Interim Results

First Property Online PLC 28 November 2001 FIRST PROPERTY ONLINE PLC INTERIM RESULTS For the Six Months Ended 30th September, 2001 28th November, 2001 First Property Online plc ('fprop'), which provides technical and financial services to streamline property transactions, announces interim results for the six months ended 30th September, 2001. Corporate Highlights The acquisition of CPD in August 2001, creating one of the largest UK property databases The launch of bespoke loan quote and underwriting services in June 2001 The acquisition of Propertytrade in April 2001 Post period end: Over £100,000 of new contracts signed up Loans being organised for properties worth over £4.4m Strutt & Parker, a leading UK agent, chooses CPD as its commercial property search function Financial Highlights £90,000 revenue for the period, the vast majority of which was generated in the last two months of the period (Six months to 30th September, 2000: £nil) £287,000 loss before taxation and goodwill amortisation, in line with the business plan (Six months to 30th September, 2000: loss of £121,000) Ben Habib, Chief Executive, said: 'Through the acquisitions and product launches we have undertaken in the last six months, we have placed fprop as a market leader in our field. 'We are the only company to offer such a comprehensive range of property services. 'Since the period end, we have continued to escalate our revenue generation with considerable success.' For further information: Ben Habib / Jeremy Phillips Jeremy Carey / Marylene Guernier First Property Online plc Tavistock Communications Limited Tel: 020 7731 2844 Tel: 020 7600 2288 www.fprop.com UNAUDITED CONSOLIDATED INTERIM RESULTS for the six months ended 30th September, 2001 CHAIRMAN'S STATEMENT Results I am pleased to report that, as indicated in our annual results released in June 2001, the Group has moved positively towards revenue generation. Turnover for the period was £90,000 (£nil in the six months to 30th September, 2000). The vast majority of this income was generated in the last two months of the period. The Group made a loss on ordinary activities before taxation and goodwill amortisation of £287,000 (£121,000 in the six months to 30th September, 2000). The Directors are not declaring the payment of an interim dividend. Developments during the period On 31st August, 2001 we completed our acquisition of Commercial Property Database Ltd and CPD Ltd ('CPD'). Since then the businesses of these companies have been integrated with fprop and both operations are now based at our offices. This acquisition, together with that of Propertytrade in April 2001, have enabled the Group to offer a broad range of products, including property search, web design and hosting services, supported by one of the largest property databases in the UK. Our bespoke loan quote and underwriting services have also gone live, with early signs of success. Our balance sheets in future are likely to contain properties that we have acquired as a result of underwriting deals. The balance sheet at 30th September, 2001 contains two properties that we acquired in this way, which we will release back on to the market in due course. In the mean time they are currently yielding us an excellent weighted average return on capital in excess of 20%. Current trading and prospects The Group is trading in line with our expectations. We are pleased and encouraged by the rate at which revenue generation is increasing and, subject to market conditions, we would expect this growth to continue. We have had a number of significant successes since the period end, including: Two intranet and web design contracts collectively worth over £100,000, which will be earned over the next twelve months. Requests for loan quotes for properties with an aggregate value of over £ 27.5m; of these, loans are in the process of being organised for properties collectively worth over £4.4m. Confirmation that Strutt & Parker, one of the UK's leading agencies, has decided to use the CPD system as its commercial property search function for the firm's website. The outlook of the economic environment in the UK as a whole remains uncertain and our revenue growth rate may be impacted if the economy continues to weaken. However, as our interim results show, fprop is continuing to grow in operating and financial strength. In conclusion, I remain cautiously optimistic about the Group's prospects for the coming year. Alasdair Locke Chairman 21st November, 2001 CONSOLIDATED PROFIT & LOSS ACCOUNT for the six months ended 30th September, 2001 Six months to 30th September, Six months to 30th September, 2001 (unaudited) 2000 (unaudited) Notes Results Goodwill Total Results Goodwill Total before Amortisa- Results before Amortisa- Results Goodwill tion Goodwill tion Amortisa- Amortisa- tion tion £'000 £'000 £'000 £'000 £'000 £'000 Turnover - continuing 26 - 26 - - - operations - acquisitions 64 - 64 - - - Total 3 90 - 90 - - - turnover Cost of sales acquisitions (8) - (8) - - - Gross profit 82 - 82 - - - Net (440) (1,620) (2,060) (209) - (209) operating expenses Operating loss - continuing (317) (1,602) (1,919) (209) - (209) operations - acquisitions (41) (18) (59) - - - Total (358) (1,620) (1,978) (209) - (209) operating loss Net interest 71 - 71 88 - 88 receivable Loss on ordinary activities before taxation (287) (1,620) (1,907) (121) - (121) Taxation on loss on ordinary - - - - - - activities Loss on ordinary activities after taxation (287) (1,620) (1,907) (121) - (121) Loss per Ordinary 1p share - basic before goodwill amortisation 4 (0.33p) (0.30p) Loss per Ordinary 1p share - basic after goodwill amortisation 4 (2.22p) (0.30p) Year to 31st March, 2001 (audited) Notes Results Goodwill Total before Amortisation Results Goodwill Amortisation £'000 £'000 £'000 Turnover - Continuing operations - - - - acquisitions - - - Total turnover 3 - - - Cost of sales - acquisitions - - - Gross profit - - - Net operating expenses (547) (801) (1,348) Operating loss - continuing operations (547) (801) (1,348) - acquisitions - - - Total operating loss (547) (801) (1,348) Net