Preliminary Results

Internet Music & Media PLC 28 June 2002 28th June, 2002 Internet Music & Media PLC ('IMM' or 'the Company') Preliminary results for the period ended 31st December, 2001 Chairman's Statement I am pleased to report on the results of IMM and its subsidiaries ('the Group') for year ended 31st December, 2001. Trading The results for the year ended 31st December, 2001, show an operating loss of £12.1 million which includes a non-cash exceptional goodwill write-off of £9.8 million and non-cash depreciation of £0.6 million.. In view of the trading losses incurred in the two years ended 31st December 2001 the Board has decided to take the prudent view of making the exceptional write-off of the goodwill attributable to the trading subsidiaries. The Group suffered a serious setback following the tragic events of 11th September, 2001. At that time, three-quarters of the Group's revenues were derived from sales processed from its United States operations in Seattle. The restrictions on air traffic and, in particular, the temporary cessation of the courier operations of Fedex and UPS, upon which the Group is dependent for product receipt from suppliers and delivery of orders to customers, resulted in a sudden and substantial fall in revenue. I am pleased to report that the Group has more than recovered the ground lost last year and that in the last eight months the Group has experienced significant consistent revenue growth, to the extent that current revenues are at record levels and double those of twelve months ago. The Group has now reached breakeven on a month-to-month basis and the Directors expect it to become cash positive in the second half of 2002. Fundraising In August 2001, IMM completed a placing and open offer which raised £1.85 million of new equity for the Company The Company is in the process of raising £250,000 of additional working capital by the issue of convertible loan stock at 5p per share. The Company has already received commitments totalling in excess of £110,000. A further announcement in respect of the fund raising will be made in due course. Record Label Both the number of releases and the calibre of artiste on the Groovetech Records record label are growing. Groovetech Records has now reached the point where the resources of a larger organisation are required to expand both production and distribution. Talks have been opened with a number of suitable music companies and I am confident, from the interest that has been shown, that the Groovetech will strike a label deal in the near future which will provide external funding for the expansion of the label. Outlook The Group has made significant progress since my last report. Revenues have more than doubled, overheads have been reduced and margins have increased. Your Directors are optimistic that these trends will continue with beneficial consequences for income, profits and cash-flow in the current year. Nicholas Cowan Chairman 28th June, 2002 Consolidated profit and loss account for the period ended 31st December, 2001 Notes 2001 2000 £ £ Turnover 1,260,153 294,242 Cost of sales (909,603) (227,572) -------- -------- Gross profit 350,550 66,670 Exceptional goodwill impairment (9,806,650) - Administrative expenses (2,661,383) (4,261,784) Other operating income 17,167 - -------- -------- Operating loss (12,100,316) (4,195,114) Other interest receivable and similar income 2,315 56,445 Interest payable and similar charges (59,200) (2,354) -------- -------- Loss on ordinary activities before taxation (12,157,201) (4,141,023) Tax on loss on ordinary activities - - -------- -------- Loss on ordinary activities after taxation (12,157,201) (4,141,023) ======== ======== Loss per share 1 Pence Pence Basic (46.91) (38.99) Diluted (46.60) (38.16) The profit and loss account has been prepared on the basis that all operations are continuing operations. Consolidated balance sheet at 31st December, 2001 2001 2000 £ £ Fixed assets Intangible assets - 14,177,813 Tangible assets 1,493,309 1,725,741 -------- -------- 1,493,309 15,903,554 -------- -------- Current assets Stocks 297,879 276,386 Debtors 132,213 72,665 Cash at bank and in hand 21,225 191,976 -------- -------- 451,317 541,027 Creditors: amounts falling due within one year (491,472) (834,257) -------- -------- Net current liabilities (40,155) (293,230) -------- -------- Total assets less current liabilities 1,453,154 15,610,324 Creditors: amounts falling due after more than one year (700,000) (572,302) -------- -------- 753,154 15,038,022 ======== ======== Capital and reserves Called up share capital 3,560,767 4,262,500 Share premium account 13,450,668 14,935,546 Profit and loss account (16,258,281) (4,160,024) -------- -------- Shareholders' funds - equity interest 