Final Results

asSeenonScreen Holdings PLC 26 June 2002 AS SEEN ON SCREEN HOLDINGS PLC ('the Group' or 'ASOSH') Report and Financial Statements for the year ended 31st December 2001 Background asSeenonScreen Holdings PLC was incorporated in June 2000, and in September 2000 acquired the Group's two trading subsidiaries, asSeenonScreen.com Limited ('ASOS') and Entertainment Marketing UK Ltd ('EM'). ASOS is a fashion based Internet retailer and EM is an established product placement business. The Group's entire issued ordinary share capital was admitted to trading on the Alternative Investment Market ('AIM') of the London Stock Exchange on 3rd October 2001. The report and financial statements for the year ended 31st December 2001 represent the first full years trading of the Group. Key Points • Group Turnover - £1,702,388 (June - December 2000 - £335,097) • Profit / Loss Before Tax - (£1,114,265) (June - December 2000 - (£186,382)) • Successful placing of 1,125,000 placing shares at 20p each raising £225,000 on 3rd October 2001 • Successful acquisition of Brindle Ltd, a cash shell with net funds of £359,000 on 3rd October2001 • Admission of the Gorup's entire issued ordinary share capital to trading on the Alternative Investment Market ('AIM') of the London Stock Exchange on 3rd October 2001 CHIEF EXECUTIVE'S STATEMENT 2001 was the first full year for the Group and saw annual revenues of £1.7m against £0.34 for the 6 months ending December 2000. The full year loss of £1.1m compares to a half-year loss of £0.49m for the six months ending December 2000. I am pleased to report that Group revenues have continued to grow steeply. Our trading companies achieved profitability in May 2002, ahead of expectations, and we expect this to continue in June 2002 and for the remainder of the year. asSeenonScreen.com The majority of this growth is attributable to asSeenonScreen.com Limited, ('ASOS') the fashion based Internet retailer that launched in June 2000. The board have been pleased with the progress of this company throughout 2001 and to date in 2002. Costs have been tightly controlled and gross margin has improved significantly from 28% in 2000 to 39% in 2001. This have further increased to 45% plus in the period from 1 January 2002 to 31st May 2002 (un-audited). This is a result of improved supplier relationships, increased order volumes and exclusive Internet retail rights in the UK for certain key brands such as Playboy, Hooch and Bench. In a short space of time, ASOS has established a reputation for Internet fashion excellence, being nominated in the 2002 Retail Week awards for 'Best Newcomer' and in June 2002, it received a 'Highly Commended' certificate in the e-Trading category of the London e-Commerce awards 2002. Entertainment Marketing Entertainment Marketing, the traditional marketing services business, specialising in Product Placement, saw year on year revenues rise 9% to £576,000 in 2001. This is particularly pleasing given the current climate and specifically the downturn in advertising revenues. The loss of the British Airways account after the events of September 11th was off set by a number of new account wins including Red Bull and the Masterfoods and Pedigree Pet Foods accounts. Outlook The short-term goal of creating a profitable retail and marketing services group has been achieved and the Group is now poised to benefit from the efficiencies of the Internet retail model. The next phase is to build on the ASOS proposition of affordable star style amongst its core audience of 16-24 year olds, not just in the UK but selected English speaking territories. In addition, to broaden the product offering and increase margins still further. Initial advertising trials have provided a very healthy return on investment and an accelerated sales rate is anticipated on the back of a controlled advertising spend. The Internet continues to provide a very cost effective sales platform and there is no indication that the growth in on-line shoppers and on-line expenditure is set to slow in the short to medium term. That said, the Board are constantly reviewing additional sales channels for ASOS and a move to off-line stores and or television shopping is likely, either through organic growth or by acquisition in the short-medium term. With regard to Entertainment Marketing, the Board feels that further consolidation in the marketing services sector is likely and we are ideally positioned to take advantage of this via acquisition