interest receivable 184 - 184 Loss on ordinary activities before taxation (363) (801) (1,164) Taxation on loss on ordinary activities - - - Loss on ordinary activities after taxation (363) (801) (1,164) Loss per Ordinary 1p share - basic before goodwill amortisation 4 (0.68p) Loss per Ordinary 1p share - basic after goodwill amortisation 4 (2.18p) CONSOLIDATED BALANCE SHEET as at 30th September, 2001 Notes As at As at As at 30th Sept, 30th Sept, 31st March, 2001 2000 2001 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Fixed assets Intangible assets 4,334 - 5,607 Tangible assets 94 - 42 Investments 238 238 238 4,666 238 5,887 Current assets Stocks - land and buildings 1,107 - - Debtors 467 372 337 Cash at bank and in hand 2,064 3,387 2,604 3,638 3,759 2,941 Creditors: amounts falling due within one year (679) (339) (484) Net current assets 2,959 3,420 2,457 Total assets less current 7,625 3,658 8,344 liabilities Creditors: amounts falling due after more than one year (843) - - Net assets 6,782 3,658 8,344 Capital and reserves Called up share capital 6 910 423 850 Share premium 6 2,661 2,911 2,663 Other reserves 6 5,790 - 5,550 Shares to be issued 6 47 - - Profit and loss account 6 (2,626) 324 (719) Equity shareholders' funds 6,782 3,658 8,344 SUMMARISED CONSOLIDATED CASH FLOW STATEMENT for the six months ended 30th September, 2001 Notes Six months Six months Year to 30th Sept, to 30th Sept, to 31st March, 2001 2000 2001 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Net cash (outflow)/ inflow from operating activities 7 (1,430) (207) 111 Returns on investment and servicing of finance Net interest received 77 79 185 Net cash inflow from returns on investment and servicing of finance 77 79 185 Capital expenditure and financial investment Purchase of tangible fixed (9) - (15) assets Net cash outflow from capital expenditure and financial investment (9) - (15) Acquisitions and disposals Cash consideration on (20) - - acquisition Net cash inflow/ (outflow) from acquisitions 15 - (213) Net cash inflow from disposals of operations - 632 - Net cash (outflow)/ inflow from acquisitions and disposals (5) 632 (213) Cash (outflow)/ inflow before management of liquid resources and financing (1,367) 504 68 Management of liquid resources Decrease in short term 596 - 150 deposits Financing Loans advanced 831 - - Loans repaid (2) - (100) Issue of Ordinary share - 110 110 capital Issue cost of shares (2) - (247) Net cash inflow/ (outflow) from financing 1,423 110 (87) Increase/ (decrease) in cash 56 614 (19) in period RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS Notes Six months Six months Year to 30th Sept, to 30th Sept, to 31st March, 2001 2000 2001 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Increase/ (decrease) in 56 614 (19) cash in period Movement in short term (596) - (150) deposits Loans acquired with (15) - (100) subsidiaries Hire purchase contracts acquired with subsidiaries (13) - - Movement in loans (829) - 100 Movement in net funds in (1,397) 614 (169) period Net funds at beginning 2,604 2,773 2,773 of period Net funds at end of 1,207 3,387 2,604 period NOTES TO THE CONSOLIDATED RESULTS For the six months ended 30th September, 2001 1. The interim accounts have been prepared on a basis which is consistent with the accounting policies adopted for the year ended 31 March 2001. 2. On 31st August, 2001, the company acquired 100% of the issued share capital of CPD Limited and Commercial Property Database Limited. The total provisional fair value of the consideration was £373,000, the provisional fair value of the assets acquired was £46,000 and goodwill of £327,000 arose. In addition during the period the company acquired the business of Propertytrade plc for total consideration of £20,000 and goodwill of £ 20,000 arose on this acquisition. 3. Turnover consists entirely of revenue arising in the United Kingdom and relates solely to the Group's principal activity. 4. The basic loss per Ordinary Share is calculated on the loss on ordinary activities after taxation and on the weighted average of 85,979,916 Ordinary Shares in issue during the period (30th September, 2000: 41,011,168 and 31st March, 2001: 53,350,093). The adjusted earnings per share has been calculated on the loss on ordinary activities after taxation but before goodwill amortisation and based on the shares in issue during the period as detailed in the basic earnings per share calculation. 5. The company has no recognised gains or losses other than those disclosed in the profit and loss account. 6. Capital and Reserves Share Share Merger Shares to Profit and capital premium reserve be issued loss account £000 £000 £000 £000 £000 At 1 April 2001 850 2,663 5,550 - (719) Shares issued on acquisitions 60 - 240 47 - Share issue costs written off against share premium - (2) - - - Loss for the period - - - - (1,907) At 30 September 2001 910 2,661 5,790 47 (2,626) 7. Reconciliation of operating loss to net cash (outflow)/ inflow from operating activities Six months Six months Year to 30th Sept, to 30th Sept, to 31st March, 2001 2000 2001 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Operating loss (1,978) (209) (1,348) Depreciation 12 - 6 Amortisation 1,620 - 801 Movement in stocks (1,107) - - Movement in debtors (9) 9 692 Movement in creditors 32 (7) (40) Net cash (outflow)/ inflow from operating activities (1,430) (207) 111 8. The financial information contained in this interim report does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. This information has been neither audited nor reviewed within the meaning of APB Bulletin 1999/4 by the company's auditors. The financial statements for the year ended 31st March 2001, incorporating an unqualified report of the auditors, have been filed with the Registrar of Companies. 9. The Board of First Property Online plc approved these interim results on 21st November, 2001. The interim results are being circulated to all shareholders. Further copies can be obtained from the registered office at 17 Quayside Lodge, William Morris Way, London SW6 2UZ.

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