753,154 15,038,022 ======== ======== Consolidated cash flow statement for the period ended 31st December, 2001 2001 2000 £ £ Net cash outflow from operating activities (2,181,743) (2,736,162) -------- -------- Returns on investments and servicing of finance Interest received 2,315 56,445 Interest paid (59,200) (2,354) -------- -------- Net cash inflow for returns on investments and (56,885) 54,091 servicing of finance -------- -------- Capital expenditure Payments to acquire tangible assets (279,097) (1,603,323) Receipts from sales of tangible assets 4,187 - -------- -------- Net cash outflow for capital expenditure (274,910) (1,603,323) -------- -------- Acquisitions and disposals Purchase of subsidiary undertakings (net of cash acquired) - 108,898 -------- -------- Net cash inflow for acquisitions and disposals - 108,898 -------- -------- Net cash outflow before management of liquid resources (2,513,538) (4,176,496) and financing -------- -------- Financing Issue of ordinary share capital 2,705,966 4,381,000 Cost of share issue (521,416) (584,952) -------- -------- Issue of shares 2,184,550 3,796,048 -------- -------- New long term bank loan 127,698 572,302 -------- -------- Increase in debt 127,698 572,302 -------- -------- Net cash inflow from financing 2,312,248 4,368,350 -------- -------- Increase in cash in the period (201,290) 191,854 ======== ======== Notes to the Consolidated Cash Flow Statement A. Reconciliation of operating loss to net cash outflow from operating activities 2001 2000 £ £ Operating loss (12,100,316) (4,195,114) Depreciation of tangible assets 556,615 101,675 Exceptional goodwill impairment 9,806,650 - Amortisation of intangible assets - 2,181,202 Profit on disposal of trading assets (241) - Increase in stocks (21,493) (137,556) Decrease in debtors (59,548) 199,026 Decrease in creditors (373,324) (866,392) Net effect of foreign exchange differences 9,914 (19,003) -------- -------- Net cash outflow from operating activities (2,181,743) (2,736,162) ======== ======== B. Analysis of net (debt)/funds 1st Other 31st January, non-cash December, 2001 Cash flow changes 2001 £ £ £ £ Net cash: Cash at bank and in hand 191,976 (170,751) - 21,225 Bank overdrafts (112) (30,539) - (30,651) -------- -------- -------- -------- Net debt 191,864 (201,290) - (9,426) Debt: Debts falling due after one year (572,032) (127,698) - (700,000) -------- -------- -------- -------- Net debt (380,438) (328,988) - (709,426) ======== ======== ======== ======== C. Reconciliation of net cash flow to movement in net debt 2001 2000 £ £ Increase in cash in the period (201,290) 188,167 Cash inflow from increase in debt (127,698) (572,302) -------- -------- Movement in net (debt)/funds in the period (328,988) (384,135) Opening net funds/(debt) (380,438) 3,697 -------- -------- Closing net debt (709,426) (380,438) ======== ======== Notes 1 Loss per share The calculation of the basic loss per share is based on the loss on ordinary activities after taxation of £12,157,201 and on 25,914,502 ordinary shares, being the weighted average number of shares in issue during the period. 2 Dividends The Directors are not proposing the payment of a dividend in respect of the period ended 31st December, 2001. 3 Tax on loss on Ordinary Activities. There is no tax charge arising due to losses for the period. 4 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 financial information for the period ended 31st December, 2001, is extracted from the Group's financial statements to that date which received an unqualified auditor's report and will be filed with the Registrar of Companies in due course. The accounts for the year ended 31st December, 2001, have not been delivered to the Registrar of Companies. The auditors' report refers to the disclosures made by the Directors regarding the ability of the Group to continue as a going concern, but their opinion will not be qualified in this respect. The financial information for the period ended 31st December, 2000, is extracted from the Group's full statutory accounts to that date, which received an unqualified auditors' report and have been filed with the Registrar of Companies. 5 Copies of the Report and Accounts will be sent to shareholders later today and are now available from the offices of John East & Partners Limited, Crystal Gate, 28-30 Worship Street, London, EC2A 2AH. Further enquiries Internet Music & Media PLC Tel: 07747 695083 Nicholas Cowan - Chairman Holborn Public Relations Tel: 020 7929 5599 David Bick John East & Partners Limited Tel: 020 7628 2200 David Worlidge / Simon Clements This information is provided by RNS The company news service from the London Stock Exchange

Companies

Immupharma (IMM)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today