Final Results
Access Intelligence PLC
24 February 2005
FOR RELEASE 7.00AM 24 February 2005
Access Intelligence plc
('Access Intelligence')
Provision of information and services on a subscription basis
PRELIMINARY RESULTS FOR THE PERIOD 13 JUNE 2003 TO
30 NOVEMBER 2004
2004
£000's
Turnover 543
Loss before tax and goodwill amortisation (259)
Loss before tax (381)
Loss per share (.016p)
Adjusted loss per share (.01p)
Dividend Nil
* Successful fundraising of £2.8m (net) in equity in December 2004
* Operating companies showing strong organic growth
* Potential acquisitions identified
* Solid platform for future growth
For further information:
Jeremy Hamer (Chairman) 01904 520840
Brendan Austin (Chief Executive) 01904 520840
Colin Davies (Finance Director) 01904 520840
Brian Coleman-Smith / Grace Marriner / Jo Clewlow 020 7398 3300
Beattie Financial
Background Note:
The group consists of subscription-based businesses:
The Marketing Guild
The Marketing Guild provides practical marketing help and advice aimed at small
and medium sized businesses. This is delivered through regular newsletters, a
help line and training seminars for which members pay a fee based on the level
of service they require. In addition, members have access through the helpline
to 'MAGiCTM', a database containing ideas and tactics, which offers strategies
to members. Many new members subscribe to the top level service which includes
regular consultancy, taking members through a structured marketing development
programme called Spectral Marketing TM.
Wired Gov
Wired Gov provides its subscribers with immediate press releases from the
government and other public sector organisations via its website and e-mail
alert system. Income is derived from subscriptions and sponsorship. Subscribers
to the service can specify from which organisations they wish to receive
information and using the systems advanced filtering techniques receive only the
information they want. An archive system is also available. Wired Gov has a
growing base of 10,000 plus registered users.
Backup and Running
Backup and Running provides small and medium sized organisations with on line
back-up and disaster recovery . The software is made available under a licence
from Novastor Corporation, an American company. The software allows users to
configure an operating system to specify which files are to be backed up and the
frequency of the routine. The specified information is encrypted then sent via
modem to a remote storage facility. The software has several facilities
including an archive facility which allows the user to retrieve all back ups
made over a five year period. Backup and Running has approximately 175
customers.
Strategy
The Group's strategy is to establish a portfolio of companies which provide
information, advice and services to small and medium sized businesses and other
communities on a subscription basis. The Directors believe that this model
provides high levels of repeat business with clear visibility of high quality
revenues, together with cross selling opportunities within the Group.
Access Intelligence plc
PRELIMINARY RESULTS FOR THE PERIOD 13 JUNE 2003 TO 30 NOVEMBER 2004
Chairman's Statement
I am pleased to announce the first set of results for Access Intelligence plc
for the 18-month period ending 30 November 2004. Our three operating
subsidiaries were acquired on 28 November 2003 and the results reflect a full
year's trading for the subsidiaries together with initial losses for the group
in the period prior to November 2003.
In the period turnover was £543,000 producing an operating loss before
amortisation of goodwill of £251,000 and a loss per share of .016p.
With the exception of The Marketing Guild the other subsidiaries are in the
early stages of development. Turnover in the month of November 2004 was £60,000
clearly demonstrating the upward growth potential of the companies. All
operating businesses produced a monthly profit by the end of the period, albeit
not enough to cover the central costs.
Over the past eighteen months the group has raised cash on three occasions. An
initial fundraising of approximately £750,000 gross in September 2003 thereby
setting up the cash shell. A second fundraising of approximately £200,000 gross
was completed in November 2003 to facilitate the reverse into Readymarket
Limited. In December 2004 the Group completed a further fundraising of £3m gross
to provide funds for further acquisitions and also to fund organic growth.
