directors believe that 2005 will be an exciting year with a
positive outlook for the future.
Michael Sinclair
Chairman
16 May 2005
Consolidated profit and loss account
for the year to 31 December 2004
Note 2004 2003
£000 £000
Turnover
Continuing operations 1 2,014 1,952
Acquisitions 684 -
2,698 1,952
Other external charges
Continuing operations (697) (680)
Acquisitions (36) -
(733) (680)
Staff costs:
Wages and salaries
Continuing operations (1,173) (1,031)
Acquisitions (217) -
Social security costs
Continuing operations (129) (112)
Acquisitions (21) -
(1,540) (1,143)
Depreciation and other
amounts written off tangible
and intangible fixed assets
Continuing operations (29) (24)
Acquisitions (4) -
(33) (24)
Other operating charges
Continuing operations (364) (313)
Acquisitions (332) -
(696) (313)
Total expenses
Continuing operations (2,392) (2,160)
Acquisitions (610) -
(3,002) (2,160)
Operating (loss)/profit
Continuing operations (378) (208)
Acquisitions 74 -
(304) (208)
Interest payable and similar (28) (15)
charges
Loss on ordinary activities (332) (223)
before taxation
Taxation 68 44
Loss after tax for the year (264) (179)
Loss per share - basic 5 (0.34)p (0.33)p
Loss per share - diluted 5 (0.34)p (0.33)p
Consolidated balance sheet
at 31 December 2004
2004 2003
Note £000 £000 £000 £000
Fixed assets
Intangible assets 941 -
Tangible assets 2 184 46
1,125 46
Current assets
Inventory 3 -
Debtors 3 391 391
Cash at bank and in hand 48 -
442 391
Creditors: amounts falling due within 4 (1,142) (647)
one year
Net current liabilities (700) (256)
Total assets less current liabilities 425 (210)
Net Assets/(liabilities) 425 (210)
Capital and reserves
Called up share capital 788 582
Share premium account 2,947 2,255
Revaluation reserve 1 -
Profit and loss account (3,311) (3,047)
Shareholders' funds/(deficit) - equity 425 210
interests
Consolidated cash flow statement
for the year ended 31 December 2004
2004 2003
Note £000 £000
Net cash outflow from operating activities (215) (175)
Returns on investments and servicing of finance
Bank interest paid (28) (15)
(243) (190)
Taxation
R&D tax credit 68 44
Capital expenditure
Payments to acquire tangible fixed assets (164) (17)
Acquisitions
Purchase of investments in subsidiary undertakings (31) -
Cash acquired with subsidiary 27 -
Cash outflow before financing (343) (163)
Financing
Capital repayments under finance leases - (2)
Issue of ordinary share capital for cash - 155
Expenses paid in connection with share issues - (4)
Decrease in cash in the period (343) (14)
Notes to the financial statements
1. Basis of preparation
The financial statements are prepared on a going concern basis, which the
Directors believe to be appropriate for the following reasons. The Group
currently meets its day-to-day working capital requirements through two
overdraft facilities, which are repayable on demand.
The Group has confirmed the availability of a facility of £500,000 with Bank
Hapoalim, which was renewed on 29 April 2005 until 28 April 2006. As security
for the facility, the bank has obtained the unlimited Joint and Several
Guarantees of Dr. Michael J. Sinclair (non-executive Director), Mr Leo Noe and
Grand Rabbi Y.A. Korff of Boston (non-executive Director).
In addition, a working capital facility of £150,000 has been agreed with
Natwest which is secured on the Group's debtor book. This facility is due for
renewal on 31 October 2005.
The Directors have prepared projected cash flow information for the period
ending twelve months from the date of their approval of these financial
statements.
On the basis of cash flow forecasts and discussions with the group's bankers,
the Directors consider that the Group will be able to operate within the
facilities currently agreed.
Inherently, there can be no certainty in relation to these matters, but the
Directors believe that the going concern basis of preparation continues to be
appropriate.
2. Tangible fixed assets
Short Computer Fixtures Total
leasehold equipment and
property fittings
£000 £000 £000 £000
Cost
At beginning of year 54 105 29 188
Acquired with subsidiary - - 64 64
Additions - 155 9 164
Disposals - - (29) (29)
At end of year 54 260 73 387
Depreciation
At beginning of year 29 90 23 142
Acquired with subsidiary - - 57 57
Charge for year 10 13 10 33
Disposals - - (29) (29)
At end of year 39 103 61 203
Net book value
At 31 December 2004 15 157 12 184
At 31 December 2003 25 15 6 46
3. Debtors
31 31
December December
2004 2003
£000 £000
Trade debtors 247 254
Other debtors 26 34
Other taxation and social security 5 52
Prepayments and accrued income 113 51
391 391
4. Creditors: amounts falling due within one year
31 31
December December
2004 2003
£000 £000
Bank loans and overdrafts 596 205
Trade creditors 295 211
Other creditors including taxation and social 77 78
security
Accruals and deferred income 174 153
1,142 647
5. Loss per share
The calculation of the basic loss per share is based on the loss of £264,000
(2003 £179,000) and on 77,133,270 (2003: 53,943,682) ordinary shares being the
weighted average number of shares in issue during the period. The diluted loss
per share is the same as the basic loss per share, in accordance with FRS 14
which prescribes that potential ordinary shares should only be used as dilutive
when, and only when, their conversion to ordinary shares would decrease net
profit or increase net loss per share from continuing operations.
6. Dividends
The Directors are not proposing the payment of a dividend in respect of the
year ended 31 December 2004.
7. Publication of non-statutory accounts
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985.
The consolidated balance sheet as at 31 December 2004 and the consolidated
profit and loss account, consolidated cash flow statement and associated notes
for the year then ended have been extracted from the Group's financial
statements. Those financial statements have received an unqualified report from
the auditors but have not yet been delivered to the Registrar of Companies. The
2003 accounts have been delivered to the Registrar of Companies and the
auditors gave an unqualied report on them.
8. Copies of accounts will be sent to shareholders shortly and will also be
available at the Company's registered office, Unit 611, Highgate Studios, 53-79
Highgate Road, Kentish Town, London NW5 1TL.
Enquiries
Totally PLC
Steve Burns Tel: 020 7692 6929
John East & Partners Limited
John East/David Worlidge / Simon Clements Tel: 020 7628 2200
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