Interim Results
OneMonday Group PLC
10 April 2002
Press Release Announcement
10th April 2002
OneMonday Group's Interim Results
(half year to 31st January 2002)
• Net revenue was £17.36 million in half year to 31st January 2002 compared
with £20.31 million in first half to 31st January 2001
• Pre exceptional PBT from continuing operations of £522k (2001: £1,216k)
• Net debt position of £1.071 million at 31st January 2002 in line with end
of year position and has been considerably reduced since end of half as cash
flow has strengthened
• IBM product pr contract was commenced successfully in fourteen countries
by Text 100. Recent new business wins include Sun Microsystems and Veritas
(Bite Communications), TotalFinaElf (AUGUST.ONE) and WH Smith Book Awards
and Umbro.com (Joe Public Relations).
• The Group has made a stronger start to the second half, benefiting from
reduced overheads, the elimination of loss-making subsidiaries and the
impact of major new business wins - Text 100's US business is performing
especially well.
• The Board is cautiously optimistic that the outcome for the full year will
be satisfactory and that once the tentative recovery in North America
becomes established and spreads to Europe and beyond, the Group will return
to organic revenue growth and improved profitability.
For further information, contact:
Tom Lewis, Chairman, OneMonday Group plc 07802 609661
David Dewhurst, Finance Director 020 8996 4154
Nick Denton, Hogarth Partnership 020 7357 9477
Chairman's Statement
I am pleased to report that OneMonday Group continues to experience a slow but
steady recovery from the depths of the IT industry slump that caused its
specialist PR operations such difficulties over the course of the calendar year
2001. The Group returned to profitability, in comparison with the loss in the
previous six month period.
In the six months to 31 January 2002, the Group performed slightly better than
expected, producing a profit before tax of £230k on turnover, which, at £19.45m
was down 16% on the comparative period of last year. When adjusted for
discontinued activities (£186k) and further restructuring costs in continuing
businesses (£106k), this profit before tax rises to £522k. While the profit
before tax compares unfavourably with the £1.15m recorded in the corresponding
period last year (prior to the impact of the technology slump), the improvement
in the Group's trading position becomes apparent when it is compared to the loss
before tax of £819k in the six months to 31 July 2001. Adjusted basic earnings
per share fell to 0.1p. The Board is not proposing to pay an interim dividend at
this stage, but will consider a final dividend at the time of finalising the
full year results in October.
The improvement in the Group's profitability is very much as predicted at the
time of the full-year figures in October 2001, and reconfirmed at the Group's
AGM in January of this year. The global market for the Group's services remains
depressed, though there are early signs of a recovery apparent in the US. Two of
the Group's subsidiaries are significantly outperforming their markets, Text 100
in the US and Bite Communications in the UK, while trading generally remains
patchy in Europe and depressed in Asia Pacific. This has led to some additional
reorganisation costs, including the closure of EVUS, a business serving the
needs of the emerging technologies market, and some further adjustments to
staffing levels. On the other hand, Bite Communications has opened its second
overseas operation, in Stockholm.
During the last six months, Text 100 commenced work for IBM in fourteen
countries around the world but in order to accommodate this it had to end its
relationship with a number of significant clients. Bite Communications continues
to perform well, playing an important part in the roll-out of Apple's new
product line in Europe, while also securing a number of new clients including
Sun Microsystems and Veritas. AUGUST.ONE has helped Microsoft achieve a
successful launch of its Windows XP operating system and made further progress
in extending its reach outside technology with several impressive wins that
include energy giant TotalFinaElf. Joe Public Relations has also continued to
develop its consumer PR business with wins that include WH Smith Book Awards
and Umbro.com. The strategies of AUGUST.ONE diversifying outside its core
technology business and Joe Public Relations focusing on the consumer sector are
enabling the Group to achieve some relief from the current difficult market
conditions in the technology sector.
As predicted at the AGM in January, the Group has made a stronger start to the
second half, benefiting from reduced overheads, the elimination of loss-making
subsidiaries and the impact of some major new business wins. The Board is
cautiously optimistic that the outcome for the full year will be satisfactory. I
am also pleased with the Group's net debt position which, at £1.1m was in line
with the previous year-end position. Since 31 January cash flow has continued to
improve and our net debt has been significantly reduced.
The technology slump has taken substantial capacity out of the PR industry,
particularly in North America where some quite significant technology PR
consultancies have been seriously weakened or ceased trading altogether. Given
the continued emphasis on organic growth, the Group remains free of any deferred
acquisition payments in cash or stock, and has the funding available to support
its recovery. Looking ahead, the Board believes that once the tentative recovery
in North America becomes established and spreads eastwards to Europe and beyond
the Group will return to organic revenue growth and improved profitability.
On 8th April 2002 our largest client, IBM, issued an earnings warning. Whilst we
have no reason to believe that this will affect our business, it seems prudent
to highlight this event, which could potentially add some uncertainty to our
outlook.
