Interim Results
Cheerful Scout PLC
06 March 2007
Cheerful Scout Plc ('Cheerful Scout' or 'the Company')
Interim Results
Cheerful Scout Plc, the AIM-traded multi media specialist, is pleased to
announce its results for the six months ended 31 December 2006.
Overview
•Pre-tax profit up 57% to £116,194 (2005: £73,903)
•Cash at bank £1,020,866 (2005:£852,030)
•New contracts with existing and new clients
•nVision and Events division gaining momentum
•Team strengthened with appointment of new head of events
•Several prestigious awards recognising creative excellence, technology
and innovation
Chairman Statement
It gives me great pleasure to report another set of positive results as Cheerful
Scout continues to deliver creative corporate communication solutions to its
expanding list of blue-chip clients. Following maiden profits for 31 June year
end results, trading and turnover has continued to develop satisfactorily.
The corporate communications market in which the Company principally operates
has seen an improved level of spend and Cheerful Scout is positioned to take
advantage of this and is building its reputation as a provider of choice to many
leading organisations. In line with this the Company has won a number of new con
tracts with blue-chip companies within its three main areas of business - Film &
Video, nVision/Events and DVD - and it has been recognised through the winning
of a number of significant industry awards.
Financial Results
Targeting of higher margined projects led to a reduction in turnover for the six
months ended 31 December 2006 to £1,038,285 (2005: 1,120,320) and a 57% increase
in pre-tax profit of £116,194 (2005: £73,903). Cash balances at 31 December 2006
were £1,020,866 (2005: £852,030).
The Company will not be declaring a dividend, but as a result of the continuing
growth in profits and following the share consolidation in November 2006, we
will continue to review our dividend policy.
Operations
Cheerful Scout has had a good start to 2007 with all three business divisions
performing well. The Company has secured new pivotal contracts and continued to
establish and build upon existing agreements across its business divisions.
Recognition for its creative excellence, technology and innovation has been
demonstrated by winning four prestigious awards. The Film & Video team won an
award for Audio-Visual Communication at The Federation of European Business
Communicators Association Grand Prix 2006 in Austria, as well as gold and silver
medals at the International Film & Video Competition at the New York Festivals.
The DVD team won an award for its creative excellence in Televisual magazine's
'Best of 2006' DVD showcase for the fourth consecutive year, while the nVision
and Events team won the Award for Innovation for its new presentation software,
nVision Presenter, at the International Visual Communication Association's
LiveCom Awards 2006.
The Film & Video division has also been performing strongly. It recently secured
a contract to produce an internal video for the Royal Bank of Scotland, designed
to present the work of the bank's Electronic Payments Department. A contract
with UK insurance giant Allianz Cornhill to produce an internal film to
communicate the new FSA compliance regulations has been won - this is still in
production.
Since first securing a contract with the Directorate of Optometric Continuing
Education & Training 'DOCET' in August 2006, Cheerful Scout has continued to
build upon this relationship and has recently been awarded a contract by DOCET
to produce two further videos.
The DVD division maintains its strong performance. As recently announced, our
relationship with Contender Entertainment Group has been strengthened following
a new contract to provide DVD authoring services to its entire medium to
high-end film and TV titles, such as BBC's Spooks, for two years.
The nVision and Events division is gaining momentum, recently producing two
major events. In December 2006 it produced an awards ceremony for an audience of
corporate communications directors (potential buyers for our products) in
partnership with CorpComms magazine at the Royal Horticultural Halls in central
London. Additionally, our production team was responsible for the Allen & Overy
week long event entitled 'A World of Difference at Allen & Overy' to launch the
legal firm's new state-of-the-art global headquarters in Bishops Square, London.
People
We always maintain that our continued success can be attributed to the excellent
team that Cheerful Scout has behind it. We are pleased to announce that this has
been further strengthened with the appointment of a new head of events.
Furthermore, I intend to take a more active role as Chairman as from May 2007 as
I finish my full time executive duties as a member of the Board of Management of
Getronics NV.
Additionally, congratulations to our Managing Director, Gary Fitzpatrick, who
has been named one of the top 100 audio visual people in the UK by Audio Visual
magazine.
Outlook
Throughout our 10 year history we have focused on producing unique, creative and
high-quality work. We are now a recognised leader in our field, with the
business gaining upward momentum and our blue-chip client base growing rapidly.
The strength of our client base and the strong foundations that we have built
gives us confidence of continued growth and that profits for the year will be in
line with market expectations.