or merger. Despite the economic uncertainty, I am confident that 2002 will be a strong year for the Group, with significant revenue and margin gains. Nick Robertson Chief Executive Date: 26 June 2002 CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2001 31 December 2001 2 June 2000 to 31 December 2000 £ £ £ £ Turnover 1,702,388 335,097 Cost of sales (704,915) (141,698) ________ ________ Gross profit 997,473 193,399 Distribution costs (37,279) (19,220) Administration expenses (1,811,991) (592,353) Purchased goodwill amortisation (263,503) (64,434) _________ ________ (2,112,773) (676,007) __________ _________ OPERATING LOSS (1,115,300) (676,007) Other operating income 3,412 2 _________ ________ (1,111,888) (482,606) Interest payable (2,377) (3,776) _________ ________ LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (1,114,265) (486,382) Tax on profit on ordinary activities - - ________ ________ LOSS ON ORDINARY ACTIVITIES (1,114,265) (486,382) AFTER TAXATION ======== ======= EARNINGS PER SHARE Basic (2.6p) (1.7p) ======== ======= CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2001 2001 2000 £ £ £ £ Fixed assets Intangible assets 3,362,182 2,218,900 Tangible assets 99,427 122,451 _________ ________ 3,461,609 2,341,351 Current assets Stocks 165,842 87,524 Debtors falling due within one year 191,536 204,866 Debtors falling due after more than one year 54,094 81,141 Cash at bank and in hand 116,198 81,291 ________ ________ 527,670 454,822 Creditors: amounts falling due within one year (450,859) (387,555) ________ ________ NET CURRENT ASSETS 76,811 67,267 ________ ________ TOTAL ASSETS LESS CURRENT LIABILITIES 3,538,420 2,408,618 Loan stock - (1,895,000) ________ _________ 3,538,420 513,618 ======= ======== Capital and reserves Called up share capital 2,157,042 1,000,000 Share premium account 2,982,025 - Profit and loss account (1,600,647) (486,382) _________ _________ SHAREHOLDERS FUNDS 3,538,420 513,618 _________ _________ The accounts were approved by the Board of Directors on 26th June 2002 and signed on its behalf by: N Robertson Director J Morgan Director CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2001 31 December 2001 2 June 2000 to 31 December 2000 £ £ £ £ Net cash outflow from operating activities (811,028) (412,037) Returns on investments and servicing of finance Interest received 3,412 2 Interest paid (2,377) (3,776) _______ ________ Net cash outflow from returns on Investments and servicing of finance 1,035 (3,774) Investing activities Payments to acquire tangible fixed assets (26,430) (131,920) Purchase of subsidiary undertakings - (1,283,334) Cash acquired on the acquisition of subsidiary 359,698 - _______ ________ Net cash outflow from investing activities 333,268 (1,415,254) _______ ________ NET CASH OUTFLOW BEFORE FINANCING (476,725) (1,831,065) Financing Issue of loan stock 456,300 1,895,000 Net inflow from issue of ordinary shares 71,284 - _______ ________ Net cash (outflow)/inflow from financing 527,584 1,895,000 _______ ________ INCREASE IN CASH AND CASH EQUIVALENTS 50,859 63,935 ====== ======= RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT Increase in cash for the year 50,859 63,935 Cash inflow from increase in debt (456,300) (1,895,000) ________ _________ Change in net debt resulting from cashflows (405,441) (1,831,065) Ordinary share capital issued as settlement for debt 2,301,300 - ________ ________ Movement in net debt in year 1,895,859 (1,831,065) Net debt at 1 January (1,831,065) - _________ _________ Net debt at 31 December 64,794 (1,831,065) ======== ======== Notes: 1. Statutory accounts The financial information presented does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The results have been extracted from the accounts of the Group for the year ended 31 December 2001. The accounts, on which the auditors have issued an unqualified report, will be sent to shareholders and delivered to the Registrar of Companies in due course. 2. Earnings per ordinary share The calculation of basic earnings per share of -2.6p (2000: -1.7p) is based on a loss on ordinary activities after taxation of £1,137,712 (2000: Loss: £486,382) and the weighted average of 42,964,556 (2000: 28,571,429 restated) ordinary shares of 3.5p each in issue during the year. 3. Dividends The Directors are not proposing that a dividend payment be made. This information is provided by RNS The company news service from the London Stock Exchange

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