Tom Lewis, Chairman
ONEMONDAY GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 31 JANUARY 2002
Six Months ended Six Months ended Year ended
31 January 2002 31 January 2001 31 July 2001
(UNAUDITED) (UNAUDITED) (AUDITED)
£'000 £'000 £'000
Turnover (Note 2) - Continuing 19,373 22,596 43,933
Operations
- Discontinued Operations 78 502 859
19,451 23,098 44,792
Other external charges (2,090) (2,783) (5,215)
Net Revenue 17,361 20,315 39,577
Staff costs 11,523 12,739 25,102
Depreciation 861 735 1,681
Other operating charges:
Exceptional Reorganisation Costs(Note 3) 250 - 982
Other operating charges 4,378 5,603 11,290
(17,012) (19,077) (39,055)
Operating Profit - Continuing Operations 527 1,309 926
- Discontinued Operations (178) (71) (404)
349 1,238 522
Interest receivable and similar income 26 26 71
Interest payable and similar charges (145) (116) (264)
Profit on Ordinary Activities before
Taxation (Note 2) 230 1,148 329
Tax on profit on ordinary activities (356) (458) (294)
(Note 4)
(Loss)/Profit on Ordinary Activities (126) 690 35
after Taxation
Minority Interests (56) (34) (18)
(Loss)/Profit Attributable to Members of (182) 656 17
the Holding Company
Equity dividends paid and proposed (Note - (119) (122)
5)
Retained (Loss)/Profit for the Period (182) 537 (105)
Basic (Loss)/Earnings per Share (Note 6) (0.46)p 1.65p 0.042p
Diluted (Loss)/Earnings per Share (Note (0.46)p 1.51p 0.039p
6)
Adjusted Earnings per Share (Note 6) 0.1p 1.65p 1.795p
ONEMONDAY GROUP PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 JANUARY 2002
31 January 2002 31 July 2001 31 January 2001
(UNAUDITED) (AUDITED) (UNAUDITED)
£'000 £'000 £'000
FIXED ASSETS
Tangible assets 3,773 3,809 3,919
Investments (Note 7) 1,509 1,523 1,523
5,282 5,332 5,442
CURRENT ASSETS
Debtors 7,079 7,555 8,944
Cash at bank and in hand 1,760 2,450 1,574
8,839 10,005 10,518
CREDITORS - Amounts falling due within (5,346) (5,990) (7,411)
one year
NET CURRENT ASSETS 3,493 4,015 3,107
TOTAL ASSETS LESS 8,775 9,347 8,549
CURRENT LIABILITIES
CREDITORS - Amounts falling due after (2,482) (2,431) (1,299)
more than one year
Provisions for liabilities and charges (29) (448) -
NET ASSETS (Note 2) 6,264 6,468 7,250
EQUITY CAPITAL AND RESERVES
Called up share capital 1,121 1,121 1,121
Share premium account 2,711 2,711 2,711
Profit and loss account 2,302 2,562 3,306
TOTAL EQUITY SHAREHOLDERS' FUNDS 6,134 6,394 7,138
MINORITY INTERESTS 130 74 112
6,264 6,468 7,250
ONEMONDAY GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 JANUARY 2002
Six Months ended Six Months ended Year ended
31 January 2002 31 January 2001 31 July 2001
(UNAUDITED) (UNAUDITED) (AUDITED)
£'000 £'000 £'000
Net cash inflow from operating activities
(Note 8 (1)) 1,053 1,746 3,829
Returns on investments and servicing of
financing
Interest received 26 26 71
Interest paid (145) (116) (264)
Minority interest dividends paid (29) (12) (20)
Net cash outflow from returns on (148) (102) (213)
investments and servicing of finance
Net cash inflow/(outflow) from taxation
Corporation tax received/(paid) 99 (664) (1,416)
Capital expenditure and investing
activities
Long term deposits (54) (69) -
Payments to acquire tangible
fixed assets (936) (1,425) (2,387)
Proceeds from sale of own shares 4 - 20
Receipts from sales of tangible
fixed assets 66 54 172
Net cash outflow from capital expenditure
and investing activities (920) (1,440) (2,195)
Acquisitions and disposals
Purchase of minority interest - (48) (50)
Equity dividends paid - - (400)
Net cash inflow/(outflow) before 84 (508) (445)
financing
Financing
Medium term bank loan - 1,117 1,409
Net capital inflow/(outflow) on hire 211 (27) (10)
purchase contracts
Net cash inflow from financing 211 1,090 1,399
Increase in cash 295 582 954
for the period (Note 8 (2))
NOTES TO THE INTERIM ACCOUNTS
FOR THE SIX MONTHS ENDED 31 JANUARY 2002
1) FINANCIAL INFORMATION
The financial information is for the six months ended 31 January 2002 and is
neither audited nor reviewed as defined by APB Bulletin 1993/1 and 1998/6. The
financial information in this report does not constitute statutory financial
statements within the meaning of Section 240 of the Companies Act 1985 (as
amended). The results for the year ended 31 July 2001 have been extracted from
the financial statements of the Group on which an unqualified audit report has
been received which did not contain a statement under section 237 of the
Companies Act 1985 and which have been filed with the Registrar of Companies.