S Appleton
Chairman
6 March 2007
CHEERFUL SCOUT PLC
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2006
Unaudited Unaudited Audited
6 months to 31 December 2006 6 months to 31 December 2005 Year to 30 June 2006
pre goodwill goodwill total pre goodwill goodwill total pre goodwill goodwill total
amortisation amortisation amortisation amortisation amortisation amortisation
and and and and and and
reorganisation reorganisation reorganisation reorganisation reorganisation reorganisation
cost cost cost cost cost cost
£ £ £ £ £ £ £ £ £
Turnover 1,038,285 1,038,285 1,120,320 - 1,120,320 2,173,163 - 2,173,163
Cost of (554,797) (554,797) (739,820) - (739,820) (1,308,612) - (1,308,612)
sales
Gross Profit 483,488 483,488 380,500 - 380,500 864,551 - 864,551
Administrative
expenses (369,467) (12,738) (382,205) (310,526) (12,738) (323,264) (635,581) (50,499) (686,080)
Operating
Profit/(Loss) 114,021 (12,738) 101,283 69,974 (12,738) 57,236 228,970 (50,499) 178,471
Interest
received 15,546 - 15,546 16,667 - 16,667 30,104 - 30,104
Interest
payable (8) - (8) - - - (42) - (42)
Profit/(Loss)
on 129,559 (12,738) 116,281 86,641 (12,738) 73,903 259,032 (50,499) 208,533
ordinary
activities
before
taxation
Tax on Profit (12,288) (54,000)
on Ordinary
Activities
Retained
Profit 104,533 73,903
for the
Period
Earnings per
ordinary
Shares
Basic 0.053566p 0.037870p 0.079188
- Diluted 0.053555p 0.037862p 0.079171p
CHEERFUL SCOUT PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2006
Unaudited Unaudited Audited
31 December 2006 31 December 2005 30 June 2006
£ £ £
Fixed assets
Intangible assets 806,506 741,726 793,194
Tangible assets 100,017 174,549 129,678
906,523 916,275 922,872
Current assets
Stock 2,757 2,094 2,268
Debtors 443,530 379,287 615,914
Deposits and cash at bank
and in hand 1,020,866 852,030 885,559
1,467,153 1,233,411 1,503,741
Creditors:
Amounts falling due
within one year (204,151) (165,324) (361,621)
Net current assets 1,263,002 1,068,087 1,142,120
Total assets less current
liabilities 2,169,525 1,984,362 2,064,992
Capital & reserves
Share capital 1,225,000 1,225,000 1,225,000
Share premium - 3,360,169 -
Special Reserves 1,747,416 - 1,747,416
Profit & Loss acocunt (802,891) (2,600,807) (904,424)
Shareholders' funds 2,169,525 1,984,362 2,064,992
The accounts were approved by the board on 5 March 2007 and signed on its
behalf:-
P Litten N J Newman
Director Director
CHEERFUL SCOUT PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2006
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2006 2005 2006
£ £ £
Net cash inflow/(outflow)
from operating activities 179,994 133,615 231,209
Returns on investment and servicing of
finance
Interest received 15,546 16,667 30,104
Interest paid (8) - (42)
Net cash inflow for
returns on investments
and servicing of finance 15,538 16,667 30,062
Taxation -
Capital expenditure and financial
investment
Payments to acquire
intangible assets (49,308) - (66,052)
Payments to acquire
tangible assets (10,917) (20,009) (31,417)
Net cash outflow for
capital expenditure (60,225) (20,009) (97,469)
Net cash inflow/(outflow)
before management of
liquid resources and
financing 135,307 130,273 163,802
Increase in cash in the
year 135,307 130,273 163,802
CHEERFUL SCOUT PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2006
1 FINANCIAL INFORMATION
The interim results for the six months ended 31 December 2006 are un-audited and
do not constitute accounts within the meaning of section 240 of the Companies
Act 1985. They have been drawn up using accounting policies and presentation
consistent with those applied in the audited accounts for the year ended 30 June
2006. A copy of the 2006 Accounts have been filed with the Registrar of
Companies. The Auditors opinion on these Accounts was unqualified.
2 EARNINGS PER ORDINARY SHARES
Basic earnings per share are calculated using the weighted average of
195,147,826 (2005: 195,147,826) Ordinary Shares in issue during the period.
Diluted earnings per share are adjusted for warrants and share options granted
to employees where the exercise price is less than the price of the Company's
ordinary shares during the period. These adjustments give rise to an increase of
40,632 ordinary shares.
3 RESPONSIBILITY
The directors of the company accept responsibility for the information contained
in this document and to the best of their knowledge and belief (having taken all
reasonable care to ensure that such is the case) the information contained is in
accordance with the facts and does not omit anything to affect the import of
such information.
Copies of this report are available to the public at the registered office at 65
New Cavendish Street, London W1G 7LS.
4 DIVIDEND
No interim dividend is declared on the ordinary shares.
CHEERFUL SCOUT PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2006
Unaudited Unaudited Audited
6 months 6 months Year to
to to
31 December 31 December 30 June
2006 2005 2006
£ £ £
5 Reconciliation of operating profit/
(loss) to net cash inflow from operating
activities
Operating profit/(loss) 101,283 57,236 178,471
Depreciation of tangible assets 40,578 55,766 113,891
Amoritisation of intangible assets 35,996 59,255 71,993
Decrease/(Increase) in debtors 172,384 (83,341) (373,968)
(Increase)/decrease in creditors within (169,758) 45,582 241,879
one year
Decrease/(increase) in stock (489) (883) (1,057)
Net cash inflow/(outflow) from operating 179,994 133,615 231,209
activities
6 Analysis of net funds At 1 July Cash flow At 31
2006 December
2006
£ £ £
Net cash:
Cash at bank and in hand 158,916 108,736 267,652
Liquid resources:
Bank deposits 726,643 26,571 753,214
Net funds 885,559 135,307 1,020,866
Unaudited Unaudited Audited
6 months 6 months Year to
to to
31 December 31 December 30 June
2006 2005 2006
£ £ £
7 Reconciliation of net cash flow to
movement in net funds
Increase/(decrease) in cash in the 108,736 5,727 158,916
year
Cash (outflow)/inflow from movement in 26,571 124,546 4,886
liquid resources
Change in net funds resulting from cash 135,307 130,273 163,802
flows
Movement in net fund in the year 135,307 130,273 163,802
Opening net funds 885,559 721,757 721,757
Closing net funds 1,020,866 852,030 885,559
This information is provided by RNS
The company news service from the London Stock Exchange