The capital base of your group has now been strengthened significantly and will
provide a solid platform for expansion. A proforma balance sheet incorporating
the impact of the recent fundraising is set out below:
As per accounts Adjustment Proforma
£000's £000's £000's
Fixed assets 2,516 - 2,516
Current assets 135 - 135
Cash 31 2,598 2,629
Creditors within one year (361) 112 (249)
Creditors after one year (142) 115 (27)
------- ----- ------
Net Assets 2,179 2,825 5,004
======= ===== ======
Share Capital and reserves 2,179 2,825 5,004
======= ===== ======
Note: The adjustment represents the amount raised net of costs in December 2004
less the repayment of £227,000 of bank loans.
Dividend
At this stage of the Group's development the board does not intend to declare a
dividend. As recurring revenues build from subscriptions the group should
produce strong cash flow and this should enable the group to pay dividends.
Strategy
The Strategy of the group is to establish a portfolio of companies, which
provide information, advice and services to small and medium sized businesses or
other 'communities' on a subscription basis. The ability to cross sell existing
services to an established customer base would be particularly attractive in any
potential acquisition.
The Marketing Guild
The Marketing Guild has significantly increased and improved the level of
service to its member base. Annual subscriptions have recently increased from
£474 to £1,800 for the top-level service, which includes regular consultancy
taking members through a structured marketing development programme called
Spectral Marketing TM. The key challenge is to migrate existing members to this
higher level service.
Wired Gov
Wired Gov has firmly established itself as the pre-eminent independent site to
access government and public sector press releases. The subscription paying
client base continues to expand and currently consists of leading professional
practices and finance sector companies in the UK. Many public sector employees
also receive bespoke feeds. As the registered user base increases, now in excess
of 10,000, we are attracting increasing levels of sponsorship income, which is a
highly attractive additional revenue stream.
Backup and Running
Backup and Running has significantly improved recurring revenues over the last
twelve months and is now producing an operating profit on a monthly basis.
Enhancements are continually being made to the software to improve customer
service. During the period we have recruited key personnel to generate further
growth in the coming year.
Acquisitions
We have identified a number of potential acquisition targets and discussions are
ongoing. Despite the need to build the Group quickly leveraging the cash raised
and our paper, we do not intend to overpay.
Board
I should like to thank Ian Savage, my predecessor as Chairman, who stepped down
just prior to the recent fundraising. His custodianship during the early days of
this Group has made a significant contribution. He remains a non-executive
Director, replacing Keith Salisbury who stepped down as a Director at the time
of the fundraising in December 2004.
Staff
Although still only a small team the staff at all levels have demonstrated an
enthusiasm and commitment to grow the business as quickly as possible This
statement would not be complete without expressing my warmest thanks, and those
of the Board, to the employees who have contributed to our first full year of
operations.
Outlook
We have continued to see growth in the first few months of our financial year
and are looking to increase personnel particularly on the sales side of the
businesses. We continue active discussions with potential acquisition targets
and would hope to be announcing some success in this regard in the near future.