2) SEGMENTAL INFORMATION
Analysis of turnover, profit before taxation and net assets by geographic origin
and destination.
Turnover Profit before Net Assets
taxation
£'000 £'000 £'000
Six Months ended 31 January 2002
Continuing activities:
Europe, Middle East and Africa 11,074 455 4,328
North America 6,026 247 1,166
Asia Pacific 2,273 (284) (188)
Non-allocated assets - (2) 1,246
19,373 416 6,552
Discontinued Activities:
Europe, Middle East and Africa 71 (138) (54)
North America 7 (48) (234)
78 (186) (288)
19,451 230 6,264
Year ended 31 July 2001
Continuing activities:
Europe, Middle East and Africa 27,634 844 4,186
North America 11,725 (165) 1,503
Asia Pacific 4,574 59 117
Non-allocated assets - 18 1,249
43,933 756 7,055
Discontinued Activities:
Europe, Middle East and Africa 567 49 77
North America 292 (476) (664)
859 (427) (587)
44,792 329 6,468
Six Months ended 31 January 2001
Continuing activities:
Europe, Middle East and Africa 14,556 1,361 5,212
North America 5,884 (102) 1,085
Asia Pacific 2,156 (39) (21)
Non-allocated assets - (4) 1,227
22,596 1,216 7,503
Discontinued Activities:
Europe, Middle East and Africa 304 102 93
North America 198 (170) (346)
502 (68) (253)
23,098 1,148 7,250
The turnover relates to one class of business.
The directors consider these regions to be separate geographic markets and the
markets within which the Group operates.
3) EXCEPTIONAL REORGANISATION COSTS
The exceptional reorganisation costs relate to measures taken to restructure the
business in response to the difficult market conditions particularly impacting
the technology industry. This has principally involved redundancies at all
levels throughout the Group.
The discontinued operations relate to the closure or disposal of non-core
businesses. These were Futureworkplace.com Inc, based in Seattle, USA, and EVUS
Ltd, based in the UK. Futureworkplace.com Inc was formed in response to the
opportunities created by the world wide web and EVUS Ltd was involved with
selling marketing services to emerging technology companies. These businesses
were closed or disposed of as a result of difficult trading conditions in their
respective markets.
4) TAX ON PROFIT ON ORDINARY ACTIVITIES
The tax charge is higher than a standard UK rate as a result of profits being
generated in high tax regimes and unrelieved overseas losses.
5) DIVIDENDS
No interim dividend will be paid for the period (2001: 0.30p per ordinary
share).
6) EARNINGS PER SHARE
Earnings per share has been calculated, using a loss of £182k (2001 full year:
profit of £17k and 2001 interim: profit of £656k) and the weighted average
number of shares in issue of 40,038,457 (2001 year end: 39,855,390 and 2001
interim 39,767,126). There are no potentially dilutive ordinary shares at 31
January 2002 (2001 full year: 43,077,008 and 2001 interim: 43,584,159).
The adjusted earnings per share has been calculated by adding £222k of
exceptional reorganisation costs after tax to the loss attributable to members
of £182k in 2002 and at July 2001 by adding £699k of exceptional reorganisation
costs after tax to the profit attributable to members of £17k. There were no
adjustments to the profit attributable to members at 31 January 2001.
7) INVESTMENTS
This represents investment in own shares and is the cost of shares held by the
Company Employee Share Ownership Plan Trust (ESOP) in the Company. The market
value at 31 January 2002 was £2,182k (31 July 2001 was £2,217k and 31 January
2001 was £13,007k).
8) NOTES TO THE CASH FLOW STATEMENT
(1) Reconciliation of Operating Profit to net cash inflow from Operating
Activities.
Six Months ended Six Months ended Year ended
31 January 2002 31 January 2001 31 July 2001
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Operating profit 349 1,238 522
Depreciation 861 735 1,681
Profit on sale of own shares (4) - (20)
Loss on sale of tangible fixed assets 24 2 8
Decrease in debtors 172 201 1,731
Increase/(decrease) in creditors 56 (430) (541)
Decrease in investments 14 - -
(Decrease)/increase in provisions (419) - 448
Net cash inflow from operating activities 1,053 1,746 3,829
(2) Reconciliation of Net Cash Flow to movement in Net Debt.
Six Months ended Six Months ended Year ended
31 January 2002 31 January 2001 31 July 2001
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
(Decrease)/increase in cash at bank and (657) (233) 686
in hand in the period
Cash inflow from decrease in overdraft 952 815 268
Increase in cash for the period 295 582 954
Cash inflow from bank loan - (1,117) (1,409)
Net movement on finance leases (211) 50 10
Changes in net funds from cash flows 84 (485) (445)
Exchange movement (39) (2) (78)
Movement in net debt in the period 45 (487) (523)
Net debt at period beginning (1,116) (593) (593)
Net debt at period end (1,071) (1,080) (1,116)
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