Interim Results
Embargoed: not to be released until 7.00am on
25 July 2006
Totally Plc ("Totally" or "the Company ")
Interim Announcement Of Unaudited Results For Six Month Period Ended 30 June
2006
All main publications and divisions operationally profitable.
Totally Plc, the AIM quoted (ticker `TLY') international publisher and Internet
services provider announces its interim results for the six months to 30 June
2006.
Summary
* EBITDA improves by £272,000 to £7,000 (2005: £265,000 loss)
* Operating profit improves by £219,000 to £22,000 (2005: £197,000 loss)
* All main publications and divisions operationally profitable
* Net turnover up 8 per cent. to £1.3 million (2005: £1.2 million)
* Internet joint ventures launched in partnership with other community
focussed media owners
* Online dating service targeting the global Jewish community now well
established in the UK
* Confidence high that the improved trading performance will continue into
the second half
Steve Burns, CEO of Totally commented:
"I am pleased to report that during the first half of 2006 all primary business
units were operationally profitable, net turnover grew by 8 per cent. and our
EBITDA improved by £272,000 when compared to the same period last year.
Beyond these substantial improvements in our trading performance, we also
proved our ability to leverage our suite of proprietary online publishing
software by launching Internet based joint ventures targeting other niche
communities.
We believe that our existing publications and services operating within the
Jewish niche are all set for growth, with new product and joint venture
launches planned for later this year and, as a result, the board's confidence
is extremely high that this improved trading performance will continue into the
second half and beyond."
For further information:
Steve Burns T: 020 7692 6929
CEO
Totally Plc
www.totallyplc.com
John East & Partners T: 020 7628 2200
David Worlidge / Simon Clements
Abigail Singleton T: 0207 429 6606
Conduit PR M: 07739 461 061
Chairman's Statement
I am pleased to present the results for the six months ended 30 June 2006.
During the period the Group made an operating profit of £22,000 (2005: £197,000
loss) and profit after taxation of £9,000 (2005: £218,000 loss) on turnover of
£1.39 million (2005: £1.33 million).
Jewish Niche Publishing & Services
As a direct result of the product development activity undertaken in 2005,
publishing revenue in the UK and US grew by 6 per cent. and 12 per cent.
respectively when compared to the same period last year. Indeed both Jewish
News and The Jewish Advocate newspapers produced trading results ahead of those
achieved in any previous years.
While Totally has been busy establishing its new dating service
(www.totallyjewishdating.com) in the UK market, significant development
activity has been undertaken in order to prepare the site for an international
marketing drive, designed to help ensure that it takes a share in the $30
million worldwide market for online Jewish personals. A new and improved
version of the site will be launched in this third quarter.
At the same time, the TotallyJewish branded directory, travel and recruitment
websites have all experienced revenue increases when compared to the second
half of 2005 and work is almost complete on two new TotallyJewish branded
online product launches within the property and celebrations sectors.
As a result of the proprietary nature of Totally's Internet publishing software
and the breadth of its online offering within the global Jewish niche, Totally
has been able to instigate conversations with a number of other international
Jewish publishers regarding the potential for strategic online distribution and
ASP partnerships. These conversations will hopefully culminate in the global
realisation of the TotallyJewish brand and its various derivatives, which the
directors expect will help to grow additional revenue streams.
After a concerted effort in the area of search engine optimisation, the current
TotallyJewish portfolio of websites are extremely well represented within the
naturalised listings on all major search engines, especially Google.
Internet Services
Over the first six months of this year Totally has demonstrated its ability to
use its proprietary Internet publishing technology to target successfully other
niche communities in partnership with specialist publishers, broadcasters or
content owners.
During the period under review, Totally launched three joint ventures as
follows:
* Together with the leading Greek broadcaster London Greek Radio ("LGR"),
Totally launched www.lgr.co.uk a new portal targeting the UK's Greek
community, promoting a range of new online services including dating,
directory, property and recruitment. Under a five year joint venture
agreement, the partners will share in all service related revenues and new
advertising agreements. Totally will provide use of its proprietary online
publishing software suite and advise LGR on its commercial online strategy.