Jeremy Hamer
Chairman
24 February 2005
Access Intelligence plc
Group Profit and Loss Account
For the period 13 June 2003 to 30 November 2004
Period ended
30 November
2004
(unaudited)
£'000
Turnover
Continuing operations
Acquisitions 543
------------
543
------------
LBITDA (212)
Depreciation (25)
Amortisation of development costs (14)
Amortisation of goodwill (122)
------------
Operating Loss
Continuing operations (291)
Acquisitions (82)
------------
(373)
Net interest (8)
------------
Loss on ordinary activities before taxation (381)
Taxation 41
------------
Loss on ordinary activities after taxation (340)
Dividends -
------------
Retained Loss (340)
------------
Basic earnings per share (.016p)
------------
Diluted earnings per share (.015p)
------------
Access Intelligence plc
Group Balance Sheet
30 November 2004
30 November
2004
(unaudited)
£'000
Fixed assets
Tangible assets 83
Intangible assets 2,433
-------------
2,516
-------------
Current assets
Stock 14
Debtors 121
Cash at bank and in hand 31
-------------
166
-------------
Creditors: amounts
falling due within one year (361)
-------------
Net current liabilities (195)
-------------
Total assets less current
liabilities 2,321
Creditors: falling due after
more than one year (142)
-------------
Net assets 2,179
-------------
Capital and reserves
Called up share capital 332
Share premium account 2,186
Profit and loss account (339)
-------------
2,179
-------------
Access Intelligence plc
Group Cash Flow Statement
For the period 13 June 2003 to 30 November 2004
Period ending
30 November
2004
Net cash outflow from operating activities (540)
-----------
Returns on investments and servicing finance
Net interest (8)
-----------
Net cash outflow from return on investments and servicing
of finance (8)
Taxation -
-----------
Capital expenditure and financial investment
Development expenditure (98)
Purchase of fixed assets (49)
-----------
Net cash outflow from capital expenditure and financial
investment (147)
-----------
Acquisition and disposals
Purchase of subsidiary undertakings (1,753)
-----------
Net cash outflow from acquisitions and disposals (1,753)
-----------
Equity dividends paid -
-----------
Financing
Issue of share capital (net of issue costs) 2,519
Repayment of term loans (82)
-----------
Net cash inflow from financing 2,437
-----------
Decrease in cash (11)
-----------
Access Intelligence plc
Group Cash Flow Statement
For the period 13 June 2003 to 30 November 2004
Period ending
30 November
2004
Reconciliation of operating loss to net cash outflow from
operating activities
Operating loss (373)
Depreciation 25
Amortisation of development costs 14
Amortisation of goodwill 122
Increase in stocks (14)
Increase in debtors (39)
Increase in creditors (275)
-----------
Net cash outflow from operating activities (540)
-----------
Acquisition Note
On 28 November 2003 the Group acquired the entire issued share capital of Access
Intelligence Limited a company incorporated in England and Wales whose name was
subsequently changed to Readymarket Limited. At the time of acquisition
Readymarket had three operating subsidiaries, The Marketing Guild Limited, Wired
Gov Limited and back up and Running plc. The activities of the businesses are
the provision of services and information on a subscription basis.
The fair value of assets and liabilities acquired on acquisition was as
follows:-
£'000
Tangible Fixed Assets 59
Intangible Fixed Assets 36
Debtors 41
Bank Loans and Overdraft (295)
Other Creditors (523)
-------
Net liabilities acquired (682)
Goodwill 2,435
-------
Consideration 1,753
=======
Comprising
15,800,000 ordinary shares @ 9.434p 1,491
191,177 Redeemable preference shares issued at £1 per share 191
Costs 71
-------
1,753
=======
The aggregated Profit and Loss accounts of the companies acquired for the year
ended 30 November 2003 are set out below:
Year ended 30
November 2003
£000's
Turnover 445
Operating Loss (180)
Net Interest (25)
Loss before Tax (205)
Notes
1. The preliminary financial results for the period ended 30 November 2004 were
approved by the directors on 23 February 2005.
2. The financial information set out above does not constitute the company's
statutory accounts for the period ended 30 November 2004. These will be
finalised on the basis of the financial information presented by the directors
in this preliminary announcement.
3. There were no recognised gains or losses other than the result for the
period.
4. Basic earnings per ordinary share is calculated on the basis of loss for the
period after tax, divided by the weighted average of ordinary shares in issue in
the period of 21,361,595.
5. The weighted average number of ordinary shares used in the calculation of
diluted earnings per share is 22,200,095. This has been adjusted for the effect
of potentially dilutive share options granted under the Company's share option
schemes.
6. The adjusted loss per share excludes goodwill amortisation.
7. The preliminary statement is available from the Company's registered office
at Regency House, Westminster place, York Business Park, York, YO26 6RW.
This information is provided by RNS
The company news service from the London Stock Exchange