LGR will provide content, marketing via its 24-hour FM broadcast and
established Greek community relationships.
* Together with the publisher of The Property Trade Directory, a 1,600 page
guide to over 30,000 property contacts across the UK, Totally launched
www.propertytradedirectory.com, an online version of the already
established printed guide which is now in its third edition. Under the
joint venture agreement, Totally provides use of its proprietary online
directory software and receives half of the revenues generated from online
advertising, listing upgrades and other ancillary services.
* Together with the leading specialist online language job board
www.toplanguagejobs.co.uk, Totally launched a new portal
www.toplanguagecommunity.com promoting a range of online services including
dating, directory, property, forums and general classifieds targeting the
fast growing communities of foreign language speakers working or looking to
work in the UK and Ireland. Under the joint venture agreement, the partners
will share equally in all future advertising and service related revenues.
As a result of the generic and modular approach taken in the development of its
proprietary publishing technology, Totally can now develop and implement
partner sites quickly and cost effectively and, once the sites have been
implemented, Totally's involvement in marketing and administration is minimal.
As a result, revenues generated from these joint ventures are expected to be
highly profitable. The directors are currently working on the development of a
more formulaic strategy for the future roll out of this area of the Company.
Over the last six months Totally has also grown the technology side of Totally
Communications, a web agency and general technology and consultancy provider.
Working across an increasingly corporate client base, as a result of its
generic approach to developing Internet solutions, Totally can deliver high
quality websites and bespoke online applications at extremely competitive
prices. Whilst client acquisition has traditionally been created through
referral and recommendation, the Company has started recruiting a sales team to
drive growth and is considering options in relation to marketing activity.
Prospects
Through the continued development of its publications, services and
distribution capability, Totally's operations within the Jewish niche are set
to grow rapidly and profitably.
By leveraging its proprietary internet based publishing technology, Totally can
continue to develop partnerships that have the potential to deliver highly
profitable revenues and create significant long term value. At the same time,
through investing in a formal sales and marketing strategy, Totally's
technology business can also grow rapidly and profitably.
Ultimately, as a result of the product development activity undertaken over the
last 18 months, Totally is now extremely well placed to take advantage of
opportunities for growth in revenue and profit.
Dr Michael Sinclair
Chairman
25 July 2006
Profit and loss account
For the six months ended 30 June 2006
6 months 6 months Year ended
ended ended
31 December2005
30 June2006 30 June2005
(audited)
(unaudited) (unaudited)
£
£ £
Gross Turnover 1,389,251 1,332,535 2,771,000
Less: Share of Joint ventures 36,300 - 31,000
Group Turnover 1,352,951 1,332,535 2,740,000
Cost of sales (51,497) (138,041) (654,000)
Staff costs (663,556) (760,761) (1,659,000)
Depreciation (48,074) (20,441) (71,000)
Other operating charges (568,120) (610,179) (629,000)
Total expenses (1,331,247) (1,529,422) (3,013,000)
Operating profit/(loss) 21,704 (196,887) (273,000)
Share of operating loss of (9,708) - (13,000)
joint venture
Interest payable (23,658) (20,758) (40,000)
Loss on ordinary activities (11,662) (217,645) (326,000)
before taxation
Taxation 20,548 - 31,000
Retained profit/(loss) for 8,886 (217,645) (295,000)
the period
Earnings/(loss) per share 0.01p (0.25)p (0.34)p
(pence) - basic and diluted
Balance sheet
As at 30 June, 2006
6 months ended 6 months ended 12 months ended
31 December 2005
30 June 2006 30 June 2005 (audited)
(unaudited) (unaudited)
£ £ £
Fixed assets
Tangible fixed assets 312,375 267,996 297,000
Intangible fixed assets 928,819 945,427 941,000
Investments
Investments in Joint Venture
Share of gross assets 13,644 - 18,000
Share of gross liabilities (23,352) - (29,000)
Current assets
Newsprint inventory 1,945 5,400 4,000
Debtors and prepayments 390,640 378,898 408,000
Cash at bank and in hand 69,144 13,981 43,000
461,729 398,279 455,000
Creditors
Trade creditors (208,605) (250,588) (312,000)
Loans and overdrafts (783,750) (561,301) (754,000)
Accruals and deferred income (212,612) (256,726) (142,000)
Other taxation and social (75,331) (66,141) (74,000)
security
(1,280,298) (1,134,756) (1,282,000)
Net current liabilities (818,569) (736,477) (827,000)
Total assets less current 412,917 476,946 400,000
liabilities
Net Assets 412,917 476,946 400,000
Capital and reserves
Called up share capital 900,747 898,647 898,000
Share premium account 3,107,217 3,106,167 3,106,000
Revaluation reserve 2,000 1,000 2,000
Profit and loss account (3,597,047) (3,528,868) (3,606,000)
Equity shareholders' funds 412,917 476,946 400,000
Cashflow Statement
For the six months ended 30 June 2006
6 months to 6 months to
30 June2006 30 June2005
(unaudited) (unaudited)
£ £
Net cash inflow/(outflow) from operating 57,741 (143,125)
activities
Return on investments and servicing of
finance
Interest paid (23,658) (20,758)
34,083 (163,883)
Taxation
R&D tax credit 20,548 -
Capital expenditure and financial
investments
Payments to acquire tangible fixed (61,387) (104,437)
assets
Net cash outflow before financing (6,756) (268,320)
Financing
Issue of ordinary share capital for cash 3,150 275,000
Expenses paid in connection with share - (6,000)
issues
3,150 269,000
(Decrease)/increase in cash (3,606) 680
Reconciliation of operating loss to net cash flow from operating activities
Operating profit/(loss) 21,704 (196,887)
Depreciation 48,074 20,441
(Increase)/decrease in inventory 2,055 (2,400)
Decrease in debtors 17,360 7,675
(Decrease)/increase in creditors (31,452) 28,046
57,741 (143,125)
Reconciliation of net cash flow to movements in net debt
At 31 At 30 Cash At 31 At 30 Cash
flows
December June December June flows
2005 2004
2006 2005
£ £
£ £
Cash at bank and 43,000 69,144 26,144 48,000 13,981 (34,019)
in hand
Overdrafts (754,000) (783,750) (29,750) (596,000) (561,301) (34,699)
(711,000) (714,606) (3,606) (548,000) (547,320) 680
Notes to the Interim Results
1. Basis of preparation
The Interim Results for the six months ended 30 June 2006 are unaudited and do
not constitute statutory accounts in accordance with section 240 of the
Companies Act 1985.
Full accounts for the year ended 31 December 2005, on which the auditors gave
an unqualified report and contained no statement under Section 237 (2) or (3)
of the Companies Act 1985, have been delivered to the Registrar of Companies.
The Interim Results do not include any provision under FRS 20 - Accounting for
Share Based Payments. The Company is currently working with its auditors to
agree an appropriate formula and this will be reflected in the full year
accounts for the year ended 31 December 2006.
2. Dividends
No dividend is proposed for the six months ended 30 June 2006.
3. Earnings/(loss)per share
The basic loss per share has been calculated by dividing the retained profit
for the period of £8,886 (2005:£217,645) by the weighted average number of
ordinary shares of 90,014,378 (2004: 86,233,632) 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.
4. Copies of Interim Results
Copies of the Interim Results will be available from the Company's website
(www.totallyplc.com) and from the Company's registered office, Unit 611,
Highgate Studios, 53-79 Highgate Road, London, NW5 1TL.
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